10 seconds is a long time if a trade has reversed on you and one can lose a lot of money.
Best Thread How To Make Money Trading The Markets.
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10 seconds is a long time if a trade has reversed on you and one can lose a lot of money.
Amit - thanks for the tip on auto refresh: i should have thought of that.
Also, which Esignal screen do you find more valuable to look at? Totalview or NASDII? Also do you know if it is possible to play back Level II or record it? I would love to be able to see it when i review and evaluate my trades at the close of the day.
One more thought on the videos - I was a bit struck by their authenticity. They struck me as videos created by someone trying to spend his time trading, not making videos.
I also am emboldened that a dentist (no offense to dentists or Richard) can do this.....Perhaps dental programs in the UK are more rigorous than the US...
Also, which Esignal screen do you find more valuable to look at? Totalview or NASDII? Also do you know if it is possible to play back Level II or record it? I would love to be able to see it when i review and evaluate my trades at the close of the day.
One more thought on the videos - I was a bit struck by their authenticity. They struck me as videos created by someone trying to spend his time trading, not making videos.
I also am emboldened that a dentist (no offense to dentists or Richard) can do this.....Perhaps dental programs in the UK are more rigorous than the US...
Be prepared for a shock. The executions seem to be worse when trading real money! Especially with Market orders as Richard recommends.
E signal hangs far more often than IB in my (limited) experience.
You can record the screen using software like camtasia. You would have to keep the L2 Window on that stock though. E signal does have a record function but i've never used it.
Each to their own on L2 or Totalview. I try to use one to confirm the other if there is time to switch betwen them. One experienced guy and friend of Richard's (Naz) recommends that Totalview never be used.
i am so used to trying to split bid/asks on options with limit orders that market orders are very tough to get used to....
thanks for advice on camtasia - ill check that out.
thanks for advice on camtasia - ill check that out.
amit1986
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You won't learn a single thing from watching a video of a high-ATR trade, trust me. You're already making assumptions regarding level 2 in general as it being not useful, yet you want to see how it can be used on high ATR stocks? Learn to master it on slow moving stocks, then think about watching high-ATR stocks.
The concept of level 2 is simple: read it like you are reading a story book. Watch it develop over time. Once you get that, then no matter what the setup is (breakout, reversal, opening range, etc...), you can apply the same principles on ANY setup.
Thus, Richard making a special video for you is pointless. I suggest you open a level 2 screen and put in the effort to learn it on slow stocks first. Making excuses to avoid putting in the effort just doesn't cut it.
It's a necessary evil which, unfortunately, cannot be avoided in trading. All day traders have to incorporate that risk in their lifestyle. But once again, there are things you can do to minimize the risk:
1) Have a list of your brokers phone number nearby or in your phone contact list. In the event your connection dies, you can call your broker to close all trades.
2) If you have a smart phone, many brokers now have an app which you can install and trade off.
3) Buy a surge protector which will allow you to remain connected for a short time in the event the power goes off. This will allow you to close any positions open.
If you can't mitigate a risk, then you can take measures to minimize the effect. Instead of going on forums and complaining about it, think of ways you can protect yourself because there is no direct fix to your problem.
I suggest you fully read what I write prior to responding. I said that all techniques that Richard shows in his videos work in todays markets. I actually traded those same level 2 momentum triggers today with the chart setups and made some nice profits. Same yesterday and the day before. They do work consistently and for you to insist they don't work without really putting in any effort to try them out is ludicrous. And I'm not just talking about a few days/weeks of effort. Like PitBull has already said, it takes A LONG time to learn how to read level 2 - many months.
timsk
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An express delivery of a H U G E quantity of timber is wending its way to you as I type . . .
Duncanhoo - I love your enthusiasm and I don't want to quash it. As the old saying goes; 'There's only one thing in life that's more infectious than enthusiasm - and that's a lack of it'. However, as Amit is at pains to point out in his most recent posts to this thread - it does take a while to get the hang of this stuff. I'm just concerned that your obvious enthusiasm could - not will necessarily - but could - lead you into trouble. That's what happened to me and I don't want you (or anyone else) to make the same mistake. Have you ever climbed a mountain in adverse weather conditions and thought you were near the summit, only to find that it was a mirage and through the mist there's another summit to climb? Trading can be a bit like that for some people. That's happened to me so many times that I've lost count, but, perhaps that's just me!
