Ok guys, some people have asked me how they read what’s happening with the posts here! Right, the website is about my journey to make money via various methods.
However, for this page, I will just talk about trading. I trade 3 systems here currently and they are
S&P Emini day trading system
This system is the one that I am trying to trade every day after I get back from my 9 to 5 job. I am currently trading on a dummy account but with live data. There is no system as such and the quest is that I can become disciplined and actually make more winning trades than losing trades. Ok, what’s this in aid of.. except to make money ultimately?? Well, this is my training period.. I have joined a trading academy and if I succeed then they will will back me with company funds. The hardest thing is putting in the time, I try every evening after I get home.. this is usually 6.30 pm GMT but it means that I’ve already missed the morning session. Sometimes there is good movement from around 7.00pm but so far the going has been tough. The main trading strategies involve trading off main support/resistance lines and off moving average lines (mainly the 5 day EMA on the 4 mins).
The biggest problems are the fake outs which are very common. The solution of course is to have wider stops but this means of course you are putting your account under greater risk. The key is to be patient (which I’m not all the time… I must improve!) and to only be highly picky with the trades you take. Sometimes that means that you can sit through a whole session and not get anywhere but that’s the way the game goes, sometimes there will be no trades.
March 2008 updated
It’s been a little while since I’ve updated the above and I thought I would. I have gone live a few times now.. each time I lose too much I get put back to the simulator. I think I have gone live for the 4th time and each time it seems to be getting better. Anyway, the rules as I see it:
1. Overall trend I use the stochastics in the 15 mins. This gives and indication of whether I should be going short or long.
2. The 5 min charts stochastics at either end of the 80% and 20% line are very responsive.. much more so than MACD. Wait for a cross of the stochastics lines and a move above/below the lines. Then use the 1 min timeframe to gauge a save entry.. once again, use overbought/oversold stochastics to enter.
My entries seem to be quite good at times. However, where I am letting myself down is the exit points. I need to learn to ride a whole 5 min stochastic movement from top to bottom or bottom to top.
I also want to try and pick tops and bottoms.. this is rather dangerous and something which I must get out of doing. Bottom pickers get smelly fingers as the saying goes!
Patience patience patience! I need to wait for confirmation before entering or exitting. When I get home I find that I have missed a lot of action so I am dead keen to get in. It should not been like this.. I need to be patient and wait for the opportunity to present itself.
The safest entries are when the stochastics in all time frames correspond.. this is the ideal time to enter. Of course the short time frames are more responsive and could predict the market turns before the longer term charts signal the move.
S&P EOD trading system
I am also testing an EOD system for the S&P main index. The EOD means End of Day and this means that you place a trade at the end of the trading day. The S&P trading ends at 9pm GMT which when my signal then is taken to buy/sell or do nothing. This system is pretty new compared with the rest of the stuff that I am doing and is based on market forces apparently and Newtons Law. I really don’t have a clue but eager to work out how it works.. currently, it’s just a black box system. So far, I’ve been impressed with the system and the nicest thing is that you don’t need to watch the market like I have to with daytrading, you just put on the trade and leave it to run!
March 2008 update
Sorry, I haven’t been running with this for a while but it was working quite nicely.. I’ll need to feed in data over the time I’ve not used it to see how it would have performed
Forex trading system
There are two trading systems which I am running here. Firstly, I have a trading system based on something called the River which can be found here www.powertradingfx.com
Secondly, I have followed Simon Grinters work in the past and now that he is holding a course to learn his methods, I am seriously contemplating on going on it. He holds two types of courses, a seminar type where he presents and teaches in person to about 10 people in London, UK and also a webinar for those who can’t physically go and see him. To find out more and test his free trial, visit Rainbow Live Forex Trading
May 2008 update
Unfortunately the folks at PowerTradingFx no longer offer their free website/bullletin board to discuss ideas. If you visit the site now, then there is just a message to say that they accept investors. This is quite sad but I understand this.. those guys had put in a lot of energy educating the masses for free. Now that they have found something which works, they have set up their own fund to make money from it. Good for them I say, everyone else would do the same if successful.
Simon Grinter who runs Rainbow Live Forex Trading was running a free alerts service initially for trading the Forex markets. He was doing quite well with the trades.. however, now you have to pay to get access to his live trading room. He now has a seminar to teach you his techniques and I am thinking of going on this soon… will report back!
