Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

Just two of my trades today used this particular method.
SNDK quickly reversed and I lost -6c per share.
CLF moved nicely and produced a profit of +80c per share, again a consolidation or retracement and then it waterfalled.
Richard

 

[Mr. Charts]

These set ups are always around, here's one from today, (my other trades used different set ups and methods).
NVDA +28c per share
Nice and easy slow mover with a low ATR and very tight spread and huge volume so easy to get a fill on as many shares as you want.
Richard

 

[supernovered]

I've learned to keep out of the market instead of taking trades that don't work. I'm paper trading and manage to make a very small profit each day. My problem now is going into trades that do work! I either find them just on the break out, by the time they show momentum I feel it's too late to enter, or I just sit and freeze fearing a reversal. It is too easy to take a losing trade, especially in this current market.

I decided to go for some early trades as I'm still paper trading, even they don't move as much in the last few day!

 

[Mr. Charts]

If something "should" work well and doesn't, I get out.
Here's an example from this afternoon where I was stopped out of one particular trade for just 8c per share profit. They can't all work though most do. You've got to take the failures as they come, this is a probability business, nothing is certain.
Richard

 

[supernovered]

If something "should" work well and doesn't, I get out.
Here's an example from this afternoon where I was stopped out of one particular trade for just 8c per share profit. They can't all work though most do. You've got to take the failures as they come, this is a probability business, nothing is certain.
Richard

To get 8c on a trade that didn't work would be a bonus! My trades that don't work give me bad fills and I'm rarely in profit.

I got 19 points today on NKE in the first couple of minutes. Missed one trade that Richard won on because the spread was a bit big and it couldn't make it's mind up so I didn't enter it.

I only took one trade today, quit while your ahead. Never going to make any money though.

 

[Mr. Charts]

supernovered,
I don't know who you are but it sounds as if you are a member of my private site as you say, "missed one trade that Richard won".
Your t2w profile says you are female but there are quite a few females on my site so I'm none the wiser as to your identity.
If you email me if you have a specific problem and I'll try and help.
Richard

 

[danjuma]

Just a bit of advice please.

I am a complete newbie but would like to paper trade Mr C's method, and hopefully go live with it if/when I have grasped it I intend to use Interactive brokers as they have good reviews, and they are also the choice brokers of Mr C. I have had a quick look at their site to try and find answers to my questions, but I am still slightly confused. My questions are:

1. As a UK resident, do I have to register with IBUK, their 'introducing brokers' , and not IB itself based in the US?

2. The reason for the above question is because, IBUK require a minimum of $10,000 to open an account, while IB in US requires a minimum of $25,000 to open an account. Just wondering why the big difference and whether there are some restrictions with the UK account?

3 . If I open an account with IBUK, would I have access to trade on all the US stocks available via IB in US?

4. As a UK full-time working resident trading US stocks, I know guys here are not tax experts, but just wanted a rough idea, where do I stand in terms of tax payable, would it be income tax or capital gains tax?

5. Obviously, I intent to paper trade this method for a while, as well as practice using IB's TWS and other applications, I know from their site IB offer something called Papertrader, a simulated trading account to practice with, which one can create after registering and opening a live account with IB. So my plan is to open an account with IB, but not carry out any live trading but just use the papertrader account to paper trade for a while. My question is does anybody know whether I will incur any fees and charges from IB even though I am not trading live. As some of their charges/fees etc are based on how active you account is, or how much commission you make for them per month etc?

Many thanks
Dan

PS. I realise I can direct these questions to IB directly themselves, but sometimes you get quicker response and far more useful answers from people that have actually experienced using the services, and not some standard automated reply

 

[Mr. Charts]

I think there is a thread on t2w where you can pose your questions to IB and they answer.
It's probably better to have your answers in writing from them anyway
Replies from the company are going to be accurate, and there's no guarantee that any answers you read here are correct.
Richard

 

[danjuma]

Thanks Richard. I have posted a copy of my questions in the thread you are referring to. Cheers

 

[coopster]

Just a bit of advice please.

