Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

URBN was taken at almost exactly the same time and this one proved successful, producing a profit of +20c per share.

 

[Mr. Charts]

Both of those trades looked very similar on the charts. It's a fallacy to think all the successful trades look different to the failures if you use the same method. It's a probability business and it's vital to use the right sort of stop loss and trailing stop to manage the position you're in if you want your profits to be consistent and make a living out of this business.

 

[Mr. Charts]

Here's a trade from today using the variant discussed recently.
SHW profit of +65c per share.
Richard

 

[Chartsy]

whats the spread on some of these stocks? do you ever quote inside the spread?

 

[dcarrigan]

whats the spread on some of these stocks? do you ever quote inside the spread?

have put shw up. only 1 cent spread / 72.01/72.02 -1.47

 

[amit1986]

have put shw up. only 1 cent spread / 72.01/72.02 -1.47

I was also on SHW the same time Richard took that long trade and I can tell you that the spread was NOT 1 cent. It was quite wild during that time and often, the spread would be 7-10 cents. Definitely not an easy trade due to the large spread.

 

[amit1986]

whats the spread on some of these stocks? do you ever quote inside the spread?

Spread on WFC and URBN is, almost always, 1 cent. SHW was different as it was quite wild.

I don't think Richard quotes inside the spread, although I suspect, one could get a better feel of the market if one were to do so. I suppose Richard can clear up the rest...

 

[Mr. Charts]

I do trade inside the spread sometimes, but if it's a fast mover it can get away from you without your getting filled. For market orders on wider spreads you do need to be able to read Level 2 T&S well - provided it's readable !
Richard

 

[Chartsy]

I was also on SHW the same time Richard took that long trade and I can tell you that the spread was NOT 1 cent. It was quite wild during that time and often, the spread would be 7-10 cents. Definitely not an easy trade due to the large spread.

is that all? i thought stocks around that price , considering it isn't THAT liquid, would be around 20c

 

[amit1986]

lol "is that all"...that's a crazy wide spread! Most of the time, if a spread is that wide, I'd skip it entirely and move onto something that has a spread of maximum 3 cents.

Price isn't really a factor though - even AAPL has a spread of 3 cents most times, but it's a $300 stock.

 

[Mr. Charts]

is that all? i thought stocks around that price , considering it isn't THAT liquid, would be around 20c

A stock which has traded half a million shares in the first hour IS liquid in my book.

 

[Mr. Charts]

Two trades using the variant today.
COF went against me and I lost 10c per share.

FHN went my way for a gain of 80c per share.

Keep the losses small and let the winners run.
It's uncontrolled losers which destroy accounts and self confidence - basic trading facts.
Controlling your losers is simply the way you contain the cost of doing business, like the expenses in a normal business.

Richard

 

[Mr. Charts]

Results season really gets going tomorrow so there should be even more opportunities to make money
Richard

 

[Mr. Charts]

I was away today helping someone with a live trading session as he used some of my various different methods. Like me, he likes a scalper's entry into a swing trade and uses a modified swing trading exit which brought him out after two and a half hours.
He made himself $1.09 per share on this particular trade - on 3,000 shares of a low priced stock that's not bad money - which is the same basic one as on this thread with a couple of modifications of time frame and exit he likes.
The point is this method can be used on different time frames according to the individual's preference as the underlying principles are the same.
Richard

 

[Mr. Charts]

The lowest ask price of the day was 9.52, so the turning point was very well spotted for the scalper's entry at 9.53

 

[amit1986]

I'm also finding that entries based on momentum but exits based on swing setups work well sometimes, especially towards the end of the trading day.

 

[DeCal]

Hey all

Mr. Charts just did an amazing Interview with Student 2 Trader.

It's extremely in depth, I imagine the readers of this thread would be huge fans.

You can see the trader interview here.

Here's a segment to show you what we discussed:

What timeframe do you hold your trades on?

I use one and three minute candles but the length of time I am in a trade is determined by actual price action and stops.

Let’s talk about your philosophy, how do you base your trading decisions and analyse the market?

I require clear movement of an individual stock in terms of my set ups. I have no interest in erratic price moves but can usually find clear and clean moves even in choppy markets. There are so many stocks there are always opportunities, unlike FX or futures where there are few actual trading instruments in contrast to stocks.

How much technical analysis do you apply in your trading?

I use very few indicators, price action is everything.

What types of opportunities do you look to trade?

Only high probability ones. These are restricted to a dozen set ups, but I require being able to read increasing bid or ask pressure, sometimes market player activity and trades actually printing off to produce the trigger for the trade. I need to be able to read intent, supply and demand. With some stocks that is impossible so I don’t trade them.

You check out the trader interview here.

To read the interview you will need to register it's free and takes less then a minute. I hope you all enjoy the interview, please feel free to post feedback here on the T2W forums.

Kind regards
Decal | s2t representative

 

[paresh1]

hi all.nice forum. i am new in stock market..........nice tips.it will help me a lot.thanks

 

[Mr. Charts]

I'm going to start putting my daily trading results on my home page - obviously including my losers.
Put the cursor over my name at the top left, click and go to home page, then "Trades Today".
Richard

 

[Mr. Charts]

Two trades today using this method.
All trade results today on my home page.

SBUX failed and I was stopped out losing -5c per share