Evening trading US shares

[PitBull]

A lot of us on this thread and the old "US day traders" thread have been coached by either Naz or Mr Charts in which we have paid for, so I'm trying not to be unhelpful but it would be unfair to either of them if we laid it on a plate on this thread for all to see.

If you look carefully, a lot is talked about and if you know what to look for, you will go "ah ha".

FWIW, for scalping I use 1min charts, for swing trading I use 5min charts.

Heads up: watch BIDU at 158 as consolidating at highs. It might run straight through it so make sure you don't chase it and wait for it to base first.

PB

 

[PitBull]

BIDU running nicely. Hope you managed to catch it when it broke 158. Will post chart later.

 

[vegas]

Thanks Lee for the heads up - I did get a piece


In at 158.27 out at 160.75. Only 50 shares but I was happy

It was a bit fast for me though

 

[PitBull]

Been a quite tough day, but made my money in the morning on BIDU.

Was looking to swing it as daily looked lovely and had met my target for the week yesterday so pressure off a bit. I've said before, account management is paramount. Always think of your account and don't play each day like yesterday. Be adaptive. For example, don't think of each trade as a swing trade, trade what you see, scalp profits in the morning and when account in profit then look to holder for longer in the pm. Well anyway that's my style.

So with BIDU, I had a limit order placed a few cents above the daily high at 158.25 and got filled at 158.29. I had a 6cent limit on this. Don't use market stop as you will get BIG slippage. I know BIDU moves around a lot so I tend not to watch every tick, so put it in the background. It blasted out from the open and quick look at the chart and a nice smile I move my stop to breakeven and left it there. A glance every 5 mins and it's stillmaking higher lows on the 5 min and then a shooting star appears, warning of a reversal. It reversed alright from late 161 and a break through the 5min 5MA I closed half at 160.74. I intently watched it on the 5min and it kept making higher lows so I thought this would run higher. I sold the rest when there was a bearish engulfing candle at 11.20.

I attach the daily and the 5min chart.

FOMC results just out so just waiting for some opportunities, BIDU again at it's highs, NTRI running and FSLR.

Cheers.
PB

 

[vegas]

Great analysis Lee and exactly how you should play a stock such as BIDU.

For the record - I did not....watched it on the 1 minute incessantly and finally jumped ship....I need to learn.

Did the same on RIMM earlier this week.

Frank.

 

[lloydsc]

I found the evening session hard as breakouts were limited. Stopped out for minor loss on SNDK as in ran through the whole number and retraced. I watched it take the stops out under the whole number once having broken $49.00, it then pushed through $49.00 again with volume but retraced.

Regards
Steve

 

[PitBull]

Yeah, Steve, some limited opportunities as now chopping. Took a small loss on NTRI when entered at 67.33 and didn't follow through. Turning off now as can't find anything decent.

SRDX might go, nice base but high too far away and moving up nicely. Want the high to be taken out though and now late.

Good night peeps!

 

[PitBull]

Sorry Frank,

Nice stuff on BIDU. That's the way to do it. Position yourself correctly so you are not SCARED out. Even 50 shares can earn you a decent return on higher priced stocks and you get to know how they move. MM's run it up to entice the buyers then reverse it. lol

Cheers

 

[evostik]

Been a quite tough day, but made my money in the morning on BIDU.

Was looking to swing it as daily looked lovely and had met my target for the week yesterday so pressure off a bit. I've said before, account management is paramount. Always think of your account and don't play each day like yesterday. Be adaptive. For example, don't think of each trade as a swing trade, trade what you see, scalp profits in the morning and when account in profit then look to holder for longer in the pm. Well anyway that's my style.

So with BIDU, I had a limit order placed a few cents above the daily high at 158.25 and got filled at 158.29. I had a 6cent limit on this. Don't use market stop as you will get BIG slippage. I know BIDU moves around a lot so I tend not to watch every tick, so put it in the background. It blasted out from the open and quick look at the chart and a nice smile I move my stop to breakeven and left it there. A glance every 5 mins and it's stillmaking higher lows on the 5 min and then a shooting star appears, warning of a reversal. It reversed alright from late 161 and a break through the 5min 5MA I closed half at 160.74. I intently watched it on the 5min and it kept making higher lows so I thought this would run higher. I sold the rest when there was a bearish engulfing candle at 11.20.

I attach the daily and the 5min chart.

FOMC results just out so just waiting for some opportunities, BIDU again at it's highs, NTRI running and FSLR.

Cheers.
PB

PitBull

Thank you for another very informative post. Great trade. You mentioned moving your stop to b/e after a move but your guidence on the initial stop for such a set-up would be appreciated. Also, would you use this stop level (size) in calculating your position size?

Hope you don't mind me asking,

Thanks Again,

Steve

 

[PitBull]

With the hot stocks, that most day traders trade. I wait for my trigger or in the case of BIDU it was not a manual entry, but as soon as it opened the axe showed me the way and therefore I put in a limit order at the highs. At the open, it can be scary, but if you watch price action and not Joe Bloggs getting filled half a mile away which shows a spike on the chart as one order gets filled at market you can play them.

