please comment on my technical trading plan

BEGINNERS TRADING PLAN (Australia but what do you think)

* only ASX stocks, no derivatives or options

* a typical trade time-frame could be described as medium term ~ 3 weeks to 3 months

* only sufficiently liquid stocks will be examined for trading
10 day average daily turnover >= 700,000 shares daily

* only stocks that exhibit signs of a medium term upwards trend will be considered for trading
the trend must be evident on a 55 day exponential moving average

* bullish signals must be evident for the sector or there must be must be fundamentals discovered that separate this company from its competitors

* setups to be monitored will include
ascending triangles,
double bottoms,
divergence signs such as:
Relative strength index RSI(14) trending trending up as
10 day moving average still trending down
Moving Average Convergence Divergence Histogram trending up as 10 day moving average still trending down


* trigger will be confirmation that resistance levels have just been broken and price has increased enough to confirm trend

* purchase will be entered at night into commsec as an at limit buy order
slightly above the end of business price for the previous day.

* at this time the stop loss sell price is decided
if possible,if it is obvious on the chart, I will choose it just below the recent support level, also this must be outside the volatility of normal trading so it is not accidentally triggered
check that it is less than the last traded price - average true range ATR(10)

* not sure of electronic ways to enforce this, please check
if the market goes hard down will ring though an at market-sell order during trading
if trading is slower but price has reached the stop loss point will enter a sell order at night at limit for our stop loss sale price in the morning

* initial trading capital allocated as $10,000
max risk capital chosen for each individual trade to be 2.5% or $250
for the purpose of the risk we will use assume a sale at our stop-loss point
this will decide our maximum shares to buy if our risk is as above


* we will also choose to invest no more that 33% of capital in any sector
and no more than 20 % in any one stock

* if we invest and the stock goes well we may buy more parcels up to our 20 % limit of $2000
(small but will rise as capital does by top ups and investment returns)
this will choose to average up if our position goes well and breaks new resistance levels


* assuming the stop-loss sell is not triggered, the decision to sell will be any of the below:


A: if a very clear technical sale indicator emerges
including:
head and shoulders,
reverse triangle
divergent indicators opposite to the existing up trend of MA(10)
such as
MACD, RSI(14)

OR
B: 45% retracement from the highest sale price the market reached during the trading period


OR
C: inactivity for 2 months

this will be enacted by setting an sale order at the highest of the above and updating it every couple of nights to allow for new conditions eg clear technical exit emerging



Thanks for any help or comment











.

Relevant Pages

  • Re: Pyro Equipment for Sale
    ... Phil, in defense of other seller, there was once a time when if you ... sale, even something quite topical to the newsgroup, you were soundly ... items for sale. ... generally set a price somewhere between 1/2 and 2/3 the price of a ...
    (rec.pyrotechnics)
  • Re: Mobility Scooter
    ... Ill health forces sale. ... this price. ... worth less as soon as it leaves the forecourt. ... Because if it was an advert in the paper then people would just ignore ...
    (uk.adverts.other)
  • Re: Techbargains Black Friday 2006
    ... If you go back on Friday, do you think they'd give you the $501 adjustment in price? ... That walmart is open 24 hrs and - apparently- if you get there late the previous night and complain enough, they 'll sell it to you at the sale price _ or give out reservation tickets - he wasn't sure when I asked/complained. ... The two major sites are ... [As to laptops: There will be a LOT of deals for $399 low end laptops, ...
    (comp.sys.laptops)
  • Re: buying a 93 ABI - valuation?
    ... item a a slightly lower price. ... You will find that most dealers will go to great lengths to inform you that a caravan bought for £1500 is a 'trade sale' Consumer law might not entirely support them in their efforts to avoid coughing up for repairs - but you will find it *extremely* difficult to extract any warranty repairs from them - and, given the age and relatively low price when compared to new caravans, you will also find your local trading standards officers to be less than enthusiastic about assisting you. ... Of course, the reality is that £1,500 is *not* a paltry sum - back in the real world it's a significant amount, a fact which the dealer knows very well indeed. ...
    (uk.rec.caravanning)