Tim.
An express delivery of a H U G E quantity of timber is wending its way to you as I type . . .
Duncanhoo - I love your enthusiasm and I don't want to quash it. As the old saying goes; 'There's only one thing in life that's more infectious than enthusiasm - and that's a lack of it'. However, as Amit is at pains to point out in his most recent posts to this thread - it does take a while to get the hang of this stuff. I'm just concerned that your obvious enthusiasm could - not will necessarily - but could - lead you into trouble. That's what happened to me and I don't want you (or anyone else) to make the same mistake. Have you ever climbed a mountain in adverse weather conditions and thought you were near the summit, only to find that it was a mirage and through the mist there's another summit to climb? Trading can be a bit like that for some people. That's happened to me so many times that I've lost count, but, perhaps that's just me!
Tim.
Appreciate the warning. However, the only way to overcome slumps, downs etc. is maintain positive attitude. BTW the earlier post did not end up jinxing me. :cheesy: Believe me i get plenty down when i blow trades (CSTR), but i am not doing this for the $$$, i am doing it because i like doing it.
If you want i am happy to start flaming...
Good news:
Today win rate was 76% compared to 61% yesterday and 56% on Friday. Assume 76% is an outlier but love the trend.
Bad news:
Average $/winning trade: 129 vs. Average $/losing trade: 171 - that ratio is terrible and mostly due to trading in first ten minutes so i am putting in a rule against that for now
Talk about lucky:
Put in a stop on a trade and forgot about it. then sold it at market later without pulling the stop...guess what....stop was executed as it reversed and i went short (without intending to) and ended up covering for a small profit.....
Working cross platforms is too difficult and causes too many errors. Trying out tradestation tonight....
Today win rate was 76% compared to 61% yesterday and 56% on Friday. Assume 76% is an outlier but love the trend.
Bad news:
Average $/winning trade: 129 vs. Average $/losing trade: 171 - that ratio is terrible and mostly due to trading in first ten minutes so i am putting in a rule against that for now
Talk about lucky:
Put in a stop on a trade and forgot about it. then sold it at market later without pulling the stop...guess what....stop was executed as it reversed and i went short (without intending to) and ended up covering for a small profit.....
Working cross platforms is too difficult and causes too many errors. Trying out tradestation tonight....
I should also add one more self-criticism....WAY OVER TRADING....However in my defense i am doing it with people in my office and when on calls so a bit distracted. Of course when i get distracted i tend to let the winners actually run for a change.
I will take your advice and practice. You guys are really good at finding solutions.
Thank You
DionysusToast
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NinjaTrader has this feature - I believe it can be hooked up to esignal data feed too.
Just catching up on the thread, anyone looking to use Camtasia to record trades might like to try 'Jing' http://www.techsmith.com/jing/ from the same people (techsmith). Free and very useful
This is paper trading right?
I trade a real account for 100 share lots as paper trading is easy to do badly as it means nothing. I limit my loss to $20 per session. I am actually happy to lose this money for "educational purposes" so If i am in profit, i carry on trading and often end up back zero or a loss. Effectively this is making many of my newbie mistakes with other peoples money and notching up a few more lessons learned for free. Yesterday i was up $29 but gave it all back, ending at $-3. It also gives me an idea of how it feels emotionally to lose which is also a vital experience a trader must go through i think.
paper trading - just like Charts instructed in the videos....not even going to use $1 of real money unless i can get good results pretending....then ill start doing small share lots with real money.
Way i figure it though, if i cant do it with funny money first then there is no point in using real cash. when I learned options i found that paper trading gave me the confidence i needed as a foundation to start with real dollars.
In addition, I have failed miserably paper trading several strategies and never bet a single $. My paper trading is not on a piece of paper but using broker account funny money. that way the feel of the action is there.
Coopster i cant recall, did you buy the videos?
