Evening trading US shares

[Mr. Charts]

candles,
If you email me I'll make some suggestions as this is a question which crops up often when I see people. I won't post them here as otherwise I'll be accused of advertising cfd/spreadbetting companies.
Richard

[email protected]

PS Sorry about the syntax - my excuse is I'm busy prepping

 

[pogle]

Good to see Richard posting again

As this thread is entitled Evening trading US Shares it would be nice if some of the trades shown actually took place within the evening session (7-9 pm UK time) to enable those of us not fortunate enough to be able to trade full time to learn something useful.

Any hints of what to look for in the afternoon and how these hints play out in the evening would be greatly appreciated.

pogle

 

[PitBull]

Pogle

Happy to help. With evening moves you want a continuation breakout of the highs or lows. What I mean by continutation is from the morning run. So, take MNST yesterday (not a great example as a choppy day yesterday and evening moves can be quite sparse when indices choppy), great run in the morning then pulls back over lunch. When it approaches its morning high, then get ready for breakout. Some breakouts fail, as did MNST at 2.55pm EST, or some do go. See SNDK yesterday at 12.55pm EST, still not a great one or MRVL. MRVL actually has two breaks of its morning range. One at 12.35pm and the other at 2.30pm. Each one can be played as a breakout.

A good breakout will not look back, especially also if the futures are breaking up hard.

Hope this helps.
Pitbull
p.s. All IMHO

 

[Mr. Charts]

pogle,
Hopefully you'll find these images helpful.
They are from my "library" of trades.
I have erased the comments in order to stay within t2w guidelines.
You should look at them with Pitbull's fine comments in mind.
As usual, the X hairs are at the point of entry and the screenshots were taken at the time of exit.
HTH
Richard

First trade for $2.37 per share profit.

 

[Mr. Charts]

Second trade for 80c per share profit.

 

[PitBull]

Evening breakouts

Here's an example from this evenings trading. Two breakouts on a strong stock up 12.41%. today.

First breakout at 17.05pm for 45 cent profit. Next breakout at 18.20pm for 14 cent profit.

Stock selected from largest %/$ gainers on the day available on your software program or www pages like yahoo, cbsmarketwatch, etc. No rocket science needed!

Pitbull

 

[pogle]

Pitbull, Richard,

Thanks for the pointers and examples.

Regards

pogle

 

[PitBull]

watch PCAR at 68.35 for evening breakout

 

[PitBull]

ADBE looks good at 38.40

 

[PitBull]

Long GENZ at 63.55

 

[PitBull]

Watch the high from 2-4 days ago

 

[PitBull]

out GENZ 63.65, didn't break

 

[PitBull]

after such a strong run up GENZ should consolidate a bit now

 

[PitBull]

or collapse. LOL!

Big volume spike selling at yesterdays highs so not a good sign

 

[Mr. Charts]

Hi Pitbull,
I was watching GENZ level 2 at exactly when you were and there is another reason it didn't run at the time. I'll email later. There's no point explaining it here as only other professional level 2 players would understand - no disrespect to anybody but the explanation requires a substantial core of knowledge and experience to understand and without that the answer would just give rise to so many questions - questions which I just don't have the time to answer in enough detail.
I'm posting this so people don't assume that the reason Pitbull gave is the only one - though it is a perfectly valid one.
Richard

 

[Mr. Charts]

Another thought - when the trade didn't pan out, Pitbull exited with a profit, he didn't wait around for some stop loss to be hit and lose money.......that, imho, is one of the marks of a damn good trader.
Richard

 

[PitBull]

Thanks Richard. Nuff respect! The run in the morning was good though. LOL

 

[PitBull]

In hindsight Richard it was probably a forced trade. Yes it happens to all of us. Sometimes when L2 is not really showing anything I normally pass on the trade. There's certain things I look for in L2, like yourself, but momentum came in and I was looking for a quick scalp. 10 cents @ 1000 shares aint bad tho. And I was due to go out with the wife and kids. So a profitable 10 mins at the computer.

Have nice weekend Sir!
Best wishes
Pitbull
p.s I should really be at Naz's seminar tonight with Mike D to say hello etc. but family matters got in the way. I hope to see him in the new year. If you speak to him, send him my regards.

 

[Mr. Charts]

Hi Lee,
I agree, we all do momo trades that don't pan out - it's the exiting before it goes into loss that matters on the "failed" trades. Actually I had one like that a few days ago that I took an image of at the time of exit for my guys. I'll post it up here so people can see what a "failed" trade looks like.
I'll give Alan your best. We meet up frequently.
Enjoy the w/e too
Best wishes,
Richard

 

[yacarob1]

I probably don't exit as fast as you guys when a trade loses momentum and starts reversing direction, but I do have an exiting method which generally takes me out long before I get to the stop loss.

I also almost certainly use wider stops than you but I am not at your level yet.

But at least I recognise the need to get out when a trade begins to fail and not stay in it - fingers crossed - hoping for a resumption of direction.

My general philosophy is that when my entry method(s) gets me into the wrong trade then my exit method (s) will get me out with minimal damage.

In addition, when my entry method(s) gets me into the right trade then my exit method(s) will not force me out too early.

Most of the time it seems to work out ok.