|
PureBytes Links
Trading Reference Links
|
In a message dated 08/10/2000 5:47:10 PM Pacific Daylight Time,
ron@xxxxxxxxxx writes:
<< Guy, and all the other experienced users-
With all the discussion on the list of general trading principles from
experienced traders, I wondered if any of you might take a few minutes to
point a newer user of Metastock in the right direction. I'd like to be able
to build and program my own trading system and indicators; so don't worry, I
don't need you to reveal the workings of your secret systems. Just some
basics. Maybe you could share a few basic type indicators or systems.
Do most of your build your own indicators, or do you use the ones provided?
Much discussion has been had about buy and sell signals...but I have seen no
specifics. Guy, you talk about this a lot. Can you tell me what you are
using to generate these?
It took me my first 2 months just to get this program to stop crashing, and
now, I can use it to the extent of seeing very good charts and doing chart
pattern analysis with volume and some canned indicators like RSI. I look at
different time frames, use volume, etc. But I know I'm missing something
probably a lot of something, or a lot of somethings. Frankly, I'm lost.
Any help would be appreciated.
Sincerely=
Ron Scott
>>
Ron:
There are no shortcuts, and there are no secrets to trading
success...overnight success took me about four years of dedicated hard work
and sacrifice. For some it took less time and for some it took much longer.
One trader will tell you to use one indicator and another will tell you to
use two or three, and I would tell you to use no indicator as I believe that
price action is the best indicator and is superior to all other indicators.
However, most people don't want to take the time and really learn how to
interpret charts because they would have to think then wouldn't they? They
would rather have some indicator...let's say MACD tell them to buy and sell
when it crosses. 80% to 90% of traders lose and I bet most are using these
indicators in one way or another. One is using one time frame and one
another. One has the indicator set at a certain setting and one to another.
Who is right? The great traders of the past didn't have any of these
indicators (most of them at least). They just interpreted price action which
is the purest form of technical analysis. Some of the best traders today
that I know of use various charting forms rather than indicators. I suspect
you haven't studied many books, and if that is so you must get the basics
down. If you want to become a technician a good book to start with is
Technical Analysis of the Futures Markets by John J. Murphy. He also has one
for stocks if that's what you're into, but much of it should be the same as a
chart is a chart for the most part. I'll even trade the weather chart if
someone is willing to take the opposite side of my trade. Murphy also has a
work book to go with the textbook. Larry Williams has several good books
too, and he explains several of his old systems in them if you're interested
in that. I know you're probably thinking that all this is not much help to
you, but if you really want to learn to trade you have to study and find what
works best for you. You will never really learn to trade if you use someone
else's system. And most importantly pursue excellence and not just the
money. Once you gain mastery the money will come. Good luck. -Sonny-
|