Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

thanks for the input. good trade indeed.
How did you scan this stock? I caouldnt find any breaking news on stx. It didnt have unusual volume at open and didnt drop that much on gap down. just curous about your criteria to find this stock and put it onto ur watch list.

Only one of several trades.
Pre-market gapper.
You have email.
Richard

 

[bhapca]

Speaking of volume, Richard, does it have any bearing on your method ? I noticed that all your charts have the volume histogram on.

I'll elaborate on the HLX trade if I can get a few minutes tomorrow morning.

Here's STX from this afternoon - a bread and butter sort of trade jumping on the trend after a retracement.
+27c for a 6c risk.
My attitude is to let the profits look after themselves and concentrate on the risk.
The risk you can control, the reward you can't.
Huge volume on the stock so you could buy as many as you wanted.

Richard

 

[Mr. Charts]

Speaking of volume, Richard, does it have any bearing on your method ? I noticed that all your charts have the volume histogram on.

The method on this thread is only one of a dozen I use day to day and although volume is NOT relevant to this particular method it IS to some of my others.
I will NOT be covering the other methods on t2w.
Richard

 

[Mr. Charts]

I said I'd elaborate on the HLX trade post #979.
I've re-posted the image so anyone interested doesn't have to keep going back to that post.

This is the sort of trade which someone working during the UK day and coming home in the evening can make money from (the UK is five hours ahead of Eastern).

Here's just one of the straightforward methods I use.
Run a scan for movers, look at chart, see if big rise is followed by consolidation, especially with rising lows indicating buyers coming in sooner after a retracement i.e at higher levels, wait for break out and take trade immediately on breakout.
You can then follow the rule of exiting at 1c below the bottom of the candle as an immediate stop loss so you have a sharply defined exit strategy in case the trade doesn't work. You can then use a trailing stop on each successive candle or as in this instance, exit just before close of trading.
Risk 6c maximum and you're in control of that. Reward you cannot predict, but hey, a strongly trending stock breaking out late in the session has a strong probability of being profitable.
Reward 38c
I'm not going into my other evening (US afternoon) methods, but this one is easy and straightforward. Trading does not have to be rocket science with US stocks; there are so many to choose from there are usually trending ones that can be profited from with just this one approach alone. A nice gentle slow swing trade. no mad rush.
The sort of success rate you should get is 70% plus overall. Keep the losers tight as I have described and let the winners run as I have described.
Remember, test it for yourself, time and time and time again; maybe 100 times in all market conditions and draw your own conclusions.
Like I said, it ain't rocket science.
Richard

 

[ntc]

I said I'd elaborate on the HLX trade post #979.
I've re-posted the image so anyone interested doesn't have to keep going back to that post.

This is the sort of trade which someone working during the UK day and coming home in the evening can make money from (the UK is five hours ahead of Eastern).

Here's just one of the straightforward methods I use.
Run a scan for movers, look at chart, see if big rise is followed by consolidation, especially with rising lows indicating buyers coming in sooner after a retracement i.e at higher levels, wait for break out and take trade immediately on breakout.
You can then follow the rule of exiting at 1c below the bottom of the candle as an immediate stop loss so you have a sharply defined exit strategy in case the trade doesn't work. You can then use a trailing stop on each successive candle or as in this instance, exit just before close of trading.
Risk 6c maximum and you're in control of that. Reward you cannot predict, but hey, a strongly trending stock breaking out late in the session has a strong probability of being profitable.
Reward 38c
I'm not going into my other evening (US afternoon) methods, but this one is easy and straightforward. Trading does not have to be rocket science with US stocks; there are so many to choose from there are usually trending ones that can be profited from with just this one approach alone. A nice gentle slow swing trade. no mad rush.
The sort of success rate you should get is 70% plus overall. Keep the losers tight as I have described and let the winners run as I have described.
Remember, test it for yourself, time and time and time again; maybe 100 times in all market conditions and draw your own conclusions.
Like I said, it ain't rocket science.
Richard

Thanks Richard. You post specifies "risers" - is it reasonable to assume that you use this method for the inverse situation also?

 

[Mr. Charts]

Thanks Richard. You post specifies "risers" - is it reasonable to assume that you use this method for the inverse situation also?

