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Bob has layed out a very good plan, you should read it
carefully and save your money on trading systems.
John
I don't have a lot of time to waste on this
issue. However, you are so
far away from the truth you couldn't see it with
telescope.
You need to get an education on trading. Here it is.
1. Indicators are only so so. Most of them work pretty good some
of
the time. However, you're going to feel the need to ask what the
best
indicator is, or test them all yourself. Good luck!
2. Trading
is about strategy. It's not about a trading system.
http://www.elitetrader.com/tr/index.cfm?s=17
Read every article in
this series. This article is like the first grade. It
gets harder from
here.
3. Once you have a strategy, which will take
you a few years to
develop, backtesting it is of limited value. Ninety nine
percent of
the people who use the tester don't have a clue as to what
they're
doing so their results are poor. System test results never match
live
trading results. Proper system testing is as hard as learning to
use
TA. It's a whole separate education.
4. Almost every system
works well in an up trend. Nothing works well
in a down trend. Yeah, yeah.
I know all about shorting, etc. I stand
by what I'm saying. I've tested
over 1000 systems. I get it.
5. You need to learn to identify the
market conditions. If you trade
correctly for the market conditions you
might survive.
6. 95% of all traders lose money. This includes you and
every other MS
user. Get ready to grieve, chew frustration and question
life itself.
7. Entry systems are a dime a dozen and almost worthless.
Exits are
difficult. Money management is almost everything. The
market
conditions are everything.
8. The best buy and hold book ever
written is William Bernstein's Four
Pillars of Investing. Nothing,
including trading, generally beats a
proper asset allocation model.
Bernstein will explain why and how to
find the proper model. Read that
book, and sell your copy of MS on
ebay. You'll be money ahead. By the way,
speaking of testing, I did
test Bernstein's models, extensively. If you can
beat the results from
his models through trading, you're going to be in the
trading hall of
fame. Don't forget to factor taxes into it.
9. Read
Roy's newsletter. There's nothing better for teaching you how
to use MS and
how to trade. www.metastocktips.co.nz It's cheap, it's
very good and
you need to buy all the back issues.
10. I've been trading full time
for several years. I make a very good
living from it. It's the hardest
thing I've ever done, and I've done a
lot of hard stuff very successfully.
Take my advice and quit while
you're ahead.
11. Read everything
I've written here several times until you get it.
If you won't take my
advice and quit now before you lose your butt,
then you better read every
trading book you can get your hands on.
I've read 200 of them. Read rule 9
again and again, until you believe
it. It's the truth.
--- In Metastockusers@xxxxxxxxxxxxxxx, "GaryNielson"
<gary@xxxx> wrote:
> I am new to Metastock EOD. I just finished
the training CD and
> workbook, "Finding the Right Trades with
Metastock." It was excellent
> and in it, Bret Charlesworth goes
through how you can system test, or
> backtest, dozens of trading
strategies on a particular stock you are
> interested in and select the
trading strategy that works best with
> that stock. You might employ a
Bollinger Bands strategy with one
> stock, a moving average cross
strategy with another, etc. Do a lot of
> Metastock users trade like
this and how successful is such an
> approach? Is the Performance
Systems Plus add-on Bret mentions during
> training worth it? It
apparently has 52 additional trading strategies
> but the website
doesn't state what they are.
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