Stock Trading Systems

If You’re New Here, Welcome! Learn One Of Our Techniques. Find Support And Resistance Zones In Advance. Knowledge Is Power And Money! Details Here. An outside day is a price bar that occurs frequently on a daily chart.  To be a true outside bar it must have a high higher than the previous bar and [...]

Successful trading systems take advantage of conflicting information.  That’s when you’re likely to make the most money, when no one else believes what you believe. “Buy when there’s blood in the streets.” –  Baron Rothschild Did your system flash buy signals here? I was trading full-time during those lows.  Doubt and skepticism was rampant when [...]

I was rummaging around my trading library the other day.  It’s full of books written by famous traders like Martin Pring, Joe DiNapoli, Larry Connors, and even J. Welles Wilder  I will often pick up some of these volumes and thumb through them looking for a little gem that I may have missed or not [...]

There are few one bar price patterns that bear watching or should be included in a trading system.  The exception are the key reversal bars.  They don’t happen too often, but can be reliable clues to a trend change. Lets first look at a key reversal bar up.  This is going to be a little [...]

Exits are likely the most important component of a trade. Get it wrong and you can lose a lot of money. My suggestion for exiting trades is to use trailing stops.  My method for setting trailing stops uses the ATR (Average True Range). ATR is a volatility indicator.  It doesn’t forecast the direction of price, [...]

The best possible entry will not make money.  It’s the exit that puts cash in the bank. Think of your trading system as a cooking project.  The goal is to prepare something tasty, i.e. profits. It wouldn’t be wise to put a pan on the stove and let it go unattended while the flame  provides [...]

photo credit: guiguis Here’s a quick point to ponder as you construct your stock trading system:  do you want to be right, or do you want to make money? The two questions are not necessarily opposed to each other.  But if you’ve traded for any length of time you know it’s not possible to be [...]

photo credit: makdune Have you wondered how some traders know when to get in just before the market takes off and then get out before it tumbles?  They’ve likely found something in the charts that gives them an edge. It takes many hours of chart study to find those little twitches and burps that may [...]

Don’t sink your life savings into this short term strategy, but do take a look and see how it rates among your short-term trading systems. This is my Channel Blaster method and it goes like this: Plot what ever kind of band or channel you prefer around price.  My choice are Donchian channels.  They’re nothing [...]

photo credit: ganesha.isis If you can answer that question then you have the foundation from which to build your trading system.  The obvious answer is, ” to make money”, but there is much more to ponder. What kind of trader are you?  Can you sit in front of the screen all day, or do you [...]