Trading systems/methods guidance

[sharks]

Not sure just where the best place to post this is so am posting it here please let me know if you think there is a better place.

Ok so I have been studying trading and technical analysis for a year now ( I originally studied Daryl Guppy about 8 years ago but didn't do anything with the knowledge ) I completed the Guppy basic course on technical analysis.

I am confident in the basics of drawing trend lines etc. I am familiar with many of the indicators Guppy uses but I am struggling to put this all together into a useable method to trade.

Note I use Metastock V18.

I have based all my education to date on Guppy but he just does not get clear enough for me on the steps maybe I am asking too much. I was hoping for a series of steps exactly as below.

1/Stock Selection/Scanning
I was hoping from all the Guppy traing I would have by now a nice list of some explorer scans I could run (he rarely gives the Metastock code which is also a problem as being new writing code for an exploration or indicator isn't straight forward unless you are given exactly what you need to enter where.)
2/After eyeballing the charts to select stocks that may have opportunity you then have a reduced shortlist.
3/Then I was hoping to have a series of indicators you can apply to identify if any of the short-listed stocks appear to provide a trading opportunity.
4/You now have a list of stocks some of which may represent trading opportunities now or some that may be a wait and watch or as often may be the case nothing at all.. which is fine
5/When you have an identified trading opportunity identify the rules for the trade (entry exit rules , capital preservation etc)and set a buy order.

This would be something along with monitoring my portfolio I do on a daily basis.

As above I struggle with 1 and 3 and its the lack of these indicators and explorer formulas I guess which is holding me back.

I am at a loss what might be my next steps I am not stuck on Guppys methods and I dont want to start trading until I really feel confident in my process.

Is there a better system/process or some further education someone could point me too.

Many thanks in advance for all suggestions.

 

[qldfrog]

Please take a few litres of coffee and start reading the Dump it thread.you will get all the info required to build a system based trading approach.
Guppy is not a bad start btw

 

[DrBourse]

Not sure just where the best place to post this is so am posting it here please let me know if you think there is a better place.

Ok so I have been studying trading and technical analysis for a year now ( I originally studied Daryl Guppy about 8 years ago but didn't do anything with the knowledge ) I completed the Guppy basic course on technical analysis.

I am confident in the basics of drawing trend lines etc. I am familiar with many of the indicators Guppy uses but I am struggling to put this all together into a useable method to trade.

Note I use Metastock V18.

I have based all my education to date on Guppy but he just does not get clear enough for me on the steps maybe I am asking too much. I was hoping for a series of steps exactly as below.

1/Stock Selection/Scanning
I was hoping from all the Guppy traing I would have by now a nice list of some explorer scans I could run (he rarely gives the Metastock code which is also a problem as being new writing code for an exploration or indicator isn't straight forward unless you are given exactly what you need to enter where.)
2/After eyeballing the charts to select stocks that may have opportunity you then have a reduced shortlist.
3/Then I was hoping to have a series of indicators you can apply to identify if any of the short-listed stocks appear to provide a trading opportunity.
4/You now have a list of stocks some of which may represent trading opportunities now or some that may be a wait and watch or as often may be the case nothing at all.. which is fine
5/When you have an identified trading opportunity identify the rules for the trade (entry exit rules , capital preservation etc)and set a buy order.

This would be something along with monitoring my portfolio I do on a daily basis.

As above I struggle with 1 and 3 and its the lack of these indicators and explorer formulas I guess which is holding me back.

I am at a loss what might be my next steps I am not stuck on Guppys methods and I dont want to start trading until I really feel confident in my process.

Is there a better system/process or some further education someone could point me too.

Many thanks in advance for all suggestions.

Hi sharks,

Guppy & Bedford are a good starting point, and as qldfrog mentions, Skate’s “Dump It Here” forum is a ‘Must Read’.



IMHO Trading View https://www.tradingview.com/ is one of the best trading packages available today.



The following is some info on what books I used over the years.

