Record the reading or the reading of every moment in a stock transaction is widely used by traders, institutional traders and protectionists.
It can help to see in real time, the current consensus on a stock.
Record the reading is to read the order books containing records of current bid and ask prices and their respective sizes.
Here is an example of a backlog
66 9737 9 9738
55 9736 11 9739
40 9735 35 9740
52 9734 40 9741
38 9733 16 9742
9737 is the best offer, 66 is that the size of the offer, ask for 9738 is the best, 9 is the whole question to ask.
Tape Reading is a great experience and practice to watch carefully every day to live in backlog for months and years.
It shows the price at which buyers are willing to buy the shares and the sellers are willing to sell.
The reading of the tape is difficult because the order flow is constantly evolving, more equipment is a liquid, the higher the price to ask prices and sizes are changing rapidly.
Many traders will tell you that not enough resources in the network or even books that talk about the bands playing, what is true and that is because the tape must be read by the learning experience.
But I found a nice article in the CBOT website that showcases the band reading, here's a link.
I found this a useful resource especially for beginners.
Consider Working With The Rules Of First Purchase
Suppose you want to build a trading system and you've already bought the rules, but always try to find the best selling rules that make your system more profitable. In order not to waste your time and make sure your purchase rules are correct, I suggest you work with a first exit after N days of sale rule, you can vary N to ensure that your system is profitable over different periods of detention. If you have found your system to be profitable if you came with a good buy rules and you can now start working on selling rules, stops ... If not, forget this system and start looking for another.A simple trading system that uses a set of procurement rules and a single exit after N days, will show you if you use the rules right buyer. A large percentage of profitable trades is very important that you should consider the system showed an increase in the number of profitable transactions.
Many times I ended up a trading system that displays the percentage of profitable trades over 65% and a negative development is the retention period of 5 days and then sell it after the change in principle, could improve this to 75 %, sometimes more and get a nice return.
It is not always the case, but more important to know is that it works with a weaker showing than the winner with a period of detention is a bad idea, unless your statement to see mainframe.
Many times I ended up a trading system that displays the percentage of profitable trades over 65% and a negative development is the retention period of 5 days and then sell it after the change in principle, could improve this to 75 %, sometimes more and get a nice return.
It is not always the case, but more important to know is that it works with a weaker showing than the winner with a period of detention is a bad idea, unless your statement to see mainframe.
Portfolio SC1 Update
No change in the portfolio this week SC1. I kept all my actions witch is CFK DXPE and PWEI.
The average performance of the portfolio last week was 3.91%, which is a good result, the performance indices of stocks has helped to achieve.
The value of this portfolio is currently $ 12 443, a gain of 24.43%, the biggest draw down I experienced when I run this portfolio with real money -11.51%.
The portfolio is running from 11/04/2005 and the annualized return is now 212.82%
The average performance of the portfolio last week was 3.91%, which is a good result, the performance indices of stocks has helped to achieve.
The value of this portfolio is currently $ 12 443, a gain of 24.43%, the biggest draw down I experienced when I run this portfolio with real money -11.51%.
The portfolio is running from 11/04/2005 and the annualized return is now 212.82%
How Pivot Points Of Negotiation?
The joints are commonly used operators around the world, theses lines to act as the floor trader is also used for them, they act as resistance and support.
Focal Point should be used in different periods, they can be used daily, weekly or monthly.
Here is a statement of claim pivot
R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)
Where H is high, low L and C is near.
R1 is the initial resistance, the first support S1, S2 and second resistor R2 support.
With the exception of a pivot level view, there are other ways to the strength and support.
- Using the latest high and low
- Use of yesterday's high and low
- Use Fibonacci studies
- Using Pivot Woodie
The best way to trade the pivot point is to try increasing or decreasing pattern indicator for confirmation of when the stock is trading near the pivot point level.
Focal Point should be used in different periods, they can be used daily, weekly or monthly.
Here is a statement of claim pivot
R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)
Where H is high, low L and C is near.
R1 is the initial resistance, the first support S1, S2 and second resistor R2 support.
With the exception of a pivot level view, there are other ways to the strength and support.
- Using the latest high and low
- Use of yesterday's high and low
- Use Fibonacci studies
- Using Pivot Woodie
The best way to trade the pivot point is to try increasing or decreasing pattern indicator for confirmation of when the stock is trading near the pivot point level.
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