Trading the US the Naz/Mr. Charts Way

[Mr. Charts]

nice Bomber!

What a wonderful day's trading it is today ! ;-)))
Richard

 

[Naz]

Interesting moves MSGI,MACE,IEIB,MAGS.

Chart of MSGI.

 

[Naz]

TASR, afternoon EST/evening GMT runs are becoming well documented on the thread now.Step on board the train and go for the ride.Lets face it you only make money if something moves and TASR can certainly do that.

A lot of these stocks are volatile and that is where good level 2 scalping skills can come to the fore.I'm never looking at just one candidate but many.NTES didn't go for a bounce last night after its $3 collapse but i still managed a few scalps out of it whilst trying.

In my opinion good level 2 direct access skills allow good trade management which gives confidence in running the big moves,like TASR whilst scalping smaller moves when things go quiet.

 

[Naz]

TASR running well on an evening run.

 

[Naz]

A dollar run since the timing of the last post.

 

[Naz]

Thats another dollar move since the last post.

 

[Naz]

A few problems at the whole number,using level 2.
Now stopped out on that move.

 

[RogerM]

Now off $3 - doesn't this move quick!

 

[Naz]

Long TASR,managing the trade.

 

[Naz]

Out for approx 80c,trouble at the whole number again on level 2.
Total move since the very first post above $2.74 or +274 points.

There were oppertunities all day long for Nasdaq traders to profit from TASR's run today.

 

[morgan_edge]

good stuff Naz. How do these stocks come to your attention in the first place though? Is it a case of noticing that a certain stock has had a hugh up/down day, and then adding it to a watchlist for future trading sessions?

 

[Naz]

HI Morgan edge,

When its your living you know which stocks are hot.Everyones climbing all over them.You can always use a scanner if you need some help.

I had it on my Radar screen from the very beginning today.This was its first move of the day.

 

[Naz]

Which carried on into this.

 

[tradesmart]

Great stuff as always Naz!

I guess that following TASR's recent chart progress might have given a clue that a big breakout was imminent......

Not that I have followed TASR's recent chart progress until now.....

 

[Naz]

Thanks Tradesmart,

I enjoyed seeing the bigger picture.

 

[Dow Dog]

Naz, with TASR moving so fast, what would your typical stop level be bearing in mind that this stock can show a US$ 3 high/low spread on a 5 minute bar or a US$ 1 spread on a one minute bar.

Watching the price action on this stock can be scary - jumping all over the place very fast. I think you have to be very sure of yourself to trade this particular animal.

Do you trade TASR off a 5 minute chart or a 1 minute chart ?

RIMM is also a good mover although not quite as deadly as TASR.
Maybe it's a better stock to trade to get used to the fast movers.

 

[Naz]

Once its on a run and i'm managing the trade my eyes dont stray to far from the level 2 screen. I'm then hardly looking at the chart at all.

Charts reflect the last orders that have gone through thats why they're jumping up and down so much on fast moves.The level 2 screen shows exactly where we're trading and what were doing.I dont want to watch what has just gone on i want to watch what will go on.

That way i can plan my move ahead of the crowd and know what exit order i'm going to use and how i'm going to play it.This is where direct access skills come into play.

If you've manually got to work your order in the level 2 screen you are constantly looking at your exit options and that makes you read the screen better.I also filter out the level 2 noise in my mind and concentrate on the direction.

For me a stop is where i know i'm now wrong and i can get out.The orders on the screen denote where my stop should be.Those orders change during a move and therefore so does my stop.Sometimes its large sometimes its tight.


I know its manic but its great fun.It reminds me of when i traded the Nasdaq 3/4 years ago and stocks were a lot higher in price.

I trade it as a level 2 player,looking for the longer move.I'm sure someone else could trade it solely off a chart but they'd they would just have to very large stops.

 

[Naz]

Here is a chart of the move yesterday.I would suggest that having large stops under the higher lows would have given even someone playing the stock on a ten minute chart a lot of fun.

 

[Dow Dog]

Thanks for the comments Naz.

The day that I "have fun" trading a stock like TASR will be the day when I reckon I have got my trading under control.

For now, if I trade TASR, it would be scary and not fun. Therefore I have a way to go yet.

 

[Dow Dog]

Here is a chart of the move yesterday.I would suggest that having large stops under the higher lows would have given even someone playing the stock on a ten minute chart a lot of fun.

How would you define a large stop in this context ? 50 cents, 75 cents - higher / lower ?