Stock Trading Systems

Welcome Back! 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 [...]

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 [...]

Price is the primary focus of my stock trading system because it’s the purist representation of supply and demand.  It’s handy to compare where price has been in relation to where it currently resides.  That’s basically what an oscillator does. An oscillator moves in waves.  Many traders watch an oscillator at pre-defined levels calling those [...]

photo credit: {Guerrilla Futures | Jason Tester} There are several stock trading systems that trade news announcements.  Trading news is difficult.  There is a pitfall and a temptation — trying to judge the implication of the news versus the reaction of the stock price. Have you noticed that what should be good news is considered [...]

The title of the post may seem counter intuitive because all of our lives we’ve been rewarded for being first.  First across the finish line and being number one in our class are superb achievements.  Yet in trading, first is not always best. Here’s a guideline for trading — sell the second high and buy [...]

Going from up to down takes time — it’s a process, not an event.  The transition from an up trend to a down trend doesn’t happen like this – It happens like this – Transitioning from a down trend to an up trend, not like this – But like this – Here’s a trading tip [...]

photo credit: TheTruthAbout… The market is populated with amateur and professional traders.  The first hour is dominated by the amateurs.  When creating your stock trading system think about this –as a rule of thumb, avoid placing trades within the first hour of trading, here’s why. Market makers are waiting to eat amateurs for breakfast.  A [...]

We’ve all heard that a profitable stock trading system has rules and those rules are followed without question.  That usually means risking a certain amount of capital, or cutting losses when XYZ happens. I’m going to reveal to you an entire set of rules that you don’t even realize exist.  They may be little thought [...]

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 [...]