Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

Beautiful

 

[Mr. Charts]

Here are two of my trades using this method today.
LMT +25c
KSS +52c

Richard

 

[Benny Dorm]

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:

Not even a JCB and a tractor could pull this snowplough back onto our lane! :-0

They had to get a crane!

Happy New Year everyone!

(Sorry Richard, couldn't resist - back to thread now!)

 

[Mr. Charts]

Just as cold down here as up your way !
Best wishes,
Richard

 

[Mr. Charts]

Thanks again to everyone who voted this thread best of 2009.

Here's one of three trades I did this afternoon on SWN (the earlier ones produced gains of 13c and 21c) producing a profit of 53c per share for a risk of just 6c (as previously described in this thread).
I didn't wait for the chart exit signal as I could see people had stopped selling/shorting and the buyers were coming back in.
The opportunities are there virtually every day.......
Richard.

 

[Mr. Charts]

.........and here's an image I've just taken of the current situation so it looks like a decent exit time-wise.
Richard

 

[Mr. Charts]

What a great day's trading so far
Here's one of my trades this afternoon using the method on this thread.
Yes, I know there were plenty of such opportunities earlier in the session, but I was busy trading other stocks.
CLF +98c per share. That's almost $1000 if you'd traded 1000 shares, enough to make you smile.
I exited at the time of the screenshot because I could see the selling abating and the buying pressure building. This turned out to be within 2c of the low of the day so far.
Richard

 

[Mr. Charts]

I then zeroed down to the 1 min candles looking to see the probability of a reversal and took it as shown on the red X hairs. I'm not going into the details, rules, triggers etc. of that bounce trade, but I mention it because if I can't read level 2 T&S because there is too much noise on it, I'll use the simple chart exit rule I've mentioned many times on this thread. As can be seen, I exited the reversal trade when price took out the low of the previous candle.
The point is I find that simple exit signal works very well in other trading situations - just like the one in this image.
Another +36c on CLF

Richard

 

[Mr. Charts]

None of this is difficult once you get your head round it, but people are sometimes, understandably, hung up on expecting a precise entry point when sometimes there isn't one. As long as risk is strictly controlled, (some of my methods are mentioned in this thread), and the exits are strict, then you can generate consistent and reliable profits. With this particular method you need to go for cleanly trending stocks, not whippy ones.
Richard

 

[sarue]

Good morning all. I just found this post - it looks very useful and covers a couple of years time. Are there any particular posting numbers that I should look at first to get a handle on the trade set up, entry, and exit parameters? Thanks in advance!

 

[Mr. Charts]

No fast short cuts to success, sarue.
It needs time and effort to learn.
Once understood, it's very easy.
Read the thread, the whole thread and nothing but the thread - and welcome to t2w
Richard

 

[red snapper]

And yet another today.
+85c a share

Mr Charts - been reading through this thread for the umpteenth time. Love it more and more and am gleaning more info from it every time.

Realise that no one has posted on this thread for a while -

Would you have exited this trade if the top of the green candle had moved 1 tick higher - or did you T&S tell you that sellers were still in the majority.

Given the profit (85c) - looks as ever like a good trade, but would appear to be a close run thing this one - and might one be forgiven for exiting this trade for a 10c gain approx?

Best wishes

George

 

[red snapper]

The risk was a break of the entry candle high. That's 6c.
Reward unpredictable, but no support down to the deep blue sea.
Richard

Mr Charts -

I'm still a novice here - thought my reply would include your chart - as it seems not to have done so, my last message referred to Post 247, dated 4th Feb.

Hope that helps

George

 

[Mr. Charts]

Hello red snapper,

"Would you have exited this trade if the top of the green candle had moved 1 tick higher
YES-
or did you T&S tell you that sellers were still in the majority. CAN'T REMEMBER, THAT TRADE WAS A YEAR AGO

Given the profit (85c) - looks as ever like a good trade, but would appear to be a close run thing this one
CORRECT
- and might one be forgiven for exiting this trade for a 10c gain approx?
YES, UNDERSTANDABLE, BUT I FOLLOW MY OWN RULES 99% OF THE TIME SO I STAYED IN - JUST AS WELL
Richard (capitals to stand out)

 

[red snapper]

Hello red snapper,

"Would you have exited this trade if the top of the green candle had moved 1 tick higher
YES-
or did you T&S tell you that sellers were still in the majority. CAN'T REMEMBER, THAT TRADE WAS A YEAR AGO

Given the profit (85c) - looks as ever like a good trade, but would appear to be a close run thing this one
CORRECT
- and might one be forgiven for exiting this trade for a 10c gain approx?
YES, UNDERSTANDABLE, BUT I FOLLOW MY OWN RULES 99% OF THE TIME SO I STAYED IN - JUST AS WELL
Richard (capitals to stand out)

Mr Charts - thank you for the above

Regards

George

 

[Mr. Charts]

It's a pleasure answering a question from someone who has obviously carefully read the thread
Richard

 

[montmorencyt2w]

Hi Richard,

Sorry I haven't read the whole thread yet, but am working through it.

As I mentioned to you in email, I'm beginning to look at stocks again, after a year or so of almost entirely FX , commodities, and the odd index or Bund trade.

On all those, I trade usually off 1H charts, occasionally 15min.

Clearly your timeframes are a lot less, and that would scare me a bit, especially as I'm out of touch with stocks.

I've read your reasons why daily and weekly T/F's are not a good idea here (too much risk), but what about 1H - 15min - can it be done with the technique shown here?

ISTR reading that although you look for good movers, they are not necessarily moving all that fast (compared with FX say), so maybe 1-5min T/F is feasible, even for the less experienced.


Can it realistically be done without L2 and T&S?

Thanks, and sorry if you have already answered this somewhere.

Best wishes,

 

[Mr. Charts]

Mike,
Yes to 15 min, check out ETN at this very moment.
Will continue answer in a few minutes
R

 

[Mr. Charts]

Hi again, Mike,

"ISTR reading that although you look for good movers, they are not necessarily moving all that fast (compared with FX say), so maybe 1-5min T/F is feasible, even for the less experienced."

Yes, absolutely. I usually tell beginners they should go for slow moving stocks for several reasons, incl. they will feel much more in control than one which is moving quickly and prone to sharp changes in price - that induces stress; a slow mover is also usually much easier to read on level 2 and T&S, whereas a fast one has much more noise and fakes and may well be unreadable and useless as a result.

Level 2 T&S is less important the longer the time frame but is a wonderful tool for refining entries and exits. It also sometimes tells me that a potential break out is likely to fail, or that support is much more likely to break than produce a bounce and several other things as well. In other words it adds considerably to the bottom line but is NOT essential. And as I said, is not useful all the time, but when it is telling you something very often it will tell you what is going to happen BEFORE trades print off and produce a move on the chart which gives me a huge edge. However, that is not what this thread is about, and it's not essential.

Hope that helps,
Richard

 

[Mr. Charts]

Anybody who would have gone long ETN at the time of my post would now be up 34c and might be considering taking some money off the table by partially scaling out. And of course moving their trailing stop up on the rest.
Richard