Best Thread How To Make Money Trading The Markets.

[evostik]

Hey Mr Charts

I still follow this methodology as part of my daily trading and just wanted to say 'thanks' again for describing it in such detail in this thread. I know ther are plenty of others who are negaitve about it but all I can say is that it works for me and is profitable.

Anyway; I was watching FSLR too. I didn't take it because I only use the 1 minute t/f and a 3c spread doesn't work for me.

I didn't take your first ESRX trade because it was below YHOD (any comment here appreciated). Also, it was very early in the session and I don't know how to judge them when not a 'break' as such (again, any comments appreciated), but I did take the second trade for a profit but only small because, again, I only use the 1 Minute t/f.

I took STX at 16:33 hrs for a profit too. Lost on LNG, NE and GG. Bad choices with hindsight but it easy after the event of course.

Maybe I need to look at the 3 min more? I assume STOPS will be bigger and hence SHARE SIZE smaller but I will try.

Happy Trading
Steve

 

[Purple Brain]

This method (and others I use) keep on working because they are based on CLEAR market sentiment. If you trade choppy, unclear price moves your success rate is much lower and it's much more difficult to keep tight stops to limit losses on the trades that don't work out.

You could have written that just for me.

Glad you're back and posting here again Mr. Charts. Always enjoy your commentaries.

 

[D70]

As always, pointer at entry and screen shot at exit.

ESRX on 1 min candles +23c per share

For transparency. Can you post the "trade log" statement from interactive brokers please. We can tally cents made vs commissions charged.

Thanks.

 

[cablemonster]

if you dress to the left then you trade from the left hand side of the chart.

 

[prst]

Hi Mr. C.
Thanks for the useful thread.
Would it be possible for you to post a summary of steps/method followed by you?
Thanks in advance.

regards
Prash

 

[Mr. Charts]

Thank you to the people who have made positive comments on this thread and also on the other one timsk created and thank you to all the people who have emailed.

evostik,
With this particular method I do prefer stocks above YHOD or below YLOD, but it really isn't a pre-requiste.
I use both one min and three min time frames but tend to use the latter only after the market has been open for 20 mins or so. After 9.50am Eastern I use both time frames.
Yes, as a general rule if you want to keep risk at the same level on a 3 min as on a 1 min then a reduction in position size tends to do that all other things being equal.
And yes, a bigger stop if you are trading purely on charts.
I'm really pleased you and others are finding this thread helpful.
Good trading,
Richard

PS
prst,
I realise it's a long thread but the main points are early on. Anyway, if you just read my posts and charts it won't take as long. The vast majority of people who have contacted me have found it worth the time and effort to do so.

 

[timsk]

. . .Would it be possible for you to post a summary of steps/method followed by you?

Hi Prash,
Further to Mr. Charts' comments, if you read the edited version of this thread, then you'll only be reading topical posts by Mr. Charts himself - or posts by members asking pertinent questions about the methodology described. So, you won't have to wade through loads of extraneous matter. Here's a link: [Best Thread] How To Make Money Trading The Markets.
Tim.

 

[stefan416]

Hey Mr. Charts,

If you wouldnt mind checking you PMs, I sent you a message. I know you've stated you dont answer PMs but I don't have enough posts on T2W at this time -- havent been very active on this forum

Thanks for all the help you've given the community,
Stefan

 

[Mr. Charts]

The particular method in this thread can also be used on Exchange Traded Funds, ETFs.

One I always have up on a screen is FAS. This is Direxion Daily Financial Bull 3X Shares and is based on the Russell 1000 financial services. There are times when it trends very nicely and if you keep a chart of it up permanently then you can spot any sudden clean and clear move very soon after it starts.
Today it suddenly lit up and I traded it as shown; entry at the pointer, exit at time of screen grab. This produced a very nice move of 129c per share, so a position size of 1000 shares made $1290 and of course pro rata for anyone trading smaller or larger positions. As always I had a very tight stop loss at entry just in case it didn't work, and followed it up with a tight trailing stop to lock in profits.
This isn't rocket science, just good sense, imho.

 

[evostik]

The particular method in this thread can also be used on Exchange Traded Funds, ETFs.

One I always have up on a screen is FAS. This is Direxion Daily Financial Bull 3X Shares and is based on the Russell 1000 financial services. There are times when it trends very nicely and if you keep a chart of it up permanently then you can spot any sudden clean and clear move very soon after it starts.
Today it suddenly lit up and I traded it as shown; entry at the pointer, exit at time of screen grab. This produced a very nice move of 129c per share, so a position size of 1000 shares made $1290 and of course pro rata for anyone trading smaller or larger positions. As always I had a very tight stop loss at entry just in case it didn't work, and followed it up with a tight trailing stop to lock in profits.
This isn't rocket science, just good sense, imho.

Nice One, Richard.

As it happens, FAS wouldn't come up my scanner this morning because one of the filters I use is ">2%" in terms of gain. So, keeping its chart up all the time is a good idea. That aside, if it had, I would probably have entered on the bar ending time 14:50 because that is when a 1c break of the previous high occurred. Maybe I would have been stopped out with the following (around) 11c drop but, that aside, any chance you could expand on why you entered on the bar two minutes later. If you can that would help me a lot because at the moment I find the big moves sometimes happen on the second break (like this time) rather than the first (if you see what I mean?)

Thanks again for all you help.

