weekend charting 8th jan 2010, page-112

Robbbbbbbb,

Ty for the KZL chart. I have been looking at this one for some time on the daily. Initially in early Dec when it looked to break out of the symmetric triangle. However, the resistance at 1.15 proved a wall and ultimately a false breakout. What it has done nicely as you point out is consolidated over time and has now gapped up through the 1.15 resistance which as a result caught my eye. I have a target of 1.60ish if the ranges are to repeat. Theres a gap at this level also (and another at 2.20ish).

Also, regarding the trading manual you are putting together, if it is the sort of thing u r interested in, I strongly recommend u try to get it published. Most the trading books I read are published by Wrightbooks so that may be a 1st point of contact. Im 100% confident someone will pick it up.



T91 & Sharks,

Thanks for the feedback. Im in no rush to develop a system that is in sync with my approach to trading. Earlier discussion on this thread on EMAs for example is extremely beneficial. My aim is to have multiple systems including ones that are extremely simple such as price action crossing 41EMA as discussed earlier. One I have been having a close look at last couple of weeks for short term trading is 3period EMA and 8period EMA. I read recently that historically these two periods are the most successful. I guess it all begins there and other indicators such as stochastics, rsi, etc are added as part of other systems. Time frame, trading instrument and my ability to manage trades will all impact what I trade and when. Most importantly all these systems will need to be aligned with my money. Im sure you agree that money management is paramount to trading. I read a book called Every Day Traders a couple of weeks ago and one of the guys there has a trade success rate of 25% and yet manages to make a living out of it. Imagine being wrong 75% of the time! The point is that its all about how to manage your money and there is nothing wrong with a losing trade. However, what most these guys have in common is their systematic approach to trading which I strive for. This is particularly important to me given that I dont have too much time to devote to trading so having a ready made checklist on which I act will save me much time in the decision making/scanning process.

So, what im looking to do is allocate a portion of my funds toward stocks. Within these I want individual systems for trading blue chips, some for mid-caps, and some for liquid micro-caps. Then there are issues such as trend trading, breakout, reversal within these categories. All of these need to be aligned with appropriate methods which have a systematic approach and most importantly are aligned with money management. There may be little difference in the approaches toward these but the goal is to make it as systematic as possible. On top of that I want a portion of my funds toward index and currency trading with both longer term and short term approach.

The other thing I want to do is allow some of my funds toward highly illiquid penny dreadful exploration stocks. These sort of stocks cannot be traded via typical ta due to their illiquid nature but it also these sort of stocks that provide multibanger returns for those who get in early. Ie an upcoming greenfiled drilling campaign in a prospective area. It is these sort of stocks amongst others I was investing in prior to GFC with a low strike rate. However, the low strike rate is compensated by the fact that only one needs to hit for multibanger returns which more than cover all the duds.

Anyway, enough rambling for the time being! Its going to be a long journey but im sure ill enjoy it. Ill keep treating trading as a hobby until im ready to leave work and have a system in place that I can manage effectively. Until then, Im happy to dabble in the market every now and then. The only stock I have traded in the last 6 weeks or so was BDR which reminded me how enjoyable trading can be. 2009 was succesful for me relative to my goals but i have chopped and changed my style without realising it which as a result has put me in a position where im getting confused. analysis paralysis at its finest! my immediate goal is to overcome this.

Keep up the good work all. This thread in particular is incredibly educational and im sure its of value to many. The regulars here probably fail to realise how significant their generosity is. We are not talking about giving racing tips but instead providing a mechanism which may provide an avenue to financial freedom. Thanks to all.

Nixon