How To Make Money Trading The Markets.

rathcoole_exile

Veteren member
3,924 766
Straightforward, easy money making.
Easy entry rules, easy exit rules, easy position sizing, easy money and position management.
...which is why 99% of traders (newbies esp.) will, at best, ignore it or worse, disparage it

good work, keep it up,
Garry
 

Mr. Charts

Legendary member
7,364 1,181
...which is why 99% of traders (newbies esp.) will, at best, ignore it or worse, disparage it

good work, keep it up,
Garry
Thanks.
I've been trading like this and with several other set ups for years and they are very reliable as long as you don't mess with the method.
This stock was not found using a scanner, but found before the market even opened just by reading news stories.
Richard
 

Mr. Charts

Legendary member
7,364 1,181
And another of the same set up just now.
+60c
X hairs on entry
Screen shot at time of exit.
Jumped the gun on the exit because my reading of level 2 T&S suggested the move might be over.
Richard
 

Attachments

Mr. Charts

Legendary member
7,364 1,181
Price bounced to 62.50 afterwards before falling again so another instance of level 2 T&S refining entries and exits; not to mention sometimes keeping you out of situations that look good on the chart but aren't; not infallible, but a good edge.
Richard
 

mostwanted0002

Newbie
4 0
Re: last two charts...
Its like the market is saying...here, just have the money!!!

Ohhh, i cant wait!!!
 

Mr. Charts

Legendary member
7,364 1,181
Test this particular method for yourself time and time again in all sorts of markets, trending up, trending down, ranging, grinding up or down. Do that at least 100 times to get an idea of how often it works. Always concentrate first on RISK, not reward; that comes later; it almost takes care of itself.
Look at the worst case risk using my rules and position size accordingly. Even without experience you should find that in a mix of different markets you should get 70%++ wins, the average win size being far in excess of the average loss size. We all improve with experience and you should end up with significantly more than 70%.
If this is the only tool in your armoury, (I use several more), then you MUST be patient and wait for the right set up as repeatedly described. Think of yourself as a sniper who simply lies in wait for the enemy to come to him and doesn't impatiently shoot at shadows.
Richard
 

mrchuffster

Junior member
40 0
Hi Richard,

Thanks for your time. when you run a scan, what specifics are you looking for. Must the stock have been trending strongly most of the day. Or will you enter on a pull back or retracement?

Do you scan for a low ATR stock first or see what it looks like after?

Also on the time and sales ( I don't have L2) , do you filter for large orders coming through, would that be an initial sign of movement or just and increase in the flow of orders hitting the book?

Thankyou.
 

Mr. Charts

Legendary member
7,364 1,181
Hi Richard,

Thanks for your time. when you run a scan, what specifics are you looking for. Must the stock have been trending strongly most of the day. Or will you enter on a pull back or retracement?

Do you scan for a low ATR stock first or see what it looks like after?

Also on the time and sales ( I don't have L2) , do you filter for large orders coming through, would that be an initial sign of movement or just and increase in the flow of orders hitting the book?

Thankyou.
I am looking for a clearly trending stock which has been trending for a while. In other words it might have been range bound initially but is then trending.

I do enter some of my other set ups on retracements. Those are beyond the scope of this thread.

I see what ATR looks like after I've found the trending stock and adjust position size accordingly. However I much prefer stocks where level 2 and T&S are actually readable, sometimes they aren't, sometimes they are. As a rough rule of thumb the lower the ATR the more likely they are to be readable, but that really is a rough and ready guide. I often trade high ATR stocks if I can read level 2 and T&S on them.

How I use level 2 and T&S is beyond the scope of this thread, but large orders don't usually play a significant role as they tend to be broken up in numbers and time to hide them. Block trades can be a little different.

Hope that helps,
Richard

PS Some trades are on stocks which I've chosen for other reasons, not scanning, like the EXM example earlier.
The entry and exit remain the same.
 

mrchuffster

Junior member
40 0
I am looking for a clearly trending stock which has been trending for a while. In other words it might have been range bound initially but is then trending.

I do enter some of my other set ups on retracements. Those are beyond the scope of this thread.

I see what ATR looks like after I've found the trending stock and adjust position size accordingly. However I much prefer stocks where level 2 and T&S are actually readable, sometimes they aren't, sometimes they are. As a rough rule of thumb the lower the ATR the more likely they are to be readable, but that really is a rough and ready guide. I often trade high ATR stocks if I can read level 2 and T&S on them.

How I use level 2 and T&S is beyond the scope of this thread, but large orders don't usually play a significant role as they tend to be broken up in numbers and time to hide them. Block trades can be a little different.

Hope that helps,
Richard

PS Some trades are on stocks which I've chosen for other reasons, not scanning, like the EXM example earlier.
The entry and exit remain the same.

Thanks Richard.

Dont know if this is of any use to you.
I use the paint bar colours on my charts, to see when a candle has actually made a HH-HL or LH-LL. Not all green or red candles are. Only when I see a strong or weak candle will I exit.

Thanks, hope it helps.
 

Attachments

mrchuffster

Junior member
40 0
Hi Richard,

I had a go at you method today. I turned a profit on INTC. Although I think I failed miserabley at your entry and exit criteria. The whole market was trending up this afternoon so I think I just got lucky with this one.

It's hard to find stocks trending in the exact manner you describe, you must have to sift through lots of stocks to find one. Thanks.
 

Attachments

Mr. Charts

Legendary member
7,364 1,181
I read news stories pre-market and also scan. The scans run through the whole market in a couple of seconds then I just click on each one to see the chart. As I said I do other set ups too so I'm looking for all of them.
Richard