Trading the US the Naz/Mr. Charts Way

[Mr. Charts]

CLWT - another early fast trade as many on this thread using patterns and reading the tape.
This company provides water treatment equipment and moved because of the terrible events in S.E. Asia.
The profits from this trade will go to the Red Cross for disaster relief - as I mentioned earlier on the Tsunami thread.
Exited half first then the other half for average gain of 47cents/share in under two minutes.
Richard

 

[Naz]

Long TZOO, sell into strenghth.

$1.75 in a few minutes.

 

[Naz]

Long TZOO on the pullback,stop under the last major low.
Sell as the momentum was dying, another $1.70 in a few minutes.
Thats over $3 in first half hour.

Naz

 

[Naz]

Long TZOO on the bounce,
stopped out for a small loss.

 

[rdstagg]

You buy I sell - hence the market! ; )

Naz

Same symbol different tack - I am still too unsure too trade the very first 20 mins or so but this double top (not so obvious on candlesticks) stood out like a sore thumb.

 

[Naz]

Long TZOO,using level 2 to see the whole number had support.The typical move is to the next whole number.
Out for about a dollar run.

 

[Naz]

rdstagg,

Keep looking at the first 30mins even the first 45 mins because that is where some great trades are to be found.With regards to you buying when i sell and vice versa.I watch what the market makers do not what the public do.Thats the benefit of having a level 2 screen by the side of my charts.

Naz

 

[rdstagg]

The first hour

I occasionally do trade it but its all just a little too fast and my order execution is still a little suspect!

 

[Salty Gibbon]

rdstagg

You may want to try my approach. In the first 30 minutes trade those stocks with lower ATR's - say 100 to 150 cents. You can get some nice moves in the opening session without having to take on monsters like TZOO or GOOG etc etc.

As far as the monsters with large ATRs are concerned, try trading them after 7pm. When the gentler stocks are providing only smallish moves, the GOOGS of this world and other similar beauts have slowed down a lot but can still be traded for relatively large moves without the risk involved in the opening session.

If you see what I mean !!!

Works for me anyhow.

 

[Naz]

Yes,the good thing about trading Nasdaq stocks is that there is something there for everyone,you just pick the type of stock that's suits you as an individual.

The great thing is that they move.

For instance the EOD trader could have had a slice of the $8-$110 run in TZOO in the last 9months.

I trade/invest in Nasdaq stocks eod in my pension (SIPP).I find following stocks in the Nasdaq 100 instead of the FTSE100 is definitely a huge bonus and gives opportunities in large cap stocks that i cant find in the UK,plus i dont pay stamp duty and the runs more than cover any currency risk.

Naz

Here are some large Nasdaq stocks that many were happy holding this year.SBUX,AAPL,ADSK,EBAY,RIMM,ADBE,KMRT,QCOM.

 

[sall]

Just quickie, I 'm new to level 2 and trying to learn... could some one mention or quickly explain what Salty Gibson has menitoned about ATR. In my charting package I dont' see anything of the sort with an atr value of 100.. highest in my chart is about 5? Have I gone mad or completley off track.

Thanks in Advance

 

[TheBramble]

Sall, Salty was talking cents - I suspect you're looking at dollar values.

 

[Salty Gibbon]

Sall

The name is Gibbon, not Gibson.

Some people measure ATR in cents and some in dollars. So where you are seeing an ATR of 5 dollars, I might call it an ATR of 500 cents.

The definition of ATR that I use is the simple average of the high / low range of any particular stock over the past 14 trading days.

It just gives you an idea of whether the stock in question is a fast, medium or slow mover. Obviously the higher the ATR the faster the stock moves.

You also have to watch out for extreme days where the average may become distorted. A good example is when RIMM, one day recently had a high / low range of around 21 dollars. This extreme movement will then distort the ATR for the next 14 days or so.

 

[sall]

Salty , many thnks for the quick response, apoligies for the spelling mistake in quoting your surname. I 'm currently investigating methods and studies in the level 2 arena,your comments on ATR are useful and I will try and apply to see if it helps.

Thanks

 

[Salty Gibbon]

Welcome Sall.

Actually, in the context of ATR I should have said "further" rather than "faster"

But in most cases, I would say that the further a stock moves in a day, the faster it also moves.

 

[Mr. Charts]

Another technique I use is to go with the crowd who are "directed" by CNBC.
I personally don't watch CNBC and the rest, but I know somewhere that does before the market even opens.........

