Trading the markets with Alan Rich.

[CYOF]

Each individual will interpret the same information differentially - if this was not the case then we would not have any difference of opinions and therefore no opportunity for profits in trading.

The key is to quickly identify what information is of value to you, and what is not.

Concentrate on what you need to learn and know, and forget about all the other crap.

What you need to know will depend on some key basic fundamentals, such as:

1. How much money do I have to risk in trading - including training costs and learning losses?
2. What type of returns do I want to try and achieve.
3. How much time can I dedicate to studying and paper trading?
4. What is the time frame that I want to achieve my goals by?

Unless you get the basic fundamentals sorted out first, then forget about looking at Nas Level II and all the other numerous "techniques" and "systems" that successful traders are so willing to share with you.

Don’t interpret this information wrongly; I have nothing against anyone trying to make money by teaching people what the "THEY" have learned over their years of trading. The important fact here is that what they have learned is based on their interpretation of the information that they were subjected to. This may, or may not, be suitable to another individual.

IMHO, this is one of the key things that most people seem to misunderstand. Everyone wants to be shown how to make money in the markets, not too many want to discover how to do it for themselves, which is the best way if you are willing to commit to some serious study and trial and error.

CYOF

 

[neil]

scalping forex

Has anyone here scalped cable/currency futures consistantly and at a profit?

And if scalping forex, do you find trading the cme futures better than the spot market?

Cheers ( I'm looking into scalping forex via 5 min. charts) :?:

 

[Mr. Charts]

neil,
I haven't, but the person to ask is the excellent Newtron Bomb who used to post here.
He's at
http://www.trading-strategies.info/
and is the real McCoy.

To everyone who has PM-ed and emailed, except one lol !, thank you very much and I'll try and catch up over the w/e. BT broadband has been down here all morning so I am way behind :-(
Trade well everybody and keep an eye on ISRG DRIV PLXS today, right from pre-market.
Richard

 

[Mr. Charts]

ISRG, PLXS and DRIV all produced good early moves and I know some people found the heads-up rather profitable ;-))

I received one email which basically asked why I don't say in advance what my entry and exit points are going to be. I don't trade like that. I need to see HOW PRICE IS BEHAVING AT CERTAIN KEY LEVELS AND HOW THE MARKET PLAYERS ARE POSITIONING THEMSELVES AND THE REACTION OF THE MARKET. The capitals are for emphasis, I'm not shouting.
Also key timed comments are elsewhere on the web in a private environment.
I will mention this only once more after this post and never again. I have no wish to step on anyone's toes or break site guidelines. I trust the mods will kindly indulge me on this point and since the entire comments of another room are posted elewhere on t2w, I hope they will allow me to post just two images from my own "room". Access for some time now has been by invitation only.
I have no need whatsoever or any purpose to "prove" anything to anybody. People can believe what they choose, it is of no importance to me.
In most things in life, most people's problems are in their own heads and unless someone privately asks for my help, they are of zero concern to me. Sort them out or fail as a trader.
In post # 90 I showed a trade in RMBS.
Here is a screen shot of the point when I brought it to the interest of my group so they could LEARN from what was about to happen - before it happened.............
I do not give advice at any time whatsoever to buy/sell/short, merely tell people which stock I am looking to trade imminently if my criteria are fulfilled.
Anyone can check the times against post #90 or their own charts if they so wish.
Richard

 

[Mr. Charts]

Here is my AAPL trade today.
Like Alan, I enjoy the $1 runs and find them often enough. We both prefer the big movers when available rather than repeated small trades. Sometimes of course you have to trade several times to make the money on core stocks. Horses for courses. Nothing is right or wrong as long as it works and is profitable. Position management and money management are vital.
The long entry was on the power breakout above the whole number where the cross hairs are positioned. By "power" I mean with appropriate MM and participant behaviour. Without those most break out "strategies" are simply too poor to trade in my view and the MMs can and do run the stops.
The image was taken at the time of my exit for a $1.16 profit. For a beginner that is $116 for 100 shares and for the 1000 share trader it is a profit of $1160. With clean trades like these and commission of just $2 for 100 shares and just $10 for 1000 shares you keep all the money rather than the broker racking up commissions. All in my humble opinion of course.
Richard

PS The exit was because I could see on my level 2 screens that there was overhead resistance. The chart appearance was irrelevant.
I wasn't too far off as it topped a mere 10c higher and has fallen ever since, currently at 70.60

 

[Mr. Charts]

I should add that some of my trades do, of course, fail but I always have the rigid discipline to exit with small losses at worst or scratch. I do not use technical analysis stops and never, ever, increase position size on a losing trade. I have no ego and do not care what anyone thinks.
Again would the mods please indulge me for the LAST time I show a screen shot from my "room".
Here is the screen shot of when I suggested to my people they might learn something by watching AAPL.
It can be noted the break occured four minutes after the heads up.
I'm now done, folks.
Richard

 

[dvdh]

HEEEEEEEEEEEY ALAN AND RICHARD,

good to see you guys posting again. Haven't really been posting lately. Too busy trading and spending the profits. LOL.

