Trading the markets with Alan Rich.

Yes, TT.
What a classic - a 50 c move straight from the "text book" with the exit the same way............ ;-)))
Nice spot, Sir !
Richard
 
Stocks from my pre-market HOT list posted here have continued to provide very good trades..........anyone interested should have a look at one min candle charts and they should be able to see for themselves and figure out for themselves................
ENCY low of the day so far has been that turning point where I exited on my earlier post - charts plus micro-analysis RULE............
Richard
 
Mr. Charts said:
Yes, TT.
What a classic - a 50 c move straight from the "text book" with the exit the same way............ ;-)))
Nice spot, Sir !
Richard
Click to expand...

It was, wasn't it. :) Have you ever thought about entering these sort of trades with a buy stop (slightly above the trigger level)? That would guarantee you get in and once you're long you could do the normal check up in L2. What do you think?

Cheers,

TT

PS. MRVL is still worth keeping and eye on. Now at .87
 
Hiya TT,
Not for me personally, because I saw it coming firstly on level 2 at 50.26. That was confirmed two minutes later when people started to see what I had seen and started adding to the buy pressure - look at the volume on the 1033EDT candle.......(1533 UK - sorry I can't remember Finland time).
Have a good w/e guys and don't give any money back during the chop.................
Richard

PS I'll email you and dvdh over the w/e about 3 min candles and the routine
 
I've been short AAPL since 61.93. There was a triangle breakout and now the stock broke the support at 61.61

Edit: still falling. Now at .25
 
jimmy1jag said:
This is an interesting discussion!

If I may add my 2 cents worth...:

For me size management is very important in order to protect my account, which, particularly as a learner is imperative. Risking 15c (+ IB commission) on a 100 share lot represents a very small amount (less than 0.1% of $25,000 min day trading account size); so when starting out this isn't really an issue.


Discipline discipline discipline... very important and it's not easy.

I have developed the attached sheet which has evolved as I have learned where my weaknesses are.
Click to expand...


Hello Jimmy,

thanks for your post. It's good to go through this stuff together and discuss things. It more often than not results in useful thought processes. I agree with you on how difficult discipline is. Especially when you have to trade differently in different market situations. At least this is what I've been trying to do. If someone disagrees, plz let me know the reasons.

A thought on your account/position size calculation: If the account size drops below $25K you have to stop trading. Therefore, you need to make your calculations with the excess money you have. Ie if you're trading a $30K account, you have to make sure the risk you take in anyone trade does not exceed an acceptable percentage of this $5K. What's acceptable? Some people suggest 3%.

Therefore, you should risk max $150 per trade. If you always limit your maximum losses to 15c/share this would translate to 1000 share positions.

However, if we'd follow what Dave suggested (placing a stop behind the previous 3min bar) we'd need to allow at least twice as big stop, if not triple it. This would bring the per trade share size down considerably.

I personally hate to see market move against me. I will now have to retrain myself to see a value in it. :) It is a numbers game like Dave said. And allowing market to move more against me, does place a greater emphasis on entry selection. I have to be convinced that the entries will, on balance, produce a profit.

Thanks for your sheet. Does it mean that you only take six trades per day? Is that your limit or do you add more lines to your spreadsheet as you go along?

Cheers,

TT
 
Hi TT,

Thank you for your comments. Fair comment about the $25k thing etc.

With regard to no. of trades. I currently only do 6 trades per day as one of my earlier weaknesses was to overtrade. The sheet (which I use in hard copy form and fill in by hand as I go along) used to have more lines in it and I was going sometimes onto 2 sheets. I noticed very quickly that the later trades were rarely profitable so I cut them out of my trading all together. Also my goal is to get $1 a day which is easily achievable with 6 trades if you do the right things, in my view. The way the sheet is set up is to help me improve my trading in view of my own personal weaknesses and to prevent me from doing stupid things. (By the way, there is a saying in my day job, "If you don't measure it, you can't improve it!!").

I also put the numbers at the bottom of the sheet into a spreadsheet with charts in it so I can see my performance over a longer period of time.

In my view (as in my day job working life) the tighter you control your trading, the more effectively you can improve it. In this respect, trading is no different from any other work activity in my view... and it works for me which is cool :cool:



I find it simple, effective, and non-time consuming.
 