I am a complete newbie but would like to paper trade Mr C's method, and hopefully go live with it if/when I have grasped it I intend to use Interactive brokers as they have good reviews, and they are also the choice brokers of Mr C. I have had a quick look at their site to try and find answers to my questions, but I am still slightly confused. My questions are:

1. As a UK resident, do I have to register with IBUK, their 'introducing brokers' , and not IB itself based in the US?

2. The reason for the above question is because, IBUK require a minimum of $10,000 to open an account, while IB in US requires a minimum of $25,000 to open an account. Just wondering why the big difference and whether there are some restrictions with the UK account?

3 . If I open an account with IBUK, would I have access to trade on all the US stocks available via IB in US?

4. As a UK full-time working resident trading US stocks, I know guys here are not tax experts, but just wanted a rough idea, where do I stand in terms of tax payable, would it be income tax or capital gains tax?

5. Obviously, I intent to paper trade this method for a while, as well as practice using IB's TWS and other applications, I know from their site IB offer something called Papertrader, a simulated trading account to practice with, which one can create after registering and opening a live account with IB. So my plan is to open an account with IB, but not carry out any live trading but just use the papertrader account to paper trade for a while. My question is does anybody know whether I will incur any fees and charges from IB even though I am not trading live. As some of their charges/fees etc are based on how active you account is, or how much commission you make for them per month etc?

Many thanks
Dan

1) As far as i can work out from when i signed up, you sign up to IBUK. Just a geographical thing, makes no difference. Try to sign up to IBUS and they'll just redirect you.

2) I signed up to IBUK with $10k to start with. You must have $25k to "pattern day trade" which is what this method of trading is. You can't pattern day trade without $25k (US law). But $10k or maybe less will get the Papertrading account open.

3) IBUK is IBUS, there is no difference. You get access to all markets you ask for. Exchange fees are payable.

4) It's capital gains tax as far as i know. You can have about GBP 9k of profits before they tax you anything so this is enough for now i would say. Then the percentages go up. Not sure what it counts as if your main job is trading. Should still be capital gains tax but that's one for the tax man or direct.gov

5) Ask IB about the fees for papertrading. I think the fees incurred will be exchange fees on the markets you wish to trade on the funded account. These are waivered if your account has a certain activity level per month. Papertrading won't count.

Sorry to be a bit vague, and possibly incorrect! The IB website is pretty good for most of the info. Or call them up for half an hour and ask them all you want. They want to sell you stuff so they'll listen.

hope that sort of helps

 

[danjuma]

Sorry to be a bit vague, and possibly incorrect! The IB website is pretty good for most of the info. Or call them up for half an hour and ask them all you want. They want to sell you stuff so they'll listen.

Not at all m8, your reply has been very helpful, much obliged.

 

[Mr. Charts]

Here's one from today.
It's a little more complex. The move up till entry was not as clean as most of my trades using this particular method, but it was thrown up by my scan and when I saw it form that tight and shallow retracement after the strong leap up on volume, I got more interested and simply waited and watched till it broke out and then entered. As it broke out the spread tightened sharply as it caught a strong bid.
A nice juicy profit of +110c per share
Richard

 

[danjuma]

Morning guys,

Need a bit of advice again please. I have just tried to open an account with IB, and got to the stage where you have to disclose your investment experience for your account to be approved, and reading the requirements, some of them are:

You must have executed at least 100 prior trades for any product type (Stock, Options, Futures, and so on).
To trade any product, you must have a Good or Extensive Knowledge Level for that product.
To trade any product, you must have a minimum of two years trading experience with that product.

Does this mean as a newbie, I won't be able to open an account and trade with IB!

Thanks
Dan

 

[timsk]

Does this mean as a newbie, I won't be able to open an account and trade with IB!

