Summary After this module, we go on to discuss specific applications of technical analysis to different markets and financial instruments. Just to pull all the modules together, here is a list to remind you of the different things we’ve discussed so far in the training modules. It’s not comprehensive, but it is extensive and touches […]

Trading Journal As part of your trading system, it’s important to keep a check on your open positions and your overall performance. The way to do this is to keep a trading diary in which you make notes about all your thoughts on each trade, your emotions, your reasons for and against, and any exit […]

Trading System: Paper Trade Even when you have thoroughly tested your trading system, you will need to get comfortable with using it. You can do this by paper trading until you feel you are ready to put real money in the market. Paper trading involves doing everything that your plan requires, with the exception of […]

Trading System: Spot Check and Backtest Spot Check Once you’ve completed the task of writing the rules, it’s time for an informal check against some price charts in the market you are going to be trading, just to see whether the ideas you had are properly expressed by the rules, and also to have a […]

Trading System: Sizing and Exit Sizing The detail of position sizing was covered in the previous module on money management. The most important thing you can do is to preserve your trading capital, so plan that you do not put more than 10% of your account into any one financial security, and you do not […]

Trading System: The Entry Entry Strategy – is about when and at which point you will enter a trade.  It is important to get timing right while keeping losses small even if the trade fails to progress as planned. Many traders fret about picking the perfect entry, often associated with picking the bottom of the […]

The Concept and Rules The Concept The previous modules have discussed at length market action, and you’ve probably been attracted to some of the concepts expressed. Now is the time to consider which of them appeal to you and seem to make the most sense. Most of the successful trading systems are trend following, but […]

Module 12 – How to Build a Trading System Introduction Developing a trading system is both a science and an art. All successful traders have a consistent method of trading, no matter if it’s trend following, countertrend, or some other less familiar technique. Even those who seem to have no method really do – it’s […]

Contracts for Difference: The Basics The array of contracts for difference providers, stockbrokers and futures traders, all competing to offer similar products, but with different charges, commissions and account conditions can be daunting for first-time traders. So to understand how contracts for difference (contracts for difference) could benefit you, you need to cut a path […]

How to Find Cycles You will not be surprised to learn that computers have been applied to finding cycles in trading markets. As the human eye is still pretty good at discerning patterns, you can apply manually apply cycle lines on your charts, and the computer will draw a set of equidistant lines to the […]