Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

You need $25k for direct access but I know many people who trade CFDs and spread betting and make money like this with far smaller account sizes.

 

[Chartsy]

yes that's true but if i wanted to trade a $50 stock for a 30c move then id maybe want to bu ya few hundred, maybe 400-500 ...that's using all that money...anyway depends what price of stock you trade. CFDs may work but i don't have faith in day trading stocks via spreadbetting at all, maybe someone has done well by it, you can day trade the indices via spreadbetting easily. Though im sure if the move is large enough spreadbetting could do the job just fine, but would take direct market over it any day.

 

[RonnieR]

Thank you Richard for a remarkable insight to day trading US Stocks!

I am familiar some of what you teach, although your postion sizing routine is new to me, and I have to say - very attractive.

I have been through the thread twice recently; and today, according to the web page, I logged in at 13.17, and it is now 02.12. Enough for now I think.

I intend to try and identify some trades through your TA methods tomorrow, and if I can get a grip on the action I shall paper trade some. Some of my EOD swing trades have turned out to be day trades recently, so I might as well do it properly.

I'm only posting this so that you know that there are 'lurkers' like me who appreciate what you do here, so keep up the good work!

Regards

Paul

 

[Mr. Charts]

Thank you for your very kind words.
Richard

 

[Mr. Charts]

Another cracking good day

Several trades so far, five of which were using this particular method.
There were two losers, a second GPS trade -2c and a POT -7c.
These were the other three.

GPS +52c

 

[Mr. Charts]

JWN +40c per share

 

[Mr. Charts]

RIMM +67c per share

 

[hamia]

The other one was a nice big fat juicy one, CTRP, which produced a gain of $2.60 per share. So for a 100 share beginner for example, that was $260, for someone trading 2000 shares for example, $5200.
The exit was because visible buying started to appear.
Both stocks were found using a scanner after market open.
Richard

Hi Richard,

What criteria did you give your scanner to find the CTRP setup?

Thanks,
Angus

 

[Mr. Charts]

%age change

 

[Mr. Charts]

Here are a couple from yesterday:

PBR was not a good trade and I lost 4c per share.
Entry on the red X hairs and exit at time of screen shot.
Richard

 

[Mr. Charts]

CEPH was rather better producing +72c per share.
The good profitable ones like CEPH look very similar to the losing ones like PBR at the time of entry. A certain %age will fail, but the key is to keep the losers small, follow the rules and let the winners run.
Not rocket science.
Richard

 

[Mr. Charts]

I'll post my MCK trade when I close it

 

[Mr. Charts]

Closed MCK trade for +$1.45 per share.
Stock spotted on scan several minutes before entry.
Richard

 

[Mr. Charts]

Here's an example from today.
A point worth thinking about is that if a stock is in a clear trend you have a greater probability of it continuing than if it was chopping around. In other words, the clearer and cleaner the trend the more likely it is to be profitable. You still get failed trades, (look at the example a few posts back #1112), that's obviously inevitable, it's the cost of doing business, but as long as you have a tight stop as suggested in this thread then your losers will be small.
I would have traded this earlier but it only showed up on my scan shortly before the entry point. Many people think if something has been trending for a while then it will retrace and that's often true. I prefer these moves after a retracement, but if it's moving in one direction cleanly and clearly, I'll often take the trade - but with a tight stop.
Of course, if you have a trending day you find plenty of opportunities, but even in a choppy environment there are almost always stocks which are clearly trending and that's what this particular method addresses.
Red cross hairs on the entry, exit at time of screen shot.
WLP + $1.10 per share

Richard

 

[hamia]

Here's an example from today.

Red cross hairs on the entry, exit at time of screen shot.
WLP + $1.10 per share

Richard

Richard,

Good trade. Volume seems fairly small before point of entry. Was there level 2 confirmation of a build up of selling pressure when you pulled the trigger?

Thanks,
Angus

 

[hamia]

I've been wondering about the best ways to spot these types of set-ups. They are not uncommon but the trick of course is to find them before the event. So far I've been using a single screen notebook and the limitations are becoming very obvious.

I've got a couple of ideas though:
1) get a 4 screen PC. Each screen should be able to display about 25 charts which will allow me to show about 75 charts on 3 screens with the other monitor free.
2) try using a large Quote Window (in eSignal) with maybe about 200 stocks, and put an efs alert for breakout conditions.

I'd be interested in how others go about hunting down these types of scenarios.

Angus

 

[Mr. Charts]

Angus,
I think I know who you are. Drop me an email and I might be able to help
Richard

 

[coopster]

I've been wondering about the best ways to spot these types of set-ups. They are not uncommon but the trick of course is to find them before the event. So far I've been using a single screen notebook and the limitations are becoming very obvious.

I've got a couple of ideas though:
1) get a 4 screen PC. Each screen should be able to display about 25 charts which will allow me to show about 75 charts on 3 screens with the other monitor free.
2) try using a large Quote Window (in eSignal) with maybe about 200 stocks, and put an efs alert for breakout conditions.

I'd be interested in how others go about hunting down these types of scenarios.

Angus

Hi Angus,

Bear (bare?) in mind that Richard is showing only the trades that display this particular method but could have shown up on his scanner initially for other reasons. He is looking for more than one setup all the time and if it happens to trigger this one, he writes about it in this thread. He is not actually scanning for this setup directly, rather more general criteria from what i can tell.

For example, Stocks approaching round numbers, approaching the previous days highs/lows, % gainers/losers etc etc. These can be found with all market scanners. (I use www.tradeideas.com for example but others are just as good.)

Scanning for these puts them on the initial radar and into a quote window but never as many as 75 charts or 200 lines on a quote window! Not with me anyway. By the time I've looked at the last chart, some of the earlier stocks could be moving already and i never had the chance to look at their order book! It could be solved with an EFS program or just simple alerts but when the market moves, with 75 stocks, you could get say 50 alerts all at the same time, making it no clearer!

I try to weed the ones out that are presenting clearer patterns and have live scanners that update regularly. Worthy candidates go onto the watchlist, others get removed when no longer interesting. I also have a favourites list of stocks that i am becoming more familiar with. They stay on the list all the time and often present this setup too.

Just my way, others will disagree i'm sure. I am still a learner too so take what i say with the required caution!

Coop

 

[Mr. Charts]

Definitely a good post, coopster
Best wishes,
Richard

 

[Mr. Charts]

This is the least liquid time of the year with choppiness dominating many days.
Traders are away and institutions generally hold off until later in September, although it frequently picks up after Labour Day - Sept 6th.
Results season is also over so there are fewer really good trades, they tend to be bread and butter type trades. Sometimes you get a really good one which makes the usual choppiness worthwhile persevering with.
Here's my worst trade of the week so far using the method in this thread, losing 9c a share.