Here we are. You know the basics of my system. A key element I have not discussed here yet is P-S-Y-C-H-O-L-O-G-Y. Yes, it is that important - trading is at least as much about the system as it is about Psychology. Keep that in mind!
Back to my system for a bit. Here are some complements.
In my system, the following tools are not indispensable, like the previous ones are. However, it is better to have them checked in in order to increase your odds of success.
Stochastics (STO) (%D=3)
This tool indicates whether a stock is over-bought or over-sold.
How to use it?
STO over 80 indicates an over-bought stock. If however, a MACD “Cross-over” takes place when STO>80, it is a Buy signal.
Conversely, if a MACD “Cross-over” takes place when STO<20, it is a Sell signal. NB: Trading literature will claim that when a stock is over-bought, it is time to sell. That makes sense except that we are dealing with very short-term horizons. In those cases, STO is a momentum indicator. You take advantage of the stock’s speed, even if possibly for only a very short time.
Volume
A peaking volume confirms the strength of a (forthcoming) move.
No near “contradictory” longer-term Support or Resistance
It is safer to check whether a longer-term (than the one used for a potential breakout) S or R is near that might significantly limit the potential reward of the trade as the price may stop at the longer-term S or R.
(Stock) News
News in general, and more specifically stock news do have incidence on price moves. It is therefore always a good idea to keep a News window in constant check.
I will be back very soon. If you want the pics I have posted here - only clearer ones - please email me and my assistant will send them to you. Regarding the emails I receive every day: please be patient. I am doing my best to reply to everyone but, depending on my schedule, it may take a little while - or, I may not be able to answer all emails. Again, doing my best. Thanks for your understanding.
Before I write about the mental aspects of trading, I will resume the reviews of the best Forex Robots soon. Lots of 'bots out there, only a few that are worth it - #1 being the amazing Forex Auto-Pilot Turbo.
Good trading,
Mark
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