GET STARTED TRADING NOW!
- Keep Records -
- Adjust your Trading Plan -
- Advanced Techniques -
It is extremely important for you to record each of your market transactions. This is for several reasons. “For the score to improve, you must always know the score.” Over time you can see how your trading system is working for you. Then you can always be experimenting with improvements.
At some point you may wish to engage in historical backtesting. To backtest appropriately, you will need software with this capability. I love TradeStation for this. I also backtest with Ninja Trader and Wave59 software. Backtesting will provide you with invaluable statistics. These statistics have the capability of leading you to a trading system that can make you rich with very small losses in the process.
Percent Profitable Average Trade Net Profit Largest Winning Trade Maximum Consecutive Winning Trades Profit Factor Draw Down
and much, much more…
To become a very good backtester, you should also learn as much as possible about the programming language of your software. The better you can program your own indicators and strategies, the better you’ll be able to achieve rather spectacular results in building trading systems. Next, you should learn all about Money Management. Depending on your backtesting and real-time testing statistics, you can know what percentage of your trading account you should risk in order to gain optimum results.
For example, you should study the Kelly Criteria and all of its implications. These are secrets that the best professional gamblers in Vegas understand in order to make their bankrolls grow like wild weeds. And once you have these abilities under control, your next objective could be to build an auto-trading system that needs no direct supervision or intervention. It can work 24 hours per day to make you money, even while you sleep. These things really do exist and are making some people a literal fortune overnight, every night. TradeStation supports the ability to do this. You can go to their web site and read all about it. Wave59 software now has this capability too.
Most of the big, serious trading institutions run largely on programmed trading that automatically triggers market entries and exits. In my humble opinion, this is a very worthy goal for a single trader to aspire to as well. I use an automated system with my TradeStation software that even automatically sends me email alerts on my Blackberry cell phone whenever a new transaction has been triggered. You gotta love that! You can also receive these exact same automatic email alerts that I receive when you subscribe to my NASDAQ LIVE! real-time live screen service!
Click here for Course Introduction Click here for Course Conclusion
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