Evening trading US shares

[dvdh]

Hi dvdh...

You'll soon be back on form !!

Can I ask what part of TA your focusing on ??

Cheers Bez

Hi Bez,

of course you can!!!
I'm looking for really basic setups, like for example, a breakout of a base with volume coming in when it breaks. I'm definately not looking for triangles and those kind of patterns, because when they break 9 out 10 times they're faded.
In the future I'll post some examples in this thread. I haven't given any names to these setups yet. But I now they work. They only work in stocks where the volume is higher than average, so when there's institutional buying and selling instead of just blackboxes taking the other side of the trade. There will be no followthrough then of course.

-Dave

 

[Bez]

Sounds good i always like to see charts on a thread especially if there from a pure price action perspective.

As you all know I'm a pure price pattern trader based on repeating EW patterns combined with the spread &vol relationships of the bars. I do also use intra day Delta to give a general idea of directional pressure of the index's to keep on the right side of the market when choosing stocks to focus on.

As for triangles...I think they can be difficult to nail..... but most triangle patterns are in fact what EW'er would call Ending Diagonals (ED's) once you can "spot the difference" they become alot easier to deal with. ED's look like a classic descending Triangle flat base with lower lows, looking for all the world its going to break out the downside went in fact they false break and move up...

I did post some stuff on the Dow thread on them ( I know there not text book but its not a bad example)... I don't know if its of any use but it gives a better idea of what I mean with that type of pattern..

http://www.trade2win.com/boards/showthread.php?p=305218#post305218

 

[Charlton]

Didn't notice that the US stock trading threads were getting active again.
Good to see that.

Agreed with that point as I am mainly interested in US shares, for the same reasons as of old, that many have quoted on this board before.

. But then there's a time when you have to adapt to the market, which is right now for me. I had days where I traded way over a million shares. Right now a big day is when I trade 20,000 shares, I've gone from 5,000 - 100,000 shares to trading 100 - 500 shares in a position.
But nonetheless, I'm fighting back now.

They say that when you fall off a horse you need to get straight back on again. Good luck with resolving the issues you are facing. I wonder, however, whether you are tackling it with the right mindset. Have you considered that your previous trading behaviour was wrong, but luck was on your side when you traded 1m shares. Perhaps now you are taking more responsibility by reducing position sizes. Your language "a big day" and "I'm fighting back" suggests there is a large emotional content in your trading still.

Do not take these comments in the wrong way, because I do not know you and can only judge by what you have written, so if I am completely off the mark then I apologise. I sincerely wish you luck with your trading

With a new strategy solely based on charts, I'm slowly becoming profitable again.

I don't know your previous strategy. Was it Fundamentals ?

But the reason I'm not rocking like I used to is because I totally lost my confidence in trading and my selfconfidence and I'm afraid to lose money. Because of this I'm exiting trades before my strategy tells me to get out. If I just waited until the strategy says to get out, I would make money consistently every day. But now I'm just getting out way to quick, so I'm not taking out of the trade what I'm supposed to, and because of this a few small losers scr*w me up for the day.

Good of you to be so honest. Newbies do well to read this

So now I'm seeing a psychologist to help me out on this one.
I now understand why 95% of the newbies fail in this business and that's all because what's between the ears. LOL. Trading is the easiest thing in the world, but when you don't have the right mindset, it suddenly turns into the hardest thing in the world.

Well, good to see you all here on the boards and I'll try to join you guys again.

Trade safe and good luck,

Dave
The ScreenLocal

I look forward to seeing your future postings - good luck

Charlton

 

[neil]

DVDH with your honest approach and insight I think you will make a comeback soon.

 

[neil]

On another note does anyone know of a broker (UK or US), apart from IB, with whom I could trade Currency Futures?
Many thanks.

 

[The Beyonder]

Many thx Pitbull, Mr C.

Hi neil, yes it was a scanner.

I use Hotscans from marketgauge.com. It was basically a morning breakout on above average volume.

There was a great one on Wednesday , FMCN for over $3, though unfortunately I missed it

 

[Grey1]

Hi Guys,

how is everything hanging over here? Didn't notice that the US stock trading threads were getting active again.
Good to see that.

