Where to enter?

[januson 10]

Hi there...

First of all I would like to say 'wauuww', this is a truly nice website and this is my first posting.

 

Here it goes...

 

Allow me to introduce myself, I'm from Denmark just in the progress of learning how to trade. I've alot to learn and a lot mistakes to do yet, but I've such a strong feeling that somehow I'll succeed in minor or major terms. I'm a fast learner :-)

Well... to get to the reason I write. I need a good advice!

 

Take for instance this chart: http://www.filebloggers.net/fls10min.jpg

 

I need advices for a good entry? And an explanation for your suggestion.

 

This is certainly a very volatile stock these days, but which aren't

[januson 10]

I guess this is the wrong forum for this sort of question, could anybody redirect me..

 

In advance thank you, I'm new please tell me.

[Soultrader 12]

Yep... not a good question to be asking where you need to buy. If you received a buy tip will you receive a sell tip? The thing about trading is that we need to be fully responsible for our losses and wins. I suggest you start learning how to trade studying price action and volume. What is your timeframe? What markets do you trade?

[brownsfan019 17]

Jan - as Soul said, in order to become a successful trader, you have to take ownership for your new business.

 

With that being said, allow me to give you a crash course on traditional Candlestick Trading. If you google 'Steve Nison' you will find some good information from him. I would suggest you get at least one candlestick trading book.

 

Here's a 3 minute analysis on your stock, all in hindsight of course.

 

1) Hammer / Spinning Top

2) Bullish harami

3) Hammer / Spinning Top

4) Doji

5) Hammer / Spinning Top

6) Bizarre Hanging Man

 

Now, if that has peaked your interest, go get some Steve Nison books and see what all this stuff means!

 

Good luck!

[januson 10]

Soultrader->

I trade the the OMX Nordic Market, just started out at the Copenhagen Stock Exchange. My timeframe could span from minut to minut or day to day, maybe longer depends on the trend (I've heard it should be my friend )

 

I've read alot about risk/ money management, very enlightning. I just bought Mastering the Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups (McGraw-Hill Trader's Edge)

by John Carter (Author)

 

I've also studied different indicators, for instance Ichimoku Kinko Hyo and so forth. I've bought WealthLab to do backtesting and studying.

 

All of this this does'nt actually make me a mastertrader, I believe the best way to learn is to be in the market and do the same mistakes over and over again with a little twist to the better side each time If you know...

 

Beside to be in the market is also to have good communication with people who actually are 'in the markets', making money and learn from them. I can read and read and do the 'try and error' over and over again, but if I don't get to know the correct path from the beginning it could it could turn out to be a very hard ride

 

But folks, You both have been very kind and brownsfan019 thank you for candle crashcourse.

The next time I'll be more specific in my questionline.

 

You both just pointed me in a wishfull direction.

 

Kind regards

Janus

[lrushing 10]

Janus

 

If your questions is how do "I build a strategy for entering a trade in this stock", then you have to focus on developing a clear set of rules and criteria (i.e., trading plan) that meets your trading style and satisfies your trading objectives (scalping, day trading, swing trading, ...) and has a high odds of returning a profit on a consistent basis.

 

You don't want to build that "strategy" based on only one set timeframe and market conditions until you have gained some experience with how your trades will perform.

[januson 10]

You don't want to build that "strategy" based on only one set timeframe and market conditions until you have gained some experience with how your trades will perform.

 

I'm confused now, are you telling me that a cannot build a strategy in only daytrading at a bullday?

I thought the whole idea of developing a rocksolid strategy should be a way of doing things under different circumstances ie. difference strategies in different scenarios?

[lrushing 10]

When you are developing an automated strategy, you’re building a set of conditions that are referred to as signals for market entries and exits. You then combined these conditions (trade entry, risk management and money management,) together to create a system. In addition, you can build filters to determine when the system should run vs. not run according to market conditions.

 

You then begin back testing your strategy you built on one timeframe to see how it has performed from a historical perspective. Some traders also run their newly developed strategies going forward in a test mode (but don't take the trades) to see how it performs in real-time (sort of like a prototype). This is referred to as test trading and then they eventually move the system to live trading.

 

So you want to have some experience with your system either in test mode and/or historical (back tested) to see if it has a positive expectancy. Traders who try to build a strategy that accommodates multiple market conditions (bullish, bearish, and neutral) have a difficult time integrating this with the conditions of the security! You have to ask yourself which is more important, the market conditions or the conditions of the security I am trading?

 

This is a tricky question. That's why some traders will voice an opinion of systems not working. You have to learn to build filters to assist the strategy on the security to address the market conditions separately.

 

For example, when the e-mini's (proxy for overall market) are all trending upward, and your strategy gives a signal to short, do you want your system to take that trade? You might say, probably not, since the odds are not as good and in your favor. It still might be a great trade, but are you trying to trade with the market or against it! Even if your back testing suggest otherwise, you have to determine is the trend your friend or trade against the trend.