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; Richard Good stuff. You must have some seriously fast fingers to have seen this and got a screen print of ...

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Old Mar 3, 2010, 12:19am   #481
 
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Re: How To Make Money Trading The Markets.

Richard

Good stuff.

You must have some seriously fast fingers to have seen this and got a screen print of the action as it happened !

You should change your screen name to 'quick draw'.

DT
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Old Mar 4, 2010, 10:46pm   #482
 
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Re: How To Make Money Trading The Markets.

Mr Charts' method as performed by others.

Heavy selling in the fifties prompted exit for +68.
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Old Mar 8, 2010, 9:28pm   #483
 
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Re: How To Make Money Trading The Markets.

Thanks Richard.

Just one more to show that if I can do it anyone can!

Spotted RGC today. Volume increasing, T&S showing purchases etc. took the plunge and got out when things looked shaky for +35.

Like Mr Charts not all mine win (I wouldn't like to compare percentages!! ), however, losses I treat like a business expense - just keep them as low as poss.
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Old Mar 9, 2010, 5:58pm   #484
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Re: How To Make Money Trading The Markets.

Not actually trading yet but I am scanning in premarket and 15min after open. using momentum strategy and couple other rule I put it in for entry and exit, today, I had 2 losers and 6 winners.losers were -.09(feed), -0.35(apple. in not to trade list but I put it in for sake of testing) winners: +.20(syx),+.27(uaua),+.32(cmc), +.40.(lvs).

Im having an issue with Ensign+IB feed. while most chart refreshes right away, some of them take a few min. to give me a whole picture. Anybody have thoughts on this?
I know Esignal supposed to be a flawless compare to ensign, but ensign is way cheeper than esignal.

Which order management system do u guys use for multi-positions?

thanks for the contribution mr.chart and many others.

chart in just one of example.
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Old Mar 9, 2010, 9:47pm   #485
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Re: How To Make Money Trading The Markets.

Hi Fgp,

There is a limitation on how many symbols you are aloud to see while using IB datafeed for another TA software. Call IB support if you want to know exactly.


I hope this helps,

thevinman
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Old Mar 11, 2010, 1:11am   #486
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Re: How To Make Money Trading The Markets.

Pedro,

You mentioned that you automated some of these processes. if you are willing to share, I would love to listen. If you described your process from pages 65 to now, then forgive me.
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Old Mar 11, 2010, 12:43pm   #487
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread I got into trading US stocks partly because I was able to come home from work in the UK evening and trade the US afternoon session as the UK is 5 hours ahead of Eastern Time.
After a while I gave up the day job and started trading for a living full time and I've been doing that for the last ten years.
Often stocks that come onto my radar during the UK afternoon produce great moves in the evening.
Yesterday for example I used the method on this thread to position manage HLX. I spotted it at 4.30 pm UK (11.30am Eastern) and although it didn't break out shortly afterwards I kept it on my alert list and kept checking it. One of the things I liked was the way it kept creeping up after shallow pull backs.
I went long on the break out (what could be simpler?) with the expectation of picking up 10c-15c. However, I trade on the evidence and my methods, not on my opinion.
Opinions are subjective, markets might be sentiment driven sometimes, but actual price action is objective, so why trade on an opinion?
The price simply kept on rising and I exited shortly before market close for +36c a share.
At no point did a candle take out the low of the previous one, so I stayed in.
What was my risk? On entry the low of the candle was 5c away so the MAXIMUM risk was 6c. The ATR was 3 so that suggested a sudden violent move against me was a low probability.
With such a slow moving stock I could then take a larger position size and accordingly maintain a strict dollar risk.
This was a nice easy relaxing slow gainer which I exited after 47 mins only because market close was imminent and I don't hold overnight positions in stocks as I am risk averse.
Trading can be quick and brief, or slow and relaxed lasting anything up to a few hours, whichever you choose for your own personality. I like both and everything in between and tend to simply stay in a trade until I get an exit signal from my methods.
Someone trading just 2000 shares of HLX in that situation yesterday would have been risking a MAXIMUM (using charts only) of $120 and gained a profit of $720.
I don't believe in waffle, riddles, puzzles, hoping, denying reality and all that time wasting stuff. I prefer rules and methods. Clear unambiguous stuff.
Nice and easy. Concentrate on risk control (not so much profits) and let the stock move till the rules say exit.
Richard
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Last edited by Mr. Charts; Mar 11, 2010 at 12:54pm.
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Old Mar 21, 2010, 1:49pm   #488
 
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Re: How To Make Money Trading The Markets.

