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chris

Looking for Position Trading Strategy

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I currently have a full-time job as an engineer and would like to consider position trading on a longer time frame. I plan on using the daily charts mainly for my analysis. Does anyone know what type of trading strategy I should start studying?

 

I would appreciate any comments and advices. Thanks in advance.

 

Regards,

 

Chris

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I currently have a full-time job as an engineer and would like to consider position trading on a longer time frame. I plan on using the daily charts mainly for my analysis. Does anyone know what type of trading strategy I should start studying?

 

I would appreciate any comments and advices. Thanks in advance.

 

Regards,

 

Chris

 

I have one that you might be interested in but it's for stock market indices, not Forex. The rule is enter a long position whenever a stock market index closes at least 10% lower than the highest closing price in the previous 20 days and hold that position for 120 trading days.

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I have one that you might be interested in but it's for stock market indices, not Forex. The rule is enter a long position whenever a stock market index closes at least 10% lower than the highest closing price in the previous 20 days and hold that position for 120 trading days.

 

Hi Davidee

With what stop???

Regards

bobc

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I currently have a full-time job as an engineer and would like to consider position trading on a longer time frame. I plan on using the daily charts mainly for my analysis. Does anyone know what type of trading strategy I should start studying?

 

I would appreciate any comments and advices. Thanks in advance.

 

Regards,

 

Chris

 

All my charts are EOD only: http://www.traderslaboratory.com/forums/technical-analysis/10720-relative-strength-resources-glossary.html

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I currently have a full-time job as an engineer and would like to consider position trading on a longer time frame. I plan on using the daily charts mainly for my analysis. Does anyone know what type of trading strategy I should start studying?

 

I would appreciate any comments and advices. Thanks in advance.

 

Regards,

 

Chris

Hi Chris

Go and buy this book

Schwager on Futures by Jack Schwager (the same guy who wrote Market Wizards)

He teaches a simple longer term trading method ...... using the failed breakout of a flag / pennet

And there are 200 examples

regards

bobc

 

ps What have you been doing since you joined in 2006?

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I currently have a full-time job as an engineer and would like to consider position trading on a longer time frame. I plan on using the daily charts mainly for my analysis. Does anyone know what type of trading strategy I should start studying?

 

I would appreciate any comments and advices. Thanks in advance.

 

Regards,

 

Chris

 

Depends a lot on some specific factors:

 

1. Equities, futures, forex?

2. Amount of captial?

3. Risk tolerance?

 

If you have at least $100,000, you can look into some trendfollowing systems on futures/forex. Seemingly simplistic systems like MA crossovers can make a lot of money over time, if you are diversified and can handle drawdowns. If you have less capital, you can trade ETFs and/or forex (Oanda allows trade sizes as low as $1.)

 

Books that were helpful to me:

Market Wizards, by Jack Schwager

Trade your Way to Financial Freedom, by Van Tharp

Way of the Turtle, by Curtis Faith

 

These books should get you started.

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Hi Davidee

With what stop???

Regards

bobc

 

Well it looks like they removed the link so you can't read it...

 

There is no stop loss, and you should not use leverage either.

 

I believe trades need to be taken out manually in the even of a 1987 or 2008 'black swan' but other than that stop losses will degrade the performance of any trading system by typically getting you out at a worse price than you otherwise could have.

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I AM BACK.

 

been a while guys. sorry about that. family, non-trading obligations, etc. but we can get into that later.

 

the strategy depends on what you can trade (capital), time commitment and what you are comfortable with.

 

i personally have a long term ETF position (always in the market), a midterm stock position (25 stocks max), and a short term FX position.

 

Choose your poison and i will point you, not spoon feed you the way. The reason I say point, is everyone is different

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Forex position trading strategy is a simple technique to increase your position size without increasing your risk. This trading strategy is particularly effective with mini lots and with averaging into a position also it works equally efficiently for standard lots. More info can be found here: ezinearticles.com/?How-to-Start-Forex-Position-Trading&id=757117

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A trend following approach could work for you if you have sufficient capital. Successful trend following funds nowadays tend to be incredibly well diversified and have a far more sophisticated trading model than many would lead you to believe: if you've got that kind of cash then I would suggest that you might be better simply placing your capital with a trend following fund with a long track record of decent returns. A good place to start looking would be Micheal Covel's book on trend following.

 

Another option you could consider is 'swing trading' - operating in that vague and nebulous space between the cool-handed position traders and the hyper-active day traders. Swing traders typically make decisions from daily charts and put their orders in on the close. They often hold positions for less than a week. There are many strategies based around trading pullbacks in trends that can work well that you could investigate.

 

Your number one rule needs to be this though: decide clearly what your goal is and then find the best way to achieve it. If your goal is to make the best returns on your capital and placing your money with a fund seems the best way to do it, then don't be seduced by the 'glamour' of trading.

 

Hope that's helpful.

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