Hi Dan,
Most - if not all - of these large brokerage houses make these kinds of demands. They are just covering their rear ends in case you lose all your money and then try and pin the blame on them. So, you have 2 choices: the 1st is to tell a technical lie and say you've got the experience you don't yet have. Or, if you're uncomfortable doing this (understandable), you could open a spread betting account with one of the brokers that credits you with £100 and lets you trade at £0.50p or less. Then just fire off the required number of trades to meet IBs minimum experience levels. It doesn't matter whether the trades win or lose for the purposes of the exercise. You could do that over the course of a week or so.

For the record, I had an account with IB a few years back and, when I closed it, I had to make a FX trade to convert back USD$ to GBP£ for the full amount in my account. To do that, I had to sign various doc's to say that I was an experienced FX trader. I told them up front that I'd never traded FX in my life and that I couldn't sign it. IB staff told me to ignore it as it was a technicality for purely legal reasons and no one cares two hoots about my level of knowledge or experience. It's just so that the compliance dept' can check that the sales staff aren't mis-selling to people who don't know their @rse from their elbow. So, I wouldn't worry about it too much if I were you. That said, be under no illusion about the risks you're taking and the financial implications if your trading doesn't pan out as well as you hope that it will!

Tim.

 

[danjuma]

Tim,

Thank you most kindly. I know which to go for now.

For the record, I had an account with IB a few years back and, when I closed it, I had to make a FX trade to convert back USD$ to GBP£ for the full amount in my account.

Is this a problem then - getting your money back in GBP when you want to withdraw or close your account?

That said, be under no illusion about the risks you're taking and the financial implications if your trading doesn't pan out as well as you hope that it will!

Yes, quite aware of this, thanks mate. Though, I am completely new to financial trading, I have got a bit of experience with sports trading (know not quite the same thing), but same mentality and concepts, and same discipline needed. The number one rule is strictly imbedded in my brain - cut your losses quickly and protect your capital.the profits will take care of themselves. Reason why I like Mr C's method, the losses are small and fixed (if no slippage) compared to the potential profit. Alright then, maybe not that simple. but I am keeping the faith

Cheers
Dan

 

[timsk]

Is this a problem then - getting your money back in GBP when you want to withdraw or close your account?

Hi Dan,
No - not with IB - they're sound as a pound. Or perhaps that should read dollar. You've got no worries on that score.

I'm not the best person to offer advice on this because FX isn't my strong point and it's been 2 years plus since I had an account with IB. That said, as I recall, you have a choice as to the base currency of the account. It makes sense for that to be USD$ if you're going to trade U.S equities. If it's in GBP£, every time you open a trade, you have to convert from GBP£ to USD$ and then back again when the trade's closed. That's an expensive (not to mention inelegant) way of going about things. As I say, this isn't my area - perhaps others here will be able to offer better - and more up to date - insight.
Tim.

 

[coopster]

That's an expensive (not to mention inelegant) way of going about things. As I say, this isn't my area - perhaps others here will be able to offer better - and more up to date - insight.
Tim.

I have my base currency as dollars but the account was funded in pounds. On the statement it shows 2 currencies. The original money i transferred into the account in pounds and the negative amount in dollars due to my unsuccessful trading. They keep it all separate until you make the exchange yourself. This is a difficult decision as i didn't want the money kept as dollars as they were very volatile at the time. I didn't want my GBP to suddnely be worth much less over night. So i opted for keeping the capital as GBP. Swings and roundabouts, you could profit by the same token!

 

[danjuma]

Tim and Coop, many thanks for your replies. Much obliged.

 

[Mr. Charts]

These opportunities are around every day.
You can even use the method on a stock which replicates the rise and fall of an index like FAZ
+31c per share

 

[Mr. Charts]

Eight trades this afternoon, two using this method, the others using different set-ups.
Both were successful producing +50c per share and +25c per share on gently swinging 3 min candles.
MXIM +25c