Questions about system trading equities

Discussions specific to trading the stock market.
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Posts: 4
Joined: Thu Nov 20, 2003 7:24 pm
Location: Chicago, IL

Questions about system trading equities

Post by Capitaine »

Hi all,

I'm interested in creating a system for trading equities due to my limited capital. If I had more money I would try other markets but equities seem to be the way to go when you have a low starting capital.

Anyway, I'm interested in hearing what you guys think is the best platform for creating an equities system. Which system would give me the most flexibility and options when choosing parameters?

I'm also interested in the CANSLIM method as i've heard some good things about it. Do you guys have any ideas as to how to implement it into a mechanical system or backtest it? Is it worth my time?

Last, are there any systems already out there that have been good for trading equities that you would recommend? Are they worth researching or is it better to create my own system? Basically im looking for something that I can have complete confidence in and learn from as I am a beginner.

I'm asking all these questions because im keeping my options open and want to choose the most effective way to make profits and at the same time learn about trading.

Thanks in advance to all who reply,


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Trading System.

Post by brendo »


I guess the best advice I can give you is to read and research as much as you can. There are many decisions you will have to make in your quest for an appropriate Trading System and 'best' market is only one of these.

If you've not already done so I recommend that you read some of the Schwager "Market Wizards" books as many different traders discuss their own methodologies in broad terms. Then I'd follow up with the excellent book by Van K. Tharp "Trade Your Way to Financial Freedom" for some meaty, detailed discussions about designing your own mechanical Trading System.



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Re: Questions about system trading equities

Post by steor01 »

Basically im looking for something that I can have complete confidence in
Well, I believe that to have complete confidence in something you either have to have superb belief in your knowledge or comfort in a long string of successful executions of a particular process.

Having superb belief in something pretty well means one is not a beginner. So that leaves the other alternative.

My advice is to choose a simple approach that you can easily understand and then apply it on paper for a lot of trades. When you finally believe that for every 3 losers you will get 1 winner and that winner will be a good one -- you will have confidence in the system.

Now that begs the question whether you will have the absolute fortitude to rigorously apply the system even when the 3 losers in a row have stretched to 9! But if you don't, you will be applying trade-by-trade variables to a system -- and that ain't no system...

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