February 12th 2008
Here’s an Easy Way to Consistent Trading
My first attempts at trading were comical. Looking over my first journal makes me laugh out loud. The indecision, the myriad of trading methods, the money I lost. It was a farce. I tried anything and everything I could think of to be successful. I should have stopped before I even started. It would have saved me thousands.
But I wouldn’t have learned what I know now, and I wouldn’t be able to share it with you. Want to avoid my mistakes? Would you like to trade with a chance for success? Here’s my quick tip: Get consistent.
How you ask? Whether you’re a fundie or a technician like myself. The easy way to get consistent is focus on one setup.
I have traded for almost 14 years now. I trade a total of 5 setups regularly. I could make a living on one. One is all you need, but you need to master it.
You only have so much time. You need focus. There’s so many ways to make money in the market. If you want to be a consistent trader. Do yourself a favor. Focus on one setup.
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11 Comments »
rafa on 12 Feb 2008 at 11:41 am #
jonathan, hi, do you have a book list about trade setups and exits, that you could recommend, or where you built your strategies from? I’m at the starting stage you mention on the first paragraph, and really disappointed.
thanks a lot
rgds
Jonathan on 12 Feb 2008 at 12:43 pm #
Hi rafa!
To answer your question directly, yes there are many books I would read and could apply to a trading plan. Off the top of my head here’s a list:
How to make money in stocks by William O’Neil
Trader Vic by Victor Sperandeo
Trade your way to financial freedom by Van K Tharp
Trading for a living by Dr. Alexander Elder
These’s are four that come to mind.
There’s also a slew of great blogs with setups that I don’t trade, but I think they are worth a look.
Corey at http://blog.afraidtotrade.com uses a impulse buy and momentum convergence/divergence strategy.
Marlyn at http://filteringwallstreet.blogspot.com/ has had success with a moving average crossover strategy that I think is worth consideration. Unfortunately that blog is no longer actively updated, but there is still alot of good information.
One thing I would add is that I don’t know specifically what is causing you to not trade as well as you would like, but I would be willing to bet it’s more about psychology than an actual setup.
Once you find a strategy that fits your personality and bankroll. Commit to it.
theWild1 on 12 Feb 2008 at 3:38 pm #
Forget giving us a tip on an easy way to trade consistently. You just gave us tip for life.
rafa on 13 Feb 2008 at 12:42 pm #
jonathan
thanks a lot for you comments. the problem is I started without all the basic things all blogs mention (money management, exit strategies, and setups), I just did it in an inconsistent way.
One more question and I really hope it doesn’t sound bad in any way (don’t know how to say it in english), but would you share the setups do you trade? I actually read afraid to trade, chrisperruna, swing-trade-stocks, etc, and I printed the as reading material. Maybe you can join the list.
thanks again.
rgds
Jonathan on 13 Feb 2008 at 5:33 pm #
@TheWild1: Glad to help!
@Rafa: On thee Right hand side of the blog, there’s a the heading “My Setups”. You’ll find what I trade most often there.
rafa on 14 Feb 2008 at 6:25 am #
excellent, thanks a lot again
b rgds
rafa on 14 Feb 2008 at 6:31 am #
Jonathan.
I hope you don’t bother some more questions.
What charting software do you use?
thks again
Jonathan on 14 Feb 2008 at 6:45 am #
Comments and questions are always welcome!
I use esignal currently for my charting.
I have also used Telechart 2000 and AIQ.
rafa on 14 Feb 2008 at 9:16 am #
tks again
Options Strategery on 16 Feb 2008 at 1:07 pm #
Consistency is the hardest part. It is hard not be distracted by the school of what is working now and focus on a few good strategies.
I am more fundie myself so I will definitely be learning from your technical strategies.
Jonathan on 17 Feb 2008 at 2:13 pm #
Hey Options. Thanks for stopping by. Its good to hear that what I share is of interest. I myself am exploring option trading strategies, so I will check out your blog. Great name, BTW.