Hello Jimmy,

I find it interesting that you can pick and choose your entries so well that you never need more than six trades to make you daily dollar. Would you mind sharing your statistics a bit? If yes, here are a few questions.

Over the last two months (apprx 40 trading days) on how many days did you make that dollar? What have you made and lost on your best and worst days? What percentage of your trades are profitable and what's the ratio between the winners and losers and how big is the average loser and winner? Also, do you tend to make your wins in certain stocks?

Jimmy, I like your attitude re measuring things so that you can improve them. This should be very effective in trading.

It certainly would be interesting hear these figure from the others as well.

Cheers,

TT
 
Hello all,

please tell me what you think of the following trading ideas. Have you tried them, do you find them any useful?

1. Find stocks that are up/down over 3% today but on low volume, likely to reverse.

2. Find stocks that are up/down less than 1% today but on very high volume. (when they do breakout they move a lot as many traders scramble to exit their positions.)

3.Find stocks that are likely to reverse their current direction by scanning for stocks
up/down 10%+ in last 3 trading days or that close Up/Down for last 3 to 5 consecutive days

4. Narrow Multi Day range contractions or expansions. You can find for example stocks that have moved less then 3% over the last 5 days. If today they are above yesterday's high on above average volume you have a very high probability trade that can last for more than one day.

5.If a volatile stock breaks out today on very high volume you can go with the trend, if it breaks out and then fails you can trade it in the opposite direction and profit as traders all rush in to exit their positions!

I found these while browsing the web. These ideas are from here: http://www.topgunsoftware.com/software.html

I hope it's ok to paste the link as I'm not advertising them, just interested in the above presented trading ideas. If they work, each of us might be able to integrate them into how we trade.

Cheers,

TT
 
Hey TT,

I haven't come across that software before, but since I'm new to the game that isn't really suprising! A piece of software I do rather like that is similar is from Trade Ideas (www.trade-ideas.com). It doesn't have the built in charts like the software you pointed to does. However, it does have tiny thumbnail charts and can send to eSignal. What it can do is show stocks that match criteria (filters) + have certain things happens things happen (e.g. breakout of consolidation) and it gives real-time alerts of these things happening. I've requested that they add the ability to send to different charts sequentially so that I can quickly scan charts to see if I like the way they look - but ended up writing my own bit of software quickly to do it for me.

I am not really sure if I should post this here, it feels like I'm taking over Alan's thread - however since his offering is unique and different from this I hope it won't be an issue.

I've come across a couple of promising configurations so far for the kind of moves I like, but it needs a bit of enhancing still so I won't make any comments yet.

Good luck!

BP
 
Last edited:
Personally, I would never consider trading on low volume because I would like to be able to exit a trade and not have problems getting filled at the size of trade I have taken.


Paul
 
I suspect many of us who use Volume as a key part of our stock selection and entry/exit setup criteria will recognise those stocks you refer to in points 1 and 2.

High %age movers on low volume are always potentially as the result of manipulation (mark up/mark down) and with appropriate confirmation, can provide excellent ,and quick, plays when the volume picks up and the setup is confirmed.

Low %age movers on high volume can be indicative of churn or indecision or more often, consolidation. Breakouts from consolidations have always been a basic, and profitable trade play.

Point 3 is about exhaustion stocks. This is based on the very general rule of thumb that you're unlikely to get more mileage out of any stock which has moved 10% in the previous few consecutive days. Or any stock that has made 4 or 5 sessions advancing or declining is unlikely to continue to do so at the same rate. This isn't as tradeable a situation as the other two as this situation more usually tends to consolidation than a continuation or reversal. Still worth watching though.

Setup you mention in 4 isn't anything I've looked at and to be honest, wouldn't fit my criteria. Just being above yesterday's high after a few days in the doldrums doesn't really give enough data to base making a play. Just my 2c-worth. Others may well make a killing every day doing just this! Be good to hear from them if they do.

Point 5 seems to be a 'chase the action' type play which is what a lot of newbies would do. Getting whipsawed all over the place. Maybe there was to this setup mentioned on the website you quote, but for me, this is a real non-starter. I'm sure I've misunderstood this setup.

