Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

More info about that in the t2w interview link in my signature.

 

[Mr. Charts]

I heard that it was very easy to trade at that time.
I didnot know anybody who starts from $3500 and never loose his account.
You are very good trader.

I think you have to have methods that work on a sufficiently high level of probability, some strong self discipline, application and put the work in.
I know that since I have been able to do it, many people can too. You really don't have to have any exceptional qualities, I don't.

 

[Mr. Charts]

Thank you for your answers and explainations Richard - much appreciated!!

My pleasure. I'm always happy to answer the sensible and polite people
Richard

 

[mrsteve]

Hi Mr. Charts,

Just joined the forum Thanks for a great thread. I read all of the 71 pages of the abbreviated thread, incredible info.

Question:
It is nice to trade breakouts of ranges, BUT then a lot of breakouts fail. What criteria you use to reduce possibility of failed breakouts?

Note: From your charts, I surmise that you let a full candle with no tails form, and then hit the next candle, if it opens above the current candle low (for longs)?
.. or do you use T&S to make sure they are not going to fail.

Thanks, MrSteve

 

[Mr. Charts]

Hi Mr. Charts,

Just joined the forum Thanks for a great thread. I read all of the 71 pages of the abbreviated thread, incredible info.

Question:
It is nice to trade breakouts of ranges, BUT then a lot of breakouts fail. What criteria you use to reduce possibility of failed breakouts?

Note: From your charts, I surmise that you let a full candle with no tails form, and then hit the next candle, if it opens above the current candle low (for longs)?
.. or do you use T&S to make sure they are not going to fail.

Thanks, MrSteve

There is a lot more info here on this thread since the last date on the abbreviated one.

 

[markettiming]

I think you have to have methods that work on a sufficiently high level of probability, some strong self discipline, application and put the work in.
I know that since I have been able to do it, many people can too. You really don't have to have any exceptional qualities, I don't.

How much time did it take for your students to start trading profitably?

 

[Mr. Charts]

How much time did it take for your students to start trading profitably?

How long is a piece of string?

It depends on the amount of effort they put in, for how many hours and days and their own mental self discipline and self control and individual circumstances.

Some people find it doesn't suit them and their work/life situation and stop.

In other words the variation is so great that it's impossible to answer, but it varies from one well known person who used to be on t2w who started making profits consistently from the actual day of the course to others who take many months, some give up.
The majority are in the months sort of range.

It's like any skill, driving a car well is similar in some ways, some take to it in hours, some never, most in between.
Some take golfing or pottery or language lessons and succeed quickly, some give up, most reach a level of competence after practice and experience.
You can learn how, what and when to do something, but that doesn't necessarily mean you can succeed in simply going out and doing it immediately.

 

[Mr. Charts]

Here's a bit of a variation on the particular method in this thread.

When a falling price chart levels off, there are various considerations as to probability of the next move which I won't go into, but if price starts to rise out of the ledge with candle lows at two or three higher levels, sometimes I will go long on those rising candles. If price falls back into the ledge then I'll take a loss of a few cents. That's the maximum cent risk.
The reward is unknown, but it works often enough to make it profitable when you bear in mind the tight stop loss on those occasions it might fail.
Here's a trade in LOW today +41c per share, well worth risking 3, 4, or 5 cents on.

Of course you can't assume, as very many amateur traders do, that the probability of rising against falling is 50/50.
It always amazes me when people make that completely false assumption when "working out" their so-called risk/reward ratio.
Richard

 

[markettiming]

Here's a bit of a variation on the particular method in this thread.

There are a lot of premarket eranings stocks. Do you select which stock to choose by looking at revenue or earnings numbers?

 

[Mr. Charts]

I look at several things for my stock alerts, both pre and during market hours, including the numbers you mention and have various mental filters to reduce the alert lists to a manageable size.
The details are beyond the scope of this thread.
It takes me about 20-30 minutes, even during results season.

 

[Mr. Charts]

Two of my trades today used the method in this thread.
One was a loser, TWTR, and I exited very quickly when it turned against me, losing -3c per share. That's a loss of $30 on a 1000 share position, and pro rata for bigger or smaller position sizes, of course.
The other trade, LGF, was a +76c per share winner, i.e. $760 on 1000 shares and pro rata etc.
Both were using 3 minute candles, so nice and slow.
Keep the ones which don't work small, and the winners almost look after themselves.

 

[markettiming]

The other trade, LGF, was a +76c per share winner, i.e. $760 on 1000 shares and pro rata etc.
Both were using 3 minute candles, so nice and slow.

In first 30 min as markets open: for stocks with good premarket volume and range do you always watch premarket range to determine: does stock trade inside of that range?

 

[Mr. Charts]

In first 30 min as markets open: for stocks with good premarket volume and range do you always watch premarket range to determine: does stock trade inside of that range?

I have never suggested that...........

 

[Mr. Charts]

Only two trades out of my six trades today used this method.
AXP was a quick early trade after the initial price rise clearly and obviously reversed with clear and obvious falling candles, and that produced +59c per share profit.

The other one was VFC which was blindingly obvious simply from a glance at the chart, rising 3 min candles this time so nice and slow and gentle. +81c per share.

The opportunities are almost always there, but tend to be even easier and quicker and more plentiful during quarterly results seasons.

 

[seguna]

Mr C
How much time do you invest in analysis, preparation and trading each day on average? What's your regular trade count?

I know you primarily trade US stocks and occasional indices but do you ever trade forex?

Rgds

 

[Mr. Charts]

Mr C
How much time do you invest in analysis, preparation and trading each day on average? ABOUT HALF AN HOUR PREPARATION PRE-MARKET What's your regular trade count? VARIES A LOT - EVERY STOCK TRADE, WINNER OR LOSER, IS ON MY BLOG

I know you primarily trade US stocks and occasional indices but do you ever trade forex? YES I DO SOMETIMES, USING VARIANTS OF SOME OF MY 12 BASIC METHODS, BUT MY LIVING IS MAINLY MY STOCK TRADING.

Rgds

Richard

 

[seguna]

Cheers Richard

I can imagine it takes a lot of discipline to post EVERY single trade...do you ever get tempted to leave stuff out?

 

[grahamjonesfr]

Hi Richard,

Thanks for your wisdom.

quick question: You say one of your exits is when a candle takes out the previous one. Do you mean when the current price dips below the previous or when the current candle closes below (in a long trade)?

Thanks,

Graham

 

[Mr. Charts]

Cheers Richard

I can imagine it takes a lot of discipline to post EVERY single trade...do you ever get tempted to leave stuff out?

???

I trade between 5 and 15 times a day and post winners and losers straightaway on my private site and have done so non stop since I started that live alert site in 2005.

I post the results on my public blog when I finish trading.

 

[Mr. Charts]

Hi Richard,

Thanks for your wisdom.

quick question: You say one of your exits is when a candle takes out the previous one. Do you mean when the current price dips below the previous or when the current candle closes below (in a long trade)?

Thanks,

Graham

Good morning, Graham,
I mean when current price dips below the previous.
I will email you tomorrow to elaborate more.
Have a good day,
Richard