Mr. Charts
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Evening trading US shares
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The Beyonder
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Nice trades as always Richard especially BECN.
I'm always suspicious of trades in the opposite direction to the gap like that one was.
I'll look at them again though.
I'm always suspicious of trades in the opposite direction to the gap like that one was.
I'll look at them again though.
Mr. Charts
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The Beyonder,
For me, if it trends, it trends. I've been trading them like that full time since 1999 and they have a high %age success rate; so yes, worth a look.
dvdh,
Yep, I sure got MA - it was on my pre-market hot list ;-))
Richard
For me, if it trends, it trends. I've been trading them like that full time since 1999 and they have a high %age success rate; so yes, worth a look.
dvdh,
Yep, I sure got MA - it was on my pre-market hot list ;-))
Richard
The Beyonder
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Mr. Charts
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It happens like that sometimes.
This is a probability business and it's consistency long term that matters, not odd days so don't be too disappointed.
If you keep on doing the right thing time after time in your trading it all comes good in the long run.
Funnily enough my best trade of today was a long on a Nasdaq stock !
+$1.95/share DRIV
Richard
This is a probability business and it's consistency long term that matters, not odd days so don't be too disappointed.
If you keep on doing the right thing time after time in your trading it all comes good in the long run.
Funnily enough my best trade of today was a long on a Nasdaq stock !
+$1.95/share DRIV
Richard
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Grey1
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[Mr Chart ,
None of my swing trades are based on Technicals only . In fact My swing trades which are 85% of my portfolio are mostly based on fundamentals than technicals.. (in FRG trade possible Uranium market demand and not so much of traditional fundamental analysis ) . My swing trades can last any thing from 3 weeks to three month ...
Today I sold 3/4 of FRG and took around $10 000 profit ( if i am not mistaken ) which only took couple of weeks .. The entry for the stock is shown on the few posts above.
Guys
Those who want to make money from the market must understand diversification and how to diversify your capital on at least over 20Stocks with only 15 % of your capital allocated for day trading . How ever if you decide to allocate all you $$$ on intra day trading then you have a big big challenge to retire early .
Day trading is an awesome business when it s done in proportion .
None of my swing trades are based on Technicals only . In fact My swing trades which are 85% of my portfolio are mostly based on fundamentals than technicals.. (in FRG trade possible Uranium market demand and not so much of traditional fundamental analysis ) . My swing trades can last any thing from 3 weeks to three month ...
Today I sold 3/4 of FRG and took around $10 000 profit ( if i am not mistaken ) which only took couple of weeks .. The entry for the stock is shown on the few posts above.
Guys
Those who want to make money from the market must understand diversification and how to diversify your capital on at least over 20Stocks with only 15 % of your capital allocated for day trading . How ever if you decide to allocate all you $$$ on intra day trading then you have a big big challenge to retire early .
Day trading is an awesome business when it s done in proportion .
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Mr. Charts
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Thanks, Iraj.
I agree that all large portfolios must be hedged and holdings diversified across several sectors and there are plenty of ways of doing that to minimise risk.
For me personally I day trade for a living and have done so since 1999 and am constantly building funds for the long term as I only spend less than I earn, but I do trade ultra cautiously.
However, this thread is about day trading, so to return to the subject.
The Shanghai Comp closed up 1.23% today.
The last three days have been successive inside days so there is a real possibility of further volatility. I'm not predicting that as I don't predict anything, I trade according to the action,
It would have been reasonable to have seen more of the bounce following through, so that downside %age probability is still substantial.
Tuesday was a brilliant day for trading, Wednesday was very reasonable, yesterday somewhat slow.
US futures remain slightly weak at the moment.
Richard
I agree that all large portfolios must be hedged and holdings diversified across several sectors and there are plenty of ways of doing that to minimise risk.
For me personally I day trade for a living and have done so since 1999 and am constantly building funds for the long term as I only spend less than I earn, but I do trade ultra cautiously.
However, this thread is about day trading, so to return to the subject.
The Shanghai Comp closed up 1.23% today.
The last three days have been successive inside days so there is a real possibility of further volatility. I'm not predicting that as I don't predict anything, I trade according to the action,
It would have been reasonable to have seen more of the bounce following through, so that downside %age probability is still substantial.
Tuesday was a brilliant day for trading, Wednesday was very reasonable, yesterday somewhat slow.
US futures remain slightly weak at the moment.
Richard
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Mr. Charts
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Here is a trade from late Thursday evening which shows how it is possible to make a respectable sum trading in the evenings.
As can be seen, there is no apparent chart reason for shorting at this point.