I just read through the thread. You got a nice one going, Alan.

It's very nice to see you posting again, Richard.

Y'all really gotta come over to the smallest capital in the world??!?!? Amsterdam.
Lee, It's about time you start taking care of that. LOL.

Guys, I'll post whenever I got the time. Anyways, I just wanted to say, nice to see y'all again.

Trade safe,

-Dave.

 

[Mr. Charts]

.........one last post then, Dave.
Thanks. A very, very good day today, wasn't it ;-)))
I saw on T&S your 8000 share size in GOOG long and then out $5 higher. Not bad, Dave, not bad......;-))
You have a great w/e, sir
See you in Amsterdam
Richard

 

[dvdh]

.........one last post then, Dave.
Thanks. A very, very good day today, wasn't it ;-)))
I saw on T&S your 8000 share size in GOOG long and then out $5 higher. Not bad, Dave, not bad......;-))
You have a great w/e, sir
See you in Amsterdam
Richard

8000??? I didn't do an 8k block. I scaled in 500 at a time. I did the same trade though. LOL.
A very good day indeed. LOL.
When I see your trades, it doesn't look like you're complaining???!!! LOL.
The market is great, so let's rock n roll.
'
AMSTERDAM HERE WE COME!!!!!!

 

[Naz]

I hope you all a had a good weekend, i had a nice time away from the markets, now its back to business.

In my mind the miners are still worth following and after the interest yesterday in different parts of the world they are up again this morning in the UK.

The one that i know many follow and i'm still in a long standing long position myself is UK stock VED. I added to my original position during the pull back in this last consolidation and its acting very well this morning up 5%.

Attached is the general chart and one of my add to points. I use day trading techniques to spot possible add to points that could lead into bigger multi day moves. I believe that many intra day patterns can feed into multi day moves and the day trader can often be the first to see these moves starting. This applies to both UK and US stocks.

Alan

 

[Naz]

Update, UK stock VED up another 3% this afternoon making 8% gain today. Making it one of the best gainers amongst the LARGE mining stocks today.

Amongst the smaller stocks ORM and CFM have done well today. Check out CFM,up approx 800% this year, i've taken money out of it before and its a real hot stock. I dont own a position at the moment though.

Has anyone got their own favourite mining stock they'd like to share with us?

Alan

 

[Quercus]

Macmin Silver - MMN (Aussie code)
This is an Aussie Silver miner, with various holdings throughout the world. A totally "un-hedged" producer, so it's a direct play on the metal market. Been a long term holder from 0.14c, and recently sold half my stake at 0.43. I started out to swing trade this one but it turned out for the better in the long run. Now it's a completely risk free investment for the future.
One of my better trading decisions!
Q

 

[TheBramble]

Has anyone got their own favourite mining stock they'd like to share with us?

Alan, what do you mean 'hot'?

A quick google on 'hot mining stocks' and we get:-

"Mining giants Rio Tinto and BHP Billiton led the upwards charge after both slumped on Friday.

The benchmark S&P200 closed up 52.9 points at 5311.7, the second highest close after last Wednesday's 5327.

Rio climbed $2.90 to $81.55, BHP $1.17 to $30.47 and Woodside $1.10 to $10.50.

Gold miners Newcrest, Lihir Gold and Oxiana benefited from 25-year high spot gold prices of $US660 an ounce in Asian markets yesterday with suggestions it will reach as high as $US730 in the next few months.

Newcrest was the biggest gold riser, up 70¢ to $23.50. "

But it's meaningless. This is what's already in the news, in the public domain. Where the mug punters get on board.

How do YOU define hot mining stocks (or any hot stocks for that matter)? That is, those that are about to make their moves?

 

[timaru69]

Alan, what do you mean 'hot'?

A quick google on 'hot mining stocks' and we get:-

"Mining giants Rio Tinto and BHP Billiton led the upwards charge after both slumped on Friday.

The benchmark S&P200 closed up 52.9 points at 5311.7, the second highest close after last Wednesday's 5327.

Rio climbed $2.90 to $81.55, BHP $1.17 to $30.47 and Woodside $1.10 to $10.50.

Gold miners Newcrest, Lihir Gold and Oxiana benefited from 25-year high spot gold prices of $US660 an ounce in Asian markets yesterday with suggestions it will reach as high as $US730 in the next few months.

