My suggestions:
Optimization is only good to get a ball park number if you are not experienced. You did not say how many stocks you have tested with system and the results. When you set a percentage or a time limit on a trade, you tie yourself in, where do you sell? I always say try to keep any loss below 10%, you are getting close to a 1 to 1 ratio risking 10 to get 13.
While I don't put down low priced stocks, there can be some real dogs out there. While I don't look at stocks under $2, I trade few below $5. The lower the price, the bigger percent moves, BOTH ways. You have to be fast on the sell button. I won't ask where you got into AS but I can't see what would draw anyone there at this time. a $4.75 stock can't fall more than 15/32s to keep loss under 10%.
With so many following market real time, it is easy to get caught up in the 5 min bars and lose your money faster. Bottom fishing is the worst method for making money, O'neil is suggested to try to get people off the bottom muddy way of thinking.
So that should last you for a couple of weeks.
Ramblings:
Wait for trend to trade, never fight it or guess at it.
There is a time to trade and a time to wait.
A trader wants a trending market with volatility but as volatility increases so does risk.
The most important thing one can do is preserve capital. You can't play game without it. Learn to take a loss. you can't wish a stock up or down.
As people read a TA book, note how few stock charts you will see.
Never trust anyone in the "business". If they are wizards, it is with other people's money. Look at the average returns, how many beat S&P?
Know yourself, determine if you are your own worst enemy. |
