This post is a general reboot of my trading blog, and I will start with some advice. Contains a tip at the bottom of the post pertaining to Average Volume.
6/19/2019 ~ WHY GET BACK TO BLOGGING?
~ HELPING AS I HAVE BEEN HELPED
It’s been a busy Spring! I had to take a break from the blogosphere and hone in my trading strategies. This got me thinking… I have a lot of information that I go through and study in a week! Newbies that I happily help often feel overwhelmed by my methodologies. These methods all sort of work together, and sort of have nothing to do with each other.
The key is knowing the market conditions any idea or strategy needs to succeed. For example, you do not want to be scalping in low volume environments that offer hard to fill situations. Therefore, maybe Summer isn’t the best time to be applying that new scalping technique.
Once you understand how different strategies work in different market conditions, then you can start to see how the systems you like line up. This doesn’t always equal the best trading signal, but with the correct two systems aligned the probability of success could also jump a lot! It’s up to us traders to figure this all out for ourselves. Tactically, it’s up to the trader to manage his or her own trades which also enters in a need for execution consistency. So you have to have a good strategy and be good at implementing it, two separate feats.
The point of the blog here is to share many different approaches and how I back up my strategies with data. Why blog it all? I am going to journalize it anyway, why not put it online for some real holding me to it style of reality, skin in the game, and trading soul bared to the world.
What I hope you gain from reading is a wide variety of useful tools that have logical applications as well as the NEEDED reality check. Nothing works at all times, the best strategies may lose for a bit, and you may start that strategy up at the complete wrong time and think it stinks when it doesn’t necessarily smell bad. It takes proper testing methods to understand how to get past this human tendency. Thanks for reading, and good luck to you. Here is a nice tool to check out:
~ 60 DAY VOLUME AVERAGE TOOL
A taste of what’s to come, along with some tweets, this blog will contain a more detailed version of this, a quick tool analysis.
Above is the top 15 stocks or ETF’s in terms of trading over their 60 day average volume. This is one of the simplest tools to calculate. Take the average of 60 days of the daily volume then weigh the current day’s volume. I do this in terms of % of the average, so big stocks and little stocks can be on the same list: hitting 0% when current volume is at the average. The date shown is Tuesday, June 18th 2019. FB stock is the highest percent above the average daily volume, along with AVGO trading over 2 times the average or 100% on the chart. Below is the top 25 shown in detail taking a bit more screen space. It also contains a column showing how many more shares traded than average.