BEST book on Day Trading is "The Stock Trader" by Tony OZ - ISBN 0 9679435 0 7….

BEST TA book is "Technical Analysis Explained" by Martin Pring - ISBN 0 07 112778 X….

2nd BEST TA book is “Technical Analysis from A to Z” by Steven.B.Achellis - ISBN 0 071 36348 3....

GOOD TA book is “Technical Analysis of Stock Trends” by Edwards & Magee…..

BASIC Charting book is "The Australian Investors Guide to Charting" by Regina MEANI - ISBN 0 947351 97 3…...

BEST Candlestick book is "Japanese Candlestick Charting Techniques" by Steve Nison - ISBN 0 7352 0181 1…...

BEST Advanced Candlestick Book is “Beyond Candlesticks” by Steve NISON - ISBN 0 471 720 X …...

BEST book on Fibonacci is "Fibonacci Applications and Strategies for Traders" by Robert Fischer…...….

BEST ASX/Stock Markets Dictionary is ”Understanding The Stock Exchange – The Essential Reference” by N.E.RENTON - ISBN 1 86350 242 4.

BASIC book on Candlesticks is by Louise Bedford called "The Secret to Candlestick Charting" - ISBN 1 876627 28 X..…. it is incorrect in several areas - read the paragraph at the top of page 31 in Bedfords book -The last sentence "For this reason etc" - a lot of her theories are suspect - its a beginners book - If you look at page 7, second paragraph where she says she follows Nison's writings but she occasionally changes them to suit herself, yeah right - bedfords interpretation of Multiple Doji's is in direct oposition to Nison's - Bedford says 2 or more Doji's lessens their importance - Japanese writings and teachings specifically point to Intensifying their influence as reversal signals – and there are numerous other instances where she deviates from the Japanese writings.

Louise Bedford & Daryl Guppy are great Traders - BUT - their books are the 'Comics' of this industry - everyone should begin by reading, and understanding everything they says, BUT then you need to follow that up by reading some of the more "In Depth" publications that are available - to read the Bedford & Guppy books, and then rely wholly & solely on them for your Trading Career would be a Grave Mistake IMHO.

As mentioned above, THE BEST Candlestick Book is "Japanese Candlestick Charting Techniques" by Steve Nison.



BOOKS on TRADING PSYCHOLOGY

Good Book on Trading Psychology is BY Livermore - The Psychology of Trading. ISBN:0-07-146979-6.



THE BEST BOOKS on FINANCIAL ANALYSIS are -

"The Intelligent Investor" by Benjamin Graham - ISBN 0 06 055566 1;

"Security Analysis" by Benjamin Graham & David.L.Dodd - ISBN 0 07144820 9;

"The Warren Buffett Way" by Robert.G.Hagstrom,Jnr - ISBN 0 471 17750 4...



GOOD and easy to understand FINANCIAL ANALYSIS books are -

"Getting Started in Fundamental Analysis" by Michael.C.Thomsett - ISBN 0 471 75446 3;

"Mastering Fundamental Analysis" by Michael.C.Thomsett - ISBN 1 876627 44 1;

"Analysing Company Accounts" by Martin Roth - ISBN 0 73140 114 X.



Finally, you may care to have a look at the 3 Beginners Lounge Forums I have set up –“DrB TA Help, DrB FA Help & DrB General Help” – you may pick up some ideas to get you started.



Keep reading and keep asking Questions, eventually it will all fit into place for you.



DrB

 

[sharks]

Th

Please take a few litres of coffee and start reading the Dump it thread.you will get all the info required to build a system based trading approach.
Guppy is not a bad start btw

Many thanks I will have a look now

 

[sharks]

Hi sharks,

Guppy & Bedford are a good starting point, and as qldfrog mentions, Skate’s “Dump It Here” forum is a ‘Must Read’.



IMHO Trading View https://www.tradingview.com/ is one of the best trading packages available today.



The following is some info on what books I used over the years.

BEST book on Day Trading is "The Stock Trader" by Tony OZ - ISBN 0 9679435 0 7….