Way i figure it though, if i cant do it with funny money first then there is no point in using real cash. when I learned options i found that paper trading gave me the confidence i needed as a foundation to start with real dollars.
In addition, I have failed miserably paper trading several strategies and never bet a single $. My paper trading is not on a piece of paper but using broker account funny money. that way the feel of the action is there.
Coopster i cant recall, did you buy the videos?
problem with 100 share lots is that commissions eat up half your profit on wins. One of the keys to Richard's strategies is to get out the instant you believe momentum is waning or reversing. this has often times left me with .15/share of profit...or less. A winner IMHO; however, on 100 shares its a loser due to commissions.
Another issue is legging out. I have found that selling half when quickly profitable has been critical toward avoiding losing trades. in 100 share lots, doing this will kill you (20+ roundtrip on fidelity).
i have live traded a couple and have done 500 shares or greater and will probably make 300 to 500 shares my "floor" with real $ if i get to that point where i am all real $.
If you look at his trades, Richard's losses (in addition to being infrequent) are very small. He then has a bunch of what ill call "goods" (15 - 30 c) and a handful of "greats" (100c or more)
You really only have to accomplish the first two to be successful at this (provided decent share size): tiny losses and a bunch of goods. I have yet to hit a "great" yet...
Id suggest paper trading in size first. One way to make it more "real" would be to have a competition with a buddy - each start with 100k of fake dough and after 30 days, the loser has to pay the winner real cash ($500 ?). If you are competitive, that will make you take paper seriously.
Another issue is legging out. I have found that selling half when quickly profitable has been critical toward avoiding losing trades. in 100 share lots, doing this will kill you (20+ roundtrip on fidelity).
i have live traded a couple and have done 500 shares or greater and will probably make 300 to 500 shares my "floor" with real $ if i get to that point where i am all real $.
If you look at his trades, Richard's losses (in addition to being infrequent) are very small. He then has a bunch of what ill call "goods" (15 - 30 c) and a handful of "greats" (100c or more)
You really only have to accomplish the first two to be successful at this (provided decent share size): tiny losses and a bunch of goods. I have yet to hit a "great" yet...
Id suggest paper trading in size first. One way to make it more "real" would be to have a competition with a buddy - each start with 100k of fake dough and after 30 days, the loser has to pay the winner real cash ($500 ?). If you are competitive, that will make you take paper seriously.
Coopster - paper traded most of the day and...boy...it felt real to me. Success rate down to 62% and had one BONEHEAD trade. Was up 800-900 for the day but had to walk away from my desk at one point when my bonehead trade knocked me down. My biggest errors still come from lack of patience.
That said i had a couple of trades where the "feel" of level II chased me out for small profits about 45 seconds before things turned badly against me. Probably just luck....
Also could not find anything during the late afternoon...just sat there and did nothing. Part of my issue is switch to trade station. Not nearly as intuitive as Esignal, but the LEvel II seems to be easier to read for some reason. perhaps I have not done something right in Esignal.
ALso have not really gotten the hang of the scanner just yet, which really slowed me down today. But I did not make any errors since i was working and trading in the same platform. Plus i dont think roundtrip commissions are cheaper than tradestation?
That said i had a couple of trades where the "feel" of level II chased me out for small profits about 45 seconds before things turned badly against me. Probably just luck....
Also could not find anything during the late afternoon...just sat there and did nothing. Part of my issue is switch to trade station. Not nearly as intuitive as Esignal, but the LEvel II seems to be easier to read for some reason. perhaps I have not done something right in Esignal.
ALso have not really gotten the hang of the scanner just yet, which really slowed me down today. But I did not make any errors since i was working and trading in the same platform. Plus i dont think roundtrip commissions are cheaper than tradestation?
I agree with you on the fees and 100 share lots. Doesn't give you the flexibility that 1000 share lots would give and is percentually more expensive too. Tried to do 50 share lots but got told by IB that it would be an odd lot trade and wouldn't get a favourable price.
I do have Richards video course, yes.
I do not lose enough to worry me. I generally have good days and bad days and end up at zero. But have the emotional experience to show for it.
Each to their own. Maybe we should stop cluttering Richard's thread with our idle chat?
