Technical Analysis Strategies

learn stock swing tradingMy Favorite Stock Trading Strategy

There are many different ways traders analyze stock markets. One I’ve read many different books and signed up for several seminars that teach traders basic skills. So far the analysis method that I like is technical analysis. My favorite ways to analyze Stock Swing Trading Strategies is to use a combination of stochastic oscillator and moving average crossovers.

This way I can see if the stock is overbought or oversold as well as if the stock is trending or if it’s simply moving sideways back and forth.

Most professional traders use one of the two analysis methods but I like to combine them for best results. I also want to start using the RSI indicator but I’ve heard it’s a bit tricky in terms of sensitivity to stocks. For Futures or commodities trading I think it may work but for stocks the RSI is just not sensitive enough.

day trading strategyI like to set the exponential moving average at about 20 days back. Sometimes if I’m trading markets using 1 hour bar charts I will set the moving average to a shorter time frame. I’ve read in Traders Magazine that using anything less than 20 bars back is not productive with an simple moving average. But when using a Exponential Moving average on simple bar charts the method works best.

I trust this magazine since I’ve been reading it before the internet started. I think Technical analysis of stocks and commodities has been around for over 40 years.

Getting back to my stock swing trading strategy, I like to wait for the stock to rally above the moving average if I’m going to buy the stock and if I’m going to sell the stock I want to see it trade below the moving average,  I get to see if the stock is trending strongly or if it’s not this way.

I’m also re-reading the first market wizards book this week and I will do a full review next week.

As soon as I start getting some traffic on this site, I will open up the comments and then we will really have a good time with this site.

Have a good day

Simon Gazavive

 

 

Day Trading and Swing Trading for Success

Welcome to Simon Gazavive Swing Trading and Day Trading for Success Tutorial Site

I wanted to finally meet my New Years resolution and start a cool trading website.

learn basic swing trading strategiesThis site will focus on swing trading and day trading strategies. I will cover both stock swing trading strategies and I will focus on futures trading strategies as well. I started learning about swing trading strategies from the Market Geeks website.

Over the last year I really learned tons about different patterns and technical analysis techniques that really work. I also found a bunch of articles that discuss futures trading and currency trading too. What I did was get a few very cool books about trading at the CRB bookstore. 

One really interesting trading concept that I’m learning right now is learning how to define a trend. It’s not as easy as most people make it sound because markets don’t really go straight up. So it’s hard to know exactly when the trend is over and when it’s still valid.

I did find that using a simple 20 day moving average did help me create a mechanical stocks and commodities tradingmethod of finding trends. I also learned how to set up the 20 bar moving average and saw several examples of how it’s done at the Market Geeks swing trading site.

My next plan is to learn how to use stop loss orders dynamically by using ATR and volatility adjustments. This is the best way to set stop loss placements they are dynamic and change dynamically based on the volatility level of the market. This is probably the best part about using ATR.

day trading strategyI hear that in the past many fund managers who traded mechanical systems used ATR for volatility and position adjustments. I do understand the concept behind it but I need some time to really see how the ATR indicator works under real time market conditions.

I will update this site every few weeks with new and interesting market observations. I will also allow guest writers to join me on this site if they are experienced in short term swing trading or day trading stocks, currencies or futures.

Have a great week everyone!

Simon Gazavive

 

 

Finding Futures Broker

futures brokersOver the past few months I found a Futures Broker that I’m happy with. It took me over 3 weeks of time and I spoke with many different Futures Brokers on the phone and even visited a few that were close to my home. I first thought it was going to be very easy because

I trade e-mini futures and options contracts and most futures brokers specialize in E-mini futures trading so I couldn’t anticipate it being a problem.

I found one broker in Florida who wanted to charge me $50.00 per contract and when I told him that I want to do it online by myself he sounded insulted. The second broker I spoke to was very nice but he could’t speak English very well so I couldn’t work with him simply because it was very hard for me to understand what he said half the time.

Finally I settled on a good Futures and Options broker in California. He didn’t try to chargefutures brokers me an arm and a leg and I was able to find some great trading articles on the website that I found interesting and truly helpful.  I just started but so far I’m very happy and will continue using Active Futures.

They have more trading platforms than I’ve ever seen and have good rates. If you call them just tell them that Mr.Simon Gazavive recommended them and I’m sure they will treat you well.

Like I said, I’m not an expert but I like their customer service and will use them until I have a problem. I did find this useful list of futures brokers directory. This is a directory of all the different futures brokers in the USA so I’m sure if you need to find a one, this guide will help you find one that works best for you.

I will write more about my experiences with different brokers in a later article as well.

wishing you a good day.

Simon Gazavive

Finding Great Trading Indicators

Futures and Commodities Technical Indicators

commodities broker

I like to test out Futures technical indicators on the futures and commodities markets before I trade them in real time. I now started testing technical indicators and applying different market timing methods to my trading. My favorite approach has been gaps in the morning using futures from different unrelated groups of commodities.

I find that they don’t have as much correlation to the stock market or other financial markets and that each of the futures does trades based on momentum. I like the commodities such as grains and financial futures. Many softs like coffee and sugar also work well when they are volatile. I have not tested meats yet and don’t really like to trade them too much.

I like this method and I’ve done well trading it. My commodities broker is surprised at how well this method is working for me so far. But I’m only testing it out so it’s all hypothetical at this point.

I will update you further if it continues to work on different futures and commodities markets. So far I did 38 trades and I had 67 percent profit and profit is about 1.4 times higher than my losers. So things are working out well. I have to see how the method continues in the future and if it continues to work well I will try it on the commodities market.

I may be having a good run because the  market is moving up and the method will fail in a bear market. But I only trade futures that are uncorrelated to the market so if there is in fact extra luck due to the market moving higher we shall see how the strategy performs during a bear run.

I’m going to test this strategy using ninja trader in a few days and will see how well it performs when I back test it against three or four different markets.

I want to see how it works on the E-mini futures contract and the Bond futures market as well. These markets are volatile and will produce good ratio of winners to losers if the method works. I’m going to get some back data and test this strategy soon. I truly want to see some positive results before I raise my risk a bit.

I will deduct commission and costs and will provide a report of my progress in a few weeks.

If the rules work I will publish them here for everyone to see.

Thanks everyone for reading my articles and visiting this trading blog! 

Check out this link if you you’re looking for a broker too.

http://www.activefutures.com/commodities-broker/

You’re Awesome!

Simon Gazavive