BEST TA book is "Technical Analysis Explained" by Martin Pring - ISBN 0 07 112778 X….

2nd BEST TA book is “Technical Analysis from A to Z” by Steven.B.Achellis - ISBN 0 071 36348 3....

GOOD TA book is “Technical Analysis of Stock Trends” by Edwards & Magee…..

BASIC Charting book is "The Australian Investors Guide to Charting" by Regina MEANI - ISBN 0 947351 97 3…...

BEST Candlestick book is "Japanese Candlestick Charting Techniques" by Steve Nison - ISBN 0 7352 0181 1…...

BEST Advanced Candlestick Book is “Beyond Candlesticks” by Steve NISON - ISBN 0 471 720 X …...

BEST book on Fibonacci is "Fibonacci Applications and Strategies for Traders" by Robert Fischer…...….

BEST ASX/Stock Markets Dictionary is ”Understanding The Stock Exchange – The Essential Reference” by N.E.RENTON - ISBN 1 86350 242 4.

BASIC book on Candlesticks is by Louise Bedford called "The Secret to Candlestick Charting" - ISBN 1 876627 28 X..…. it is incorrect in several areas - read the paragraph at the top of page 31 in Bedfords book -The last sentence "For this reason etc" - a lot of her theories are suspect - its a beginners book - If you look at page 7, second paragraph where she says she follows Nison's writings but she occasionally changes them to suit herself, yeah right - bedfords interpretation of Multiple Doji's is in direct oposition to Nison's - Bedford says 2 or more Doji's lessens their importance - Japanese writings and teachings specifically point to Intensifying their influence as reversal signals – and there are numerous other instances where she deviates from the Japanese writings.

Louise Bedford & Daryl Guppy are great Traders - BUT - their books are the 'Comics' of this industry - everyone should begin by reading, and understanding everything they says, BUT then you need to follow that up by reading some of the more "In Depth" publications that are available - to read the Bedford & Guppy books, and then rely wholly & solely on them for your Trading Career would be a Grave Mistake IMHO.

As mentioned above, THE BEST Candlestick Book is "Japanese Candlestick Charting Techniques" by Steve Nison.



BOOKS on TRADING PSYCHOLOGY

Good Book on Trading Psychology is BY Livermore - The Psychology of Trading. ISBN:0-07-146979-6.



THE BEST BOOKS on FINANCIAL ANALYSIS are -

"The Intelligent Investor" by Benjamin Graham - ISBN 0 06 055566 1;

"Security Analysis" by Benjamin Graham & David.L.Dodd - ISBN 0 07144820 9;

"The Warren Buffett Way" by Robert.G.Hagstrom,Jnr - ISBN 0 471 17750 4...



GOOD and easy to understand FINANCIAL ANALYSIS books are -

"Getting Started in Fundamental Analysis" by Michael.C.Thomsett - ISBN 0 471 75446 3;

"Mastering Fundamental Analysis" by Michael.C.Thomsett - ISBN 1 876627 44 1;

"Analysing Company Accounts" by Martin Roth - ISBN 0 73140 114 X.



Finally, you may care to have a look at the 3 Beginners Lounge Forums I have set up –“DrB TA Help, DrB FA Help & DrB General Help” – you may pick up some ideas to get you started.



Keep reading and keep asking Questions, eventually it will all fit into place for you.



DrB

Many thanks for that , heaps of info there really appreciate it.

 

[peter2]

I'd recommend the Dump it Here thread as a good start also. If your current preferences are system trading then take notes when you come to @Skate's post about his systems and his processes. The information you seek is there but you have to decide which parts resonate with you. IMO skip the psycho babble posts as they won't mean much to you yet. It's only when we notice that things are not as easy as it should be that we need to understand what's holding us back. Then the psycho babble may start to make sense.

Guppy has given you a solid understanding of trends and a method for identifying them when they start. This is not a trading plan but only a starting strategy for your trading plan. Price trends aren't smooth, they pause, stop, reverse, restart. These formations provide the foundations that a systematic approach can use to get into these trends.

