How to create stock trading systemWell, when I say stock trading system I am thinking about set of rules. These rules have to reply to questions described below. Consider them as your best stock pick guides.
I use rules based on these points in my everyday stock
trading for living.
Definition of time frame for your trades is necessary. You need to know how long you could hold position. I personally define these types of stock trading My trades are based on simple rules. My basic premises for trades are support and resistance . So simple stock trade can be :
There are several ways how to find best stock pick (understand stock trade setup) for the next day. You can use:
You need to have these important values prepared for each of trade setup you like and which fit with your trading strategy. First you need to find
good entry
price, then you have to think where to
place stop loss
and finally you can think about possible
targets
where you can realize profits. Knowledge of right order types used to enter or close of the trade is part of good stock trading system. Read also
why I do not enter
any orders before market open. Good trader have to take care of every opened trade. You also must make regularly monitor development of your stock trade. The most important tasks of trade management are
Very profitable approach in trade management is adding into already profitable trade or re-entry of trade. Prepare list of rules for all these tasks in advance and follow them during active trading hours.
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