I hope to get into profit immediately, but if it comes back then the max stop would be 0.25. When it goes I know not to move my stop until it clears its ATR so if ICE is 0.50 on a 5min and its in profit by 0.25 I will not move my stop to breakeven until 0.50 is in the clear.

But sometimes it can be down to discretion. If I've taken a few 0.25 hits I will raise the stop, which is quite rare (i mean 0.25 hits). With the beasts like RIMM, BIDU, AAPL etc they always like to run it up with a rush of greens enticing the buyers and then they reverse it, so I like to buy on a downtick or just when the selling stops and buys now come in. If it flies, great, if it doesn't thats trading. Do not trade on your opinion and give the stock more room. In daytrading the slow lose, the quick cut their losses and move on.

So to answer your question it was fixed and not a $ away at the low of the opening bar.

Hope makes sense.
PB

 

[Ed-Trade]

Thanks Tim, Pitbull for your replies.

Wow, BIDU, could never trade that puppy, even with small shares, moves way to fast and whippy for my simple mind.

I've been at this game for a long time (well, over a year anyway ) and I just wanted some guidance as to what others look for in order to trade the US open and morning session 9.30 to 12.00 est, as this is what i am able to trade with current other job commitments - sometimes overnight work too

My entries are very simple. I try and trade 20 minute and 30 minute breakouts on stocks that move (SNDK, AAPL, ERTS etc). However what I find is that i get many false signals and I just wanted to ask what people used to confirm entries to increase the probability, whether it be Time and sales, volume, futures etc. Also are there better strategies that I should look at that might increase my probabilities. I'm not after people to reveal their actual strategies or stuff learnt from coaches, just pointers of what is the best probability.

My daily goal is actually really small (don't laugh - $50 net profit on small share size, no 1000 share trades - seems so tiny when i see what others make) but I cannot hit it consistently, most days I tend to get to break even.
I suppose what I'm saying is that my entries are poor, and I want HELP on picking better setups (gosh I got to the crux in the end!)

Just really want pointers as to what to look for, or to offer me help.

I also hope to start and contribute a lot more to the thread sharing my results daily if possible, and give back from my positive (hopefully) learning experience. I might even post a chart if I can figure it out.

Thanks again friends,

Namaste,

Ed

 

[yacarob1]

In daytrading the slow lose, the quick cut their losses and move on.

How very true.

Nice posts recently Pitbull. Please do continue.

 

[PitBull]

Ed-Trade

If you look through the threads you will find some gems. I have even posted an article on how to trade breakouts. Look and ye will find

But to give you a starter, above average volume and price acceleration should give you a good probability.

Just remember, a set up is a set up, whether it be triangles, head & shoulders, 1st hour breakout, double bottoms etc, it doesn't mean it is a vaild trade, there are other factors to take into account.

PB

My entries are very simple. I try and trade 20 minute and 30 minute breakouts on stocks that move (SNDK, AAPL, ERTS etc). However what I find is that i get many false signals and I just wanted to ask what people used to confirm entries to increase the probability, whether it be Time and sales, volume, futures etc. Also are there better strategies that I should look at that might increase my probabilities. I'm not after people to reveal their actual strategies or stuff learnt from coaches, just pointers of what is the best probability.


I suppose what I'm saying is that my entries are poor, and I want HELP on picking better setups (gosh I got to the crux in the end!)

Just really want pointers as to what to look for, or to offer me help.


Ed

 

[lloydsc]

Trade Entry Considerations

Afternoon All

I am a relatively new 'aspiring trader' and I have started to develop and kind of checklist that I go through as soon as I get an alert.

I only look at the afternoon session at the moment due to my day job.

Firstly I will look at the ATR on the 5 minute chart to determine if the stock is too volatile for me to handle .
Then I will look at level 2 to determine the price levels on the bid (for longs) to provide comfort that if the trade goes against me I can get out at a reasonable price also that if inside bids are pulled the next bid is not 20 cents away which may start a run down.
I will look at volume just by eyeballing the 1 min chart to see if it is above average and increasing, Pitbull has eluded to this earlier.
I then look at areas of support/ resistance - for example if it's a breakout long I will see if yesterdays high is nearby or a whole number. If it is, for example, 10 cents away from the breakout I will wait to see if this is broken aswell as it may prove to be an area of resistance.
I also look at daily volume, this is something I am not sure of at the moment as yesterday I didn't enter a trade because the daily volume was about 250, 000 and it ran 50 cents. The daily average was about 900, 000 so I may have to reconsider this as an issue.
I will also eyeball the S&P to see what that is doing.

I am not avocating this checklist as a methodology for others but just to give ideas for people in the same situation as me to think about.

Whenever I feel as though I can give a little to the forum I will do so in the hope that it will at least generate debate and if I am off mark with some aspects I hope that more experinced traders can provide me with feedback that gets me thinking.

Regards
Steve

 

[PitBull]

You're on the road Steve. Looks great, just focus on the volume on the main timeframe chart you're trading as 1min will be distorted. As soon as the ask starts to get hit and theres sustained buying and the ask thins out from people leaving the ask, then you're in. But always have in mind how thick the bid is. Having ARCA and NSDAQ book will help to see the liquidity at the different levels.
Take care
PB

 

[dvdh]

Thanks Tim, Pitbull for your replies.

