Market chat

[stevet]

options

my comments were not being negative about alternative investment studies, the opposite since i am a real believer in the effects of the moon etc on human beings behaviour - but that is seperate to trading

however, a lot of people get so excited about analysing trading and philosiphies attatched to it, that they lose track of how simple it is to take trades and be profitable - the key in you comment was that this guy you knew was taking trades and that is what made him his money

my main point is that you dont have to be ahead of the game in trading, you just have to recognise when the game changes and join the latest winning move - it does not matter what causes the changes to the market, whether it is the moom, news about Intel, the latest economic results etc - the key is just that you recognise the change by the markets behaviour and then join in the fun

 

[options]

True

 

[martino]

In the mean time Gentlemen.........

I traded the Future through Easy2trade just after 9-11 and it was my first and only time. I set up my laptop and traded from my living room with Bloomberg TV bellowing in the back ground. The experience was fantastic and during my first 10 mins i traded 4 times and made £170. I should have stopped there and called it a day but decided to trade once more. One minute i was up £170 and the next i was down £340. I got clattered and it felt like i'd been mugged by 5 muggers in a dark alley.

The experience was enough to scare me off for a while but i decided to read up on the topic and get some more money. I read Technical Analysis Made Easy by Khan and read a book called Trading for a Bright Future written by Martin Cole (anyone read it?). Now i feel as if i understand a bit more and feel ready to go back in but i would feel more comfortable if i had someone to trade with or somewhere to trade at.

I heard that in the city there are a number of Trading Arcades and that a fellow called John Sussex is sponsoring traders to trade on his behalf and i like the idea of being a sponsored trader.

What does everyone else do here? Do you trade on your own or do you have somewhere to go?

Has anyone looked at the economics of setting up a trading arcade?


By the way im based in Birmingham (for my sins). Anyone here local?

moc

 

[Mr. Charts]

martino,
Please get yourself a much better education in how to trade futures or I promise you will lose a lot of money. Guaranteed.
This is a serious business. No offence, but it is not a market for amateurs.
I trade US shares intra-day and emini futures for a living. Believe me, you'll get wiped out.

 

[martino]

I agree Mr Charts.

I learned the hard way before. I traded stocks for over 10 years and having worked for one of the largest on-line brokers in the world for 10 years i kinda know what its all about. My problem is that im not quick enough on the mouse for nipping and tucking so i kinda prefer swing trading and the costs for trading the Future are so much more attractive than stocks and shares.

 

[stevet]

I think trading stocks is a far more dangerous occupation than trading futures, because you need to know what you are doing in both, and shares will wipe you out slowly and futures will wipe you out quickly, but trading futures is a skill that teaches you how to trade stocks, and trading stocks is a way to make brokers rich

you might get wiped out quick trading futures, but at least that shows you that you should know what you are doing, and if you learn from your mistakes, its the cheapest education going relative to what you can learn, and trading futures indexes will teach you how to trade currencies, bonds and commodoties, for when the stock market goes into hibernation - not that far away!

 

[DAVIEGRANT]

Naz,

I'm just at the point of investigating Level 2 options.
Whats your opinion on the cybertrader platform. I've downloaded the Demo and it seems impressive. Level 2 is all new to me at the moment.

 

[Naz]

Hi Daviegrant

You probably know that the basics on all of them are the same.But each broker has different styles of software.So each level 2 system feels different.

The trick is to realy undersatnd what you need for your own style of trading.Do you need charts that show pre and post market trading?This can be very helpfull.Not something many think about.

Orders?What are they offering and can you hot key them.Have they got any lovely proprietry orders that will get you in and out faster.If so what do they do?

Whats the telephone back up like if it all goes wrong?Can you check that out a few times before you decide on what you want.

Believe me all demo systems look good and you always get your fills when you want.In reality part of the skill comes from working your own order,so the tools at your disposal need to be excellent.How many direct ECN's are they letting you use,the more the better.Can you see the isalnd book?Better still can you incorporate it in the level 2 screen.Does it offer any hidden island orders?

Many go for Cybertrader as its the most well known over here.You and anyone else are welcome to e mail me at [email protected] if you wish to discuss your requirements privately.I will gladly phone you and give you some straight answers that i might not ortherwise post on the bb.

I hope this helps.

 

[Naz]

Ive noticed one or two islands appearing in the Nasdaq.So for followers of this type of t/a signal.I thought i'd just post my favourite.QLGC

 

[Naz]

Ive also kept an eye on MSFT and its higher lows which seem to be making a triangle.