Yes

 

[Mr. Charts]

Four trades using just this one method today - a very choppy going-nowhere day.
STX loss -5c
HTZ profit +27c
OVTI profit +13c first trade
OVTI profit +70c second trade
Here's a chart of the second OVTI trade.
Risk 8c Reward 70c
Exit on chart rule described several times.
It's really about waiting patiently for the right opportunity; no certainties, but high probabilities.
Richard

 

[DionysusToast]

Nice trades Mr C, my biggest was 25c today. I finished after about an hour - it looks like last week again.

Let's hope Wednesday sees the Gods of Volatility smiling down on us !

 

[Mr. Charts]

Hi DT,
A very choppy afternoon.
Ten trades so far.
Using this particular set up:
+29c
-6c
+7c

Trades using my other set ups not in this thread:
+14c
+7c
+13c
+120c
-1c
-5c
+19c

Fairly typical of a choppy day with few opportunities. Still enough to earn a decent living though, even on a day like this

The key thing for me is to keep the losers small.
The winners almost take care of themselves.
Richard

 

[bhapca]

Thank you, Richard, for the details on using break-out/downs with this method.

On a given day this setup may occur on both long and short directions. Would you enter the trade in either direction ? Do you pay attention to the market or sector (their corresponding indices) direction at the time of the setup ?

Yes

 

[fgp]

holdem till close.
ty mr.chart.

 

[Mr. Charts]

fgp,
Good stuff, fgp
You have email

bhapca,
Yes to both your questions.
However, there are always stocks which go their own way almost irrespective of the market, so I trade those against the overall direction ONLY if I can see that the market has little if any influence on the price direction. In other words, sometimes an individual stock bucks the general trend.
For a beginner who hasn't yet grasped the buy/sell pressures on the individual stock, I normally suggest only going in line with market direction.
Of course, the market might be chopping around and non-directional in which case it has a smaller influence on the individual stock.
Richard

 

[bryan24k]

Hello Mr Charts. I have been following your thread for quite some time now as I have learned a substantial amount of information from "your" style of trading and it is greatly appreciated. I have started my day trading endeavour not too long ago and education is crucial for any trader starting off. I am taking the knowledge of many different pro traders and picking away at it and trying to make my own way. I am currently in the midst of finisishing off my trading plan. I have defined my risk per trade as well as not taking trades where a risk to reward ratio is at least 3:1. I also have to have an idea where my exits are; stop and profit targets. I was wondering if these are things you look at prior to entering a trade? Please don't be offended as I am just picking the brain of another successful trader. Also do you ever every add or reduce while in a trade such as selling off a third when a target is hit and then buying it back when another edge is givin during a trade? do you leave a third on and let it run hoping for it to blast off to the moon? or is your style more so buy the whole lot for example of 1000 shares off the hop and then sell it all as soon as you see any sign of a reversal and take your profits immediately? do you use indicators like trin or tick? I don't use tick or trin but follow the QQQQ and SPY's. Is the tick and trin a must? I am realizing that at times I seem to let my losses run and cut my profits short. I realize that you are very very risk averse which is why you will take yourself out as soon as there is a sign of a "potential" reversal. I am thinking this is the mindset I should creat for myself as I am aiming for targets, leaving some on in hopes of hitting my targets whereby the stock quickly turns around eating away at my profits and sometimes turning into a loser. Maybe i should just get in take what i can and get the heek out with quick scalps regardless of trying to add, reduce, hold onto a third, etc. I hope I have not overwhelmed you with all these questions. Your time is appreciated.

Bryan

 

[neil]

Hello Mr Charts. I have been following your thread for quite some time now as I have learned a substantial amount of information from "your" style of trading and it is greatly appreciated. I have started my day trading endeavour not too long ago and education is crucial for any trader starting off. I am taking the knowledge of many different pro traders and picking away at it and trying to make my own way. I am currently in the midst of finisishing off my trading plan. I have defined my risk per trade as well as not taking trades where a risk to reward ratio is at least 3:1. I also have to have an idea where my exits are; stop and profit targets. I was wondering if these are things you look at prior to entering a trade? Please don't be offended as I am just picking the brain of another successful trader. Also do you ever every add or reduce while in a trade such as selling off a third when a target is hit and then buying it back when another edge is givin during a trade? do you leave a third on and let it run hoping for it to blast off to the moon? or is your style more so buy the whole lot for example of 1000 shares off the hop and then sell it all as soon as you see any sign of a reversal and take your profits immediately? do you use indicators like trin or tick? I don't use tick or trin but follow the QQQQ and SPY's. Is the tick and trin a must? I am realizing that at times I seem to let my losses run and cut my profits short. I realize that you are very very risk averse which is why you will take yourself out as soon as there is a sign of a "potential" reversal. I am thinking this is the mindset I should creat for myself as I am aiming for targets, leaving some on in hopes of hitting my targets whereby the stock quickly turns around eating away at my profits and sometimes turning into a loser. Maybe i should just get in take what i can and get the heek out with quick scalps regardless of trying to add, reduce, hold onto a third, etc. I hope I have not overwhelmed you with all these questions. Your time is appreciated.

