Best Thread How To Make Money Trading The Markets.

[amit1986]

I agree. I don't use Level 2, but Time and Sales often keeps me out of many fake breakouts (fakeouts). Of course, the reading of Time and Sales doesn't necessarily imply perfect entries, but if you put in the effort to learning how to read the order flow, it can dramatically improve the odds of coming out on the winning side.

One last point about micro-analysis.
Many people look at level2 T&S and because they themselves simply don't understand it they think that must somehow mean it's useless...........not a very logical or sensible approach, is it?
Usually they are looking at stocks where the volatility and speed is so great level 2 tells you very little. Also they think that because players fake and spoof the whole thing is somehow "no good". When you understand the games played and the interaction of buy and sell pressures and the consequent results you gain a considerable edge. Also they think all you have to do is follow the axe -that's nonsense; sometimes that is useful but much less so than even a couple of years ago.
Enough.
Richard

 

[be-positive]

Hi Richard,
Looking at the above CLF chart I am wondering if this was your second trade of the day on CLF
and if yes was your first trade the breaking of the low of the 15.41 candle ???

Thanks Peter.

 

[Mr. Charts]

Hi Peter,
Excellent question !
Sounds as if you've got it
In fact looking back on my private alert site (nobody ask about it as it's private and not open to everyone) I alerted my members to this stock at 3.52 (UK time).
Had I spotted it earlier I would indeed have entered exactly as you suggest
In fact I did grab a 25c move out of it before being stopped out and then trading it a second time using this particular method and that's what you see here.
Richard

 

[seattle_softguy]

Richard

Very interesting! What normally peoplewould have done is to "Wait" for a reversal, but you are saying you could get a sixth sense out L2/T&S etc. That is real edge indeed!

Thanks
Seattle Guy

One last point about micro-analysis.
Many people look at level2 T&S and because they themselves simply don't understand it they think that must somehow mean it's useless...........not a very logical or sensible approach, is it?
Usually they are looking at stocks where the volatility and speed is so great level 2 tells you very little. Also they think that because players fake and spoof the whole thing is somehow "no good". When you understand the games played and the interaction of buy and sell pressures and the consequent results you gain a considerable edge. Also they think all you have to do is follow the axe -that's nonsense; sometimes that is useful but much less so than even a couple of years ago.
Enough.
Richard

 

[Mr. Charts]

Here's one from this afternoon.
CELG +62c
I didn't wait for a chart exit signal because I could see from the flow of trades and bid/sell pressures that a reversal was becoming increasingly probable. That is exactly what ensued.
Happy Holidays to everyone and thanks for all the emails about this thread
Richard

 

[Mr. Charts]

T2W Members' Choice Awards 2009 - Winners Announced!

--------------------------------------------------------------------------------

Two silvers and a gold !
Thanks very much to both of you for voting for me
Happy Holidays everyone,
Richard

 

[shadowninja]

Nice one.

Happy what???

 

[timsk]

Happy what???

Holidays.
It's not PC to use the 'C' word anymore.
Yes, well done Richard - great contribution to the site - please keep it up in 2010, (I'm referring to your contributions btw).
Season's Greetings!
Tim.

 

[Mr. Charts]

Thanks, Tim.

I'm definitely not PC, can't stand all that crap. Mind you if the same lot get in again, (unlikely, I know), the word "happy" will be banned as offensive and inappropriate to the humourless and lugubrious Brown and Harperson.

"please keep it up in 2010, (I'm referring to your contributions btw)"

Oh no, the very thought of Harman causes instantaneous atrophy.

Maybe shadow doesn't get "holidays" from work?

Richard

 

[Mr. Charts]

Here's just one of several trades this afternoon.
As always, entry on the red X hairs and exit at time of image.
Anyone who has read this thread can see exactly why I entered and why I exited.
+28c per share
Happy Holidays to everyone,
Richard

 

[gamma]

holidays.
It's not pc to use the 'c' word anymore.
Yes, well done richard - great contribution to the site - please keep it up in 2010, (i'm referring to your contributions btw).
Season's greetings!
Tim.

happy christmas everyone

**** being pc

 

[Mr. Charts]

OK, OK, I'll have to be precise
Happy Christmas to everyone who celebrates it religiously and non-religiously, Happy Holidays to all my Hindu, Jewish and Muslim friends and to everyone who thinks religion is a fairy tale to enslave the masses and keep them in the Dark Ages.

BUT, A VERY HAPPY NEW YEAR TO EVERYONE (INCLUDING THOSE WHO DON'T RECOGNISE JAN 1ST AS NEW YEAR).

It's just a damn sight easier to say Happy Holidays !

Richard

 

[Ambrose Ackroyd]

It's not PC to use the 'C' word anymore.

But Tim, cnut has always been a rather risque word to use in polite company.

 

[MTRIG]

Mr. Charts,

Great work on sharing your trading concepts and keeping this thread going. Very motivating reading.

Regards,
Patrick

 

[goldenrule]

I accidentially found this website yesterday... and it took me almost two days to read this thread. Hat off to Mr. Chart for the inspiring information provided here and also for the consistency in the posts.
Happy trading everyone and a prosperous year 2010!

 

[Mr. Charts]

Thanks for the kind words
and Happy New Year !
Wonderful snow lying on my trees, especially the evergreen hollies and bay - beautiful !
So glad I trade from home and don't have to commute in it
Richard

 

[Mr. Charts]

Two trades this afternoon using just this one technique alone; both on TASR.
I exited because I could see buy pressure weakening and sell pressure strengthening.
First trade +35c

 

[Mr. Charts]

....and the second TASR was a loser
-1c

In this trade the signs on level2T&S were mixed, just noise, so I waited till the bottom of the previous candle was taken out before exiting at the same price as my entry producing a net loss (after commission) of 1c.

You could have exited the first trade for just a couple of cents less profit without level 2 when the same candle exit signal triggered.
Richard

 

[Mr. Charts]

As always, red cross hairs on the point of entry, images taken at time of exit.
Richard

 

[morgan_edge]

Thanks for the kind words
and Happy New Year !
Wonderful snow lying on my trees, especially the evergreen hollies and bay - beautiful !
So glad I trade from home and don't have to commute in it
Richard

Nice to look at, isn't it!?
Hope you dont mind the interruption to the thread, but since you brought it up, I feel compelled to post the view from my upstairs office of part of the garden: