Before I get back to some fundamentals on trading - now, YOU should get the fundamentals before the system, right! - and more specifically on Forex trading, I would like to explain my Day-Trading system. This is a system that I have traded for a very long time and I thought it was just about time to share it to whomever is interested in it. Then I will dedicate this blog to trading basics and to Forex trading, I promise. But let me get this out of my ... system :-).
Today I will make a few general statements about the system.
I call my system a "Momentum" system. This is not a Trademark - others have used this term.
Momentum: def.: “strength or force gained by motion or through the development of events” (Merriam-Webster Online Dictionary)
Now, a few notes:
- This is intended for people who already have some knowledge of stock markets, trading and technical tools.
- The system has been tested on more than 1000 trades. Average results are: 70% of success, 17 cents of profit per share w./ 7 cent stop losses.
- The system suggests very short time horizons – often no more than minutes. Therefore it may not suit all styles of trading nor all personalities.
- To each trader their own style (e.g. when and how much to scale out, how long to let the profits run, how big are stop losses …).
- The steps described in this document are quite straight forward. However, it requires practice to master the system.
- All indicators must be checked in prior to entering any position. If only one criterion is missing, you should stay out.
Next, I will get into more technical explanations.
Take care,
Mark
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