Stock Trading Systems

Welcome Back! photo credit: qisur Some of the best trading systems I’ve ever back tested are based on a very few indicators.  Too many indicators not only clutter stock charts, but they can create confusion and indecision. Here are a couple of ideas that may help.  Start with a simple price analysis technique.  Define your [...]

Part I of this trading indicators  post discussed the composition of the MACD and a common trading method, the MACD crossover.  Today’s post will offer a better trading system that incorporates the MACD.  This method can give stronger stock trading signals and remove some of the false ones. Using trading indicators by themselves is not [...]

Trading indicators are part of every technical traders arsenal.  Yet I’ve found that most traders and investors are discouraged with most indicator’s  performance.  I think the reason is because they are trying to use the indicator like everyone else. Stop and think, if the conventional application was profitable why do so many traders lose money? [...]

Forex trading signals are generated the same way that stock trading signals are created.  It’s a matter of creating a trading systems and testing it over a variety of markets to determine its worthiness. photo credit: bulliver The biggest difference between stock trading and forex trading is fundamental data.  The most successful forex traders not [...]

photo credit: Ivan Walsh A stock screener can save lots of time.  A basic stock screen will produce a list of those equities that meet basic criteria such as price and volume.  Try keeping a watchlist of such stocks and refresh it every couple of weeks to keep the stock list current. Use your basic [...]

photo credit: Symic When you have a market that trades like this one it’s time to dust off the stock trading systems cabinet,  pull out the oscillators, and forget moving averages and other trend following indicators. I like the Stochastics %K to trade a choppy market.  Try reducing the time periods from the standard 14 [...]

Included in the technical analysis of stocks should be a discussion of fractals.  My first initiation into the world of fractals occurred when reading Dr. Bill Williams, Trading Chaos. It’s difficult to describe the appearance of a price fractal.  Think of a bearish fractal as a triangle.  A bullish fractal is somewhat like an upside [...]

MarketClub is offering a free two week look into their system.  No credit card required and the offer cancels at the end of two weeks. They will be hosting a live webinar so you can ask questions and interact with other MarketClub users.  If you have  questions during the trial period the support team will [...]

photo credit: Photos8.com Charting software comes pre-loaded with a tremendous amount of technical analysis indicators.  It’s fun to sift through the indicator tab and plot the various indicators looking for the one that best finds tops and bottoms or new trends. For my style of trading staying as close to price is the best strategy.  [...]

Trend trading is my favorite style of trading.  Finding a new trend early in its development is one of the most profitable stock trading systems to use.  Alas, the market doesn’t always trend, it trades or moves sideways, too. Looking for a trend in a sideways market can be a challenge.  Here are a couple [...]