Bryan

You could make his task easier by using one paragraph per question. Question numbers would also help. As it is you expect him to read your "stream of consciousness" and to re-assemble your text into meaningful, logical prose.

Use question marks to indicate a question; this helps the reader to a quicker extraction of meaning from the mass of words you have sent him.

Overall, the adoption of the above simple recommendations would save Richard considerable time and effort, in an otherwise busy day,and may cause him to be more amenable to penning a reply.

Hope this helps you with future enquiries for information from anyone.

 

[bryan24k]

Thanks for the heads up Neail. Hope this helps.

1. I have defined my risk per trade as well as not taking trades where a risk to reward ratio is at least 3:1. I also have to have an idea where my exits are; stop and profit targets. I was wondering if these are things you look at prior to entering a trade?

2. Also do you ever every add or reduce while in a trade such as selling off a third when a target is hit and then buying it back when another edge is givin during a trade?

3. do you leave a third on and let it run hoping for it to blast off to the moon? or is your style more so buy the whole lot for example of 1000 shares off the hop and then sell it all as soon as you see any sign of a reversal and take your profits immediately?

4. do you use indicators like trin or tick? I don't use tick or trin but follow the QQQQ and SPY's. Is the tick and trin a must?

5. Maybe i should just get in take what i can and get the heek out with quick scalps regardless of trying to add, reduce, hold onto a third, etc?

 

[neil]

Thanks for the heads up Neail. Hope this helps.

1. I have defined my risk per trade as well as not taking trades where a risk to reward ratio is at least 3:1. I also have to have an idea where my exits are; stop and profit targets. I was wondering if these are things you look at prior to entering a trade?

2. Also do you ever every add or reduce while in a trade such as selling off a third when a target is hit and then buying it back when another edge is givin during a trade?

3. do you leave a third on and let it run hoping for it to blast off to the moon? or is your style more so buy the whole lot for example of 1000 shares off the hop and then sell it all as soon as you see any sign of a reversal and take your profits immediately?

4. do you use indicators like trin or tick? I don't use tick or trin but follow the QQQQ and SPY's. Is the tick and trin a must?

5. Maybe i should just get in take what i can and get the heek out with quick scalps regardless of trying to add, reduce, hold onto a third, etc?

Well done, this is much easier to read and will no doubt be appreciated by Richard

 

[Mr. Charts]

Thanks Neil ! :clap:

I'll answer the other questions when time permits, bryan24k, but I think I have already discussed my attitude to targets in this thread - and certainly discussed risk extensively.
Richard

 

[Mr. Charts]

For anyone interested I've put up charts of all my trades today on my blog - click on my name - go to my homepage - then blog. They include one or two of my other methods - not on this thread.
Richard

 

[temporarilylight]

Bryan, here's my guess (and its only a guess. I'm not a US stocks trader and haven't read all of this thread)

1/ I dont think he takes into account a 'risk reward ratio'. I think the only thing one can control is the risk side. He keeps this risk small. He'll exit the trade when it looks like momentum has finished.
2/ I Dont think i've seen him reduce a position or add to it...?....
3/ Similar question as 2 really
4 I'm gonna guess the answer is No - not tick, no trin.
5/ That's up to you to decide I guess. See how your results differ with different methods.

thats my guess. I've either got it completely wrong or i've saved Mr.C about 4 minutes.

 

[Mr. Charts]

bryan24k,
2. and 3.
Sometimes I will exit a position completely. Other times I'll scale out. In fact on my own private site I often give a live-as-it-happens running commentary on stock positions I'm scaling out of.
On a very fast move such as the FDX trade on my blog today then I will exit as soon as level 2 looks as if it is turning against me.
t.b.c. another time
Richard