Trading on your own two feet

Everyone talks up their own method of how to trade. I'm no different. I am unashamed fan of trend following, and hopefully this blog acts as a useful resource to those who favour a similar approach or who want to learn more about the basic concept.

But within that broad definition of trend following, people can easily tailor it to their own needs or requirements.

In my own case, trend following as a concept is a good match, based on my basic beliefs, the amount of time I want to spend in front of charts, and my family and other time commitments.

The timeframe I choose is also the best match for my personality - towards the shorter-term end of the trend following scale which stops impatience getting the better of me, but still long enough so that I can get into multiple-R profitable trades. It also has the benefit of getting out of losing trades quickly.

However, unlike other many other market participants, I know and accept there are many other successful traders who trade in a completely different manner to me.

From theory to practice - marching to your own beat

Yesterday I was asked an interesting question by an aspiring trader based in India who I have corresponded with for several months. I know he has eagerly been collating a lot of knowledge and information from a number of traders and resources over this period of time. Now he was basically asking me:

"How can I put all my trading knowledge into practice?"

The answer to this is a simple step-by-step process, which can be used by anyone in a similar position: