Registered User
Joined: 1/26/2008
Posts: 1
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I am new to the world of Worden's but would appreciate any ideas, comments, suggestions or advice any one may have for me.
I started investing several years ago based on ideas picked up from TV shows, word of mouth and some personal observation but without any kind of training. I did o.k. I won some; I lost some. But in the recent financial crisis, I lost big time.
Reflecting on what went wrong, I realized that I never had a systametic approach to analyzing and selecting stocks; which ones to buy and when to buy them and when to get out without being greedy.
Worden's has an array of tools for both fundamental and technical analysis. I would be most grateful if any one would care to share which Telechart tools, scans, settings etc. they found most useful in making their own buy and sell decisions.
I realize that preferences would vary with people but info from someone may become a good starting point for me.
Thanks in advance for any help and good luck everyone with their dreams.
Lucky one
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Registered User
Joined: 9/25/2007
Posts: 1,506
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Welcome 3M27M066 ...
Wow ... waht is that ... your car's VIN ?
The first thing that you have to identify is your goal ...
You used the term "investing" ...
Are you looking to "invest" ... or to "trade" ...
There is no "free money" in the stock market ... you WORK for every dime ...
So the question becomes ... What are you willing to put in ... and what do you expect to get ?
These forums are full of different ideas ... but there is no "holy grail" ...
I realize that you got bit pretty hard ... and you're not alone ...
Are you looking toward longer term investing ... and just want to avoid the major pitfalls in the market?
Or have you got a lot of time on your hands and want to get into daytrading or swing trading ?
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Registered User
Joined: 2/5/2006
Posts: 1,148
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not sure i could answer this question in lesson than 1000 words?
i suggest you go to other sections of the forum like:
1. strategy, notes, and reports
2. ask a trainer
3, product help/tutorial videos
and start going through the threads.
you'll need to understand money management, develop a trading strategy, and be able to "technically" analyze the overall market, and as well as individual stocks.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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You definitely need a system or method for your trading. Where to start? I think the best book for investing/trading is IBD founder William O'Neil's "How to Make Money in Stocks." Some consider this the modern day Bible for investing. He lays out a very detailed but easy to follow method that combines technicals with fundamentals which can provide you with a good foundation. What's remarkable about his book is the detailed research on the best performing stocks for each year going back almost 50 consecutive years. He shows you how the best performers have similar characteristics year after year after year, and how to cull them out from today's market. You may want to strictly use the IBD method, or use certain parts of it as your own personal trading style evolves. But if I have one single tip that I think is by far the most important rule you should employ, it would be to never enter into a trade without knowing exactly where you will exit if price moves against you. And follow that up by always placing a gtc hard stop at that exit price immediately after the buy.
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Registered User
Joined: 10/7/2004
Posts: 2,126
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QUOTE (fpetry)
You definitely need a system or method for your trading. Where to start? I think the best book for investing/trading is IBD founder William O'Neil's "How to Make Money in Stocks." Some consider this the modern day Bible for investing. He lays out a very detailed but easy to follow method that combines technicals with fundamentals which can provide you with a good foundation. What's remarkable about his book is the detailed research on the best performing stocks for each year going back almost 50 consecutive years. He shows you how the best performers have similar characteristics year after year after year, and how to cull them out from today's market. You may want to strictly use the IBD method, or use certain parts of it as your own personal trading style evolves. But if I have one single tip that I think is by far the most important rule you should employ, it would be to never enter into a trade without knowing exactly where you will exit if price moves against you. And follow that up by always placing a gtc hard stop at that exit price immediately after the buy.
Yes just ask the IBD investors how they are doing the last few months.
I personally do not find the IBD method profitable or usable neither have ever come across someone who said it is. It is a great tale so.
It is nonsense in the fact that cup and handle patterns are a nightmare, that the pattern most times fails unless the market is in a extreme bull mode, and the IBD ratings in this fast paced markets are a joke.
Tell any floor trader about IBD method, and you will get - what is that?
