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; So what about ATR? I use it in my personal trading as a rough guide to risk. The higher the ...

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Old Sep 7, 2008, 4:01pm   #41
 
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Mr. Charts started this thread So what about ATR?
I use it in my personal trading as a rough guide to risk.
The higher the ATR is in the time frame I'm trading, the greater the potential risk as price is more likely to leap around. Stocks with ATRs of say up to 5c do move slowly and READABLY, ATRs up to 8c a little faster and are very slightly more difficult to read, 12c faster still and 20c+ really quite fast and dangerous.
Of course you can reduce position size accordingly with a higher ATR and that's fine, but again for me I know that the higher the ATR the more unpredictable a move can be and I prefer READABLE stocks I know I can exit from at the time of my choice at the price on my screen and not a price which has leapt away 10c, 20c, 30c in a second or two. I don't feel I'm in control in that situation, but that again is my risk averse personality. Others will differ and that's fine. Nothing is "right" per se, it's what works for the individual and their personality and above all what makes consistent money for them every day in all market types.
Richard.
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Old Sep 7, 2008, 4:04pm   #42
 
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Mr. Charts started this thread trendie,
Although sometimes I do look at the previous day's big movers, my early attention is on stocks that have moved pre-market and/or news stories. However, I never trade the news, only a clean market reaction to that news if one of my dozen set ups occurs and then triggers.

timsk,
Thank you for your request to mods. I shall make a comment on that thread in a few minutes.

Richard
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Old Sep 7, 2008, 4:06pm   #43
 
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Mr. Charts started this thread
Quote:
Originally Posted by Newtron Bomb View Post
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
Absolutely spot on as usual, Bomber
Richard
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Old Sep 7, 2008, 4:37pm   #44
 
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Mr. Charts started this thread I've spent Sunday afternoon two finger typing here and catching up with EMAILS people have sent so I won't post again till tomorrow or Tuesday, but there was a "failed" trade using this method on Friday afternoon and I'll post that then.
It was still profitable but only by a few cents but does show the right time to exit the trade on the CHART as I couldn't use level 2 etc effectively because its signals were not clear at the time (sometimes they are not) so I exited as per the chart exit rule mentioned earlier in the thread.
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Old Sep 7, 2008, 4:45pm   #45
 
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Mr. Charts started this thread By the way, I know some people would just like a "just tell me what should I do step by step 1 2 3 4 5"sort of thread, but I think on an open BB it's better to have the concepts gradually become clearer as no-one should accept something without thinking and understanding, even before they test a method for themselves. Trading must always have some thought and judgment and understanding involved, even if it's a small percentage.
However, I might possibly do a summary at some point.
Richard
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Old Sep 7, 2008, 7:54pm   #46
 
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Mr. Charts
I have been wondering what the meaning of T&S and ATR are?
Also, what kind of info do you get from Level2 (i don't even know what that is)?
I undertand that "microanalysis" is not part of your intention in this thread, so can you tell me where can i find more info about it? (just curious).

I appreciate the time you spend answering our questions.

Freeman
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Old Sep 7, 2008, 10:08pm   #47
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Hi Mr Charts,
still waiting for an answer, I sent you an email...
Thank you
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Old Sep 7, 2008, 10:23pm   #48
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[QUOTE=Mr. Charts;497428]So what about ATR?

What is ATRs?
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