Friday, February 24, 2012

Time difference of the Coin Flip account Part 1

How do we develop a trading system?

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Most books on trading strategies and technical analysis (TA) give definitions and basic info textbook information. The ones that do go into how to use them always add one thing in with each "strategy"...

"... this doesnt always work so find what works for you."

Its frustrating to me to have paid good money to be told a bunch of ideas with no conviction behind them. Yes, TA isn't science that works every time but how many people are helped having a couple dozen TA tools thrown at them at then told to figure it out. The other end of the spectrum is to pay someone to manage your money. They won't be telling us exactly how they handle trades because then what is the point of paying them once you know how? At least our expectations are set ahead of time so those that want that can get it.
For the do-it-yourself money manager, way we have to develop a system ourselves.

To do that we from a position of no experience can be intimidating. I admit its probably the #1 reason I have held back with trading in general and sticking to only dividend investing for so long. That fear of the unknown can easily be dispelled by making it known.

That still leaves us with how do we develop a trading system. In this video I go over what I found through observation. The next will cover how I plan to use what I found.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

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