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What makes a good Trading Strategy?

Saturday, September 26, 2009 at 2:33 AM
Ask most NEW traders, and they will tell you about some moving average or combination of indicators or a chart pattern that they use. This is, as the more experienced trader knows, an entry point and not a strategy. Any trader who is more experienced will say a strategy should also include money management, risk control, perhaps stop losses and of course, an exit point. They might also say that you must let your profits run and cut your losses short. A well-read trader will also tell you that your strategy should fit with your trading personality. BUT there is one other vital ingredient that many traders forget - and that is to fully understand the "personality" of what you trade. Some traders specialise in say, gold or Brent crude or currencies or they might specialise in a particular index such as the FTSE 100 or the Dow but many traders choose to trade shares. Indeed some traders dabble in a bit of everything. I think this is the area that causes many traders to fail or at least not reach their full potential. In my view: You absolutely MUST specialise. I am sure that on the surface most people would say that sounds sensible but here is why it is a MUST! Superficially, many charts look the same. I bet if you had not seen the charts for some time and someone where to show you a chart of Brent Crude over 6 months and then a chart of Barclays PLC over the same 6 months you would be hard pushed to say which was which purely on the look of the chart. However, I bet that if you found a trader who trades ONLY Barclays day in and day out and also found someone who trades ONLY Brent Crude day in and day out, both of them would easily identify which was which. WHY? Because every share, index or commodity has it’s own "personality". Some will be volatile intra-day, some will follow their sector or the main index (market followers), some will do their own thing, some will spike up and down regularly, some will stop at key moving averages and some will just plough through. Some will move by 5% on average before they retrace and some by 2%. Some will gap up or down regularly, some will not. You get the idea! Therefore, no matter how good you are at analysing indicators, moving averages, trends and patterns, the same strategy WILL NOT work for everything. I would go so far as to say that a strategy that works well for Bovis Homes, for example, is likely NOT to work for BT Group - they have very different "personalities". So let’s return to our question: What makes a good trading strategy? Let me answer with a series of ten questions that you need to find answers to, in order to build a REALLY GOOD strategy. What do you want to trade (share, index, commodity, currency, etc)? If your answer is shares (plural) I would urge you to pick one typical share at this stage to really specialise. You can add more later. What "personality" does that share, index etc have? What entry system is the most reliable for that share? What stop loss system is the most effective for that share? What average risk will a typical trade carry? What exit system works well for that share? What is your trading personality (attitude to risk, losses, discipline, how much do you worry etc) and can you trade that strategy without overriding it? What timescale do you want to trade? (Using intra-day or end of day data) How much data do you keep on past trades to help identify strategy weaknesses? How does all this fit with your trading objectives? Once you have an answer to each question you need to do one final thing. Make sure all those things fit together and complement each other. For example, if the ideal stop loss position represents a big average risk and conflicts with your own attitude to risk, you need to start again. If you will override your exit point because greed makes you hang in for more, you need to think again. Perhaps you shouldn’t trade that stock in the first place - look for one with a different "personality" which will lead to a strategy you can trade comfortably. It is a long and sometimes painful iterative journey. You might need to go round and round in ever decreasing circles over a long time. Testing and refining, testing and refining before you can truly have a reliable and repeatable strategy that REALLY WORKS for you. THEN, you can look for other things to trade that have the same "personality" as your specialist stock, index, commodity or currency. But if it were easy, everyone would be doing it right? Good luck and enjoy your trading.

