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How to Find a Day Trading Program that Works
02-14-2018, 03:45 AM
Post: #1
Big Grin How to Find a Day Trading Program that Works
Trading with a method will significantly improve your likelihood of making money in the markets. This surprising small blue arrow web resource has a myriad of dazzling suggestions for the reason for this idea.

The next challenge would be to locate a daytrading system that works. Today you have the opportunity to pick from over 300 trading programs available. However just a huge number of them are trading profitably.

Next three minutes I'll present you the 1-0 Power Axioms for Successful Stock Investing Systems, which will support and help you in your study.

Rule #1: Few principles - easy to understand

It may surprise you that the best daytrading programs have less than 10 principles. The more rules you've, the more likely you 'curve-fitted' your trading system to the past, and this kind of over-optimized system is quite unlikely to make profits in real markets.

It is important that the principles are clear to see and implement. The markets can react very wild and move fast, and you will not need time to assess complex formulas in order to create a trading decision. Consider successful ground traders: The sole instrument they use can be a calculator, and they make tens of thousands of dollars every single day.

Concept #2: Trade electric and liquid markets

We strongly suggest that you trade electronic areas since the commissions are lower and you get instant fills. You need to know as quickly as possible if your order was filled and at what price, because according to these details you plan your exit.

You should never place a leave order before you realize that your entry order is filled. You might have to wait a-while before you receive your fill when you trade open outcry markets (non-electronic). By that point, the market might have already turned and your profitable industry has turned in to a loss!

When dealing digital areas you get your fills within just one minute and can instantly place your exit requests. Investing liquid markets you can prevent slippage, that may save you hundreds and sometimes even thousands of dollars.

Principle #3: Make consistent earnings

You should always locate a trading system that creates a smooth and nice value curve, even though in the long term the internet pro-fit is somewhat smaller. Most-professional dealers would rather consider little profits every day in the place of big profits every now and then. If you trade for a living, you have to pay your expenses from your trading profits, and thus you should often deposit profits into your trading account.

Making steady profits will be the secret of successful investors!

Rule #4: Maintain a wholesome balance between risk and reward

I want to give you an example: If you visit a casino and bet everything you've on 'red', then you've a 49% chance of doubling your hard earned money and a 512-410 chance of losing everything. The exact same relates to trading: You can make a lot of money if you're risking a lot, but threat of ruin is very high. You should look for a healthier balance between risk and reward.

Let's say you define 'destroy' as losing 20% of your account, and you define 'accomplishment' as making 20% gains. Having a trading system with past performance results enable you to estimate the 'danger of damage' and 'chance of success.'

Your threat of ruin should be always less than 5%, and your potential for success should be 5-10 times greater, e.g. if your risk of ruin is 4%, your chance of success must be 40% or maybe more.

Concept #5: Find a program that creates at-least five trades each week

The larger the trading fre-quency small the chances of having a month. Should you have a trading system that has a winning percentage of 70-ss, but only provides 1 industry per month, then 1 loss is sufficient to have a month. In this case, you may have many losing months in a line before you finally start making profits. In the meantime, how do you buy your costs?

Then you definitely have on average 2-0 trades per month, if your trading system provides five trades per week. Having a winning percentage of 70-ss - your chances of a winning month are extremely high.

That is the goal of all traders: Having as many winning months as possible!

Theory #6: Start little - grow large

Your trading system should allow you to start small and grow large. An excellent trading system enables you to begin with one or two contracts, and then increase your situation as your trading account grows. This can be contrary to many 'martingale' trading systems that need increasing position shapes when you are in a losing streak.

You probably found out about this strategy: Double your contracts everytime you drop, and one winner will win back most of the money you formerly lost. It's perhaps not unusual to have 4-5 losing positions in a line, and this could already require to trade 16 agreements after only 4 deficits! Investing the e-mini S&P you'd then need a free account size of a minimum of $63,200, just to meet with the margin requirement. That's why martingale methods don't work.

Principle #7: Automate your trading

Feelings and human problems are the most frequent mistakes that professionals make. By all means you have to prevent these errors. Especially all through fast markets, it is critical that you establish the entry and exit points accurately; and fast otherwise, you may miss a trade or get in a losing situation.

Thus you need to automate your trading and choose a trading program that both already is or may be automated. Automating your trading causes it to be free of human feeling. The buy and sell operations are typical automatic, hands-free, with no manual treatments and you can be sure that you make gains when you must according to your plan.

Principle #8: Have a high percentage of winning positions

Your trading strategy should make over 50 winners. There's little doubt that dealing systems with smaller winning rates could be rewarding, too, but the emotional pres-sure is tremendous. Taking 7 losers out of 10 positions and not doubting the system requires wonderful discipline, and many investors can not stand the pres-sure. After the sixth loss they begin 'strengthening' the device or stop trading it completely.

Especially for beginners it is a large help in case you have a high winning percentage greater than 65% to acquire confidence in the body and your trading.

Rule #9: Locate a program that's tried on at least 200 investments

The more positions you use in your back testing (without curve-fitting), the greater the odds your trading system may achieve the near future. Look at the following table:

Number of Trades 5-0 10-0 200 300 500 Margin of Error fourteen days 10% 7% 64-42

The more trades you have in your back testing, the smaller the margin of error, and the higher the possibility of producing gains in the future.

Concept #10: Chose a legitimate back-testing period

I recently found the following ad: 'Since 1994 I have taught tens of thousands of dealers worldwide a Simple and Reliable E-Mini trading methodology.'

That's very interesting, as the e-mini S&P was launched in September 1997, and the e-mini Nasdaq in June 1999, thus, none of these deals existed before 1997. What kind of e-mini trading did this merchant show from 1994-1997???

Exactly the same applies to your back testing: If you created an e-mini S&P trading method, then you must back test it just for days gone by 2-4 years, because though the contract has existed since 1997, there is practically nobody trading it (see chart below ):

Now you know how to separate the fraud from great working trading systems. Through the use of this listing you'll quickly recognize trading programs that work and those that will never allow it to be.

Experts name

Markus Heitkoetter

Author's Info:

Markus Heitkoetter is a 19 year veteran of the areas and the CEO of Rockwell Trading. For more free information and guidelines and trick steps to make consistent profits with online daytrading, visit his website

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