I think you're OK mentioning a commercial website as t2w have yet to confirm their position on advertising. Whether the thread starter will appreciate your good intent is another matter altogether though I am sure Alan is big enough to take it in his stride. :LOL:
 
TrendTracker said:
Hello Jimmy,

I find it interesting that you can pick and choose your entries so well that you never need more than six trades to make you daily dollar. Would you mind sharing your statistics a bit? If yes, here are a few questions.

Over the last two months (apprx 40 trading days) on how many days did you make that dollar? What have you made and lost on your best and worst days? What percentage of your trades are profitable and what's the ratio between the winners and losers and how big is the average loser and winner? Also, do you tend to make your wins in certain stocks?

Jimmy, I like your attitude re measuring things so that you can improve them. This should be very effective in trading.

It certainly would be interesting hear these figure from the others as well.

Cheers,

TT
Click to expand...

Hi TT,

For me:

1. I have found that when I make my daily dollar (I'm not consistent in doing this yet) I do this in the early part of the day. My paper trading showed me this before I started trading with real money and is still valid now. So I stick to what I do well.

2. If I have 3 losing trades in a row I stop for the day to stop the rot as I know it'll continue!

3. I only trade hot stocks and entry is based on certain set ups I have been taught. These stocks move enough.

4. If I get a really good move and make more than $1 in one trade, I consider stopping for the day to protect the account

5. Ultimately, though, on some days and occasions, well all the time really, my number one rule is, "Protect the account! Protect the account! Protect the account!"

6. Does it matter if I don't achieve my $1 on a particular day? Not really, as I don't rely on trading to pay my bills, and on some days things work out way better.

7. So, I, personally, do not like to do more than 6 trades a day at the moment. Of course I reserve the right to change this view with time :)
 
BlackPanther said:
Hey TT,

I haven't come across that software before, but since I'm new to the game that isn't really suprising! A piece of software I do rather like that is similar is from Trade Ideas (www.trade-ideas.com). It doesn't have the built in charts like the software you pointed to does. However, it does have tiny thumbnail charts and can send to eSignal. What it can do is show stocks that match criteria (filters) + have certain things happens things happen (e.g. breakout of consolidation) and it gives real-time alerts of these things happening. I've requested that they add the ability to send to different charts sequentially so that I can quickly scan charts to see if I like the way they look - but ended up writing my own bit of software quickly to do it for me.

I am not really sure if I should post this here, it feels like I'm taking over Alan's thread - however since his offering is unique and different from this I hope it won't be an issue.

I've come across a couple of promising configurations so far for the kind of moves I like, but it needs a bit of enhancing still so I won't make any comments yet.

Good luck!

BP
Click to expand...

Hi BP,
I subscribe to trade-ideas and find it use-full , I just wish it had a few more candle configuration triggers, but on the the whole I would give it a thumbs up, having said that I haven't tried any others so I can't really compare it.

This thread seems to have taken over from the previous Naz/Mr Charts thread and its good to see it doing so well with some great new input.

Keep up the good work guys :)
 
jimmy1jag said:
1. I have found that when I make my daily dollar (I'm not consistent in doing this yet) I do this in the early part of the day. My paper trading showed me this before I started trading with real money and is still valid now. So I stick to what I do well.

2. If I have 3 losing trades in a row I stop for the day to stop the rot as I know it'll continue!
Click to expand...

Jimmy,

It is my experience too that the early part of the day (the first 90min) is the best. So many times I've made money during the first hour and a half and then lost most of it before realising I really shouldn't try to keep on trying. When the market changes so must your trading style. However, I reckon you're right about stopping when the best opportunities aren't there anymore.

The number two is also worth considering. Trading is so much about psychology, perhaps more than trading techniques. Mentally incapable trader can't produce profit even with the best of techniques and strategies. If you get too many losing trades in a row and start feeling awkward it is really better to stop. I've found myself too often in a situation where I've made losses and feel that I have to make the money back. This has a l w a y s lead to further wrong trades. Never try to make the money back that you've lost. You need a more positive mindset to succeed. That's my experience.

Cheers,

TT
 
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