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Want to steal Warren Buffet's Stock Market Lesson Plans (Stocks)?

Why would you want to borrow a stock market lesson plan from someone else? Let me start by saying that a trading plan is only beneficial if you stick to it. Following your project will help you succeed, yet many traders ignore their carefully devised stock market lesson plans. Instead, they become so emotionally immersed in a trade that they disregard any warning indications. Remember that when the market corrects itself, which it always does, no position is exempt, no matter how vested your ego is in it. Many investors have stock market lesson plans in place, and they will continue to hold their positions even if their portfolio values are slashed in half. This is because they may be afraid of missing out on a big profit or being in such deep of a loss that they can't possibly sell at that time. However, even if you believe that all positions will return from their failures, which is unlikely, this is a lousy strategy to trade. When you invest too much money, your rate of return ...

Metastock Part 3: Relative Strength Comparison (RSC) The Key Success Tool In Trading By Stock Market Sectors (MT) Metastock Part 3: Relative Strength Comparison (RSC) The Key Success Tool In Trading By Stock Market Sectors (MT) Metastock Part 3: Rel

I discussed how to code the first two of the four critical components of a mechanical entry system in Part 2 of Designing a Trading System in Meterstick. First, I explained how pricing and liquidity are coded. The steps for coding the last two components, trend and volatility, into Meterstick will be covered next in this article. You will have all of the codes for a mechanical entry system in the end.


Let's start with identifying trends. When trading, keep in mind that 'the trend is your friend.' It would be best always to try to work with the movement rather than against it. Consider this: if you were swimming in the water and got trapped in a riptide, would it be simpler to swim with or against the current? Trading with a trend is the same way.







Trends can be identified in various ways, and the method you pick isn't especially significant. You must, however, utilize one. For example, finding stocks trading at their current highs is one of my favorited ways to spot trending stocks. This can be accomplished by specifying that the highest price must have occurred during the last 'x' number of days. You can visit at www.exchangebuz.com for more information.



The variables you use will, once again, be determined by your trading time frame. However, in this case, you want the highest price in the previous 240 days to have occurred within the last 20 days.


You can discover the syntax of the highest high function in the formula reference part of the Meterstick Programming Study Guide and then plug in the details. You can then define the number of days that must be fewer than 20 by using the 'less than sign. That might be expressed in Meterstick as:


Hvar's(H,240) 1.5 and

 ATR(21)/Move(C,21,S)*100 1 and 

Move(v,21,s)*C > 200000 and 

Hvar's(H,240) 1.5 and

 ATR(21)/Move(C,21,S)*100 6 and 

Hvar's(H,240) 1.5 and 

ATR(21)/MO(C,21,S)*100 6


You've created a functional entry system. You not only created a solid design, but you also followed the KISS philosophy (Keep It, Simple, Simon). This system can be copied and pasted into Meterstick's Explorer. On the other hand, the entry is only the start of a successful trading method. The other components you'll need to construct a lucrative trading system will be covered in later chapters of this series.

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