Trt pov module 12 building a trading system

The Responsible Trader Lessons


The Responsible Trader’s - POVModule 12 – Building a Trading System



The Responsible Trader’s - POV• The Responsible Trader's POV (Point of View). • These are my notes, my own additional research and studies on the

Topic that I posted, and my personal observations and opinions that I am sharing to further enhance our knowledge and understanding.• Some of these were previously posted on “The Responsible Trader”

thread, Stock Market Pilipinas (www.stockmarketpilipinas.com). This is the latest version of previous posts I made.• Some of these plus further explanations and discussions will be

appearing in my forthcoming book “The Responsible Trader.”

http://www.stockmarketpilipinas.com/



First of all congratulations! If you have gone this far and really absorbed all the lessons and the TRT-POVs that I have shared with you, you are really on your way to becoming a Responsible Trader without even knowing it.

A Trading System is simply a group of specific rules or parameters for conducting a trade. The process of building a trading system has been adequately described in the MCTA Video. To make it more understandable and easy to comprehend, I will describe how it is done the Responsible Trader’s Way by giving an example.



DISCLAIMER:What I am going to discuss and the remaining part of this presentation is just an example to partially explain The Responsible Trader’s Trading System. The example will cover taking one position only. Averaging up or down and full details will be presented in my forthcoming book, The Responsible Trader. The Charts, Analysis, Worksheet and other data presented are for discussion purposes only and should not be taken as a solicitation, recommendation, promotion or endorsement of any security.

Trading is a personal thing and the rules I have established may not be applicable in your case. I may or may not have the stock I am discussing. What works for me might not work for you. Always trade at your own risk level that is tolerable to you.



I cannot think of a better way of summarizing everything that we learned than to share with you how I applied all these lessons in my actual trading.



We usually start the trading month by doing a review of our trades. We classify them into four:

1. Best Trade - with a trading plan based on a high probability setup, fully implemented and made money.

2. Good trade - with a trading plan fully implemented. Take profits when target price is hit and cut losses when stop loss is hit. Whether money is made or not is irrelevant. What is important is sticking to trading plan because it helps develop good trading habits.

3. Bad Trade. - with a trading plan but failed in implementation. Ended up being an investor instead of a trader.

4. Worst Trade - without a trading plan and lost money.



After the performance review, we analyze the index, and the sectors where the stocks we intend to trade belong. Based on our studies and the list of stocks in our daily publication of Top Ten Smart Money Moves, we have chosen MEG to be our example. MEG belongs to the Property Sector and our analysis for the Property Sector is indicated here:

Chart courtesy of Amibroker Charting Software



Then we analyze the stock itself, MEG




Based on our Analysis, we can now start checking whether it meets the criteria we have set in our trading rules:



Since MEG has passed our trading rules, we now prepare our trading plan. This is how we are going to do it:



In order to have complete information for our trading plan, let us use our Fibonacci tool, for establishing possible retracement points that would serve as support and also for validating the figures automatically computed by our Worksheet.




This is our completed Trading Plan. Let us go over the important figures one by one.



There you have it everything in one piece. You have your Trading Rules, Trading Plan, Trading Log and Performance Review all in One. I have designed the system in such a way that you can modify the trading rules and adapt it based on your personal needs. This worksheet will be included as part of the book I am writing and a soft copy will be emailed to you when you email to me copy of the Official Receipt of the book.

We will negotiate for the book to be made available through the leading bookstores. However, if negotiations do not push through, we will make sure that you will be able to order the book through our website.



For your information, in connection with my Advocacy, Responsible Trading, I have established the following in order to reach out to you more effectively and serve you better.Please visit, like and share:

My Blog:http://www.theresponsibletrader.com– where I write and share lessons on trading and my thoughts about trading in particular and life in general

My Facebook Page: https://www.facebook.com/theresponsibletrader – where I share what’s on my mind and make posts to groups where I am a member of

My YouTube Channel: https://www.youtube.com/theresponsibletrader – where you can view and download my TRT-POV (The Responsible Trader’s Point of View) and other videos I intend to make

My Slideshare: http://www.slideshare.net/TheResponsibleTrader – where you can view and download copy of the Powerpoint Presentation of my TRT-POV (The Responsible Trader’s Point of View) and other presentations I intend to make

http://www.theresponsibletrader.com/

http://www.theresponsibletrader.com/

https://www.facebook.com/theresponsibletrader

https://www.youtube.com/theresponsibletrader

http://www.slideshare.net/TheResponsibleTrader



My book: “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” is now out for distribution. The price of the book is P1,200.00. It costs less than attending a paid seminar but you get more value than attending one.

The book can be obtained through our website: www.theresponsibletrader.com. Just click on the book icon appearing on the Featured Ads Column.



Book may also be obtained thru the branches of our publisher, Central Book Supply as follows:• Quezon City (Main Branch): 927 Quezon Ave., Quezon City (TEL. 372-35-50)• SM MEGAMALL: 5th Level Bldg. A, SM Megamall, Ortigas Center, Mandaluyong City (TEL. 638-10-88)• C.M. RECTO AVENUE: Ever Gotesco, Manila Plaza Mall• LYCEUM MAKATI: 109 SDC Building Leviste St., Brgy. Bel Air Makati, Manila (TEL: (632) 887-52-45

Those buying the book from these branches are enjoined to send scanned copies of their Official Receipts to The Responsible Trader email: [email protected] to claim the following freebies:1. Ichi Moku Kinko Hyo Analytical Framework which will enable you to read Ichi Moku Kinko Hyo Charts as simple as reading A-B-C. 2. Fundamental Analysis Powerpack. These are worksheets I used when I was still working as Financial Management Executive in the corporate world a. Business Valuation Model_Discounted Cashflow Analysis b. Financial Ratio Analysis 3. Responsible Trading System Worksheet. This is your Technical Analysis, Trading Plan, Trading Log and Trading Performance Review ALL-IN-ONE.

Trt pov module 12 building a trading system

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