I plan to enhance my knowledge of trading in financial markets.
I intend to utilize technical analysis, which I know works to a certain extent, with the rest being mumbo-jumbo and fundamental analysis.
My strategies are posted here: Strategy
Since I possess some knowledge about how Technical Analysis (TA) and Fundamental Analysis (FA) work, I will not include basic concepts such as what a share is or what a market index (e.g., SPX or NDX) is, etc.
There is a lot of good sources that can be found on the internet to learn basics, f.ex. https://www.investopedia.com/
Plan for Technical Analysis (TA):
1. Train to make educated assumptions about the potential next move for an index and its underlying stock. Once I can accurately predict the direction of the next index or stock move at least 50% of the time, I can transition to phase 2.
2. Train to utilize my predictions in executing trades. I aim to achieve a risk-reward ratio of at least 1 to 3 in each trade.
Plan for Fundamental Analysis (FA):
1. Observe how a market reacts to changes in fundamental economic parameters and make an assumption about how it can be used. Once I can accurately predict the direction of the next index move at least 50% of the time, I can transition to phase 2.
2. Train to utilize my predictions in executing trades. I aim to achieve a risk-reward ratio of at least 1 to 3 in each trade.
Money Management:
I only trade with $1 until I am confident that my strategy works, which means that after N trades, I am on the positive side.
Each strategy has a specific number of trades that need to be assessed to determine if its results are statistically reliable.