How To Trade: Full Stop

[DionysusToast]

I never understood gaps, the mechanism of their creation and their purpose. This promises to be an interesting and enlightening discussion, so I am waiting in great anticipation.

Perhaps a discussion for another thread. There is no mystery in a gap.

 

[tss42]

Perhaps a discussion for another thread. There is no mystery in a gap.

You are right. Let's stick to TE and his stuff for the time being.

 

[The Expert]

I never understood gaps, the mechanism of their creation and their purpose. This promises to be an interesting and enlightening discussion, so I am waiting in great anticipation.

It will depend on how much work has gone in beforehand, at what level the markets open, the price of the underlying, where the futures are, and in some instances the OI value.

Other than that, it is theoretically possible to trade up to 10 stocks simultaneously, but you must be in total control and have plenty of cash available to load up when required.

As always, the other side of reward is risk, so unless you are willing to take the risk in the first place odds are you will be a net loser by the time you shut down your pc.

For newbies, it is probably best to stick with trading no more than 2 stocks at the same time, but you need at least 2 to get used to handling multiple open positions.

 

[Trader333]

There is no such thing as a professional and amateur gap.

I guess we will just have to disagree on this but in my view there is a difference and knowing how to determine it will give advance warning of whether to fade it or not. I don't wish to derail this thread so I will leave it there.


Paul

 

[DionysusToast]

Ban him for ??????

a)Being a good trader and not sharing
b)Being a fake trader and having us view his thread
c) Leaving a thread after the subject matter was derailed. yet, he is still willing continue it later in another thread

what harm has he done?

T E has committed the cardinal sin of not posting up some crappy 'buy this magic indicator'/'make money in 5 minutes'/'easy way to blah blah blah'. Such threads are OBVIOUSLY from scammers but don't attract the attacks that this thread did

Furthermore T E has committed the sin of not saying that trading is easy, saying that most of the stuff you read on trading is crap. He has made the implication that you need to look at many things in order to trade as opposed to 'just price action'.

On top of this T E claims to be profitable but says he'll not give any secrets away but rather leave a trail of crumbs you can follow at will.

Now - is T E on the level ? I think you have to draw your own conclusions. Does T E deserve what is being thrown at him when OBVIOUS scammers don't attract the same attacks ?

Of course not. Does T E have 'a bit of a personality ?' For sure.

My impression - it's not the personality that people don't like. It's the prospect that T E is a succesful trader when they are not. No-one wants to hear that trading requires skills, brains, hard work & thinking outside the box. People want to be spoon fed a bunch of setups.

I have some interesting leads based on the contents of this thread. Things that I will be looking at further.

I would say to the detractors - go ask for the ban of people spamming this site with crappy veiled ads for their site. This thread has at least been about trading and in pointing people towards something that may/may not help in those endeavours.

 

[N Rothschild]

gaps are simply a way of taking out people who got to short/long pre market. simple as..why do people always want to over complicate things

 

[djmastro]

What kind of trading do you do, TE?

 

[The Expert]

OK then, I am planning to not post as much from now on, and instead, will only post details about daytrading US stocks. The time for basics is now over, so if you do not follow from this point forward, then you have missed the opportunity, in the same way that you will miss many trading opportunities each and every day, if you are not clued in.

Very few know about the approach I use, and it will stay that way, but for the few who have half a brain, and are willing to do some work in understanding, well, when you see what I am talking about you will know it, believe you me.

As for those of you who will say "here we go again", all I have to say to you is, happy trading:cheesy:

I am not called The Expert for nothing

 

[The Expert]

What kind of trading do you do, TE?

Daytrading US stocks between 09:30 and 11:30 US time (a little bit longer if required), and some times in the last hour if I am not doing anything else.

 

[djmastro]

Well since you answered that one, I'll throw one more out there. Thank you for answering!

Now that you are proficient in trading, how much time a day do you spend doing it? Not just the trading, but the obvious research to go along with it, etc. Does it turn into a full time job? Part time? Could you give me an hours/week example?