If you decide to trade trends then you'll need tactics to identify acceptable risk:reward setups. We want to enter a trend near the start, perhaps add soon after and then hang on while the trend persists and sell when the trend falters.

 

[qldfrog]

And remember exit is as important if not more than entry.good luck, do not play too much of your cash initially it is a long long process, you will do mistakes and the destiny..aka market booms and crashes may give you or take from you irrespective of your good work.
A great system starting with a crash and so draw down (DD)..covid crash for example rewuires nerves of steel

 

[tech/a]

Can’t comment on the Dump it thread
I don’t like the author’s condescending style so ignore. You may get some benefit
you could look at Un holy Grails By Nick Radge
anything Pete 2 has offered up in his numerous trading live threads.
Weinstein is Another Well followed Author.

Not an easy answer
You need to know what you don’t need to know
Before you’ll know what it is you need to know.

Solve that and you’ll find how simple it really is.

Techtrader I developed in Early 2003 is fully disclosed
in Radge’s Book and others.

Goodluck it’s worth the journey many don’t make 3 years!

 

[MovingAverage]

I don’t like the author’s condescending style

Said the pot

 

[tech/a]

The ignore function is an excellent resource
If I offend you or anyone or you think what I post is drivel feel free to use it .

 

[investtrader]

There are a million ways to trade, which is why it is overwhelming to start. The beginners cycle means you will probably spend a very long time trying to find this 'holy grail'. I did. The method is way less important than risk management and staying the course. Pick a method and stick at it. Sounds easy, right? It isn't. Read Peter2's threads where you can see how a professional trader goes about it. You won't see Peter using myriads of indicators or anything particularly complicated because you don't need that to succeed.
Adding to the above, I use Amibroker as you can test all of the crazy ideas out there and find if it works or not. You need to be convinced in your own mind why you are taking that next trade. There is absolutely heaps of stuff online to get started with coding.

 

[MovingAverage]

The ignore function is an excellent resource
If I offend you or anyone or you think what I post is drivel feel free to use it .

Don't get me wrong...I like your posts and find them interesting and have learnt a few things. Wasn't suggesting they're drivel--I just found it a little hypocritical that you of all folks would suggest the main contributor of the Dump thread is condescending. Anyway, we digress from the topic of this thread.

 

[sharks]

Many thanks for that , heaps of info there really appreciate it.

Hi sharks,

Guppy & Bedford are a good starting point, and as qldfrog mentions, Skate’s “Dump It Here” forum is a ‘Must Read’.



IMHO Trading View https://www.tradingview.com/ is one of the best trading packages available today.



The following is some info on what books I used over the years.

BEST book on Day Trading is "The Stock Trader" by Tony OZ - ISBN 0 9679435 0 7….

BEST TA book is "Technical Analysis Explained" by Martin Pring - ISBN 0 07 112778 X….

2nd BEST TA book is “Technical Analysis from A to Z” by Steven.B.Achellis - ISBN 0 071 36348 3....

GOOD TA book is “Technical Analysis of Stock Trends” by Edwards & Magee…..

BASIC Charting book is "The Australian Investors Guide to Charting" by Regina MEANI - ISBN 0 947351 97 3…...

BEST Candlestick book is "Japanese Candlestick Charting Techniques" by Steve Nison - ISBN 0 7352 0181 1…...

BEST Advanced Candlestick Book is “Beyond Candlesticks” by Steve NISON - ISBN 0 471 720 X …...

BEST book on Fibonacci is "Fibonacci Applications and Strategies for Traders" by Robert Fischer…...….

BEST ASX/Stock Markets Dictionary is ”Understanding The Stock Exchange – The Essential Reference” by N.E.RENTON - ISBN 1 86350 242 4.

