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Steve-
Well, Alligator is emphatically another example of how there is more than
one way to accomplish a task. And it's so colorful and flashy!
However, since there seems to be many relatively new investors out there,
allow me to presume to give some advice. I don't know how to program, but I
have learned a thing or two about how to invest.
One of the criticisms I have seen of Williams' system is that although he
professes to love the simple approach, his system is needlessly
complicated. Someone wrote, "Balance lines, awesome oscillators and
fractals are just moving averages, MACD and chart breakouts in disguise."
But this is all beside the point.
Technical indicators and elaborate software will not spare you losing
money. YOU MUST HAVE A SYSTEM OF DAMAGE CONTROL- or risk management as it
is better known. I traded for many, many years before I started using stop
losses, for example. Now, the minute I get a fill on a position, I enter a
stop loss so that there is no way I'm going to enter at 10, clap my hands
in glee when the stock goes to 20, begin to worry when it drops back to 12,
and end up praying it will somehow recover when it is at 6 and I'm still
holding it!
Get a copy of Elder's book, Trading for a Living, by Dr. Alexander Elder.
Believe me, his system will make you money- as will so many other
approaches to the market. But his system for managing risk is much more
valuable than any other I have seen. It will keep you from regretting you
ever decided to invest in the markets.
And let me thank you again, Steve, (and the rest of you programmers), for
sharing what you learned about Williams- and the AFL's you and others have
written- with the rest of us. I know my own trading position has been made
stronger by being exposed to what you know and what you shared with us!
Nate Berger
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