It looks like everyone is still rocking. Nobody having problems since the ISLD/BRUT/SIZE ECNs merged into NSDQ?
I have to say, my last half of 2005 until August 2006 have been better than I could have ever dreamed of. But since the ECNs merged my biggest edge just dissapeared. After I did Richard's Level II course I really started using Level II and found my own little edge in it together with what I learned from Richard. I could kinda see a buyer come in looking at the way the ECNs acted, and that was actually the only thing I based my trades on and it worked for over a year extremely succesfully. But then there's a time when you have to adapt to the market, which is right now for me. I had days where I traded way over a million shares. Right now a big day is when I trade 20,000 shares, I've gone from 5,000 - 100,000 shares to trading 100 - 500 shares in a position.
But nonetheless, I'm fighting back now. With a new strategy solely based on charts, I'm slowly becoming profitable again. But the reason I'm not rocking like I used to is because I totally lost my confidence in trading and my selfconfidence and I'm afraid to lose money. Because of this I'm exiting trades before my strategy tells me to get out. If I just waited until the strategy says to get out, I would make money consistently every day. But now I'm just getting out way to quick, so I'm not taking out of the trade what I'm supposed to, and because of this a few small losers scr*w me up for the day. So now I'm seeing a psychologist to help me out on this one.
I now understand why 95% of the newbies fail in this business and that's all because what's between the ears. LOL. Trading is the easiest thing in the world, but when you don't have the right mindset, it suddenly turns into the hardest thing in the world.

Well, good to see you all here on the boards and I'll try to join you guys again.

Trade safe and good luck,

Dave
The ScreenLocal

DVD you are spot on . Emotion is a vital element in trading and hence the need for automation . if you automate yourself you can speard your pos size across a spectrum of stocks to a ) reduce risk 2 ) reduce the market impact and hence adjust the risk distribution on your day trading portfolio. I myself trade in large sizes ( 4000 RIMM , 1000 GOOG at max ) and have no idea how you can trade without any algorithm to move in and out of market without other traders noticing you ..

If i was you I would trade differently since you said you trade in large sizes.


1) Allocate smaller ( 10 % ) trading capital for intra day trading ( technical only )
2) Allocate ( 25 %) to swing trading of 2-3 weeks ( technical only )
3) Allocate ( 65% ) in longer time frame ( up to 6 month ) and trade based on both fundamentals and technicals

4) learn about risk management
5) learn about asset diversification in multi time frames

Honestly , there is more in trading than couple of chart patterns or reading into L2 screen the kind of information that is meant to ruin you than be of much help to you ( I stopped using L2 2 years ago after I saw few Vwap algorithms in action( and I recommend you do too ) .. If you are not careful your trading business will not last long and I mean no insult here . I am trying to help .I try to post some of the basket trades that I do myself on Monday ( the actual signals with time stamp on this BB ) , I have posted many many of them on Technical Trader BB..


In summary ,, serious money needs serious trading knowledge ( preferably some inside knowledge too lol ) .



Grey1

 

[dvdh]

Agreed with that point as I am mainly interested in US shares, for the same reasons as of old, that many have quoted on this board before.

They say that when you fall off a horse you need to get straight back on again. Good luck with resolving the issues you are facing. I wonder, however, whether you are tackling it with the right mindset. Have you considered that your previous trading behaviour was wrong, but luck was on your side when you traded 1m shares. Perhaps now you are taking more responsibility by reducing position sizes. Your language "a big day" and "I'm fighting back" suggests there is a large emotional content in your trading still.

Do not take these comments in the wrong way, because I do not know you and can only judge by what you have written, so if I am completely off the mark then I apologise. I sincerely wish you luck with your trading

I don't know your previous strategy. Was it Fundamentals ?
Good of you to be so honest. Newbies do well to read this
I look forward to seeing your future postings - good luck

Charlton

Don´t worry. I won´t take your comments the wrong way. But I can tell you, so can Pitbull, Gadgetman and Richard, that it wasn´t luck. I´ve been profitable for over a year, and it wasn´t fundamentals, it was short term micro trading based on Level II. I did so many trades every day, that it simply couldn´t be luck. When I started trading in 2005, I started out trading 50 to 300 shares in a position. It took me about 6 months to get to the point where I traded big size. Seriously, believe me that there was absolutely no luck involved.
But you are absolutely right when you say my mindset right now is wrong. But that´s what I´m working on.

