trading-methods-plans

 

 

  1. A trading system with big wins and small losses is actually easier to be profitable with than a high winning percentage system. It allows the trader to capture a trend for big wins when the opportunity presents itself. Well positioned stop losses and the use of trailing stops can create an asymmetric  trading system that puts the odds of profitability in your favor.
  2. I like trading systems with limited screen time. I prefer to make trading decisions in the first and last hour of the trading day and not waste 7 hours glued to the screen.
  3. I prefer using a system with end of day signals than day trading. That frees up 35 hours a week for backtests, chart studies, and enjoying life.
  4. I like systems that trade above the noise and look at the bigger picture and long term trend.
  5. I prefer to trade off the daily chart than try to be trade every tick minute by minute intra-day.
  6. I prefer to trade price action than attempt to make sense out of the headlines or opinions of fundamental analysis.
  7. I prefer simplicity over complexity. I have been profitable over the years using only price action and moving averages to capture trends or the RSI to catch dips in up trends.
  8. I like to limit risk exposure with usually only a maximum of 3 discretionary trades at a time to limit the risk of big drawdowns.
  9. I do not have a portfolio of stocks I just have trades.
  10. My favorite signals are using moving averages to capture trends or oversold price levels near the 30 RSI.