Hello, what should I be doing to help me develop/find a trading strategy? What did you do to develop a trading strategy? For my specific situation I intend to do day trading of stocks on the ASX.
For eg, should I be doing stuff like:
- Find yesterdays most volatile stocks and view their 5min candlesticks. Try to find patterns that are occurring so you can detect these for future stocks.
- Use some specific software to perform back-testing (what software should I use?)
Could anyone share some practical advice on what to do here as I'm lost.
Good evening
@sazr
Hoping you are getting your head around day trading. A most self-satisfying and rewarding trading construct which takes years/decades to attempt to master ... and even then .... but certainly is not insurmountable or for the faint hearted, for that matter.
what should I be doing to help me develop/find a trading strategy? What did you do to develop a trading strategy? For my specific situation I intend to do day trading of stocks on the ASX.
Great questions, in response and only according to rcw1, take it or leave it:
You must enjoy Day Trading and the challenges that will surely await you;
Acquire the virtue of patients;
Always be honest with yourself;
Always conduct your own due diligence;
Research, research and research again....
;
Have the time to day trade;
Do not use your hard earned to trade until you know what the puck you are doing;
Always watch, look, interpret and understand the dynamics;
Work out what to buy, when to buy;
Work out when to sell;
Do not feel obligated to effect trades every day only when the opportunity presents with current knowledge level;
Only dummy trade;
no cash and see how you go first for a long time then buy stocks using small amounts of money;
Gain confidence knowledge;
Do not be gullible and believe everything you read, view or get told;
Believe nothing, trust noone, until you are happy it meets your requisite benchmark of evidence;
Make sure that you are always the one that makes the decision what to trade;
Do not be influenced by anybody;
Don't do much talking, just learn and always ask the question if you don't know but attempt to firstly find out by your own research - a very good habit to get into;
At some stage you will puck up, lets be clear on this, accept it and move on, don't dwell learn from your mistakes and don't do it again. As aforementioned, use small amounts of money until you get you head across things;
Read these books:
The Stock Trader by Tony Oz - How to make money trading stocks; and
Japanese Candlestick Charting Techniques by Steve Nison
Check out the forum - find threads to read and learn. There are plenty of them.
When you done all of this, get back to rcw1 but don't use big words otherwise rcw1 will get confused ha ha ha ha ha just jokes... All the very best, take your time and make money.
Kind regards
rcw1
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