Stock Market Strategies and Techniques
Post on: 16 Март, 2015 No Comment
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Stock Market Strategies and Techniques
On this page is a list of stock market strategies and techniques other than my own, that other traders have said they’ve used successfully or that I’ve read about over the years. I have never traded them and have no idea how well they work.
I thought I’d include some other methods in this site other than my own stock market strategies, for the purpose of getting beginners to think for themselves and consider different trading ideas.
It doesn’t really matter whether the following methods work well or not. The whole idea is for you to consider different ways to create trading strategies and to understand that there are many ways to approach the market.
In other words, think of this page as sort of a stock market strategies and techniques ‘ideas page’. By the way, feel free to share ideas or strategies with visitors, if you’d like to, at the bottom of this page.
My day trading strategies. which are mostly different variations of breakout trading and price action trading are only a few ways to extract money from the markets. There are many different ways traders can make a living from the markets.
Learn to think independently, objectively and originally. Don’t accept as fact anything anyone tells you, including me. Do your own homework — do plenty of impartial, unbiased, analysis, before risking your money.
While at the same time, try be open-minded to new ideas. Take pieces or ideas from my own strategies if you like, take a look at the methods below, learn other methods, and while you are considering how to put everything together, don’t lose sight of the overall purpose of putting together complete day trading systems (entry, stop, exit & position size), as well as the goal of achieving positive expectancy with those systems.
One thing that most beginners try to do is concentrate on one, and only one system to trade. All stock market strategies are going to go through miserable losing streaks. It happens to every one of them. It’s called a drawdown. Your largest drawdowns are going to come about through either your longest losing streaks or multiple groups of losing streaks.
Why bring this up? Well, if you have several decent stock market strategies to trade, it’s possible that when one or two is going through a bad drawdown and losing money, others could possibly be picking up the slack and at least bring your account to near breakeven or maybe even a profit for the day or week. Having more than one strategy can have the effect of smoothing out your equity curve.
Sure there will be times when your best method(s) will be producing really well, and you’ll say to yourself Maybe I should just trade this one strategy since it’s really hot and these other ones are just holding me back with small losses right now. I can assure you that if you’re working with systems that have a long term positive expectancy, it’s only a matter of time before the hot system hits a drawdown and the losing systems have their day in the sun. There’s just no way of knowing in advance which one is going to perform well. I never knew and neither will you.
However, I should make one thing clear in addition to the above. If you are a novice that has never placed a trade before, obviously the best way to learn in the beginning is to only trade one strategy. Anything more than that is going to be overwhelming, until you get to know your trading platform inside and out and used to what’s going on.
After getting used to trading one stock market technique, then start thinking about diversifying and using several methods. You’ll not only find that it can smooth out your equity curve, but it can also smooth out your mood during the trading week as well.
This part of the website might expand. I added a section below where visitors can contribute ideas, methods or strategies along with charts, so if interested, you might what to check back here occasionally to see if there’s anything new.
Click on the chart or link below to get an explanation of each strategy: