Best Thread How To Make Money Trading The Markets.

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Mr. Charts

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Glad you like it.
I don't use hard stops, they are all mental. But then I am very disciplined and will execute without hesitation and never adjust a mental stop if price goes against me.
I don't want to be taken out by a block trade away from the market or any follow up trades printing off as a result, even though that is uncommon.
In any case I will often exit before a stop loss or trailing stop is hit if I can see a reversal or problem developing on level 2. It's not infallible, but being able to sometimes see what might happen before it appears on a chart is a huge edge.
Generally speaking the lower the ATR, the less likely you are to experience the problem you describe.
Richard
 

PitBull

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I believe his stop would be based on level 2 and that would warn him of any impending trouble, example if long, fresh air on the bid (gaps in prices) or suddenly bids pulled and then next price below best might too much risk therefore signal to exit. If your exit is based on 5min charts then your stop should be based on that timeframe unless your entries are perfect. Mr charts advocates not letting the Market stop you out if the trade doesn't work immediately.
Cheers
Lee
 
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megamuel

Experienced member
1,098 164
I actually find this thread quite amusing.... After months and months of looking at trading 'systems' with moving averages, stochastics, MACD's, rsi, all with different settings, waiting for lines to cross and certain candlestick formations to ocurr, then some guy comes along and basically says buy when you see some green candles and sell when you see some red candles! And thats it... or am I missing something? Bloody makes sense though doesn't it! Something is going down sell it, going up buy it! Love it!

Richard, do you think this strategy could be used successfully with spread betting or would the spreads spoil it seeing as your only "taking small chunks"? Also, I know you don't like repeating yourself, but can you clarify - you don't wait for a certain number of candles to form before you enter? Does the moving average in your images come into play at all? If so what period is it? I might give this a go tomorrow. Thanks,

Sam.
 

Mr. Charts

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7,364 1,181
Actually, I'll reply now, Sam

"then some guy comes along and basically says buy when you see some green candles and sell when you see some red candles! And thats it... or am I missing something? Bloody makes sense though doesn't it! Something is going down sell it, going up buy it! "

No, I am not saying that. I think you are thinking of someone called therumpledone :)
You'd have to read the posts in detail to see that that quote is not what I am saying at all.

The number of successive candles is not significant (other than in a long run which gets more likely to reverse). It varies in the examples simply depending on when I spotted the stock. Sometimes I see them right at the beginning, sometimes later depending on when I scan and if I'm in another stock or whatever.

It certainly works with spreadbetting but isn't as profitable for the usual reasons of spread and some firms cheating you. Still profitable though.

The MA is present for a different reason which I won't go into because the mods would censure or ban me. No, you would never guess the reason why I say that !

It's a 10 period ema, by the way.

Hope that helps,
Richard
 
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Mr. Charts

Legendary member
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Here is another from y'day.
Red cross hairs on entry, image taken at time of exit. Reason for exit before high of previous candle exceeded was level 2 and T&S telling me selling strength abating and buying coming in.
+84c per share.
Remember they are not all profitable, but you have a clearly defined maximum risk as described earlier in the thread. And most do work.
I do get emails asking me questions I've already answered earlier in the thread, to which - RTF Thread :cool:
As in "RTFM"...............

And no, USB is not a USB key...........:LOL:

Richard
 

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megamuel

Experienced member
1,098 164
Actually, I'll reply now, Sam

"then some guy comes along and basically says buy when you see some green candles and sell when you see some red candles! And thats it... or am I missing something? Bloody makes sense though doesn't it! Something is going down sell it, going up buy it! "

No, I am not saying that. I think you are thinking of someone called therumpledone :)
You'd have to read the posts in detail to see that that quote is not what I am saying at all.

The number of successive candles is not significant (other than in a long run which gets more likely to reverse). It varies in the examples simply depending on when I spotted the stock. Sometimes I see them right at the beginning, sometimes later depending on when I scan and if I'm in another stock or whatever.

It certainly works with spreadbetting but isn't as profitable for the usual reasons of spread and some firms cheating you. Still profitable though.

The MA is present for a different reason which I won't go into because the mods would censure or ban me. No, you would never guess the reason why I say that !

It's a 10 period ema, by the way.

Hope that helps,
Richard
Hi Richard,

I was not quoting you, I was just exaggerating to make my point that after months of looking at and testing really complicated "systems", the simplicity of yours is rather refreshing!

When you scan do you just look for a stock that is trending strongly? Oh and no I can't guess the reason the mods would ban you for saying why your MA is there... But I am very intreauged now!

Thanks,

Sam.
 

Mr. Charts

Legendary member
7,364 1,181
Yes, I do look for a strongly trending stock for this particular set up - there are several other set ups I use - beyond the scope of this thread. You can usually find them even on choppy days - this is one of the great advantages of US stocks - huge universe of potential candidates, unlike FX, futures etc.
Richard
 

Mr. Charts

Legendary member
7,364 1,181
DOW and ROH should present some opportunities today; not necessarily on the particular set up discussed on this thread, but there should be good scalping and good swing possibilities.
Richard
 

Mr. Charts

Legendary member
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ROH produced a very nice trade of +$1.30 per share. I didn't take a comtemporaneous image, but anyone can check the one minute chart and see the rise, tight triangle and break north. The exit was triggered by the level 2 screen.
Richard
 

Mr. Charts

Legendary member
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I think I have already said in this thread that I sometimes trade market reaction to news, including results, never, ever the news or results themselves, always the reaction.
Obviously I mentioned these two stocks were on my radar because of the news pre-market.
Richard
 

foredog

Experienced member
1,879 313
Hi Richard

Sorry to hijack the thread for a moment but i'm just after some info form someone with acccess to US level 2. (doesn't have to be Richard that answers this one though)

At the moment i don't have the spare $25k to open a US trading account, but do have my money in an ETRADE account and they do let you trade NASDAQ stocks so i wanted to know if the fixed spreads they have are OK or a complete rip-off compared to the underlying prices, so i can maybe trade a bit with them while i build up enough to put into a separate account for US stocks.

Heres a few example

AAPL 5c
GOOG 25c
DELL 5c
RIMM 5c
BIDU 20c

Are these close to the usual spreads in these stocks or a rip off?

I know i'm asking how long's a piece of string and the spreads aren't constantly the same but just looking for guidance from those that know more than me about the US

Thanks
 
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Mr. Charts

Legendary member
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currently
bidu 11-13c
goog 10-30c
aapl 1c
rimm 1-2c

Of course once you know what you are doing you can trade like a market maker inside the spread with direct access.
Also a 5c spread applies with people like etrade (on dell say) both in and out so it's really 10c (40c on bidu say)
I suspect they even charge a fee on top of that !
HTH
Richard
 

Mr. Charts

Legendary member
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IB charge $2 round trip 200 shares, $5 RT for 500 shares, $10 RT for 1000 shares.
Trade on 1c spread stocks and trading is very cheap.....certainly compared with etrade.
Richard
 
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