Thank you, Richard, for sharing aspects of your method in a public forum.The principles you advocate, like acting on the evidence in front of your eyes instead of opinions, tight stops for controlling the risk and appropriate position sizing are golden, regardless of the system.

Speaking of risk, if I understand correctly, in your post #42 you suggest that we should use the "wrong" end of the previous candle as a stop to protect profits or minimize loss. That's, of course, for cases when Micro-Analysis (level2 buy/sell pressures T&S) doesn't prompt exiting even earlier.

Yet, in the same post you mention that you use candles in different timeframes, 1 min, 3 min and 5 min. That's also evident from the charts you posted thus far, and re-emphasised in your post #70. Would you mind sharing with us how do you decide on which timeframe to use ? Common sense would dictate that the shorter the timeframe, the higher the chance to be stopped out due to the opposite end of the previous candle being taken out.
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Old Mar 21, 2010, 11:32pm   #489
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread Hello behapca,
You only joined t2w today and you've read the whole thread already........?
I'll answer when I've got a bit more time.
Richard
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Old Mar 22, 2010, 6:48pm   #490
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread behapca,
The vast majority of my trades using the particular method on this thread use either 1 min or 3 min candles.
I have two simultaneous charts on a screen showing both 1 min and 3 min candles.
If the 1 minutes show a clean clear trend WITH the "wrong" end of a candle being taken out then I look at the 3 minutes. If they show a clean clear trend WITHOUT the "wrong" end of a candle being taken out then I look to trade the 3 minutes. This is easily done when the method is to enter an existing trend.
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Old Mar 22, 2010, 9:24pm   #491
 
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Re: How To Make Money Trading The Markets.

Thanks for the reply, Richard. Much appreciated.

Interesting approach, yet it makes sense. I think that pretty much clarifies the exits for this method, if one relies on charts only.

I wonder if you use a similar approach, by switching the timeframes, on entry. As you mentioned in your post #4, you define a trend by a sequence of candles that have lower highs, or higher lows. Of course, the shorter the timeframe, the higher the chance that the nice waterfall will be broken. When that happens, do you switch to a longer timeframe to see if it still looks good ?

Also, do you use micro-analisys on entries ? Your posts #24 and #67 mention reading the tape. If that's the case, based on your experience, would you be able to estimate how many setups you pass because although they look good on charts they don't look good on tape ?

The reason why I'm asking is that even with proper risk control and position sizing, there's still the danger of over-trading, like you correctly identified in your post #71. For example, the charts on your posts #136 and #140 show potential entry points, prior to your actual entry, which had they be taken, would have resulted in scalps or losses. I guess what I'm trying to determine is how big a difference your edge makes in this method.

I hope you don't mind my being so inquisitive. I'm at my second run through this thread and it gets even better than the first read. For a newbie like me it's fascinating info.
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Old Mar 24, 2010, 10:47pm   #492
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread bhapca,
I stay with the time frame I enter on.
I do prefer a level 2 T&S reason for the entry, but as I've said it isn't always there. What proportion? I've never analysed that so I can't say.
I don't over-trade.
As I've said, this particular method on this thread is only one of a dozen I use. I've also said this isn't about optimal entries, it's about taking bites out of trends with minimum risk.
I often find stocks through scanning and they are already in established trends, so it's no use looking back and thinking there was a better entry earlier, whether the result would have been a small loss, a small gain or a substantial gain.
You don't sound like a newbie to me. If you are, then I suspect on the basis of your questions you could have a good future in trading
Richard
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Old Mar 24, 2010, 10:59pm   #493
 
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Re: How To Make Money Trading The Markets.

Mr Charts

What software/tool do you use for scanning the stocks?

Thanks
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Old Mar 25, 2010, 10:14am   #494
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread
Quote:
Originally Posted by chilltrader View Post
Mr Charts

What software/tool do you use for scanning the stocks?

Thanks
I use eSignal turbo scanner, but any scanner will do.
Richard
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Old Mar 26, 2010, 12:05pm   #495
 
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Re: How To Make Money Trading The Markets.

Mr. Charts started this thread I'm going to expand a little from this basic method and show how I use some aspects of it in other ways.
I have to go off now to do a live session with someone but will explain a bit more in the coming days.
I have a huge number of charts illustrating trades I've taken so in the meantime, here's a trade from those archives.
It's an evening trade taken just after 8 pm UK time (3pm Eastern).
Richard
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