But, I encourage you to try and find out by yourself. One's own experience is what counts.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (BigBlock) QUOTE (fpetry)
You definitely need a system or method for your trading. Where to start? I think the best book for investing/trading is IBD founder William O'Neil's "How to Make Money in Stocks." Some consider this the modern day Bible for investing. He lays out a very detailed but easy to follow method that combines technicals with fundamentals which can provide you with a good foundation. What's remarkable about his book is the detailed research on the best performing stocks for each year going back almost 50 consecutive years. He shows you how the best performers have similar characteristics year after year after year, and how to cull them out from today's market. You may want to strictly use the IBD method, or use certain parts of it as your own personal trading style evolves. But if I have one single tip that I think is by far the most important rule you should employ, it would be to never enter into a trade without knowing exactly where you will exit if price moves against you. And follow that up by always placing a gtc hard stop at that exit price immediately after the buy.
Yes just ask the IBD investors how they are doing the last few months.
I personally do not find the IBD method profitable or usable neither have ever come across someone who said it is. It is a great tale so.
It is nonsense in the fact that cup and handle patterns are a nightmare, that the pattern most times fails unless the market is in a extreme bull mode, and the IBD ratings in this fast paced markets are a joke.
Tell any floor trader about IBD method, and you will get - what is that?
But, I encourage you to try and find out by yourself. One's own experience is what counts.
I've asked you in the past to quit replying to any of my posts and I have not replied to ANY post of yours in a very, very long time until now. It got so bad about a year ago that I was forced to email the Worden moderators about your problem of trashing and mocking my posts(and many others here) and I thought the problem was solved, but here you are again, attacking a post for the upteenth in which I mentioned IBD. You add nothing new to the subject, it is pure agenda driven. It's called harping on a subject. At one point I left this board for months because of your trashing of most any thing I posted regardless of subject. You have undoubtedly set the record for being suspended from this board by the moderators and any poster that's been using this board for a good while knows this to be true. Your M.O. is well known. Again, please do not reply to any post I make again on this board. I most definitely will never reply any of yours as I have been doing until forced to do so now.
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 Gold Customer
Joined: 11/11/2006
Posts: 359
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O.K. Gentlemen. That was the bell. Go to your respective corners and get your mouthpiece replaced and your cuts attended to.
3M (Pleas excuse the familiarity) , you have asked, and proberly came to the right place, and you will get answers. Here are a few of mine.
I would like you to write a book. A Journal of Trading Ideas. Go through all the Worden Reports for the last year or so and find the trading systems that may appeal to you. Print them. Put them in a three ring binder, with a Table of Contents. Do the same with the systems and Ideas of the various posters on this forum. They will all have rules that were created with much blood and tears. Follow them. In the end, you will have a book that will most likely be as good as anything you could buy.
Back test each of these. I believe the best back t esting is to have a start date, move forward one day at a time and do your buy and sells this way. This is the way you would do it in real life. (Don't Cheat!!} Use the same stocks for the same time period for each trading system. I put them in three-ring spiral notebooks you can buy for a dime. Keep these. For reference, its better than using individual pieces of paper. Use a long enough period of time, at least a year.
Realize that almost all ideas can be made to work, although you will find that the guy that likes #1 will be critical of the choice of the guy that uses #2 (Or #3--or #4 and so on...) Although each has been successful in what he does. Some buy into weakness and sell into strength. Some buy into strength and sell intro weakness. There is about a 600,000% difference in holding times. There will be many systems, but only afew that you will feel comfortable with. You just need to backtest till you find them.
If I may offer a few to get you started:
Guppy Multiple Moving Averages (GMMA) Presented in the Forum by HaveNoCents as "A simple and Profitable system for the newby and not so newby.
John David Hall 20/20 Price Channel. This is a usefull thing that certainly rates amoung the best stand alone systems. I have used JDHall on this but neither he nor I credit him with the original
The K39. John Murphy's idea, as far as I know. It uses two non-correllating (sic) indicators for buy and sell signals.
The Apsll Trifecta. This is quite similiar to the K39 . Apsll made the observations that started this one.
