Need a good stock trading system

[Ernesto]

I had been trading in stocks for a while and had been good with them. But recently have been facing a bit trouble from the market and have incurred some losses. I am looking for a system that helps me to judge the right kind of moves in the stock market and prove as a guide to smart investing.

Need your valuable suggestions to find a good one!!!

[silverware]

I am very new in the trade. I also need a good stock to invest in. Can someone help me out?

[Monwowo]

Ernesto raised a good point about trading system. To the gurus in the house, what are using.

Mostly in the NSE, u can only do directional trading (I think)...buy low and sell high. Posibility of shorting, options etc are not available yet (pls correct me if I am wrong guys).

And for directional (trend) trading, u can use this TIPPP system:

Trend
Indicators (Technical stuff)
People (Volume)
Pattern (chart pattern)
Price action

I am also new to investing but learning. From the above, u can see that knowing a bit about the technical stuff will help you to enter and exit appropriately. Of course, u need to know the fundamentals (business of the coy and the value of the stock). Whatever you do, dont forget to set a STOP LOSS order (for exiting your position) for ALL transactions and STICK to it. Inability to stick to the limit order or absence of an order (whether mentally or written) is the number one cause for losing money. CUT YOUR LOSSES AND RIDE YOUR GAINS!!!

[upasna]

Sorry to hear about the losses….but that is a part of the trade….you lose some and you win some…..but I myself use a system that works just fine for me and that is a perfect teacher for in all terms ….there are many out there but I believe on this as I am using it. This is a good Day trading system that can make you comfortable in the stock market.

Cheers!

[knightofdelta]

.. before you start talking about people, price, and all the technical razzmatazz, have you considered the fundamentals of the company you want to invest in?

Investing in stocks is more than looking at the price trend. Ask Warren Buffet. If you go and buy UNTL at the moment... you know what? You are on your own.

[arcade]

Attached is an e-book on Buffett's investment strategy, unfortunately all the information to guide one's decision are not readily available on the listed companies in the Nigerian Stock Exchange. All the same , I think it kind of helps.
investlikebuffett.pdf (470.6 KB)

[Monwowo]

@knightofdelta

The question asked was of a trading system and not how to invest and hold. Fundamental analysis is the bullet, you still need all the things I mentioned above to ACT AS THE TRIGGER. Of what use is a loaded gun without a trigger? Fundamental investors would probably like the suggestion of doing like Benjamin Graham, Warren Buffet etc, but note that to strictly TRADE, you need to know ONLY how to get in and out well and you will be ok. It is up to Ernesto to look well at his goals in deciding which method serve his purpose. The thread on trading and investing below is a good read Ernesto:

Trading Vs Investing

[SpecNomics]

@ Ernesto, I did some backtesting on the 100 Day Entry and 10 Day Exit Donchian Channel Breakout, and it caught most of the biggest trends on the NSE Floor. I anticipate this being considerably difficult to trade going forward, the market is looking range bound at the moment. Potentially this suggest countertrend trading systems could be better able to assist you e.g. Powerplays.

I have mentioned two trading systems, a Channel Breakout (a Trend Following System) and Power Play (a Counter Trend System). I live you to find out more about these systems.