Cheers
Steve

 

[stefan416]

I second that! I managed roughly the same trade (74.29 to 74.80). I chickened out when it staled and attempted reading of L2. I also took a few more trades on FAS with both some minor wins and loses. If it wasnt for FAS today I would be in the red pretty hard. Every other symbol I tried to trade ended up in losses. Do you guys set hard stops or mental because I had a few rather large 15-20c losses because of rapid movements on relatively low ATR stocks. Before I knew it I'd be down 15c on the trades. Any advice? I think I'm looking to hard to find the trend within the charts :S

Stefan

P.S. lets get this thread up and going again everyone

 

[scholfield]

Is there not a way to set up a default stop somehow?
So every trade you get into will automatically stop you out if it moves 10c against you?
(i'm pretty sure you can do that with spreabet platforms, but I'm asking with regards to Direct access brokers / equity platforms)

 

[D70]

The particular method in this thread can also be used on Exchange Traded Funds, ETFs.

One I always have up on a screen is FAS. This is Direxion Daily Financial Bull 3X Shares and is based on the Russell 1000 financial services. There are times when it trends very nicely and if you keep a chart of it up permanently then you can spot any sudden clean and clear move very soon after it starts.
Today it suddenly lit up and I traded it as shown; entry at the pointer, exit at time of screen grab. This produced a very nice move of 129c per share, so a position size of 1000 shares made $1290 and of course pro rata for anyone trading smaller or larger positions. As always I had a very tight stop loss at entry just in case it didn't work, and followed it up with a tight trailing stop to lock in profits.
This isn't rocket science, just good sense, imho.

Along with your chart screen shot. Can you show your blotter screenshot.
Thanks.

 

[Mr. Charts]

Hey Mr. Charts,

If you wouldnt mind checking you PMs, I sent you a message. I know you've stated you dont answer PMs but I don't have enough posts on T2W at this time -- havent been very active on this forum

Thanks for all the help you've given the community,
Stefan

You have an email which I hope helps at least a little bit, Stefan.
Richard

 

[evostik]

Along with your chart screen shot. Can you show your blotter screenshot.
Thanks.

Hi D70; please, what is a blotter?

Thanks
Steve

 

[evostik]

I second that! I managed roughly the same trade (74.29 to 74.80). I chickened out when it staled and attempted reading of L2. I also took a few more trades on FAS with both some minor wins and loses. If it wasnt for FAS today I would be in the red pretty hard. Every other symbol I tried to trade ended up in losses. Do you guys set hard stops or mental because I had a few rather large 15-20c losses because of rapid movements on relatively low ATR stocks. Before I knew it I'd be down 15c on the trades. Any advice? I think I'm looking to hard to find the trend within the charts :S

Stefan

P.S. lets get this thread up and going again everyone

Hey Stefan

I use a hard stop which is placed automaticaly when the BUY STOP is filled. I vary the stop size based upon ATR of the stock I am looking at. Along with share size, of course.

For me, a stop of >10c means the ATR and/or spread of the stock does not meet my criteria and is therefore not traded with this methodology.

Cheers
Steve

 

[evostik]

Is there not a way to set up a default stop somehow?
So every trade you get into will automatically stop you out if it moves 10c against you?
(i'm pretty sure you can do that with spreabet platforms, but I'm asking with regards to Direct access brokers / equity platforms)

Yes, inital STOPs are set automatically and dragged accordingly. Personally, I could not trade this method profitably without such facility. For me it is VITAL.

Cheers
Steve

Oh, forgot to say that the STOP (for me) isn't set at 10c. It is specific for each trade dependant upon ATR.

 

[Mr. Charts]

Nice One, Richard.

As it happens, FAS wouldn't come up my scanner this morning because one of the filters I use is ">2%" in terms of gain. So, keeping its chart up all the time is a good idea. That aside, if it had, I would probably have entered on the bar ending time 14:50 because that is when a 1c break of the previous high occurred. Maybe I would have been stopped out with the following (around) 11c drop but, that aside, any chance you could expand on why you entered on the bar two minutes later. If you can that would help me a lot because at the moment I find the big moves sometimes happen on the second break (like this time) rather than the first (if you see what I mean?)

Thanks again for all you help.



Cheers
Steve

Steve,
It's not simply price reaching a certain level which triggers a trade for me. After all, just because someone offer out stock at one cent above a key level (for example, a high of the day) and someone else buys it - maybe only a 100 shares - that doesn't mean the price will soar. This is why I don't necessarily trade at a specific price. It's about buying and selling pressure and reading time and sales which gives me an extra edge and that price action is beyond the scope of this thread. Having said that, most of the trades on this thread simply didn't need those pressures and reading confirmation as they were clean and clear on the chart.
From that you can conclude I certainly do not necessarily take a trade merely because it reaches a new high or low or with any of the other methods I use which are not on this thread.
Hope that helps, Steve,
Richard

 

[Mr. Charts]

Good replies/contributions from evostik, imho
Personally I only use mental stops as price action is key for me and having traded for my living for 13 years I have the mental discipline to make instant unemotional decisions and execute them immediately.
However, evostik's advice to scholfield and stefan is really good stuff for inexperienced traders.
Richard

 

[scholfield]

Hey Stefan

I use a hard stop which is placed automaticaly when the BUY STOP is filled. I vary the stop size based upon ATR of the stock I am looking at. Along with share size, of course.

For me, a stop of >10c means the ATR and/or spread of the stock does not meet my criteria and is therefore not traded with this methodology.

Cheers
Steve

Who do you trade with that gives you the feature of automatically placed stops when orders are filled?