However, level 2 screamed a no brainer fall was imminent.
At the time of the short I had no idea the drop was going to be so big so the potential reward was unknown.
The potential loss was a few cents only because had the level 2 appearance changed from signalling an imminent fall to neutral, I would have exited the trade for a maximum loss of two to five cents.
Knowing that risk meant I didn't need to "guess" the reward.
However, the probability of a losing trade in that type of situation is well under 10%.
Richard
As can be seen, there is no apparent chart reason for shorting at this point.
However, level 2 screamed a no brainer fall was imminent.
At the time of the short I had no idea the drop was going to be so big so the potential reward was unknown.
The potential loss was a few cents only because had the level 2 appearance changed from signalling an imminent fall to neutral, I would have exited the trade for a maximum loss of two to five cents.
Knowing that risk meant I didn't need to "guess" the reward.
However, the probability of a losing trade in that type of situation is well under 10%.
Richard
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Mr. Charts
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timsk
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Hi Richard,Mr. Charts said:
Great stuff, as always.
I've noticed that your charts include ATR above the volume, but I don't recall you ever making any reference to it. It's commonly used as guide for taking profits and setting stops, but something tells me that you don't rely on it for this, so perhaps you have some other use for it? Apologies in advance if you've addressed this earlier in the thread or elsewhere.
Cheers,
Tim.
Mr. Charts
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Yes, I use it for three purposes.
One is to show to the unwary how a stock showing great intra bar volatility is risky and that must be allowed for.
Two is to use in a particular technique for very high priced stocks where level 2 is too unreliable to be useful.
Three is to demonstrate that often it is totally useless. That might sound contradictory, but the ATR might be say, 15c, but that does NOT mean that the intra bar range won't expand vastly and totally disproportionately as it did with this stock. Look at the ATR at the time of the short and contrast with the huge range of the following couple of candles to illustrate the point.
Hope that helps, Tim,
Richard
One is to show to the unwary how a stock showing great intra bar volatility is risky and that must be allowed for.
Two is to use in a particular technique for very high priced stocks where level 2 is too unreliable to be useful.
Three is to demonstrate that often it is totally useless. That might sound contradictory, but the ATR might be say, 15c, but that does NOT mean that the intra bar range won't expand vastly and totally disproportionately as it did with this stock. Look at the ATR at the time of the short and contrast with the huge range of the following couple of candles to illustrate the point.
Hope that helps, Tim,
Richard
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I thought I'd post something a bit different today.
You can usually find some hot stocks before the market even opens, as well as throughout the afternoon and evening.
Exactly the same principles and methods apply.early in the trading day and in the evening.
Today I was at home continuing the trading training of a close relative who is also about to give up his career as I did in 1999 to trade US shares intra -day.
During the opening minutes of trading I often trade a fixed number of shares rather than vary the postion size as I often do with slower trades later.
I won't go into the reasons at the moment.
I've taught him to do the same and he has now progressed over the last several weeks through paper trading and 100 shares at a time, then 200, 300 etc till he is now at 800 shares - all the time achieving the targets I set him before increasing size.
That is why you will see a share size of 800 on the broker execution screen.
As you can see he made $1224 inside 40 minutes on three trades.
The point is that with direct access you can enter and exit instantly and be in control - that in turn allows you to make decent money with a high degree of safety provided you have the right mental attitude and the self control to enter on the set ups and triggers you use and exit appropriately - always based on the evidence in front of your eyes, never your opinion.
There were one long and two shorts.
Richard..
You can usually find some hot stocks before the market even opens, as well as throughout the afternoon and evening.
Exactly the same principles and methods apply.early in the trading day and in the evening.
Today I was at home continuing the trading training of a close relative who is also about to give up his career as I did in 1999 to trade US shares intra -day.
During the opening minutes of trading I often trade a fixed number of shares rather than vary the postion size as I often do with slower trades later.
I won't go into the reasons at the moment.
I've taught him to do the same and he has now progressed over the last several weeks through paper trading and 100 shares at a time, then 200, 300 etc till he is now at 800 shares - all the time achieving the targets I set him before increasing size.
That is why you will see a share size of 800 on the broker execution screen.
As you can see he made $1224 inside 40 minutes on three trades.
The point is that with direct access you can enter and exit instantly and be in control - that in turn allows you to make decent money with a high degree of safety provided you have the right mental attitude and the self control to enter on the set ups and triggers you use and exit appropriately - always based on the evidence in front of your eyes, never your opinion.
There were one long and two shorts.
Richard..
Mr. Charts
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Mr. Charts
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