Strategy Additions...

This past weekend was pretty cool. Friday night I went to a birthday party across town and met a professional hedge fund trader based out of Beverly Hills, CA. Our conversation lasted several hours and was eye opening and validating at the same time. The validation came in the revelations that we both have similar styles of trading and suffer many of the same trading maladies from time to time like impatience and greed.

I also was given a book to read from another trader friend called 'Overcoming the 7 Deadly Trading Sins' by Ruth Barrons Roosevelt. It is an excellent read if you are having any kind of psychological troubles with trade management or money management. It reminded me of a few things I should be focusing on.

Anyway, the hedge fund trader gave me a heads up on adding a couple of stochastic indicators to my charts to compliment the use of the RSI(14). As we've seen, the RSI(14) can find itself in no mans land(around the 50 level) where it's anyone's guess which direction it will head. The stochastics can help. The stochastic settings are 21/8/5 for one and 8/3/5 for the other.

Here's a chart:

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