My Trading Plan/System (Beginner)

IFocus · 14 March 2009

roamin_oz said:
Thank you for your sarcasm... i think :

Yes i have been trading for 3 months. I usually trade $10,000 or $20,000 worth of stocks each time and sell out between 5-10%. As im not near a computer cause i work full time without access to a computer I put in a price I'm happy to sell out at and just let it go until that day comes and they are sold.

3 trades were AXA in Nov, AUN in Jan & ANZ in Feb. Currently i have 2 trades open that i have bought recently. MDT ($10,000) and TTS ($20,000). MDT is currently down 0.005 cents and TTS is currently down 18 cents. I'm still in search for then $20,000 i have spare. Tips anyone?

Saved by this rally, more than likely, hence the reason why i've only just come into share trading. It cant be too far off the bottom. I'm not here to make millions upon millions of dollars though i dream of it. But to me this is just another form of income thats more so a hobby at the moment.

Like I have said who cares if it takes 4-6+ weeks to make a profitable trade, in the end its not like you worked hard for it.

In the end though, $3,500 over a 3-4 month period is about 7% which I'm not complaining about. It's better than any bank is going to give me.

As a matter of urgency buy Nick Radges Book Adaptive Analysis discussion here

https://www.aussiestockforums.com/forums/showthread.php?t=2300

and study the bit about money management also Google Risk of Ruin for traders

nomore4s · 14 March 2009

roamin_oz said:
Like I have said who cares if it takes 4-6+ weeks to make a profitable trade, in the end its not like you worked hard for it.

In the end though, $3,500 over a 3-4 month period is about 7% which I'm not complaining about. It's better than any bank is going to give me.

roamin_oz I really think you should follow IFocus advice and read up on risk & money management.

You are playing a dangerous game imo, most of us have been where you are now and have suffered the consequences before improving our risk management.

If my back of the envelope calculations are correct you are currently down about $2,500 on your 2 open trades. MDT is in probably the worse performing sector and TTS lost over 3.5% on the day the XAO had its biggest rally in months - not a good sign. How long are you willing to hold these shares for? What happens if TTS heads back to $2.20? What happens if MDT lingers under 4c for a year?
While I think you will be lucky with these trades due to the market looking like having an extended rally over the next few weeks, you will eventually get burnt - probably the next time the market turns down. And I think you'll be surprised at how fast that $3,500 profit disappears.

nunthewiser · 14 March 2009

IFocus said:
As a matter of urgency buy Nick Radges Book Adaptive Analysis discussion here

https://www.aussiestockforums.com/forums/showthread.php?t=2300

and study the bit about money management also Google Risk of Ruin for traders

LOL thats the bit i dont understand about ASF .. all so helpful , all so wanting the next bloke to suceed and prosper and not get nailed by mr market .

the reality is tho we pray for sucka cash usually makes that money flow around and around . gotta have new cash in there to take it and prosper

kind of a weird situation really but its good that ppl here would rather help there fellow man but in all truth , without the easier cash entering our jobs would be harder

no offense intended as we all were new to the market once

prawn_86 · 14 March 2009

Interesting point Nun.

I dont think it really matter though, cause despite what most of us are told (MM, stops etc), we dont listen until we get burnt. We tend to think we are better than all the advice out there, and roamin_oz has a 99.99% chance of eventually losing money and then will realise "hey those guys were right".

Its human nature to not learn from others mistakes unfortunately

beerwm · 14 March 2009

heh,

as soon as i saw roamin_oz's post, i just knew these posts would start rolling in,

most important thing i think. is when you do get burnt roamin_oz, you realise it was your fault [ not the company, not the stockmarket ],

nothing wrong with making mistakesn unless you dont learn from them.

nun;

whats so wrong with getting people into the market,
its basically a ponzi scheme - so the more people in the market/ staying in the market the better.

nunthewiser · 14 March 2009

beerwm said:
heh,

as soon as i saw roamin_oz's post, i just knew these posts would start rolling in,

most important thing i think. is when you do get burnt roamin_oz, you realise it was your fault [ not the company, not the stockmarket ],

nothing wrong with making mistakesn unless you dont learn from them.

nun;

whats so wrong with getting people into the market,
its basically a ponzi scheme - so the more people in the market/ staying in the market the better.

um , you obviously havent read my post correctly, im all for new cash in the marketplace

So_Cynical · 14 March 2009

Hey roamin

U know u could make a lot more money using leverage. :cowboy:

Wysiwyg · 14 March 2009

nunthewiser said:
LOL thats the bit i dont understand about ASF .. all so helpful , all so wanting the next bloke to suceed and prosper and not get nailed by mr market .

the reality is tho we pray for sucka cash usually makes that money flow around and around . gotta have new cash in there to take it and prosper

kind of a weird situation really but its good that ppl here would rather help there fellow man but in all truth , without the easier cash entering our jobs would be harder

no offense intended as we all were new to the market once

Yeah I`m surprised such a display of ignorance is met by good advice.I wish I had that advice 4 years ago but as Prawn said "we dont listen until we get burnt".

beamstas · 14 March 2009

So_Cynical said:
Hey roamin

U know u could make a lot more money using leverage. :cowboy:

I really don't know whether to laugh or cry..

Seriously, don't give crap advice like this out on here. If he belives you and goes and buys shares using leverage and wipes his account how would you feel then? I can't believe someone would suggest to a person with no risk management at all to go and trade using leverage.

mazzatelli1000 · 14 March 2009

beamstas said:
I really don't know whether to laugh or cry..

