How To Make Money Trading The Markets.

[Mr. Charts]

Hiya Lee, Thanks

Are you going to change your nick now that Sarah Palin says "a PitBull is a hockey mum without lipstick"?
Richard

 

[Mr. Charts]

Someone emailed me asking "why read the news...(re-post #14)...as everything is in the price."

I don't believe that for a moment. Price on trades printing off is about what people buy and sell at and that is often not in line with the hundreds of ways people "value" a stock or anything else. Value or worth is not price .

I don't really want to get into all of that, but I feel strongly that anyone who trades on the basis of the previous day's price at the start of trading should have a good idea of the environment they are trading in. In other words, what overnight news or events are dictating sentiment on the new trading day?
You should never trade purely on news, but on the reaction of the market to that news or environment, be it oil price, stock sector, FX, interest rates, economic news or several other things, even weather.

In my opinion to trade purely on technical analysis in its classical sense is to ignore so much else and invites failure.
For me, TA is part of reading the market activity.

Again I'm talking here about stocks, not FX and other instruments.

You don't go out and do anything without knowing something about what the environment is like today.
You don't work without knowing what current conditions might affect your work. Not rocket science.
Richard

 

[nine]

I've been following the thread for a few days and although I've seen a couple of charts, some discussion, and an invitation to email more sensitive questions, I don't think I've seen the method described. Have I missed something?

 

[Windowsill]

I've been following the thread for a few days and although I've seen a couple of charts, some discussion, and an invitation to email more sensitive questions, I don't think I've seen the method described. Have I missed something?

Fear not, you have not:smart:.......5.41 yesterday " Don't go thinking every trade works, they don't, but a high percentage are profitable and the losing ones are always kept small by the rules I will explain later."
Richard

 

[Freeman.ayres]

Hi Mr Charts,

this is a very useful thread, thanks for sharing your knowledge.
I would like to know what criteria do you use to search for stocks.

Thanks

 

[akindele]

hello

i mean that sounds like a winner to me.how did you do it?
what technic did you use.
im a new trader and my goal is to make beteen 300-2000 dollars weekly to start with.
useing penny stock.

 

[Mr. Charts]

nine,
See post #4.
I'm looking for what is described there.
I am happy to enter the trade when it is trending and at a new high for longs or new low for shorts.
If it has been trending with the candles as described for quite a while I become more reluctant to enter. This is a matter of judgment and is based on reading the trades printing off; as long as they are steadily continuing I may well enter the trade; if they have tailed off, then the chances of a reversal have increased. As I've said, I'm looking for safe as possible bites out of the move.
No certainty, only high probability.
In addition to post #4, the charts posted so far illustrate examples of the entries and exits.
As mentioned there will be more to follow on different aspects of this method as and when I get time to post on this board.
Richard

 

[Mr. Charts]

Freeman,
Most live scanners will find the big movers of the day for you. I use eSignal Turbo scanner, but there are plenty available.

LZ,
For me personally I dislike trading the AAPLs and GOOGs of the world as I prefer the slower easily readable stocks where I can take larger position sizes with minimum risk and greater certainty.
Everyone to their own thing, though.
Good trading to you.

akindele,
This thread is not about "penny stocks" and they do not move as the stocks I trade, so what I've said so far and will be saying in the future won't be of much use to you, I'm afraid.
Perhaps search on this site for penny stocks and open a thread if you have questions about them

windowsill,
Thank you for your assistance

Richard

 

[timsk]

Hi Richard,
Great to see a new Mr. Charts thread!
Do you welcome subscribers to it to post charts of trades they've taken using the set up you describe so that you can then comment good / bad etc. (a la the pin bar set up on Trader_Dante's thread), or do you want the thread kept 'clean' with minimal red herrings and cul-de-sacs? I'm just trying to gauge how much audience participation - and of what kind - is welcome or unwanted.
Tim.

 

[Mr. Charts]

I said in post #8 I would show the chart of the trade I did on Wednesday.
Here it is.
Again I think it is worth looking back at the other charts and you can see the similarities.
If you are going to test out this method for yourself, I think it is much easier to have these examples so you can identify the set up by visual comparison with what you see on your own screen as you find the possible stocks live.

This trade produced a profit of $1.10 per share. That's $2200 for 2000 shares, $1100 for a 1000, $550 for 500, and so on.

As always the entry is on the red X hairs and the exit at the time of the screenshot.
Again the exit candle proved to be the swing low on the 1 minute chart and the decision to exit was based on a growing sense during that minute that this might be a volume blow off and then when the selling seemed to stop, I exited immediately.
Again I was exactly right, but I'm not always right.
Sometimes there can be a pause and the stock can continue its move.
Sometimes I'll scale out of the move, sometimes close it completely.
When I'm proved wrong and the stock continues its move I have no regrets as I've traded on the evidence in front of my eyes and no-one can do better or ask more of themselves than that.
No certainty, only high probability.
Anyway, I've banked profits and it's time to keep an eye on the same stock for further opportunities and also look elsewhere for others.
On the occasions when level 2 T&S doesn't give me any clues - and it often doesn't or there is so much noise it's of little use, then I will exit on the chart rule as described in an earlier post (post #4).
Richard

 

[Mr. Charts]

Hi Richard,
Great to see a new Mr. Charts thread!
Do you welcome subscribers to it to post charts of trades they've taken using the set up you describe so that you can then comment good / bad etc. (a la the pin bar set up on Trader_Dante's thread), or do you want the thread kept 'clean' with minimal red herrings and cul-de-sacs? I'm just trying to gauge how much audience participation - and of what kind - is welcome or unwanted.
Tim.

Thanks, timsk,
To be honest I'd prefer the thread kept clean without other people's charts so anyone reading it can see what I do and not get confused with the way other people do things.
They can then decide, uncluttered, if they want to test out this technique for themselves.
I'm prepared to clarify any points about this particular technique as long as I haven't already done so earlier in the thread.
Also my micro-analysis approach is beyond what I want to talk about in detail here.
I want to keep it chart focused.
There is simply no way I have time with my other trading commitments to comment or analyse other people's charts, I'm afraid.
Off to get some breakfast now - my two finger typing is very slow and I need my coffee and my wife's apple cake !
Richard

 

[reddog19]

It looks like a good system you have Mr Charts.
What do you actually use for entry rules?
Michael

 

[Mr. Charts]

See posts #4 and #24, but more entry rules for this particular method, one of about a dozen methods I use, will be posted when I've got time, as will stop loss rules, position sizing etc.
Scan for big movers, apply rules in posts #4 and #24, check example charts to aid identification.
To be continued....

 

[jayjay121]

hi mr charts,

can i ask as trending only happens around 15% of the time, what are you using as your stop?

I take it the stop has to be very close, what is your strikerate for this method? if you do not mind anwsering.


regards,

 

[Mr. Charts]

hi mr charts,

can i ask as trending only happens around 15% of the time, what are you using as your stop?

I take it the stop has to be very close, what is your strikerate for this method? if you do not mind anwsering.


regards,

jj,
Very little time as preparing for the markets.
I can find a trending STOCK most of the time. Even if the index is not trending, there are usually many stocks which are.
As I said, stops will be dealt with in a later post.
Strike rate is very high. If I posted it openly I'd just get disbelief so I won't bother.
If you EMAIL me, I'll tell you. I no longer read PMs.
Richard