Evening trading US shares

[Trader333]

I was losing money (great teacher), that I am trading the wrong stocks. Though risk/profit ratio is really good I cant emotional handle a 40 cent wiggle.

As has been mentioned by others, if you use a measure of volatility you can (if you so wish) alter your position size relative to it and so reduce the possibility of being taken out of the trade by placing your stop at a level catered for by the instrument volatility.


Paul

 

[Glenn]

I have suggested to esignal a ATR filter and a relative volume filter, but they haven't made any changes in the scanners for years. So I will do with what I got!
thevinman

Have you tried this free scanner ?
Stock Screener

Glenn

 

[yacarob1]

I wouldn't expect you to use the dubious indicators anyway

Sorry Richard. I thought you were inferring that all indicators were dubious.

 

[yacarob1]

As has been mentioned by others, if you use a measure of volatility you can (if you so wish) alter your position size relative to it and so reduce the possibility of being taken out of the trade by placing your stop at a level catered for by the instrument volatility.

You could also do what I have been doing to great effect for some time now.

Take a fairly volatile stock > $ 100. eg. RIMM

Trade it during the quiet afternoon period when the market slows down. This active stock will have slowed down and be easier to trade but will still often give excellent moves during the "lull".

Works quite nicely at times.

 

[thevinman]

thevinman,
Look at ATR and stock price level before deciding on your position size.
You can't use a 15c stop loss on POT without being knocked out by the intra bar volatility, whereas 15c is more than adequate on a stock like ADBE.
Vary your position size accordingly so you stay within a maximum dollar loss and you will find that less stressful. This is assuming you don't read level 2 which would often give you better entries and exits and sometimes warn you in ADVANCE of any chart movement; it's not infallible but in the right time and place gives you a very strong edge.
Richard

Hi Richard,

I use the 1 min, 5 min and daily chart. My entries are based on pattern, relative & directional volume, level 1 and of course most importantly T&S. As I mainly trade NYSe stock, I don't use level 2 anymore.

Thevinman

 

[thevinman]

Have you tried this free scanner ?
Stock Screener

Glenn

Hi Glenn,

Yes I have used trade ideas for a long time, but it doesn't give the alerts when I want them, prior to a break out. It will give a signal when the break out occurs, but I need some time to evaluate the set up.

thevinman

 

[Grey1]

As has been mentioned by others, if you use a measure of volatility you can (if you so wish) alter your position size relative to it and so reduce the possibility of being taken out of the trade by placing your stop at a level catered for by the instrument volatility.


Paul

spot on Paul,

One can also use a volatility envelope using models used in Options pricing to scale in and out of a position to reduce risk,,. In another word not only to use volatility envelope or ATR for pos sizing but also use ATR for pos managment,,

All said,, if one gets the market direction wrong then it does not really matter if his pos size/ managment is correct or not,, HE WILL GO DOWN for the day ,,,

Traders must get their priorities right before getting into various risk reduction strategies and that is " WHERE THE HELL MARKET IS GOING "

I am posting today's trades during the first few minutes of the day to show scaling IN and out of pos using a statistical volatility model to reduce risk and optimise the return ,,

Grey1

 

[thevinman]

Hi guys,

Thank you for the input. It is appreciated.

Kind regards,

thevinman

 

[Mr. Charts]

You could also do what I have been doing to great effect for some time now.

Take a fairly volatile stock > $ 100. eg. RIMM

Trade it during the quiet afternoon period when the market slows down. This active stock will have slowed down and be easier to trade but will still often give excellent moves during the "lull".

Works quite nicely at times.

Thanks for that suggestion, yacarob; it's great to see such positive contributions.
Richard

 

[stocktrader77]

I too enjoy trading US shares in the evening when its quiet. Also there's better liquidity, transparency, choice of shares, execution capabilities, lower comissions etc.....I think if even america stood still for the next 20 years they would still have the most tradeable stockmarket in the world.

 

[Mr. Charts]

Even on a choppy session in the dog days of August, there are usually momentum stocks to find and trade.
Here's one from this afternoon.
The short was on the cross hairs on a combination of pure chart set up and reading level 2.
The exit was at the time of the screenshot.
That's a profit 0f 78c or $780 on a 1000 share position.
As for the initial stop on entry, you can use ATR or the top of the candle, or as I do, reading level 2 to see buying and selling pressures.
The exit was when level 2 and the chart showed some buying coming in.
Richard

 

[Mr. Charts]

Also it looked like a bit of a volume blow off.
Richard

 

[deepete]

I`m catching up on threads after some time away from T2W and this topic seems to have ended on 26-8-08. Has it been carried over to another thread?
Peter

 

[PitBull]

See this thread
http://www.trade2win.com/boards/us-stocks/38036-how-make-money-trading-markets.html

 

[deepete]

Thanks Pit Bull