Trading Strategies

In layman’s term , perhaps the best definition is that trading strategy is a plan of attack or game plan. We need game plan in all perspective - football matches or any other sports , businesses and so on. Incidentally at point of writing I received a note from Rosalind Gardner , a popular and successful internet marketer about game plan. See how important game plan or strategy is in every aspect of life ?

In trading we need strategies to guide us in our trade execution. Trading is not an instinctive game. Rather , we need to follow a predetermined set of conditions before any final decision or trade execution is made. In the usual case , strategies include some conditions like setup , signals , entry and exit , risk management and so on.

There is no one set of best strategy that fit all traders. I have tried to use a very successful strategy that was developed and used by a trader friend of mine. Surprisingly the end result was a disappointment to me , it just did not work well for me. Possibly strategies need to match with individual personalities ? Psychologically speaking , all of us need to get a strategy from someone to start off with , then add conditions or modify or fine-tune it to fit our own requirement. Backtest and paper trade before executing live. The feeling of ” this is my own developed strategy ” is important , even if you only modified slightly from other strategy. Remember - trading is a psychological game.

Depending on what instruments we trade , strategies can range from strictly technical analysis biase to fundamental analysis biase or combination of both. Regardless of whichever strategies I apply , my mandate condition is that I must trade with the trend.

In the subsequent posts I will share some of the trading strategies and indicators I came across. Some might fit you , some might not. Simply analyze them and see if you have any comments to share. Lets learn together.