Newcrest was the biggest gold riser, up 70¢ to $23.50. "

But it's meaningless. This is what's already in the news, in the public domain. Where the mug punters get on board.

How do YOU define hot mining stocks (or any hot stocks for that matter)? That is, those that are about to make their moves?

I guess "hot" is anything with volatility and has good intra day ranges, at least that's what I look for , although I must admit I have been struggling a bit lately in this sideways market as a lot of stocks whch intially look hot in the morning have cooled off very quickly in the afternoon sessions (the session which I currently try and trade)


Good Luck

 

[Naz]

What do i mean by hot? everyone may have their own interpretation but mine is a stock that has the best chance of giving great gains more than others.

For day trading its a stock that has the potential to be one of the biggest movers of the day for whatever reason. For swing trading its the stock that has a chance to run and run more than its counterparts. Its a challenge to find them but the rewards far out weigh the labouring it takes in stocks and indices that bob along not going anywhere causing the trader to over trade and paying your brokers commissions all the time.

That is not to say there is anything wrong with that type of trading but i've found that the real money has always been with the hot stocks. Get a bad entry do something wrong and bingo that hot stock momentum will help you out. In day trading yesterday i took two trades in a hot stock LIVE on my site so members could trade it with me. The first was a great entry the second wasn't so good but the fact the stock was hot helped me out and the result was a combined profit of a dollar run in 30 mins.

Now if i move over to something like EBAY yesterday it had a range all day of 40c or 40 points to spread betters, the DOW traded in a range of about 70 points all day.

Which was the easier to trade i argue it was the hot stock that i'd found. Why because i made more than the range of the other two in the first 30 mins of trading and moved on. i didn't suffer analysis paralysis trying to work out the ins and outs of every wiggle and squiggle i just went out and traded it.

So hot stocks are stocks that can move really strongly up or down to give astute traders some great profit potential. I atttach one i mentioned on my site yesterday.US stock SIL and another i mentioned on this thread yesterday UK stock CFM. as examples.

After you've found your potential hot stock you just watch and wait for an entry, all you aim to do is take something out of it on its run. So the day trader will watch and wait for his/her entry jump on the train as it leaves the station take their profit further up the line. The swing trader does exactly the same but over a longer time frame.


Alan

 

[TheBramble]

Alan, do you normally expect your hot stocks (on the day trade timeframe) to move at the open i.e. gap up/down on open or are the moves more randomly spread over the trading session?

I tend to stay away from the open as I like to see price development before I take a view, but I wonder if I'm missing some serious action.

If you do 'pot' them at the open, what do you use as a proxy for price development? It is out-of-session news-based or some other method(s)?

 

[Naz]

Finding potential hot stocks.

For day trading this is one reason i started my site.The idea is i do all the work and find them, so all the members do is just switch on and look at my list for that day.

Where are the best entry points and which ones are moving?
I have a scanner that checks every stock all day and alerts the trader LIVE to potential set ups. Along the way i also give my commentary alerting members to things that are happening. Like giving the heads before many of the moves.

Whats hot and got the potential to run in the afternoon for UK traders that work and want that move? Yesterday i mentioned TXU because it was hot and had the potential for the afternoon run, it delivered with a 300 point move from my comments.

Other traders will be joining the site and will be offering their views on hot stocks for swing trading both in both the UK and the US.


Alan

 

[Naz]

Some of the stocks will run based on News, because of the sector , because technically they are setting up. some i watch the pre market level 2 action and see how strong the guys are in trading it and what their overall bias is. It can be anything. If i miss something and its away straight out of the gate then it'll be in that scanner immediately because it may very well carry on during the day.

The scanner gives alerts throughout the day so that traders of all styles can spot opportunities.
Members can also follow my commentary giving them the heads up on many of the moves and also watch which ones i pick to trade.

Alan

 

[Mr. Charts]

PEIX Pacific Ethanol
Interesting swing/position play; sometimes nice intra day mover.
Alternative fuel/US govt interest/Iran etc. DYOR

I concur totally with Alan; on the money as always ;-)
The hot stocks are where the action is and the potential for big bucks profit.
Trades for a few cents here and there is an interesting style and works just fine, and I certainly don't denigrate anyone or anything that works - respect is what that's called - what matters at the end of the day is the bottom line; but for me personally, I like to sink battleships with my missiles, not use them on inshore gunboats.

Richard

 

[daps]

Hi Alan...,

I've just signed up for the free trial. Do you actually state the trades you are taking or just comment of the alerts that are generated by the scanner.?

Looking at the archive, the November example of the site shows the trades you have taken, however, recently the format seems to have changed.

Regards

Daps