Migraine Prevention Self Care and Treatments

Thursday, September 24, 2009 at 12:28 AM
Risk Factors of migraine Migraine is quite irritating and bothersome. In severe cases migraine headache might considerable reduce the efficiency and even incapacitate the sufferer for some time. In the year 1990, a case of nearly three years standing was brought to me personally by an allopathic doctor. The person was a male in his late twenties and an engineer by profession. He used to get migraine attacks several times a day with each attack lasting for more than an hour. He could neither sleep at night nor could walk for 300 yards at a stretch. Physical exertion did not trigger the pain but was very troublesome for him. He had stopped taking breakfast because he simply could not eat in the morning. Having been disappointed by various treatments, he had started thinking of suicide when he was brought to me. I started treating him homeopathically, which gave very encouraging results. Improving gradually he completely recovered and regained his health in about six months. His migraine never came back. That was the worst case of migraine that I have ever seen and treated. Not all cases aggravate to that extent and do not take that long to cure. Most of the risk associated with migraine is due to wrong treatment, unsuitable medicines or side effects of the medicines otherwise migraine does not affect the brain permanently. The effects are temporary, lasting only till the end of the attack. However, the person might feel general weakness once the attack is over. Prevention and Self Care It may not always be possible to prevent getting migraine but if you know what triggers or relieves your migraine attack, it would be a lot easier to manage the condition. Given below are some guidelines that might help you. Please read them carefully. The first thing to do is to find out your migraine trigger and keep a note of it. Once you are sure of it, avoid that item or condition, which is the best way to prevent the attack. Also try to find out what relieves the pain. It could be a particular posture, a food item or just rest. Remember that your are the best person to find your trigger as well as the reliever. Learn to relax. Relaxation does not mean the physical relaxation alone. It also includes mental relaxation, which is very important and is something that would come through regular practice. You can adopt any technique that suits you. Meditation and Yoga are good techniques but breath control is probably the easiest to begin with. Progressive muscular control by reverse counting method is yet another technique, which you may like to try and see if it makes the difference. By learning to relax, you would be able to manage not only your migraine but also many other health related issues. Always avoid over eating. Develop this habit whether you have migraine or not. If you are already suffering from migraine, do not over use any medicine. Try to learn about the side effects of the medicines you take so that you do not run into a problem more severe than migraine. Sleep well but do not over sleep. Try to understand the realities of life and try to be realistic as far as possible so that you don’t tax your nerves unnecessarily. We keep acquiring both positive and negative energies every day through various means. Learn to dissipate negative energies on regular basis. There are various techniques to do so, which you can find and pick up the one that suits you the best. And finally, whichever religion or faith system you belong to, try to follow the teachings. That will give you satisfaction from within and ultimately help you taking better control of your self. Migraine Treatments Is migraine curable? This is always the first, most important and very valid question. Let us see what various treatment systems have to offer. Modern medical system has no cure for migraine. They call it incurable. The system has nothing particular to prevent the attack of migraine. Many of the medicines used for migraine are also used for hypertension. If the migraine sufferer does not have high blood pressure, use of such medicines can make him hypotensive, which is a trouble by itself. Most of the allopathic medicines have their own side effects. Herbal Treatment There is no recorded evidence available (not to my knowledge at least) to prove the efficacy of herbal treatments for migraine but it is said that the system has the medicines to cure migraine. Acupuncture, Acupressure, Chiropractic and Reiki are also said to have the potential to cure migraine headaches. Chromotherapy According to the concept of chromotherapy, the cause of any disease can be the lack (or excess) of a particular color in the human body. Chromotherapy is a technique of restoring the balance of colors by applying light of particular color to the body. According to this system, migraine is said to be the result of lack of purple color. If the body is exposed to purple color for a given period of time, migraine can be cured. Homeopathy system has more than 50 medicines to effectively cure different conditions of migraine, one-sided headaches and other types of headaches. Some people may be skeptical about homeopathy but the fact is that homeopathy can cure migraine and other types of headache permanently. Our experience with cured cases shows that one-sided headaches are comparatively simpler to treat with homeopathic medicines. Homeopathic medicines are safe to use even for children and pregnant women. If you wish to know more about this wonderful system, you would find lot of useful information on this and other homeopathy sites. If you have migraine, consider homeopathic treatment.

Migraine Headaches Causes, Diagnosis, Triggers

at 12:27 AM
Causes of Migraine Researchers have been trying to find the cause of migraine since long but so far the success is nowhere in sight. There are different views about the causes of migraines but none has been established with authenticity. Broadly speaking, migraine has something to do with the nerve system but what is that, is not known. Some people believe it to be genetic disorder but probably this is only a supposition. It could be caused by functional changes in the trigeminal nerve system. Migraines may be caused by imbalances in brain chemicals, including serotonin, which drops during headache but what factors cause that to drop, is not known. It is said that level of magnesium also drops just before or during a headache but what causes that to drop, is again not known. Another viewpoint is that migraine is psychosomatic in nature, which is unconfirmed. Hormonal changes particularly in women are also said to be a cause but like other causes this one is also not confirmed. Some people call it hereditary in nature but this also remains unconfirmed. There is no known cause of one-sided headache. Migraine Diagnosis If the headache is occasional and due to a known cause like lack of rest, diagnosis in detail may not be necessary but if the headache persists and comes on without a known cause, if would be necessary to go through complete check up. In addition to usual question and answer session, inquiry about the family history, eating habits, usual life style etcetera, your doctor would know what tests to perform. Among the tests are "Computerized Axial Tomography" (CAT), also called CT Scan or CAT Scan and Magnetic Resonance Imaging (MRI). Computerized Axial Tomography (CAT Scan/CT Scan) This is done through an X-ray machine specially designed to take a series of computer-controlled X-rays in a cross-sectional view of inside of the head to detect tumors, hemorrhages and other problems. The cross-sections are like very thin slices of body part scanned. This technology has become very common and can be used to scan other parts of the body as well. Magnetic Resonance Imaging (MRI) It is a radiology technique that uses a powerful magnet, radio waves, and a computer to produce cross-sectional images of body structures. The images produced by MRI are quite detailed and can detect minute structural changes inside the body. MRI scan is an extremely accurate method of detecting diseases hemorrhages, swelling, brain aneurysms, stroke and brain tumors etcetera. It is not necessary that some cause would always be detected through these or other tests. One can continue to have migraine headache even if all the tests are clear and there is no apparent reason to have headache. That is the case with lots and lots of migraine sufferers. Common Migraine Triggers Trigger is a specific factor that may initiate a migraine attack but is not a cause by itself. It is only a starter. This trigger is usually specific to the person. One particular factor that may trigger migraine in one person may not do the same for another person. Migraine sufferers usually have one trigger specific to them but it is possible that someone may have more than one trigger. Common triggers are: Mental stress Emotional disturbance Lack of sleep, oversleeping or a specific sleep pattern Sunlight Bright light Weather changes, a particular weather or temperature Bathing Noise or a specific sound Quick movement, may be upstairs or downstairs Dancing Abdominal disturbance like diarrhea or constipation High altitude Over-exertion Eyestrain Fasting A particular body posture A particular odor A particular situation or environment Certain food items like tea, coffee, beer, candy sweets, chocolate etc. Smoking Use of narcotics Riding in a vehicle etc. etc. This list is not exhaustive by any means. There can be more factors specific to an individual triggering the headache.

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