Wow, BIDU, could never trade that puppy, even with small shares, moves way to fast and whippy for my simple mind.

I've been at this game for a long time (well, over a year anyway ) and I just wanted some guidance as to what others look for in order to trade the US open and morning session 9.30 to 12.00 est, as this is what i am able to trade with current other job commitments - sometimes overnight work too

My entries are very simple. I try and trade 20 minute and 30 minute breakouts on stocks that move (SNDK, AAPL, ERTS etc). However what I find is that i get many false signals and I just wanted to ask what people used to confirm entries to increase the probability, whether it be Time and sales, volume, futures etc. Also are there better strategies that I should look at that might increase my probabilities. I'm not after people to reveal their actual strategies or stuff learnt from coaches, just pointers of what is the best probability.

My daily goal is actually really small (don't laugh - $50 net profit on small share size, no 1000 share trades - seems so tiny when i see what others make) but I cannot hit it consistently, most days I tend to get to break even.
I suppose what I'm saying is that my entries are poor, and I want HELP on picking better setups (gosh I got to the crux in the end!)

Just really want pointers as to what to look for, or to offer me help.

I also hope to start and contribute a lot more to the thread sharing my results daily if possible, and give back from my positive (hopefully) learning experience. I might even post a chart if I can figure it out.

Thanks again friends,

Namaste,

Ed

Hi Ed,

BIDU is not a stock a newbie should trade. You need some good experience to trade high beta stocks like BIDU, ICE, MA, RIMM etc. They tend to be choppy most of the time, but when they set up and move, they move big time! Before you even try trading this stock, you should get some skills trading some thicker less volatile stocks.

The most important thing is, as Lee said in a previous post. Relative volume. You need stocks that have higher than average volume. If you only trade stocks like SNDK and ERTS you're playing a game that's hard to win. You're trading against MarketMakers and Computer Algorithms. These stocks make tiny setups within their daily ranges and break out just a few cents and then retrace. That's what the marketmakers want. They move the stock up to get some buying going on. They sell to the buyers and then pull the bids so all the longs get stopped out. So find stocks that have more than average volume and trade those. They are far more reliable because when they setup and breakout, institutionals have to buy or sell. Because they have large customer orders to get filled (100k to over way over 1MM shares depending on the stock).

And there's nothing wrong with your 50 USD profit target a day. You have to start somewhere. We all started there. So don't worry about that. To trade larger until your profitable most of the time!

-Dave

 

[vegas]

Hi Ed,

BIDU is not a stock a newbie should trade. You need some good experience to trade high beta stocks like BIDU, ICE, MA, RIMM etc. They tend to be choppy most of the time, but when they set up and move, they move big time! Before you even try trading this stock, you should get some skills trading some thicker less volatile stocks.

The most important thing is, as Lee said in a previous post. Relative volume. You need stocks that have higher than average volume. If you only trade stocks like SNDK and ERTS you're playing a game that's hard to win. You're trading against MarketMakers and Computer Algorithms. These stocks make tiny setups within their daily ranges and break out just a few cents and then retrace. That's what the marketmakers want. They move the stock up to get some buying going on. They sell to the buyers and then pull the bids so all the longs get stopped out. So find stocks that have more than average volume and trade those. They are far more reliable because when they setup and breakout, institutionals have to buy or sell. Because they have large customer orders to get filled (100k to over way over 1MM shares depending on the stock).

And there's nothing wrong with your 50 USD profit target a day. You have to start somewhere. We all started there. So don't worry about that. To trade larger until your profitable most of the time!

-Dave

2 Questions please :

1. So does SNDK and ERTS never have higher than average volume ?

2. What constitutes 'higher than average volume' - would it be 30 days ?


Thank you. Appreciate any help.

Frank.

 

[dvdh]

2 Questions please :

1. So does SNDK and ERTS never have higher than average volume ?

2. What constitutes 'higher than average volume' - would it be 30 days ?


Thank you. Appreciate any help.

Frank.

Hi Franks,

yes, of course SNDK and ERTS have higher than average volume sometimes. Those are the times you should trade it. When SNDK or ERTS are about to break through important support or resistant levels on the daily chart, relative volume will come in.
To give you an idea of what higher than average volume looks like. Look at FLR. A stock I traded yesterday. The volume is a lot higher than average. Just look at the 1 minute or 5 minute and compare that to the 1 and 5 minute from the days before. When there's volume moves are likely to follow through.
More examples: RIMM, APOL, AHM, IOC.

-Dave

 

[vegas]

Thanks Dave. Appreciate your help.

Frank.

 

[lloydsc]

Hi All

Interesting and thought provoking post Dave.

If a stock such as SNDK was trading on low volume for the day, compared to it's average daily volume, and suddenly on the 5 minute chart the volume starts to pick up significantly would it qualify as a consideration in your eyes even though it's daily volume is comparatively low?

Regards
Steve