How To Make Money Trading The Markets.

Mr. Charts

Legendary member
7,364 1,181
Hello Mr Charts,

I have been trying to master this technique in a paper trading account with Interactive Brokers. I have been using CFD's so that I can limit my initial investment and not have to worry about the day trader minimum account. I have suggested to IB that they add a filter for CFD to their market scanner. Hopefully they will !

One of the problems I have been having is in filling orders in a timely manner. I am only using 100 - 200 contracts to experiment with, but this can take 5 - 10 seconds to fill the order. Should I be using a different type of order i.e. AON ? I have tried Limit and Market, but both are similar.
Maybe this is a feature of CFD's , although IB state that they do not take a Market Maker role. They have DMA access and immediately hedge the position with the underlying. I would have thought that should have same liquidity as the underlying.

I can see future problems if I try and scale the position to 500 or 1000 CFD's.

Any opinions / suggestions are much appreciated.

Thanks

MikeH
I have tested IB CFDs LIVE and the fills are within half a second every time.
I would guess your delays are due to it being a demo.
 

mikeh0512

Newbie
3 0
Thanks for that .

I did check with IB and they were a bit confused , but did eventually agree that it
was a feature of CFDs on a demo account. I tried with the underlying and the fills
were much quicker.

Another question for anyone re the IB market scanner.

What type of scans would you suggest to try and isolate stocks that have had a
significant price movement in the last say , 5 mins ?

There are scanners for high volume in the last 3,5,10 mins , but nothing for price
movement. I can add a filter to select stocks in a certain price range but no time
reference other than 'change since market open'.

I have tried scanning %price movement against EMA(20), but that doesn't seem to
select suitable stocks. Unfortunately the scan parameters are not well defined in
the documentation.


Any suggestions will be much appreciated.

Many Thanks

MikeH
 

wisefoolx

Well-known member
258 9
Depends on what one calls a ' falling knife ' but that said I have shorted those and the clean and clear fallers very successfully.

The ' knives ' tend to give the biggest winners - what I like about them, sometimes over 150 points,
 
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Dr. Toad

Active member
169 33
What type of scans would you suggest to try and isolate stocks that have had a
significant price movement in the last say , 5 mins ?

There are scanners for high volume in the last 3,5,10 mins , but nothing for price
movement. I can add a filter to select stocks in a certain price range but no time
reference other than 'change since market open'.

I have tried scanning %price movement against EMA(20), but that doesn't seem to
select suitable stocks. Unfortunately the scan parameters are not well defined in
the documentation.


Any suggestions will be much appreciated.

Many Thanks

MikeH
I have done this exact thing recently and live. My broker has a scan for % change in past 2 minutes. I would look at that, find ones that were trading near/at their day high and had reasonable spreads. The ones that meet that I took a quick look at to see if they were trending on the 5 min chart. If they looked ok (higher highs, higher lows for past 30 minutes minimum) I entered.

I tried a variety of tracking methods including that outlined in this thread. What I found was that, more often than not I entered right as the trend either changed direction or paused. All I can say is be prepared for ample frustration and quickly racking up commission costs doing this.

It certainly didn't work for me... doesn't mean it won't work for you though.

I tried the same using the % change scan my broker offers. Takes a bit more time to dig through and find good ones with, but that seemed to work marginally better. It still seemed to just be a good way to keep your broker happy more than anything though.
 

Mr. Charts

Legendary member
7,364 1,181
I've just been trading on odd days during the dog days of August when participation is
low, but of course persistence pays when you know what you are doing and take only what seem to be the highest probability opportunities. Even so moves often don't follow through at this time of year, but some most certainly do.
So far today that is exactly what has happened with my four trades using 3 min candles.
My one large winner, two very small winners and one very small loser show just that - on my blog as always.
Here is the big beautiful winner which makes the persistence and application worthwhile at this time of year.
THC +142c per share
 

