Best Thread US day traders thread.

[dvdh]

Hi davev,
How much do you rely on Level 2 for your trades when compared to TA, does it play a significant part in your selection process?

I use it the most for entry and exit points. When I look at a chart and it looks good, if you know what I mean, than I know what the entry points are gonna be on the chart. But sometimes I get in earlier, because of level II. The market-makers always give me a lot of information. Most of them use reserve orders. They are always around important and round levels. You always see marketmakers at .25, .50, .75, even numbers, support and resistance points, pivots! If al marketmakers are gone or filled. You can get ready for a dump or a squeeze. And if it breaks the high or low of the day, it always gets sold/bought back to that point and then it goes.
Sometimes you see a large bid on an ECN (ARCA, BRUT, SIZE, ISLD) and there are marketmakers offered up above. When prices just went up, people wanna buy in front of that BID, so the marketmakers get filled (they sold) and then the bid gets cancelled. It usually isn't the best bid though. And then you get a downtick.
This can also happen in a down move, then you need the uptick or an equal price to short sell. Sometimes then you get a really large bid and the crowd that is short starts buying the offers, sort of a little short squeeze, and again the marketmakers get filled. The bid gets cancelled. And another dump follows. And if they wanna cover you see a block on the offer and marketmakers on the bid. They get filled, the offer gets cancelled and they covered a bit.
By the way, this is how I look at it. There are so many different games played by the marketmakers, these are just a couple examples.

Ask Alan or Richard more on this. They know a lot more about this, I'm sure.

-Dave.

 

[samtron]

This is the point of exit as the selling volume died and it began to turn north with, again, micro-analysis confirming incoming support.
I'm quite pleased with a $3 move as I've just returned from the US and am a bit jet-lagged.
I know saying this goes against the grain and everything people read and say about not trading when you are not 100%, but I believe you just discipline yourself to get on with trading - you soon feel better
Richard

Interesting chart Mr Charts. As you might know I am still very much at the homework stage with my trading. The charts and examples that you guys post are a real help.

How much credence do yo give to the data on the charts that is "out of hours" considering that most of that is just ECN and non pros and light volume?

Considering the stock was already in a downtrend when you entered (from the chart) how difficult was it to get filled considering the "uptick rule"?

 

[dvdh]

Nice to see you back Richard.

From today i'm going to have one or two of the US indicies in the new scanner so that traders will be able to see if the general market does major turns throughout the day which might effect their positions.

Alan

Does any of you guys use a squawkbox? I use the Realtimefutures.com squawkbox. It's really great. It quotes from the S&P 500 futures pit in the Chicago Mercantile Exchange.
If you hear that there are local or paper buyers in the pit. And your looking at a stock that's going to break out on the upside. Than I know that it probably won't be a false move if the index goes up. When there are figures due. Like the payrolls or fed minutes or rate decisions. I always trade RIMM and especially AMGN. When the figures come out. AMGN because it's a heavy weight in the index, usually moves in correlation with the S&P/NASDAQ so the squawkbox is really usefull. Also when it's quiet and the index starts to move suddenly. You know that stocks are moving/gonna move. What do you guys think about that? Does anyone have experience with a squawkbox?

It's perfect to hear I quote: "general market does major turns throughout the day which might effect their positions".

I'd say, Try out a 3-day trial at realtimefutures.com.

-Dave.

 

[Pollux]

I use the Realtimefutures.com squawkbox. It's really great. It quotes from the S&P 500 futures pit in the Chicago Mercantile Exchange.


hey Dave - v interesting. What does it cost? I see you're an AMGN man....am long right now after a bit of pain...RIM acts better but lawsuits make the name tough beyond ultra short term. Got used to squawk box when I was on the sell side in the 90's; agree with you they are terrific when you are active and looking for the twists & turns of the main indices. As a proxy, I use NQ in three time frames: 5/15/60....does ther same job but wear your eyeballs out...Goede avont , D

 

[Naz]

Yes thanks for the info on that Dave.

 

[dvdh]

Yes thanks for the info on that Dave.

You're most welcome

 

[dvdh]

Pollux,

It costs $ 125 per month. It sounds expensive, but it's really worth it. Try the trial. Gives you a better feel of the market and you don't have to watch the index charts all the time. You just hear what positions locals are in, what paper (institutionals, banks) is doing. You probably know all about it from back in the day.
I'm a volatility man, I trade anything that moves. LOL.
RIMM is not always easy to trade. Somedays it trends really nice. But today is choppy. AMGN is good today though. GOOG at the open. But I got whipsawed in the first bar. How stupid can I be. So made no bucks on GOOG. ESRX made me some dough. But that's it for today. Been a bit lazy today.
How do you find your trades. You use a scanner? The one Naz is testing seems great. Seen it?

-Dave.

Fijn weekend to you to. Do you speak dutch?

 

[Naz]

What i tried to do yesterday was incorporate the S&P into my scanner (i used the SPY's).Then i reckoned if you got a decent call from the SPY's see what stocks popped up at the same time.Then go with them.

