My trading strategy
In this article I’m going to go write about one of my main strategies that I use to try to take money from the trading gods. And that is trading against the crowd. This aint the typical day trading 101 stuff, but heck, read on I think it will help you out in your trading career. Or you could copy my strategy.
I get the data, what everyone else is doing from Etoro social trading platform (read this Etoro review for more info if interested). The site shows what majority of the users are long or short and since they have millions of users, I can see a good picture of what the average investor is thinking in regards to the investment object.
Logic behind this style comes from the fact that most traders lose money in the markets, which would mean that if you trade against everyone else, then you should be able to make money.
Also I am an opponent by nature, I like to argue against everything. When some of my friends talk about something, I always try to find a way how to prove them wrong, I’ve always done it and this is just how I am. This is also why the strategy suits my personality.
My idea is to try the strategy with 100 trades and make statistics from my results. If I see that the strategy is working, I will continue on, if not. I will see if I can prove my trading somehow and try to do another 100 trades.
I will be posting pictures of the ideas into my “trades” page. Also I will be providing data on how I’m doing overall every once in a while.
The main style I use is day trading, meaning that I will close most of my positions during the day. I do not want to leave trades hanging over night, as the uncertainty is big. I also closely monitor the Etoro platform to find if the common opinion has changed or not. If it has, I try to exit the position, because the original reason for the trade is no longer there.
In terms of choosing the positions to take, I try to look for stocks, currencies and commodities where at least 70 per cent of people are making their trades one way. I also keep track of the statistics as said earlier, in a way that I write down what was the initial common opinion (how big % was for one side) and after every 10 trades I check how my trades went.
Also I adjust my strategy as I go. This is not set in stone, because I am not profitable yet and the strategy was made up by myself.
If interested, you can read about this strategy more from Investopedia.
Please leave a comment if you have any questions or write to me directly – email@example.com