How to find your OWN trading strategy to find consistency

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Bulls on Wall Street

Whenever someone begins their trading journey, the temptation to join Pump and Alert Rooms can be great. The strong attraction for them could come from the “comfort” of which you think you are following someone who appears to be “decent” and makes money every day.

In reality, you are just making your fear of your own loss and lack of will to go your own way and work hard to develop your own strategy.

If you rely on warnings when trading, you are not self-supporting. If the messaging service goes down, you’re screwed. Following warnings and signals doesn’t make you a real trader. In the long run you will lose as you don’t really have a reliable advantage to fall back on.

Today we’re going to cover why it is so important that you develop and stick to your own system, and how you can actually start creating and assembling a system and trading style that is just right for you.

Your own trading strategy = self-sufficiency

If all you do is act warnings and they go away, you’re screwed.

Our goal is to create self-sufficient traders who can hold their own hand while trading, even without notifications or a mentor. That is our ultimate goal.

While it’s nice to always trade with a mentor or a community, you have to be able to rely on your own instincts and skills to be successful in the long term. Being able to trade alone and not rely on someone to tell you plays and setups gives you a safety net to fall back on and makes you feel really safe. When you get to that level, it’s a real job and a reliable source of income.

Natural trading instincts

Whenever you develop your own system and strategy, whether you realize it or not, put together a system that matches your natural instincts and personality traits.

Every person is different and every mind thinks differently. As a dealer, you want to play to your strengths. If you are very patient then swing trading may be the thing for you and as you learn it will of course make you pull in and be drawn to longer swing trading strategies. If you are a very impatient person you will find yourself looking for strategies, trading better, and implementing scalping / day trading strategies.

If you take the time to create your own system instead of just following warnings, you will find that the strategies you are using are more in tune with your natural abilities on another personality trait.

At Bulls on Wall Street, we teach traders a variety of strategies and help them incorporate the right strategies into their system. We do it differently. Our student Kelsey has tailored our strategies to suit her own trading style:

Day trading strategy

How do I develop my own strategy?

Developing your own strategy and system can seem daunting at first. But that’s what we’re here for.

Before we dive in, save this graphic. It will come in handy soon.

To develop your own strategy, you need to break things down one by one. You need to be aware that there are many different times of the day to trade, types of stocks to trade, styles of trading, etc.

Let’s outline some of the key categories of trading and stock behavior that you need to consider in your decisions:

Times of the day for trading:

  • Outdoors (morning)
  • Noon afternoon)
  • End of the day (late afternoon)

Trading styles:

  • Swing trading
  • Day trading
  • Scalp

Types of stocks:

  • Small caps
  • Center caps
  • Big caps
  • Volatile stocks
  • Non-volatile stocks

Trade types:

  • Briefly biased
  • Long biased
  • Mixed (no distortion)

Types of stops:

These are just a few categories aside from Patterns, which we teach a lot about.

Well, you really want to sit down and go through this list and think about what kind of person you are.

Are you patient

Are you impatient

Can you withstand volatile price fluctuations?

Does the risk make you fearful overnight?

When you think about your ultimate goal as a trader, how do you want to feel and what do you want to do? If you want to be as stress-free as possible and only trade a few hours a week, then swing trading non-volatile large caps and using hard stops / entries are the way to go. If you want to be in front of the screen all day every day and are very impatient but can easily increase the size, then scalping / day trading volatile small caps and mid caps might be your way to go.

Once you’ve decided what type of trader to be, what stop methods to use, and what types of stocks to trade, the next step is to learn pattern by pattern, and this is where we come in about so many Learning patterns as possible, testing them, and testing them in your system. Over time, you will find certain patterns that work best for you on the types of stocks you appear to be trading.

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