Friday, May 25, 2007

POWER OF MA 5 AND 20

To be successful, trade along the MA5 and MA20.

Richard Donchian has done it.

Trade, following the trend, if there is no trend then there is no money to make. Do not worry, because you do not loose money.

Never loose money against the trend.

Sunday, May 6, 2007

CONCEPT OF TREND FOLLOWING

COMPONENTS OF TREND FOLLOWING

Van K Tharp said, Every traders need a trend to make money. If you think about it, no matter what technique, if there is not a trend after you buy, then you are not able to sell at a higher prices.

"Following" is the next part of the term. We use this word because trend followers always wait for the trend to shift first, then follow it.

TREND FOLLOWING - MOVING AVERAGE 5 AND MOVING AVERGE 20

Trend following is an investment strategy that take advantage a long market moves that paly out in various markets.

The system aims to work on market trend mechanism and take benefit from both sides of the market enjoying the profits from the ups and downs of the stock markets.

Traders who subscribe to the trend following strategy do not aim to forecast or predict markets or price levels, they simply jump on the trend and ride it.

Friday, May 4, 2007

RECOMMENDED TRADING MODELS - FUTURES

Recommended Trading Models

1. CI FUTURES

MOVING AVERAGE 2 AND 5 - TREND FOLLOWING
MOVING AVERAGE 5 AND 20 - COUNTER TRENDING

Maximum position per package - 3 positions

2. CRUDE PALM OIL FUTURES (CPO)

MOVING AVERAGE 5 - TREND FOLLOWING
MOVING AVERAGE 2 & 20 AND 5 & 20 - COUNTER TRENDING

Maximum position per package - 3 positions

This Trading Models is a tribute to Mr. Richard Donchian.

"MODEL 5,20"

Model 5, 20 was established on 4th May 2007 by Mr Rosli Hussin.

Model 5,20 was based on the work of Mr. Richard Donchian, the father of trend following.

Model 5,20 has proven to be a successful trading model in all markets.

What it takes to make it successful is DISCIPLINE.

RICHARD DONCHIAN AND RICHARD DENNIS'S MODEL

I must say here that I really admire both persons especially Mr. Richard Donchian.

For him to established the Moving Average 5 and 20 Model in 1930s was incredible.

He must be very hardworking and obsessed with his work.

The model developed by him is working and has made many billionaires.

The next step to success is DISCIPLINE.

With the Model, lets name it "MODEL 5,20" any trader can make money in any market, be it the stocks, shares, currencies, foreign exchanges, commodities etc.

THE BOTTOMLINE IS DISCIPLINE AND WORK ACCORDING TO PLAN.

DO NOT CHANGE THE PLAN.

Cheers.

Tuesday, May 1, 2007

MA5 AND MA20 - RICHARD DONCHIAN

Richard Donchian is basically a long term trend follower and the father of technical chart reading.

He work with five (5) and twenty (20) days moving average cross over signal used buy and sell rules with a weekly time frames.

Today, I finally found something to confirm my believe in the reliability of moving average 5 and 20.