ADX/DMI. Wells Wilder's brainchild. One of the few stand alone systems, but a little more difficuly to understand. You will catch all of the big moves, with fewer whipsaws, but may have to suffer larger drawdowns.
MACD. And all of the children it has spawned.
Tobydads Profile. I have a verticle clipboard on my desk with several of his posts on it. 1/04/09 is on top.
There are many not included here, but as I say, this is just a start.
Understand that Indicator trading is just one small part. Check out "Interesting Numbers" thread when you find it. (Most of these can be Worden "Search" or "Googled") There are very many good people who post here and there are some wonderful ideas. Good to have you.
Mammon
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Gold Customer
Joined: 11/11/2006
Posts: 359
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My apology, DavidJohn
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Thanks Mamon for the credits. I can only add to the mix that it takes a long time to find success with any regularity. You need to do as Mammon and Tobydad have mentioned many times; and that is to keep a log. This log will prevent you from making the same repeated mistakes and also to hone down things that will work and when they worked and under what market conditions they worked. Write down the complete environment conditions that the trade was entered and then exited, your thoughts at the time and your technical or fundimental anaysis. Exell spreadsheets are good for this, you can post your charts right into the journal.
Trading is a journey and to try and tell someone as new as you are what to do first is difficult. Funnymoney makes a good point, you are at the right place just read through the website and tutorials and good luck...
Bravo Fpetry, Bravo
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Registered User
Joined: 11/24/2007
Posts: 10
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Hi Mammon,
Please provide a link to 20/20 price channel. I was not able to find it.
Thanks,
Sanjaya
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Registered User
Joined: 2/21/2007
Posts: 797
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It's all about your personal psychological makeup. How long can you hold on to your position, when it turns against you and that thing you're sitting on begins to pucker up. good luck
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Gold Customer
Joined: 11/11/2006
Posts: 359
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3M: I don't have the link at hand, but try this:
Create a new Chart Template.
Pricein upper window along with:
1..Click "Chart Template"," Indicator". In the box for indicator the following formular: " MAXH20."
Check the boxes for a..Visible, b. plot using pricescale, c Simple d. Smoothing ave 1
2. Follow the above for the 2nd part which is: " MINL20"
3. The third part of the indicator is" MAXH20-((MAXH20-MINL20)/2)". This will give you a line between
the first formula which is the high for the last 20 days and the second formula which is the low of
the last 20 days. I use a dashed line for the midline and different colors for the other two. All of these indicators go in the top window with price.
The manner in which this set-up is used: When the price strikes, and moves, the upper band, buy on the open the next day, if price exceeds the high of the day the band was struck and moved. The high of the day the band was moved is the buy point when exceeded.
The sell signal: When price strikes, and moves, the lower band, this gives the sell price. The low of that day needs to be broken to generate a sell signal. Set stop a cent or so below the low of that day.
There are different ways to trade this set-up. Some will use the midline as buy and/or sell point. Say, for instance, you buy when the price has broken this mid-line and rose steadily, with price between the upper boundary and the mid-line. (The SWEET spot!) The lower boundary may be so far away that waiting for price to move it would take all of your profit, it would be better to use the midline as a sell point.
Play with this a bit till you get comfortable. The same setup can be altered to reflect 10 day high and 10 day low. Personal taste.
Mammon
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Sanjay, I believe that Davidjohnhall mentions in this thread his use of the channel
http://www.worden.com/training/default.aspx?g=posts&t=33175
I also believe that he mentions in a latter thread to use
MAXH20.1 (AS THE UPPER CHANNEL LINE)
MINL20.1 (AS THE LOWER CHANNEL LINE)
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Registered User
Joined: 11/24/2007
Posts: 10
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Hi Mammon, Apsll,
Thanks a lot for the link and explantion.
Sanjaya
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Registered User
Joined: 10/7/2004
Posts: 2,181
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I'll kick in a little here: In my opinion, there are two absolutely critical factors for success, I have laid them out in another post at http://www.worden.com/training/default.aspx?g=posts&t=38856.
And, I suppose, a third; keep asking questions.
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