How To Make Money Trading The Markets.

thevinman

Guest
53 2
His entry isn't perfect. I think that's the point. You don't have to grab every single point. (Correct me if I'm wrong.)
Hi Shadowninja,

I have to correct you!;) I do think that the entry is perfect. It is a nice flowing chart, a nice neckline, price cleared the whole number, price above yesterdays high and he enters the trade on the break out bar.

Cheers thevinman :D
 

Mr. Charts

Legendary member
7,364 1,181
Piet,
Yes, I would still have taken the trade later provided I had momentum confirmation on level 2.
Yes, I thought the entry was optimal too.
I suspect shadow actually meant the entry doesn't always have to be perfect - sorry if my mind-reading is wrong, shadow :)
Richard
 

_JWG_

Member
90 10
Question about ATR

Great thread Mr Charts. love it. (y)

I'm not sure if you have covered this. Forgive me if you have.

Do you use ATR to help determine your initial stop? I can understand if the trade didn't go your way you would just exit from the get go... but what if something unexpected happened. And it just shot and went against you. I assume you have a stop in place from the get go. Just wondering how you put it together? I have been using ATR (6periods) on the 5 min chart because my trades average around 5 min. But the thing is I trade off the 1 min charts. Should I be using the ATR on the 1 min with the standard 14 period? What do you do?

Cheers
JWG
 

Mr. Charts

Legendary member
7,364 1,181
Glad you like it.
I don't use hard stops, they are all mental. But then I am very disciplined and will execute without hesitation and never adjust a mental stop if price goes against me.
I don't want to be taken out by a block trade away from the market or any follow up trades printing off as a result, even though that is uncommon.
In any case I will often exit before a stop loss or trailing stop is hit if I can see a reversal or problem developing on level 2. It's not infallible, but being able to sometimes see what might happen before it appears on a chart is a huge edge.
Generally speaking the lower the ATR, the less likely you are to experience the problem you describe.
Richard
 

PitBull

Established member
620 58
I believe his stop would be based on level 2 and that would warn him of any impending trouble, example if long, fresh air on the bid (gaps in prices) or suddenly bids pulled and then next price below best might too much risk therefore signal to exit. If your exit is based on 5min charts then your stop should be based on that timeframe unless your entries are perfect. Mr charts advocates not letting the Market stop you out if the trade doesn't work immediately.
Cheers
Lee
 

Mr. Charts

Legendary member
7,364 1,181
There might still be some trading opportunities today despite the Obamania, so whilst others stare at their TV screens.........
 

foredog

Experienced member
1,879 313
You weren't wrong about that Richard..... Shame i don't trade the US (yet!)

So much for an Obama bounce, the old Maxim "Buy the rumour sell the fact" i guess
 

Chorlton

Established member
693 48
Hello Richard,

I hope you don't mind but I've sent you an email covering a number of questions which have occurred to me whilst reading this thread. If you get a spare moment to reply, I'd be most grateful.....

Kind Regards,

Chorlton
 

Mr. Charts

Legendary member
7,364 1,181
foredog,
Yes, financials were no brainers, especially STT which produced a gain of $1.23 per share in the first few minutes :)

chorlton,
I'll have a look at your email when time permits - I've got a lot to do at the moment, but won't forget.
Richard
 

Mr. Charts

Legendary member
7,364 1,181
chorlton,
I have already said in post 208 that I will look at your email. I wouldn't have said that if I hadn't received it. You have asked a long list of detailed questions, some of which are far beyond the scope of this thread. I'll answer what I can when I can. I have other things to do, including helping someone with a live session this afternoon and most especially trading myself for my living.
I do not read PMs for the reasons I gave early in this thread, only emails. There are still a growing list of unread PMs.............
Richard
 

Chorlton

Established member
693 48
chorlton,
I have already said in post 208 that I will look at your email. I wouldn't have said that if I hadn't received it.
Sorry Richard.... I didn't mean any offence by my last post. If that was how it was intepreted then please accept my apologies.....

I fully understand how busy you are and given your commitments I'm grateful for a reply whenever you have the time....

Kindest Regards.........