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Colombo
Posts: 3 since May 2010
Thanks Given: 0
Thanks Received: 0
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Hello,
I'm 23 year old recent college graduate. I studied in the states but I've decided to take some time off between undergraduate and graduate school, so i'm back home in Sri lanka. About a month ago I got interested in trading stocks. day trading to be more specific
I started reading, van K. Tharp books Trade you way to financial freedom and then went on to read Kirkpatrick & Dahlquists' book on technical analysis. I also went through John Ehler's book Cybernetic Analysis for stocks & futures. I liked ehler's book mostly because i am mathematician by education, but i also realized that he is very advanced and I wouldn't want to use advanced techniques until i am confident about my ability to apply basics. To that effect the other two books I have read have been very helpful.
The Sri lankan stock exchange is doing pretty well it went up 100% last year and is already up more that 50% this year. So the times are ripe. I am about to start developing my own system, so far I am interested in using volatility breakouts coupled with high liquidity to enter the market. I have to design a proper stop, some mechanism for position sizing and risk evaluation, as well as an exist strategy.
Can anyone give me decent advice about the parts of my system that I haven't finished developing as well as my entry strategy. One thing i have noticed from the data is that stocks colombo stock exchange changes direction only one or two times a day. People seem to change direction very slowly intraday.
thanks
Mononoke
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