How To Make Money Trading The Markets.

This is a discussion on How To Make Money Trading The Markets. within the Stocks forums, part of the Markets category; A couple of trades using this method from today which illustrate different points worth being aware of, imho. First a ...

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Old Mar 16, 2011, 5:44pm   #1457
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread A couple of trades using this method from today which illustrate different points worth being aware of, imho.
First a loser, SWN. I went long on rising candles and within seconds it turned against me and since one of the keys to successful trading is to keep losers small, I exited as soon as it turned south. No maybes, ifs, altering stop losses, wishing, hoping and all that nonsense, OUT and take the small loss of 5c. It's the cost of doing business, simple as that.
Difficult to understand the chart? Look at the red X hairs, that was the point of entry. Time of exit on the screen shot and was on the same candle.
Richard
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Old Mar 16, 2011, 5:57pm   #1458
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread I spotted NETL on a scan and went long as shown, exiting when my reading of momentum and buy/sell pressures (obviously not visible until AFTER they've happened for pure chart traders - even if then !) suggested the move might be over. I didn't wait for a candle chart exit. This proved to be correct and the exit candle printed the high of the day so far for a +44c per share profit.
The overall market was flat-lining before and at the time of the trade, but I can usually find a stock that is moving in a potentially very profitable way, in this case, simply trending. This for me is one of the great things about trading the way I do; there are so many stocks there are almost always opportunities. I am not range bound even if the market is.
Richard
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Old Mar 25, 2011, 6:38pm   #1459
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread Here's a nice gentle swing trade from today. A slow mover but clear and definite.
Some of my trades are quick, some slow; it really depends on the stock and what it's doing. Some last minutes, some a couple of hours and everything in between.

I picked BC up on a scan for largest movers and although it was a high probability trade it could have been better as it had already been trending for a while and, of course, you always think it might be due to retrace/reverse. However, I could see there was plenty of buying pressure and little on offer so the probability was that it would continue. Had it reversed I'd simply have exited straightaway. I don't see the point in waiting for a stop loss to be hit if you can see price is reversing against you. If it had merely faltered and chopped around (wiggled) I'd have stayed in to see what would have happened. If it had turned against me as soon as I entered I'd have exited for a loss of maybe 2c to 4c.
However, it continued up as the evidence in front of my eyes suggested it would.
Of course if I'd run the scan a few minutes before I'd probably had been in earlier.
Entry on the red cross hairs and exit at the time of the screen shot.
In fact I exited at what proved to be the highest bid of the day. The buying pressure stopped and the selling pressure intensified, so I wasn't going to wait around for the chart to reflect the trades after people started to get out. It's possible that might have just been temporary and it could have gone up again, but my attitude is to take what is lying around waiting to be picked up. If the evidence in front of your eyes says the move MIGHT be over, take what's there.
You can always decide just to scale out of maybe half your position and see what happens next if you prefer.
If it would have taken off north again I could always have got back in.
In the meantime, money is banked and that's the name of the game - NOT just being right about a trade. Just a thought.
+40c per share.

Richard
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Old Mar 25, 2011, 6:40pm   #1460
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread This is what happened later.
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Old Mar 26, 2011, 3:08am   #1461
Joined Jun 2004
Re: How To Make Money Trading The Markets.

Quote:
Originally Posted by Mr. Charts View Post
Here's a nice gentle swing trade from today. A slow mover but clear and definite.
Some of my trades are quick, some slow; it really depends on the stock and what it's doing. Some last minutes, some a couple of hours and everything in between.

I picked BC up on a scan for largest movers and although it was a high probability trade it could have been better as it had already been trending for a while and, of course, you always think it might be due to retrace/reverse. However, I could see there was plenty of buying pressure and little on offer so the probability was that it would continue. Had it reversed I'd simply have exited straightaway. I don't see the point in waiting for a stop loss to be hit if you can see price is reversing against you. If it had merely faltered and chopped around (wiggled) I'd have stayed in to see what would have happened. If it had turned against me as soon as I entered I'd have exited for a loss of maybe 2c to 4c.
However, it continued up as the evidence in front of my eyes suggested it would.
Of course if I'd run the scan a few minutes before I'd probably had been in earlier.
Entry on the red cross hairs and exit at the time of the screen shot.
In fact I exited at what proved to be the highest bid of the day. The buying pressure stopped and the selling pressure intensified, so I wasn't going to wait around for the chart to reflect the trades after people started to get out. It's possible that might have just been temporary and it could have gone up again, but my attitude is to take what is lying around waiting to be picked up. If the evidence in front of your eyes says the move MIGHT be over, take what's there.
You can always decide just to scale out of maybe half your position and see what happens next if you prefer.
If it would have taken off north again I could always have got back in.
In the meantime, money is banked and that's the name of the game - NOT just being right about a trade. Just a thought.
+40c per share.

Richard
Lucky for you that you decided to use a 5 minute timeframe instead of a 1 or 3 minute to manage the trade like you normally use or results would have been different.
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Old Mar 26, 2011, 10:24am   #1462
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread I use 1 min, 3 min and 5 min charts routinely.
5 min charts are used on one of the other set ups I use (not the one in this thread), and also on slower moving stocks like this one.
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Old Apr 4, 2011, 5:13pm   #1463
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread A very choppy day so far today, but with stocks there are always opportunities, even if you've got to be patient awaiting them and searching for them.
Eight trades today, six wins, two losses.
Here are two using the main method in this thread.
The stock was picked up from a scanner and traded twice.
I've chosen this as an example because people often ask what do I do if I find I get out of a stock too early. Dead simple - if the opportunity arises again in the same stock - take it and think of it simply as a new trade, which is exactly what it is.
WPRT first trade +34c a share
Richard
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