The very common reason for destroying your deposit is taking risks too high. There is a limit of risks your strategy can afford, and it is usually way too lower that you’d like to think. So when you’re taking leverage just 2 times higher this limit, you’re turning profits into losses. Even if your strategy itself is good. It may work fine on lower risks.
So don’t be greedy. It’s too expensive.
Some people believe that good trading strategy must show well on most of stocks. I disagree. Every stock has its own properties, unique combination of interacting groups of traders. So I can see nothing wrong if you have a strategy that works only on one selected stock and show bad results on others. It’s usual thing.
More trends. More insiders, so even more trends and less gaps on fundamental news! Limited choise of liquid stocks (about 10-15 if you want intraday). Iven more limited choise if you want futures. Options’ liquidity is just ugly. So better forget derivatives, spot market is the best choise.
Cheap comission, counted as % of trade volume, not fixed $ per contract. Good technical solution on MICEX, fast and reliable.
Morning gaps :( USA markets and oil futures are essentials for traders, but they mostly trade when russian exchanges are closed.
Market is the battle between different strategies, different ways how to take decisions. But this battle field is not a single whole. It’s divided into small parts called timeframes. One strategie may be a winner on one timeframe, but lose on another one.
It’s been two years I’ve started to write here, and two years since I’ve finished it. It was test drive, I guess. Had many things to do outside blogging and writing. But now I’m concentrated on it again. I’ve got many ideas about stock market, technical analysis and trading strategies. So now I’ll try to put it here one by one. Mostly about technical analysis, because I think this is the key to understanding price movement. Patterns and human psychology, prints of collective subconscious on visible reality. That’s all stock market is. But may be I’m just too dumb for fundamentals.
In ideal, effective market only fundamental information works. But in real market, where traders can be irrational with their decisions, things become more complicated. So when fundamental analysis deals with rational part of market, technical analysis deals with irrational part of market. Something like that.
There is obviously a resistance line above local maximums (last several days). But since it’s became obvious, there is a chance that it will be broken soon. Nevertheless, I still wouldn’t advice to close short positions. Even if this trend line will be broken, price will get back after the break. So the break itself will be a signal that position have to be closed, but better do it not exactly after the break, it’s good to wait for the back movement to close shorts.
Opposite situation, S&P is climbing up, not going to correct its growth. But it seems that next week we’ll se S&P lower than we have now. Correction will come sooner or later. So, it’s better to keep longs, stay away from shorts and if you’re in cash, it’s better to stay calm and wait for corretcion to open long.
Again, for the third time in a row, eur/usd sets new low. Usually, third time is the last time, but still it’s too risky trying to catch for reverse, so I’d advice to keep short position, if you’ve got one, and stay away from longs. If you’re out of position currently, you may try to open short on some higher level like 1.1750.
So, eur/usd set new low today. Again, it’s better to stay away from longs now. Trend is down. Catching falling knives is too risky.
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