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PureBytes Links
Trading Reference Links
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Hello, John:
On 01-Mar-01, jmp23834@xxxx wrote:
> I am new to trading and new to Amibroker and thought it would be nice if
> some of the more seasoned users were to share some of the systems they
> had developed. I know some of you view your systems as proprietary and
> that's OK,
> but some of the basic systems could help the newcomers get up to speed. If
> this has already been done could someone tell me the site to goto to get the
> samples.
Using someone else's "system", without understand technical, trading, money
management styles & investing basics or knowing the basis of the research that
lead to the final creation of the system, could end up being suicidal to your
investment capital. In other words, if you don't understand or believe in the
what or why of what you are doing will more than likely lead you to make some
very costly mistakes.
The worst thing you can do when stating out is to "fly without a flight plan".
To invest safely and not irresponsibly, you must have enough investing
education to create a trustworthy plan which allows you to invest/trade with
reasonable expectations and assurances that you will not lose your seed
capital. Therefore, my best advice is to start reading as much as you can to
help formulate >your< plan that gives you rules that you can understand, trust
and impliment.
The most obvious place to find readily available information is in your
local library system and in monthlies, such as the well rounded "Technical
Analysis of Stocks & Commodities". Some web sites, such as The Motley Fool or
Equus, have a beginner's information series (check out the outside links on
the AmiBroker & my sites for these, and more). The Fool has a 9 part free
series going on right now that may help you decide how to pick good stocks.
Remember that if you start using a plan or trading system that you had no hand
in developing, you will probably never understand what to do when something
does go "wrong". You will be unprepared, you will panic, and that's when it
costs you (not the author of the system!) the big money.
Once you do have a plan (your philosophy and discipline - your rules) on
paper, you KNOW how to find companies that interest you (for example, buying
only companies that have high cash flow and low debt), you know how to do
rudimentary sector analysis, when & how to start buying (buy all shares NOW,
buy over time, what timing indicator(s) to combine), how many stocks to hold
(say, between 5-20) and when to rebalance (yea!), reduce (uh, oh!) or unload
(oops!) your holdings. There will always be time later to experiment with new
ideas (and phoney money), just don't make experimentation your plan.
It may take you years to get to the point where you are completely comfortable
with your plan, but you have the opportunity to modify as you learn, as well.
The primary points, here, are to have the framework of knowledge that lets you
make careful, unemotional decisions. It is crutial that you never break your
rules - only revise them once you are satisfied that they have been proved
wrong. Having a strong plan leaves you the freedom to have fun in the markets,
too. How many people are having fun today? ;^)
"But this will take too long!", you say. "Making lots of money is /fun/!"
I hear you, but then I have to ask you to consider the alternative.
--
---===///||| Donald Dalley |||\\\===---
The World of AmiBroker Support
http://webhome.idirect.com/~ddalley
UIN/ICQ#: 65203020
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