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iq200

Well-known member
332 11
I've just been trading on odd days during the dog days of August when participation is
low, but of course persistence pays when you know what you are doing and take only what seem to be the highest probability opportunities. Even so moves often don't follow through at this time of year, but some most certainly do.
So far today that is exactly what has happened with my four trades using 3 min candles.
My one large winner, two very small winners and one very small loser show just that - on my blog as always.
Here is the big beautiful winner which makes the persistence and application worthwhile at this time of year.
THC +142c per share
Lovely trade Richard! Hope you're feeling better..
I saw this move on the IB workspace monitor chart taken from your stock picks and got an alert on my scanner. However I am not trading at the moment as I'm making a final pass through the recording from our recent training. Will be starting to trade shortly!
Regards,
Imran
 

Mr. Charts

Legendary member
7,364 1,181
GILD has been moving nicely recently and I picked it up from a scan during market hours rather than pre-market.
It was moving up gently then took a small dip then headed north again and fulfilled the rising candles set up +46c per share.
White line pointing at entry and image taken at exit as usual.
Five trades this afternoon, one loser and four winners (on my blog as always) and GILD was the only trade using the set up in this thread.
Generally speaking, things start to pick up after Labor (sic) Day post holiday period.
 

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Mr. Charts

Legendary member
7,364 1,181
Five trades this afternoon; two small losers, two decent gains and one very good one, TQQQ. I always have this up on my alerts screen as when it moves, it tends to move very nicely. It's a derivative of Nasdaq and behaves and trades just like a stock.
This trade used the technique on this thread, whereas the other four trades used different set ups.
+124c per share profit.
 

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hedgedequity

Junior member
13 0
It is not difficult to make money from day trading US stocks given good methodology and control to follow and trade it. No complex formulae or indicators are required. You are just required to follow what is in front of your eyes and act accordingly. This is just one of the set ups which I use to day trade US stocks in all sorts of market types- trending, range-bound, grinding, etc. Just remember one thing that you are not master of the markets, you are just an individual who is going to choose high probability situations for the purpose of making consistent money from the markets. Certain triggers which I use in order to confirm the trade entries and the exits are “level2 buy and sell pressures” and “Time & Sales” which provides me with a powerful edge.

But always keep one thing in mind which is trading is a percentage business, some trades will definitely fail which should be kept to a minimum.
 

Mr. Charts

Legendary member
7,364 1,181
Two of my five trades today used the method in this thread.
I couldn't find the very best sort of set ups for this method but these were two clearly directional moves.
One worked, one didn't. I got out of the latter very quickly as I trade on what I can see in front of me. I don't stay with a trade which is going against me.

JPM lost -2c per share (I gained +27c using a different set up earlier)
EXEL gained +115c per share
 

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Stev86

Junior member
18 0
Two of my five trades today used the method in this thread.
I couldn't find the very best sort of set ups for this method but these were two clearly directional moves.
One worked, one didn't. I got out of the latter very quickly as I trade on what I can see in front of me. I don't stay with a trade which is going against me.

JPM lost -2c per share (I gained +27c using a different set up earlier)
EXEL gained +115c per share
Hi Mr Charts,

When you say you like or prefer to trade slower moving blue chip stocks do you not prefer to aim for lowest price? JPM and Excel are quite expensive (JPM in particular) if I'm reading that right at $98 a share? (I also noticed your trades actually have high movement on the lower time frames you trade and with you having 20-100 point profits throughout the day or in 1 trade is this not considered very volatile stocks? they are after all moving a lot of points?)

I'm fairly new here although the account was created a while ago. I've been doing a lot of reading and researching (some live trading included) throughout this year and I'm now about to go and start building my portfolio. I'll be looking at blue chip stocks within the FTSE100 and preferably lowest share price/high yield stocks as I use IG .com to spread bet and the less volatile/lower the share price the less margin required and more per point I can actually go, and ultimately less risky since slower moving and hopefully more predictable when range bound etc.

How do you identify stocks that are moving 'okish' as oppose to stocks that barely move? as I don't want to invest my cash in a stock that might be a blue chip FTSE100 stock but it barely moves. Do you just eye ball the chart and check how much price moves over the course of a day/week?

I would email you but the site requires 20 posts on my account before I can use that option.

Any advice is greatly appreciated.

Regards,
Steven
 

Mr. Charts

Legendary member
7,364 1,181
Very quiet so far today, but my old favourite BABA .....:D
51c per share profit using the falling candles set up, that's +$510 for a 1000 share position and obviously pro rata for smaller and larger sizes
 

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