Building strategy around core concepts | stockbee

7/22/2009

Building strategy around core concepts

Lot of time is spent by new traders in tactical details of the methods like scan or indicator without understanding the core concept. Understanding the core concept is the key to trading any method.

Once you understand the logic behind core concept you would be able to do your own scans and trade some of the methods discussed here profitably with conviction.

Core ConceptApplication
Market Breadth can help you determine
market direction
Market Monitor
Equity selection is "the key" to profitabilityUsing Momentum+growth+Event catalyst
Price Momentum from a yearly low
Because trends start from a low point
Double Trouble
Price Momentum six month
Modified Double Trouble
Historic precedent analysisGrowth stock+IBD 100 and 200
Momentum Anomaly IBD 100 + IBD 200
Post Earnings Announcement Drift
PEADS
The most robust anomaly found to date
Earnings Episodic Pivots
Post news announcement driftOther Episodic Pivots
Momentum and mean reversionEntry on weakness for swing trading in a momentum stock
Risk ManagementInitial stop placement
Risk ManagementPosition Sizing Calculator
Risk ManagementFast exit on trades that do not work
Risk ManagementPartial exits
Risk managementExit in to euphoria
Risk managementHigher risk on conviction trades

If you feel these ideas can work for "you" and want to develop "expertise" at trading these ideas, you need to understand the core concepts in detail.
The more you become knowledgeable at the core concept you will find it easier to trade methods based on that. You will be able to improve on them.

These are not the only core concept which work. Most of the things that work in he market are well researched and are in public domain. If you base your methods on core concepts you have a structural edge.

Focusing on core concept that work in market is key to building a profitable strategy.

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