Seriously, don't give crap advice like this out on here. If he belives you and goes and buys shares using leverage and wipes his account how would you feel then? I can't believe someone would suggest to a person with no risk management at all to go and trade using leverage.

I thought it was sarcasm

nunthewiser · 14 March 2009

beamstas said:
I really don't know whether to laugh or cry..

Seriously, don't give crap advice like this out on here. If he belives you and goes and buys shares using leverage and wipes his account how would you feel then? I can't believe someone would suggest to a person with no risk management at all to go and trade using leverage.

i think you missed the tounge in his cheek....... anyways it seems that the poster the post was directed too already an expert and already got it all happening she,ll be right

beamstas · 14 March 2009

Sarcasm is wasted on impressionable newbies with a substancial bank balance to wipe out..

I'd suggest being a bit more careful about giving financial advice.. The joke wouldn't be funny if you were liable for his losses..

So_Cynical · 14 March 2009

beamstas said:
I really don't know whether to laugh or cry..

Seriously, don't give crap advice like this out on here. If he belives you and goes and buys shares using leverage and wipes his account how would you feel then? I can't believe someone would suggest to a person with no risk management at all to go and trade using leverage.

LOL Joking....mazzatelli1000 got it

Laughs can be a little hard to come by on a financial forum.

nizar · 14 March 2009

So_Cynical said:
Hey roamin

U know u could make a lot more money using leverage. :cowboy:

Fukine GOLDEN!
LOL !!!!!!

tech/a · 15 March 2009

So_Cynical said:
Hey roamin

U know u could make a lot more money using leverage. :cowboy:

You'd better explain "Leverage".

IFocus · 16 March 2009

nunthewiser said:
LOL thats the bit i dont understand about ASF .. all so helpful , all so wanting the next bloke to suceed and prosper and not get nailed by mr market .

the reality is tho we pray for sucka cash usually makes that money flow around and around . gotta have new cash in there to take it and prosper

kind of a weird situation really but its good that ppl here would rather help there fellow man but in all truth , without the easier cash entering our jobs would be harder

no offense intended as we all were new to the market once

Nun you raise a interesting point

Fact is we never know who's on the other side of a trade or why they are. It doesn't matter as long as some one will take the other side then we are in traders heaven i.e. lots of liquidity.

There are a zillion reasons for market participants, people like you and me, funds of many sizes and descriptions, traders hedging for all sorts of reasons options, warrants, futures, shorting etc the list is endless.

New retail traders wash through the market every year its a bit like the tide coming going and for us it's not a concern if we help another trader find his mojo retail traders that succeed at this are really a very small number(I think).

Most cannot do the time or bear the pain of change in their thinking or behavior to succeed.

Helping another trader wont affect our own results our behavior is what controls that (with some luck)

Best thing I have ever done is to trade markets its expanded my mind to some where few can go and until you stop there is always uncertainty what more could we ask for........Oh money would help

pilbara · 19 March 2009

nomore4s said:
What happens if MDT lingers under 4c for a year?

in the BNB thread Banska Bystrica warned that you often see a final rally in these kind of shares due to the shorts covering (those who went short before the ban). I guess that's due to insider information where they know an announcement is imminent.

saiter · 31 May 2009

Hey guys,

Haven't been trading much as I'm trying to focus on uni but I'm hoping to get into it during the break. I haven't been using/updating the system much as it would just give me a load of tickers to purchase but I wouldn't have enough capital (perhaps my risk is too high...)

Anywho, I've been watching market depth and intraday stock movements for the past 3 months. I entered a trade (PLA @ $1.14) on Thursday after chasing the orders upwards, thinking that it was finally break out of its flag. It did end up breaking out, but I had chased a spike. Not to worry though, the main reason for entry was the breakout and the trade was still valid.
On Friday, PLA seemed to be trending upwards and I had decided to increase my parcel. Everything was going fine until I tried to lock in profits by moving my stop loss (was at $1.08, moved to $1.11) upwards and then I got kicked out by a downward spike to $1.11 at 12:05 PM.
I've got to say, it was ****ing fun (not losing the money but just "playing the game").

This made me rethink my risk management and I created an excel sheet to help me with this. It's meant to be a record sheet, but it also helps you figure out parcel size and what your capital will be at after X number of losses (it should be noted that this value is an OVER estimation and that you'll probably lose less as the maths isn't strictly correct). Hopefully it will help someone.

So the plan for now (for risk management) is to use wider stops with the same amount of risk. This will mean that it'll take longer for me to create a profit but it should prevent me getting kicked out due to spikes. Baby steps.

PS: The file is protected. To edit formulae, go to Review -> unprotect sheet.

My Trading Plan/System (Beginner)

IFocus

You are arguing with a Galah

nomore4s

Commonsense isn't that common

nunthewiser

prawn_86

Mod: Call me Dendrobranchiata

beerwm

nunthewiser

So_Cynical

The Contrarian Averager

Wysiwyg

Everyone wants money

beamstas

mazzatelli1000

nunthewiser

beamstas

So_Cynical

The Contrarian Averager

nizar

tech/a

No Ordinary Duck

IFocus

You are arguing with a Galah

pilbara

saiter

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My Trading Plan/System (Beginner)

You are arguing with a Galah

Commonsense isn't that common

Mod: Call me Dendrobranchiata

The Contrarian Averager

Everyone wants money

The Contrarian Averager

No Ordinary Duck

You are arguing with a Galah

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