A Few Instructions for Applying Posts 32 and 34:
Ask questions if you're not getting it. The logic is wound up a bit tight. ;) The idea is this:
1. Know thyself. What kind of trader investor are you? Do you want to trade soon and often, or do you want to be a little more casual? If you trade the 10-day ma, the action is a little faster. If you trade the 20-day, the action is a little slower. If you want slower still, use the 50-day or the 200-day.
2. Choose your preferred moving average--and stick with major stocks and indices that reflect the power and breadth of an entire civilization.
3. Test and refine your strategies for entries and exits. There is unlimited room for continuous improvement in this area and how you manage and protect capital. Also need enhancement concerning how to recognize the best opportunities. The moving average structures (and particular combinations) make a huge difference. Fundamentals (and cultural mood) can make a big difference when talking about individual companies.
4. Don't spend much time guessing what the market may do next. Think like a computer and just follow the simple rules. Then you can take a tiny percentage of your engineered wealth and play penny stocks for the excitement if that's what you're looking for.
5. Have fun, make money.
Ted
PS
The 20-day, 50-day, and 200-day ma's are pretty much the stripped down data you need to perform consistently accurate market calls and forecasts. Will get into the details later. An essential rule: if the market is above the 20-day ma, don't guess, wish or hope for anything other than more upward movement. There are a few more rules like this, but it's absolutely simple. No fog. No ego. No nonsense or hours and hours of study to reach the conclusion the market may go up and may go down. You buy and hold the structure until the structure gives a clear signal something new is happening. This is just a preview. Much more to come--with charts.
Wanted: Traders to Perform Automated Back-testing of Trading Systems
