How to Build a Trading Strategy

In this podcast Jonathan and Rory talk about how to build a trading strategy and what to focus on when it comes to technical, fundamentals and sentiment analysis.Jonathan discusses at the beginning of the podcast that too many new traders focus on technical analysis to generate trade ideas and solely rely on the charts for entries and exits. In this episode , he talks us through his reasoning of using technical analysis and how he combines fundamentals with sentiment to find trade ideas.Rory also shares his thoughts on how to use statistical analysis as well as fundamentals to generate ideas whether it be in equities or forex. He explains the process of understanding economics as well as the value chain to identify ideas. When it comes to stop losses and profit levels, Rory is keen on using a more quantitative approach and encourages anyone to ask him more about it especially if they are interested in quantitative trading.In the podcast Jonathan also mentions some resources that new traders can use to help gain an edge such as books in technical analysis which Include “technical analysis of the financial markets” written by John J Murphy. This is a great resource which shows the concepts and application of technical analysis within the markets.As always, the best way to learn is to ask questions and challenge everything, no matter how stupid it may seem. This is Rory’s best advice to anyone who wants to construct a better approach to their strategy when trading and everyone is encouraged to ask questions through the app, after all that’s why it’s there. It’s free so join using the link belowApp.twoblokestrading.com