Best Thread How To Make Money Trading The Markets.

[grahamjonesfr]

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

thanks Richard, look forward to that

 

[fxstrategist]

Talking about tick charts, when they show the bid and the ask you can see the struggle between buyers and sellers. If you have a trained eye. But all time frames are important for all types of trading.

 

[clbfjc]

Hi, you have probably answered this a million times before, interested in Stocks vs Futures, I just cant get my head round why you would trade individual stocks over a future on a short term basis as surely the commisions are a mere for scalping??

 

[morgan_edge]

probably 'cause there's always a stock that is moving nicely. If he's looking at certain patterns, he can pretty much guarantee he'll find something he likes when choosing from thousands of stocks via a scan, as opposed to just a futures contract which might just be trading in a choppy little range all day long

 

[markettiming]

I have a quote screen with everything on my alert list plus some other indices I watch.

Do you sort stocks in a quote screen by % change ?

 

[Mr. Charts]

Do you sort stocks in a quote screen by % change ?

If you mean my alert list once created and then added to during the session, no.

 

[Mr. Charts]

I spotted and alerted TJX four minutes before market open as being a pre-market gapper.
It worked out well.
Here are my two trades in TJX, both used my rising candles set up.
The first trade profit was 70c per share on one minute candles.
The second produced a profit of another 125c per share on three minute candles.
Charts to follow in a few minutes.

 

[Mr. Charts]

TJX trades today

 

[markettiming]

Mr Charts,
you traded today WTW. It is uptick from open.
In earning seasons everyday there are stocks which gap down more than 10%, but i moved them away because of uptick rule. To short such stocks we need to use limit orders.
It looks like you had strong reason today to add WTW to you alert list, didnot you?

 

[Mr. Charts]

Six trades today, two of them using the method in this thread.
The first was KYTH which was a premarket choice and the second was TSN, picked up from my scanner a few minutes after market open.

KYTH wasn't the ideal chart appearance I prefer before using this method, but it was starting to trend in a rough way and looked a good candidate to rocket up, which it duly did giving me 89c per share profit.
I thought the probability of success was about 65-70%, and that is good enough providing you have a tight stop.

TSN was the clearly trending stock I love so much and was therefore an even more high probability trade. That also took off, this one to the downside for another juicy profit of 84c a share.
I thought the probability of success with this one was 85-90%.

These probabilities are based on my 15 years of experience of trading for a living.

 

[Mr. Charts]

My methods also work reasonably well on indices, though they tend not to trend well like the stocks you can find almost every single day. There are only a handful of indices, but thousands of stocks, so that's hardly surprising.

DIA is an ETF for the DOW30 so it behaves almost completely like a stock.

Here's an example of falling candles from this afternoon, giving me a gain of 32c a share.

 

[markettiming]

KYTH wasn't the ideal chart appearance I prefer before using this method, but it was starting to trend in a rough way and looked a good candidate to rocket up, which it duly did giving me 89c per share profit.
I thought the probability of success was about 65-70%, and that is good enough providing you have a tight stop.

TSN was the clearly trending stock I love so much and was therefore an even more high probability trade. That also took off, this one to the downside for another juicy profit of 84c a share.
I thought the probability of success with this one was 85-90%.

Are these probabilities based only on chart appearance or also include overall market behavier (i mean active market or choppy market)?

 

[Mr. Charts]

Sometimes I'll use this method in a stock which is moving very strongly soon after market open. You do need to know what you are doing with these quick ones in the sense you need to make a decision and execute that decision without too much prevarication, both for entry and exit. That comes with practice, of course.
LULU was a pre-market alert and I got a decent chunk of the move +73c per share.

 

[SoCalSteve]

Great thread Mr. Charts and very generous of you to share - I just wish I didn't work during market hours so I could experiment with this method myself.

Have you ever tried this method with 1 hour charts as a swing trade? If not, I may have to do some paper trading to test it.

Thanks,
Steve

 

[SoCalSteve]

Sorry if I derailed the thread - I tried to delete my above post, but I seem to be unable to.

Carry-on!

Signed,

Steve the thread killer

 

[Mr. Charts]

Sorry if I derailed the thread - I tried to delete my above post, but I seem to be unable to.

Carry-on!

Signed,

Steve the thread killer

Not at all !

Thank you for your kind words.

Most of my methods, including the one on this thread, work on larger time frames. I just prefer shorter ones personally.
Swing trades are also possible, though, again personally, I prefer intra day for a few reasons.

 

[Mr. Charts]

Some of my methods also work well on some ETFs, like SPY which represents the S&P 500.
As always, apply the rule for exiting a trade for a small loss if it doesn't work, and let the winners run.

Here's a nice +75c per share from joining an established trend on rising candles today.

Happy holiday weekend,
Richard

 

[dxx]

SGY (Stone Energy Corp)

My latest attempt using this method.

Looking for a buy after stalling at new daily high. Chart on radar

SGY

 

[dxx]

Sgy 2

this is what happened

Thanks again Mr C.

 

[Mr. Charts]

this is what happened

Thanks again Mr C.

My pleasure, glad you've found the thread helpful
Richard