BASIC book on Candlesticks is by Louise Bedford called "The Secret to Candlestick Charting" - ISBN 1 876627 28 X..…. it is incorrect in several areas - read the paragraph at the top of page 31 in Bedfords book -The last sentence "For this reason etc" - a lot of her theories are suspect - its a beginners book - If you look at page 7, second paragraph where she says she follows Nison's writings but she occasionally changes them to suit herself, yeah right - bedfords interpretation of Multiple Doji's is in direct oposition to Nison's - Bedford says 2 or more Doji's lessens their importance - Japanese writings and teachings specifically point to Intensifying their influence as reversal signals – and there are numerous other instances where she deviates from the Japanese writings.

Louise Bedford & Daryl Guppy are great Traders - BUT - their books are the 'Comics' of this industry - everyone should begin by reading, and understanding everything they says, BUT then you need to follow that up by reading some of the more "In Depth" publications that are available - to read the Bedford & Guppy books, and then rely wholly & solely on them for your Trading Career would be a Grave Mistake IMHO.

As mentioned above, THE BEST Candlestick Book is "Japanese Candlestick Charting Techniques" by Steve Nison.



BOOKS on TRADING PSYCHOLOGY

Good Book on Trading Psychology is BY Livermore - The Psychology of Trading. ISBN:0-07-146979-6.



THE BEST BOOKS on FINANCIAL ANALYSIS are -

"The Intelligent Investor" by Benjamin Graham - ISBN 0 06 055566 1;

"Security Analysis" by Benjamin Graham & David.L.Dodd - ISBN 0 07144820 9;

"The Warren Buffett Way" by Robert.G.Hagstrom,Jnr - ISBN 0 471 17750 4...



GOOD and easy to understand FINANCIAL ANALYSIS books are -

"Getting Started in Fundamental Analysis" by Michael.C.Thomsett - ISBN 0 471 75446 3;

"Mastering Fundamental Analysis" by Michael.C.Thomsett - ISBN 1 876627 44 1;

"Analysing Company Accounts" by Martin Roth - ISBN 0 73140 114 X.



Finally, you may care to have a look at the 3 Beginners Lounge Forums I have set up –“DrB TA Help, DrB FA Help & DrB General Help” – you may pick up some ideas to get you started.



Keep reading and keep asking Questions, eventually it will all fit into place for you.



DrB Just bought three of the books you suggested thanks again ?

There are a million ways to trade, which is why it is overwhelming to start. The beginners cycle means you will probably spend a very long time trying to find this 'holy grail'. I did. The method is way less important than risk management and staying the course. Pick a method and stick at it. Sounds easy, right? It isn't. Read Peter2's threads where you can see how a professional trader goes about it. You won't see Peter using myriads of indicators or anything particularly complicated because you don't need that to succeed.
Adding to the above, I use Amibroker as you can test all of the crazy ideas out there and find if it works or not. You need to be convinced in your own mind why you are taking that next trade. There is absolutely heaps of stuff online to get started with coding.

Thanks for those comments yes staying the course and persisting along with the risk management I am being VERY careful to not lose my capital before I even really begin. I know so many people that because of FOMO or just frustration dive in and lose the capital they had put aside and get disillusioned to boot..if it was easy everyone would be doing it...

 

[sharks]

And remember exit is as important if not more than entry.good luck, do not play too much of your cash initially it is a long long process, you will do mistakes and the destiny..aka market booms and crashes may give you or take from you irrespective of your good work.
A great system starting with a crash and so draw down (DD)..covid crash for example rewuires nerves of steel

Thanks again good comments

 

[rnr]

Note I use Metastock V18.

I have based all my education to date on Guppy but he just does not get clear enough for me on the steps maybe I am asking too much. I was hoping for a series of steps exactly as below.

1/Stock Selection/Scanning
I was hoping from all the Guppy traing I would have by now a nice list of some explorer scans I could run (he rarely gives the Metastock code which is also a problem as being new writing code for an exploration or indicator isn't straight forward unless you are given exactly what you need to enter where.)

Hi @sharks,

Just wondering whether you got the PM I sent you on May 6th re coding in MetaStock?

Cheers, Rob