Trade SMART

[SMART_Trader]

Key to Successful Trading ( copy of my posting in another thread)

Cant trade profitably with TA, FA or QA alone .They are just tools only.Key to successful trading is following a system with an edge,day in and day out ,with prudent position sizing and money management techniques.

Designing a system with an edge is a craft which requires skill. Level of skill and knowledge differs from trader to trader ,so also the efficiency of their system.

What gives the system an edge ? I think if your system is well aligned with the central tendency of the market and if it exploits some of the stock market anomalies successfully (knowingly or unknowingly) it will have an edge.

Once you have a well defined method, just follow the method. Trading becomes as simple as making coffee.

Do not build your system simply on some indicators or patterns. First you should have a clear logical concept. Then translate this concept into a well defined method using appropriate tools ( TA, FA, QA etc) and trade it for a minimum period six months and make suitable modifications if necessary.

 

[SMART_Trader]

Take the Money and Run.Trading strategy of Stock Bandit

"only get in stocks on the move with the intention to ride them into profits and exit upon the loss of momentum. It is at this point in the trade that we TAKE THE MONEY AND RUN!!

This strategy is best achieved by buying stocks that are breaking out of tight consolidations on an expansion in volume. This type of move in a stock tells us that the previous area of indecision (consolidation or trading range) has been resolved to the upside and money is flowing into the stock (volume expansion). "

What else we are doing ?

 

[tulika]

smart trader
i fully endorse your view that Key to successful trading is following a system with an edge,with prudent position sizing and money management techniques. i think i hv developed a method for myself which gies me satisfactry returns but i still lack in money managment skills... which spoils the whole process of gaining.. i would appreciate if u can throw some light on how to manage profit so that i can march ahead on my way to become SMART TRADER
TULIKA

 

[SMART_Trader]

Breakouts 05/11/2007

Watch list for 06/11/2007 is here

 

[SMART_Trader]

smart trader
i would appreciate if u can throw some light on how to manage profit so that i can march ahead on my way to become SMART TRADER
TULIKA

This can be helpful , I think.

 

[sundaram]

SMART(Significant Move Analysis Related Trades) is an absolute strength based system. Stocks that have moved significantly over the past one year only is considered for trade. Stocks appreciated more than 100% during the past one year makes the trading universe.

The trick is to enter these stocks on a 4% plus breakout after a consolidation. if the entry is successful, we can catch the start of a new uptrend.So we are looking for yearly growth of 100% plus , 10 to 20 day weakness or consolidation, and a 4% plus high volume breakout.

Position sizing: use 10 % of the capital on a single trade and never lose more than 10% inclusive of brokerage on any trade. Never Lose more than 1% of your capital on any trade

Stops: Initial stop is pre breakout days low .Time stop of 5 days.( If the price is not going up above the entry price within 5 days , just get out).if Price appreciates more than 10% trail with 2 days low stop.

If you find too many stocks in breakout list use these to short list.

A) Prefer a smooth chart.
B) Closeness to year high is good
C) Prefer the one with high volume
D) Absence of recent 4% downward breakout is good
E) Preference for first breakout after consolidation
F) Small capital base
G) Institutional holding
H) Sector with high relative strength
I) Clear catalysts like

" Result announcement
" Bonus/Split announcement
* Sales Acceleration
* New Orders
* New Product
* Regulatory Policy Change etc.

Trading is all about probabilities, never certainties.If you are familiar with some patterns or other indicators which can turn the odds in your favor , use it. I will be posting the breakout list regularly.short list and trade at your own risk.

----------------------------------------------------------------------

Hi,

An excellent analysis.

Keep it up.

Sundaram

 

[karthickdoss]

This can be helpful , I think.

Amazing link.
Thanks a lot.

 

[tulika]

This can be helpful , I think.

THANKYOU SO MUCH FOR PROVIDING THE LINK.... IT REALLY IS VERY HELPFUL.. THANX AGAIN
TULIKA

 

[SMART_Trader]

Breakouts 06/11/2007

and here is the watch list for 07/11/2007

 

[SMART_Trader]

Have a look at these chart patterns

Symmetrical Triangle(Bullish)

Ascending Triangle

Rising Wedges (Bullish)

Bull flags & pennents

Rectangles (Bullish)

These patterns can be traded very profitably because they are well aligned with the central tendency of the market.SMART is also based on the same logical concept .Buying long term momentum stocks on a new breakout after a short term weakness or consolidation. Why should one worry about the exact shape of the consolidation ?