"TASR +3% (continuation of 9.4% move yesterday; mentioned on CNBC)"

That alerted me to the expectation that there might be an early rush of buying from the CNBC watchers so I set up to watch the buying and selling pressures and again a no brainer as they all poured in - the moment the buying pressure was unequivocal I went long heavily knowing it had to run with the crowd. I had no idea where it would go, however. Sometimes these trades only give me 15c sometimes $1.50 - there are very many examples of similar trades I've done earlier on this thread.
Risk - absolutely minimal because this type of trade has a very high success rate. If it would have reversed on me straight away I'd have been out.
Maximum loss in the very unlikely scenario of an instant reversal - 3 to 5 cents.
Reward unknown, but with a very high hit rate, it actually doesn't matter what the r/r guess is; such "calculations" are meaningless.
Once the first hint of selling appeared I exited.
26 cents in as many seconds.
No chart because I wasn't even looking at one, just reading the tape - this type of trade is about reading sentiment as evidenced by buying and selling pressure and the trades actually printing off. No chart, no volume, just going with the crowd - jumping on when they start running and jumping off when they slow down.
I love crowds in the market - and never go against them
For me being contrarian is not going against the masses, it's taking advantage of their fickle moods.
Happy New Year to all my friends on t2w
Richard

 

[Naz]

I enjoy looking for stocks that have the potential to get a following,in any time frame.The one i like at the moment is JOBS. This is no recommendation to trade or invest in the stock,just an observation that its got a good story behind it and has moved from $20-$55 in the last few months.It also pops up on scanners and has people talking about it.Just like NTES,TASR and TZOO did.

51Job highlighted favorably in IBD (JOBS) 46.20 : The IBD's New America section highlights 51Jobs, which has some 50% to 70% mkt share in China. Piper Jaffray analyst Safa Rashtchy says 51job is breaking new ground by creating a national recruitment network in China. "It is at the very early stages," he said. "There never has been anything quite like this in China. They're creating a new method for employers to find job applicants. As such, they are almost defining the mkt." CEO Rick Yan says 3K to 6K new jobs are posted every day via 51job's different channels. About 1 mln jobs are posted a year. Of those, 70% to 80% eventually are filled. "We're very similar to Monster. com in the sense that their strategy is to tgt everyone from the CEO to the intern," Yan said. Business was good enough in the 3Q to push sales to $15.5 mln, up 70%. Earnings more than doubled to 13c a share. FC analysts expect full-year earnings to reach 39c a share, then gain 56% to 61c in 2005.

Have a prosperous New Year.

Naz

 

[rdstagg]

First Hour trading

So my new years resolution was to earn my money in the first hour of trading.....

I am just about floating with good days followed by the invevitable snafu's (wrong order execution 99/100). But I am up so I shan't complain too much

The chart reading is relatively straightforward but the real key I find is in the order execution. If you can get that fill it really does make all the difference sometimes.

To that end I wonder if it is worth while having a go with direct access elite or should I stick to tradestation. I have the macros all sorted so that buying and selling is a two key affair plus the matrix is really rather good but is it right that direct access elite (or an other)can route the order simply by clicking on the relevant quote in L2? Or is there a simple way I can do this in TS8?

Lovely trade in brcm today.

rdstagg

You may want to try my approach. In the first 30 minutes trade those stocks with lower ATR's - say 100 to 150 cents. You can get some nice moves in the opening session without having to take on monsters like TZOO or GOOG etc etc.

As far as the monsters with large ATRs are concerned, try trading them after 7pm. When the gentler stocks are providing only smallish moves, the GOOGS of this world and other similar beauts have slowed down a lot but can still be traded for relatively large moves without the risk involved in the opening session.

If you see what I mean !!!

Works for me anyhow.

 

[ardhill]

TS8 will fill in the price from the L2 screen, but you have to choose the order routing yourself.

I have been playing about with routing as well on TS8, but I still feel that I get a faster fill using the intelligent option. Since I tend to trade faster stocks, this is important to me.

I have tried looking at the Nasdaq Trader to find which ECNs trade the most in the stock I am trading, but still can't get much further.

If anyone else can shed a little light on how to choose the best route for which stock in a fast moving market, then I would appreciate it.

For those who are interested, the address for finding trade volume in a stock on the Nasdaq is:
http://www.nasdaqtrader.com/static/tdhome.stm

 

[compoundup]

Well wouldn't you believe it?

It happens all the time. I was just reviewing the day's lack of opportunities and OSTK which had been a news stock with some potential had not given me any entries.

After finishing the review I came back to it and found this. I suppose the optimists that had gone long and caused the opening gap up decided to close about 7.45pm our time and precipitated an avalanche to close the day's gap.

5 minutes later on the review and I'd have had a bite out of up to $2