It worked very well and WFMI made a $2 run from using that idea.

The first and second attachments show the simultaneous lunchtime pull back alerts on both charts.

The third attachment shows the afternoon break out alert for WFMI.

The fourth attachment shows how the SPY's and WFMI got called together in the lunchtime pull back.

 

[dvdh]

It really looks like it works great! Do you also have a lot of bad signals, like stocks with no volume?
How does this scanner actually work. Is it a computer system that scans the market. Or are it individuals that scan it?
Did you have price indication for it?

 

[Naz]

No definate cost yet but it will be priced at a sensible rate.

It wont have stocks popping up with rubbish volume and unplayable stocks,because its called via-trader which means that it will have a trader monitoring the stocks that the bank of servers scans.I will be giving commentary along with the scan calls.Dont worry i've made sure that section can be switched off if you dont want it.

So every day i'll be finding the very very best stocks for the scanner to focus on and if somethings a dead duck i'll remove it and put in something better in.So all the calls should be from worthwhile playable stocks that have the potential to move.So that part is human, the scan calls are computer generated.

When it comes to US lunch for instance i'll be looking to trade the afternoon move,so during lunch i'll be checking for stocks poised to move and get rid of any dead wood in the scanner and replace them with fresh new stocks that have the potential to give that final bust to the close.Then all i have to do is sit back and let the scanner alert me to which ones are setting up to move at the right time.I'll also be giving live commentry as to my favourite ones, the reasons why and which ones i'm in.

Alan

 

[dvdh]

Okay, so you're actually part of the company? That's good. I like the fact that there is a human part, since only computer generated scans have too many bad signals.

Can anyone put stocks on that hotlist. So that the scanner only has to alert you. Or is it only you?

-Dave.

 

[Chicken Curry]

Naz

What will happen on the days that you are not available ?

 

[samtron]

Hi Naz
The new service sounds great especially since it will have commentary which should help newbies like myself understand a little how the mind of a experienced trader ticks.
I think It could be even better if it incorporated a sqawk box of some sought

Is the scanner /update/alert service java based, what will the auto refresh rate be?

 

[Naz]

In answer to your questions.

Yes i'm part of the company and therefore i've got the software guys to design it from a traders point of view.Only I have control over the stocks it scans.I hope by doing this that the signals it generates will be from the potential best movers from that day.Giving some very good moves all notified in real time.Something i've been doing for a living for the last six years.

As far as i nkow it will be the only scanner that has commentary at the same time,so i'll be able to give my opinions on the calls and give a running commentary on the ones i'm taking and any interesting moves that could be setting themselves up and might be called by the scanner in the next few minutes.

If i'm sick then the scanner will no doubt work on its own without any commentary.

As this is going to be a product marketed throughout the world then a lot of behind the scenes requirements have to be put into place.My part is ready but bear with us if its just takes a little while longer to launch.

When it launch's i will also have a company e mail address where traders can send their opinions and any ideas to make the product even better.

I also hope to run workshops to show traders how to get the very best from the product and continue to offer my 1-2-1 coaching to help others that want that personal touch for learning how to trade the US markets.

Alan

 

[plater]

Hi Naz
Just read the last few posts you may have already mentioned this. Whens your scanner ready. Will there be a free trial?

Thanks plater

 

[timsk]

Weekly Trawl

WFMI close to all time high. . .
During the course of my weekend trawl, WFMI caught my eye. The long term trend is strong. Since August 2004, it has nudged up consistently, pausing briefly for what Dan Zanger refers to rather quaintly as 'horizontal work', before nudging up some more. Last week saw a nervous breach of the $140 round number, but the price appears ready to test this level once again. Based upon the weekly chart attached here, if this resistance zone fails, then the summit of $150 looks very achievable.
Tim.

 

[samtron]

IB Level 2

Does anyone know if IB's Level 2 data is worth subscribing to?

 

[dvdh]

Does anyone know if IB's Level 2 data is worth subscribing to?

It's slow, but it's cheap.

 

[DavidS]

WFMI close to all time high. . .
During the course of my weekend trawl, WFMI caught my eye. The long term trend is strong. Since August 2004, it has nudged up consistently, pausing briefly for what Dan Zanger refers to rather quaintly as 'horizontal work', before nudging up some more. Last week saw a nervous breach of the $140 round number, but the price appears ready to test this level once again. Based upon the weekly chart attached here, if this resistance zone fails, then the summit of $150 looks very achievable.
Tim.

Good analysis and seems to be paying off at the moment!

Did you take a position?

 

[Mr. Charts]

samtron,
Re- your questions about pre-market.
Yes, sometimes pre-market moves and price levels are very important, other times not.
You need strategy, structure and method to know when they matter and when they don't.
Re- IB level 2
As davevdh implies "slow" is not helpful............fwiw esignal level 2 is far superior imho.
However, IB is a great broker imo.
Richard