 

[payneg01]

Hi Naz
If it's not to rude to ask. Am I right in saying, you would watch for the nasdaq to break 1467ish. and then go long at say 56.5. If the nas came off you would wait then using L2 go long for a scalp and swing/position from around 51 ?

Good luck
Greg

I don't hold this stock at this time.

 

[dsmodi]

Hi Naz,

Umm hopeit's ok to ask, but can you tell me the implications o the island you mentioned? Or maybe you know of a site that may have the answer.

Thanks in advance.

 

[Naz]

Hi Guys.

I post both charts for interest in the possible direction of the market and for dialogue.As you know there is a saying that says trade what you see and not what you think.With all the negativity around and the word capitulation occasionaly heard are we about to bounce?.Now we are seeing some island reversals perhaps appearing in the semi's and just imagine what would happen if MSFT breaks out of the top of the triangle as well.

I keep trading the pullbacks with good success and that is what i'm watching for this week.On any semi's i will be trading the pullbacks aided by level 2 which will give me an edge in feeling if its going to turn or collapse.

(Desmondi the implication of the island is that it is a reversal signal.There is a thread on T2W about islands if you search for it.)I welcome any observations from anyone else.

 

[flea]

Islands

Island reversals indicate a sharp change in sentiment. In the case of QLGC you can see as the stock moves through support of this triangular topping pattern the volume is increasing and the bears are taking control. On Wednesday it gaps down but then reverses to close not too far away from its' intraday high, confounding those that have taken the short side. The following day a gap up at the open strands the bears on this island who probably had stops just above Wednesdays high, this in turn creates indecision. note how Fridays pull back is on much reduced volume. The stock may well find difficulty breaking resistance ( previous support) at around the $40 mark as it did on Friday, but if it can, the bears may well panic.

Island reversals are fairly rare and they're significance increases in stocks that don't have a tendency to gap. The longer the time frame and the extent of the previous move also create a higher significance. They are worth noting and have a high degree of probability attached to them. As with all TA you have to look at them in the context of the stocks trading history calling for a certain degree of interpretation by the individual.

As with everything in the market though, nothing is guaranteed were just looking for high probability patterns.

 

[Naz]

Flea is right we are just looking for high probability patterns.The QLGC island didnt work as the market sold off.But here's one i've kept my eyes on and is working quite well.By the way BGEN works realy well bouncing off fibonnaci levels.if you get an intraday chart from the last 15/20 days you would be amazed at how well it works.

 

[Naz]

Lots of US daytraders use scanners to look for intra day stocks that have collapsed and then use their direct access skills to trade the pullback.This is an exciting,rewarding and sometimes dangerous game,i love it.The scanners throw up stocks from all the main US markets.Here was the best from yesterday.Anyone on this made up to 22% profit in 3 hours.Notice how it held the whole number and then unbelieveably filled the gap created at the beginning of the trading day.

 

[tjbw]

Any particular scanner you would recommend naz?

BTW, idph made a spectacular recovery yesterday.

It was down about $10 in first 8 minutes, back up about $10 about 32 minutes after open!

Barry

 

[Naz]

Well there is one thats quite good and thats www.traderbot.com.
This has a free trial and allows you to make your own scans.

However i would say that the style of trading mentioned above does come with a warning.Falling stocks can keep on falling and on the Nasdaq you realy need to be a good level 2 direct access player to make this work.ie you need to be realy good on the screen to get out quick if its going to run against you.However in saying that it is hugely profitable for good Nasdaq daytraders.

 

[Naz]

Yesterday was a day for all styles of traders on the Nasdaq.As soon as we gapped down at the start there was the oppertunity to close the gap and have a morning run.Then it set its self up for the lunchtime consolidation waiting for the afternoon trend.

I enjoyed Microsoft where it closed the gap,hit its fibonacci retracement from its low to $50 and then pulled back to a whole number.For level 2 players that was the scalpers entry for the afternoon (evening) swing.For evening traders who work through the day the entry was just before 7pm GMT when it took out the high of the consolidation of the pullback.(Marked by the red trend line) with a stop under $43.Then the next move started and Microsoft finished strongly into the close at over $46.

 

[Spamula]

Hi people, I'm having a high percentage of winning trades lately
but the fees are hurting my bottom lines a little do you know any
reliable direct access firms with trades under $12. Also if you didn't read my thread how are the axes for SANM and AMAT?

Regards