Tuesday, August 16, 2005

Breaking it down into smaller parts, Trading exercise


Anytime you are trying to learn something and you are somewhat desperate to learn it and you are not putting the pieces together, try taking them one at a time.

You can run simulations or live practice trading using a platform such as bracket trader or electronic simulated trading starting out with only one factor.

Try trading a contract or stock with:

1. Price only on a chart

2. Volume only on a chart

3. Price and volume only on a chart

4. Bid/Ask only

5. Any Oscillator you use only

6. Any correlated or inversely correlated other security you use - only - but to trade the security not seen. (Such as $TRIN, $TICK etc)

7. News only.

8. Any other item considered in your trading, but only that item.

9. Repeat the above one at a time again.

10. When you feel like you better understand each of the above by itself, all of the above together as you normally trade.