How To Make Money Trading The Markets.

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Old Sep 7, 2008, 12:09am   #33
 
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Mr. Charts started this thread As mentioned above,
I no longer read PMs.,so if you want to ask something, click on my name top left hand corner of this post and click on "email".
I don't read PMs any longer as I get some quite odd ones and I find people who bother to actually email are usually sensible and don't ask daft questions like "what is you trading?" or "how much money you make every day?" and actually expect a reply.
There is a difference between that and the sort of question someone thinks it might be embarrassing to ask on the thread, like "what is T&S?". That sort of question is fine.
Richard
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Old Sep 7, 2008, 12:14am   #34
 
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Quote:
Originally Posted by nghislainf View Post
I love you Mr Charts!!!!!
How many times a day do you trade?
I know it's really hard to keep discipline in day trading,What instruments do you use? Any broker suggestions?
Thank you
I take that to mean you find some of my posts interesting or helpful........
Anything from about 5 to 15.
Like everything else it gets easier with practice.
What instruments? Not sure what you mean there, but I use eSignal and Interactivebrokers.
Hope that helps and thanks for your kind words
Richard
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Old Sep 7, 2008, 12:17am   #35
 
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Quote:
Originally Posted by Dasnaq View Post
I agree with Mr Charts, even on days when the market is flat or range bound, oportunities are always out there.

I am curious about your dislike of GOOG Mr Charts. It can be chopy but when it trends it trends well I think. Even when it is range bound that 30c spread is nice to catch and often low risk when rangebound.

In my opinion.
Hiya,
It's just one of those personal preference things. I do often trade within the spread and capture part of it like a market maker, but in a momentum stock you don't always get your limit order filled as you know.
Good trading to you,
Richard
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Old Sep 7, 2008, 3:56am   #36
 
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Originally Posted by Mr. Charts View Post
Thanks, options.

With this approach......

In the next post I'll talk about position sizing and ATR and after that about when to exit if the trades fails at or shortly after entry so any possible losses can be kept to a minimum.
.......
Richard
Just found this thread, very interesting, many thanks. I look forward to hearing about position sizing, ATR and managing failing trades.

With respect to the latter, I'm guessing it is important to enter (short) near to the top of a bar, and exit if price rises above that of the preceding bar which should represent a fairly minimal loss?
Pete
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Old Sep 7, 2008, 10:26am   #37
 
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hi Mr Charts, glad to see you have started a dedicated thread to your style. I have rated the thread 5-star, as this is simpler than repping every other post of yours!

timsk; as Mr Charts wants to keep the thread clean, why not set up a parallel "Potential Set-ups" type thread where followers can post their charts, in similar vein to the trader_dantes threads?

as I understand it; Mr Charts scans for yesterdays big-movers to focus on potential continuation moves on following day? then uses further filtering to narrow down best ones.
do you still use pre-market news and upgrade/downgrades as potential stocks to trade?
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Old Sep 7, 2008, 11:42am   #38
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Quote:
Originally Posted by trendie View Post
timsk; as Mr Charts wants to keep the thread clean, why not set up a parallel "Potential Set-ups" type thread where followers can post their charts, in similar vein to the trader_dantes threads?
Done!
http://www.trade2win.com/boards/us-s...ng-set-up.html
Perhaps the Mod's would be good enough to edit this thread in accordance with Richard's wishes and move any peripheral posts to the other thread.
Tim.
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Old Sep 7, 2008, 2:22pm   #39
 
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Originally Posted by Mr. Charts View Post
Hiya,
...It's just one of those personal preference things....
Ive got to love that line... there can be quite a lot under that personal preference title not related to the execution of a trade, brokers platforms, trading goog and so on. This is really what defines a traders personality.

Great thread Mr Charts, Lots of valuable infomration here is people prepared to do their homeowrk and read through and make the time to understand what is being said here.

On a slightly differnt note using the tape on FX last thursday (thats the last price on right hand side of chart...no time and sales on FX ) to trade gbpjpy after it had already dropped 600 pips (average at the moment is about 200-250) and a little cross tape reading between gbpusd and usdjpy was telling me that GJ was going to go lower as gbpusd and usd jpy were taking it in turns to trade down on what you call micro analysis... and no charts involved. As you described in post #4 sellers have the ball on GU UJ and as a result still influencing GJ.... Tape pausing on UJ while GU's tape making LH LL's pushing down GJ... then GU would pause and UJ would start moving down in the same way causing GJ to move further down....

You dont always get to see this on FX but on stocks as like you say you can find these trade set ups daily and is a most effective tool for trading.

Not traded NASDAQ for a while now but you have certainly re-kindled the fire again

When we last spoke about this I think the best way to describe this price action is to think of Paula Abdul's song - 2 steps forward and 1 step back

For those wanting fast, daily/regular and profitable action should consider Mr Charts method of trading
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Old Sep 7, 2008, 3:47pm   #40
 
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Mr. Charts started this thread Spot on, peto.

There are various ways you can manage risk. In this particular set up, which is only one of about a dozen I use, an excellent method is indeed to use the "wrong" end of the previous candle as your WORST CASE STOP.
Let's say your short entry is at $43.32 and the high of the previous "falling" candle is at $43.44.
If you trade without using Micro-Analysis (level2 buy/sell pressures T&S) then you can set your stop at $43.45 a potential maximum loss of 13c.
Let's say the maximum loss you are prepared to tolerate on the trade is $100, then your position size would be 769 shares ($100 divided by 13c).
Personally I really can't be bothered with odd numbers of shares so I round the number to the nearest hundred.
If my level 2 T&S screens were to show sudden strong buying pressure and weakening selling pressure and the trades printing off reflected that, then I wouldn't wait for my worse case stop loss to be hit and would be out earlier. However that is beyond what I'm talking about in this thread and we'll stick purely to charts. This does NOT mean indicators, but READING what the market is telling you.
My attitude is that if the evidence in front of your eyes says you are losing this trade, why wait for a stop loss to be hit and produce a larger loss? I feel you are simply paying money to the market in the hope of being proved "right" in such circumstances.
Of course the situation is different if the approach involves using ATR as a stop and then maybe, just maybe, what you are seeing is intra candle noise. There are plenty of techniques which employ ATR like that.

For those who have carefully read my earlier posts on this thread, you will recognise that this end of candle stop loss exit is the same as the taking profit exit. In a down move when the high takes out the high of the previous candle; in an up move when the low takes out the low of the previous candle.
This in no way "guarantees" you have exited at the right or best time, but it does mean you can continually take profits from the market.
Remember the "right" or "best" time can only be recognised as such in retrospect. You must always act on the evidence in front of your eyes at the time, never "wish" or "hope".

There is another approach which is very useful, but has to be used in context.
After paper trading, which has its limitations as we all know, you can start trading 100 shares at a time and gradually increase your position size as you develop and proceed and meet satisfactory success targets.
You should ONLY do this in my personal opinion if it is a slow moving stock with a low ATR and you can read it on level 2 very easily. What I mean is that if the stock is liquid (plenty of trades going through) and ticks up or down slowly at 1 cent at a time you can easily exit whenever you want and control your risk very easily. A stock like DELL would be like this.
I would not use such an approach on a stock like GOOG where the price can leap around by 20c or
30c in the blink of an eye. You are not in control in such a situation, at least not in sufficient control for a financially risk averse control freak like me
I use 1 min, 3 min and 5 min candles - the method works well on all those time frames.
TBC
Richard
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