 

[The Expert]

I want to make one thing very clear before we move on. I know what I know and it took me a long time to learn it, and i learned it from a small few that know it, and, I will honestly tell you now, that the way Gray1 trades, and other traders on this site as well, is nothing like the way i trade, and the few others that know.

I am not joking here, just in case you think I am, but I am the way I am, like it or lump it.

When you know what you are about, nothing or no one can shake you, as you have become an Expert, and anything less, for me, never was, nor ever will be, acceptable.

Be prepared to change your views on how the markets really operate, for if everything that is in the public domain worked, then we would have proof by the many traders who make good money, which, we all know just does not happen.

Wake up to the realities of life, and, decide what YOU want to get out of trading, not what other idiots think you should get.

 

[The Expert]

Well since you answered that one, I'll throw one more out there. Thank you for answering!

Now that you are proficient in trading, how much time a day do you spend doing it? Not just the trading, but the obvious research to go along with it, etc. Does it turn into a full time job? Part time? Could you give me an hours/week example?

You are welcome.

It depends on how I feel and what family commitments present themselves, remember, we still live in the world of reality, and still have to deal with all the normal **** that hits every family, so lose you daydreaming fantasies about daytrading, and realize that it is going to be very hard work if you are married with children. It should be easier if you are single with no commitments, but as I was married when I started to learn I do not really know about the being single bit?

Use software to automate as much tasks as possible, such as screening, sectors in favor, institutional holdings, options trades and OI if possible, but really not required unless you want to trade ITM options for leverage.

You should have no more than 15-20 min work to do before the market opens, as your automated tasks have done a lot of the hard work for you.

This is all basic stuff that any person seriously considering daytrading MUST consider, and if not, then they are going to find the amount of work overwhelming, and will get fed up of it very quickly.

Computers are there to help you make money, not spend it!

 

[The Expert]

I am sure that DT will let us know what stock this is, and what we are looking at.

 

[DionysusToast]

I am sure that DT will let us know what stock this is, and what we are looking at.

BDX - closing prices 15th Jan -> 1st March

 

[The Expert]

BDX - closing prices 15th Jan -> 1st March

As usual, you are spot on DT.

We will move on quickly, and hope the idiots keep away. To keep them in their place, I am going to encrypt important information, and only the right people will be able to get the password, providing they are keeping up with what we are talking about.

Anyone who does not like my approach, well, tough luck, I do what I want and the way I want to do it. After all, I do not charge any money like others do, but I do expect those who want to get some info from me to do some work, if not then you are definately in the wrong thread.

The password to open the attached pdf can be got by knowing what I care most about!

 

[tss42]

You got me there TE. Any chance of another clue?

 

[The Expert]

I am considering opening another line of communication on this site, but before I do, I want a promise from all that might contact me that they will not reveal any details about what we might exchange.

If just one person breaks the confidentiality agreement, I am out of here, full stop.

 

[tss42]

TE, the best bet is to open a private forum here in T2W, which you can control they way you wish to.

In any case, I promise to protect the confidentiality, should I be party to the communication.

 

[Prawnsandwich]

If just one person breaks the confidentiality agreement, I am out of here, full stop.

Dont you mean .."I shall depart from this public forum, resulting in the termination and cessation of all further masterclass teachings and profound knowledge dissemination "

 

[The Expert]

Now, back to trading matters, as this is a trading site is it not.

Recently we brought up the objective of $2,000 per day, and whether 1 trade or 6 trades are best to achieve this.

Let us look at some facts, and we will ignore commissions for now.

Scenario 1

$2K per day with 1 trade and an average target of $0.50 cent per trade = 4K shares

Maximum loss per trade is set at $0.20 = $800

R:R = 2000/800 = 2.5


Scenario 2

$2K per day with 6 trades and an average target of $0.50 cent per trade = 6 x 666 shares or 600 to round off

Maximum loss per trade is set at $0.20 = $120

R:R = 300/120 = 2.5

We need to change some of the variables to give us better odds, no!

Anyone got any sensible suggestions that will allow us to increase our odds of making our objective, yet reduce the risk associated with being in the market?