Reference – Trading Methods
Trading Methods
Every successful trader has a trading system. Trading is like going to war, without a plan or a system, surely even the best general will fail to win a war. A trading system is like your own trading instruction to tell you when to go into a trade, and when to get out. So to trade the markets without a plan or a system is like handing out RM50 notes to every person that passes by you on the street. But don’t worry, help is on the way.
It is not difficult at all to create your own trading system. A trading system can be anything from two moving average lines of different periods crossing thus giving a buy/sell signal, to the astrological calculation of time and space. No two trading systems are the same, and every person should have their own trading system that they are comfortable with.
There are basically five types of trading system:
1) Trend Following System
2) Breakout System
3) Market Pattern System
4) Support and Resistance System
5) Artificial Intelligence (AI) System
The best way to use a system is to pick one that suits your characteristics in terms of risk tolerance and capital available. The easiet to configure and learn is the Trend Following Systems. You can always consult me to find out which type of trading system that is best suited for you.
What type of system do u use & why do u choose them?
TY
It depends on what time frame you are looking at, and what mode the market is in. I mostly use Support and Resistance for day trading, and a proprietary trend following system for position trading
Hi,can you give an example on how u use Support and Resistance for day trading? Is it you identify the opening price of the day, and judge whether it is near/far from support/resistance, then only take a position? I noticed some of your post did make some observation on the opening price.
Hi there Tan, thank you for dropping by. I determine the support and resistance using the half hourly and daily chart and also sometimes looking at the opening. my method is not hard fixed but based on experience.