-Dave

 

[dvdh]

DVDH with your honest approach and insight I think you will make a comeback soon.

I working on it. Thanks man,

-Dave.

 

[dvdh]

DVD you are spot on . Emotion is a vital element in trading and hence the need for automation . if you automate yourself you can speard your pos size across a spectrum of stocks to a ) reduce risk 2 ) reduce the market impact and hence adjust the risk distribution on your day trading portfolio. I myself trade in large sizes ( 4000 RIMM , 1000 GOOG at max ) and have no idea how you can trade without any algorithm to move in and out of market without other traders noticing you ..

If i was you I would trade differently since you said you trade in large sizes.


1) Allocate smaller ( 10 % ) trading capital for intra day trading ( technical only )
2) Allocate ( 25 %) to swing trading of 2-3 weeks ( technical only )
3) Allocate ( 65% ) in longer time frame ( up to 6 month ) and trade based on both fundamentals and technicals

4) learn about risk management
5) learn about asset diversification in multi time frames

Honestly , there is more in trading than couple of chart patterns or reading into L2 screen the kind of information that is meant to ruin you than be of much help to you ( I stopped using L2 2 years ago after I saw few Vwap algorithms in action( and I recommend you do too ) .. If you are not careful your trading business will not last long and I mean no insult here . I am trying to help .I try to post some of the basket trades that I do myself on Monday ( the actual signals with time stamp on this BB ) , I have posted many many of them on Technical Trader BB..


In summary ,, serious money needs serious trading knowledge ( preferably some inside knowledge too lol ) .



Grey1

Thanks for you insight. I´ll keep it in mind. I´m not really planning to hold positions overnight though. I´m trading really small size now, and when I get consistent again I´ll size up, not a second earlier. I never used to have problems executing the size and being noticed.
I never traded thin stocks though, so if I wanted to buy 30000 of AAPL it took me just a few seconds to get filled. I also trade stocks that have higher than average volume, so when something breaks out it will followthrough instead by being faded by a blackbox.

-Dave.

 

[Grey1]

, so if I wanted to buy 30000 of AAPL it took me just a few seconds to get filled.
-Dave.

I have no idea how you can get a fill on AAPL for 30 000 share and get immediate fill , No day trader executes that many shares with out distribution of its postion through execution order management routing system designed to spread the market impact..


ofcourse you can click BUY or sell button and wait and see what happens but you are ripped off left right and centre and this is not trading . No dis respect,



Grey1

 

[samtron]

I thought that was KISS compaired to the normal Bez style Elliott Waver's posts...:cheesy) ....

Hope your well samtron...:?: It seems like ages since we all used to hog the US Daytraders thread...


There's a lovely 5 wave move up into the day high.... couldn't resist )))

Cheers Bez,

As ever I always look out for your posts, in the hope of picking up a nugget or two! although I must admit I not a big fan of EW

 

[dvdh]

I have no idea how you can get a fill on AAPL for 30 000 share and get immediate fill , No day trader executes that many shares with out distribution of its postion through execution order management routing system designed to spread the market impact..


ofcourse you can click BUY or sell button and wait and see what happens but you are ripped off left right and centre and this is not trading . No dis respect,



Grey1

Hi Grey1,

of course you can´t go BUY 30000 at the market when the volume is average. But when there´s higher than average volume, for example after a news event, and AAPL does like 1-2 million every 3 minutes, you really think it´s a problem executing 30,000 shares. No way. Okay, you might pay up 1 or 2 cents, but that´s really it. Never had a problem with it.
But believe me, I never sent a market order for 30,000 shares, that would be suicide. I did it all manually, 6x 5000 shares is also 30k for example.

-Dave.

-Dave

 

[samtron]

Hi dvdh,
Sorry to hear about your recent temporary set back, I am sure its just a blip.

I think your spot on about the mental approach (I take it as a given that you have read TITZ if not PM me ). This is I think why most traders have to eventually find their own edge.

 

[Bez]

I agree Samtron that EW is not everyones cup of tea & its one sure way of getting peoples eyes to glaze over at the first hint of a count )

I just keep half an eye on the basic's like if a stock has done 5 Waves up or 3 Waves down into the key morning or afternoon reversal time frames like that CBE 5 wave up move into the classic 10am window..

I tend to leave the more harder core counts to the futs..

 

[yacarob1]

I use Hotscans from marketgauge.com. It was basically a morning breakout on above average volume.

Does anyone have any idea how Hotscans compares to Esignal's Turbo Scanner ?

 

[TheRTTrader]

I agree Samtron that EW is not everyones cup of tea & its one sure way of getting peoples eyes to glaze over at the first hint of a count )

I just keep half an eye on the basic's like if a stock has done 5 Waves up or 3 Waves ....

Hey Bez - I completely agree - EW 5 waves to a new high, counting from the last a-b-c is the single best exit I know, especially for momo stocks. All the rate of change indicators are 1-2 days late, and in the case of high flying stocks, often significantly way off the highs (and the wave 5 top).

When a stock is in congestion there are always alternate EW counts which I think amkes it a worthless tool . The key to EW is knowing when to use it - as you aptly popinted out!

 

[Bez]

Thanks RTTrader

When you add fibs/extensions & wave equality into the mix you get a very workable idea of future price resistance levels so can gauge what happens with the bar spreads and volume around these levels to get a conformation signal or not. Dare I say, one could even keep half an eye on LII around these key levels as your looking for resistance before its appeared on the chart.. ))

I did a few examples on the Dow thread on how I use EW with intra day Delta to help capitalise on the intra day moves on the ES. I always keep a count and the current delta order for the main futures, so when I'm looking for stocks I always trade in tandon with the index' intra day direction.

http://www.trade2win.com/boards/showthread.php?t=22794&page=16&pp=10

 

[vegas]

Hi Guys,

how is everything hanging over here? Didn't notice that the US stock trading threads were getting active again.
Good to see that.

It looks like everyone is still rocking. Nobody having problems since the ISLD/BRUT/SIZE ECNs merged into NSDQ?
I have to say, my last half of 2005 until August 2006 have been better than I could have ever dreamed of. But since the ECNs merged my biggest edge just dissapeared. After I did Richard's Level II course I really started using Level II and found my own little edge in it together with what I learned from Richard. I could kinda see a buyer come in looking at the way the ECNs acted, and that was actually the only thing I based my trades on and it worked for over a year extremely succesfully. But then there's a time when you have to adapt to the market, which is right now for me. I had days where I traded way over a million shares. Right now a big day is when I trade 20,000 shares, I've gone from 5,000 - 100,000 shares to trading 100 - 500 shares in a position.
But nonetheless, I'm fighting back now. With a new strategy solely based on charts, I'm slowly becoming profitable again. But the reason I'm not rocking like I used to is because I totally lost my confidence in trading and my selfconfidence and I'm afraid to lose money. Because of this I'm exiting trades before my strategy tells me to get out. If I just waited until the strategy says to get out, I would make money consistently every day. But now I'm just getting out way to quick, so I'm not taking out of the trade what I'm supposed to, and because of this a few small losers scr*w me up for the day. So now I'm seeing a psychologist to help me out on this one.
I now understand why 95% of the newbies fail in this business and that's all because what's between the ears. LOL. Trading is the easiest thing in the world, but when you don't have the right mindset, it suddenly turns into the hardest thing in the world.

Well, good to see you all here on the boards and I'll try to join you guys again.

Trade safe and good luck,

Dave
The ScreenLocal

Hi Dave,

Very insightful post - sorry to hear about your 'challenges', and I do wish you all the best.

Am I right in understanding that you now no longer utilise L2.


Take it easy,
Frank.

 

[dvdh]

Hi Dave,

Very insightful post - sorry to hear about your 'challenges', and I do wish you all the best.

Am I right in understanding that you now no longer utilise L2.


Take it easy,
Frank.

Thanks a lot.

'That's right, I don't use LII anymore. Not saying it's completely useless. But I lost my edge with the ECN merger.

Kind regards,

-Dave