Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

Mr. Charts,
Just joined the site, and about 1/5 through this thread. Looking forward to catching up and kudos to your dedication to help others, even though you are crazy busy, and it appears crazy profitable

Thank you for your kind words.

Sometimes you see something which is simply either rocketing up or waterfalling.
Not long after open I saw QQQ (which is a stock substitute for the Nasdaq) collapsing.
I always have a chart of that up, as well as DIA and SPY.
I waited till there were some successive falling candles then jumped on board for a 68c per share profit. Well, people can be contrarians if it makes them feel good about themselves being against the crowd, but in stock trading I want to be with the crowd till it slows down

 

[flazedude]

Hi Mr Charts,
I'd like to show my gratitude in sharing your methods and has been really helpful to me as I've combined with various of other indicators I've learned through other sources.

I've read a few books on day trading so I would say a little bit familiar with your methods, and have been trading for a small amount of time, so far I can nail a profitable trade (purely buying low, selling high) 8 out of 10 trades.

However, I feel the movement in the stock is simply not enough to cover the commission charges provided by the broker (I trade the UK FTSE stocks through Barclays Stockbrokers), would you have any tips as to how big of a trade to be making as well as the size of each stock I buy, I did manage to overpower the commission charge by buying a huge amount in a really expensive share (over 800 pence, which is like 8 pounds per share), a tiny movement did yield alot. But this completely contradicts the first law of trading which is to start small, slow and protect your base capital, which I understand to be a very risky investment, especially for a beginning like me.

Before I was trading on FTSE 100 stocks and they had stamp duty applied to each trade as well. Rightnow it's 0.5% of the trade + a 5.95 x 2 in and out commission (which adds up to roughly 12 pounds).

Now I trade with FTSE AIM stocks which are exempt from the 0.5% stamp duty.

I know you're extremely busy so I would be much appreciated if you could help me out.

Thanks again.

Jack

ps. my capital is around 3500 pounds.

 

[The Nude Investor]

Hi Mr charts, just signed up to the site - amazing resource. I've recently moved to the USA from Australia and am looking to get into the US market. Working my way through this thread as we speak - what a great resource.

Will be around posting in the future for sure! keep up the good work.

 

[Amit 1986]

Thank you for your kind words.

Sometimes you see something which is simply either rocketing up or waterfalling.
Not long after open I saw QQQ (which is a stock substitute for the Nasdaq) collapsing.
I always have a chart of that up, as well as DIA and SPY.
I waited till there were some successive falling candles then jumped on board for a 68c per share profit. Well, people can be contrarians if it makes them feel good about themselves being against the crowd, but in stock trading I want to be with the crowd till it slows down

Hi Richard,

Nice trade!

Amit

 

[Mr. Charts]

Hi Mr Charts,
I'd like to show my gratitude in sharing your methods and has been really helpful to me as I've combined with various of other indicators I've learned through other sources.

I've read a few books on day trading so I would say a little bit familiar with your methods, and have been trading for a small amount of time, so far I can nail a profitable trade (purely buying low, selling high) 8 out of 10 trades.

However, I feel the movement in the stock is simply not enough to cover the commission charges provided by the broker (I trade the UK FTSE stocks through Barclays Stockbrokers), would you have any tips as to how big of a trade to be making as well as the size of each stock I buy, I did manage to overpower the commission charge by buying a huge amount in a really expensive share (over 800 pence, which is like 8 pounds per share), a tiny movement did yield alot. But this completely contradicts the first law of trading which is to start small, slow and protect your base capital, which I understand to be a very risky investment, especially for a beginning like me.

Before I was trading on FTSE 100 stocks and they had stamp duty applied to each trade as well. Rightnow it's 0.5% of the trade + a 5.95 x 2 in and out commission (which adds up to roughly 12 pounds).

Now I trade with FTSE AIM stocks which are exempt from the 0.5% stamp duty.

I know you're extremely busy so I would be much appreciated if you could help me out.

Thanks again.

Jack

ps. my capital is around 3500 pounds.

Have a look at interactivebrokers CFDs

 

[Mr. Charts]

Hi Mr charts, just signed up to the site - amazing resource. I've recently moved to the USA from Australia and am looking to get into the US market. Working my way through this thread as we speak - what a great resource.

Will be around posting in the future for sure! keep up the good work.

 

[Mr. Charts]

Hi Richard,

Nice trade!

Amit

Hello Amit

You have email

Richard

 

[Mr. Charts]

Here is an early one from today, KING, which produced 55c profit per share.

Just because a stock has gapped down that is no reason not to go long.

I trade on facts, not my opinion of what something should or shouldn't do price wise.

Clear and definite rising candles on this one so why not jump on board for the ride and trade it....?

 

[Amit 1986]

Here is an early one from today, KING, which produced 55c profit per share.

Just because a stock has gapped down that is no reason not to go long.

I trade on facts, not my opinion of what something should or shouldn't do price wise.

Clear and definite rising candles on this one so why not jump on board for the ride and trade it....?

Hi Richard,

Another great trade I also traded that one but I was a little late to the party.

Amit

 

[Mr. Charts]

Good stuff, Amit.
You have another email
Richard

 

[rawrschach]

Strike rate is irrelevant

 

[Mr. Charts]

Today was a strong trading day and here is just one trade using the rising candles method in a strong stock.
I picked up EDU on a scan at 16:27 UK time (11:27 EDT), put it on the alert list and simply kept an eye on it in case it presented a high probability opportunity.
29 minutes later it headed north having been preceded by rising candles.
Entry at the pointer, exit at time of screen shot for +65c a share.

 

[Mr. Charts]

Forgot the chart !

 

[Mr. Charts]

Today was a weak trading day with the main indices going nowhere after market open.
Nevertheless, if you've got good methods there are always opportunities.
Using one of my methods as in this thread I traded CBLI.
It was on my alert list because of the news about the stock and it was a huge pre-market gapper. I simply bided my time till one of my methods set up. Of course the temptation to jump on board such a huge mover almost regardless was always there, but that's an emotional greed or not wanting to be left out thing. I learnt long ago to ignore my emotions when trading.

This chart looks a bit different to most on this thread because it's not as clean and clear. However, as the candles rose through the high I expected a pullback and waited. The price move then dipped back creating more or less what the Americans call a cup-with-handle as it rose again on a rush of buying and rising candles. I went long as shown by the pointer and exited at the time of the screen grab for +56c a share profit. I was on the brink of closing the trade on that red candle and would have done if it had dipped below the low of the previous one, but it didn't.
I traded that stock again later and lost just -5c on the second trade.
Let the winners run and the cut the losers very quickly. All my winners and losers on my blog as always.

 

[Mr. Charts]

A couple of more trades today using this method.

The first one was ZTS which I put on the watch list 10 mins pre-market and concentrated on from the open. It started falling immediately and fast. I jumped on board the falling candle until it slowed right down then covered. You can actually eye ball the candles reducing in height. It produced 97c profit per share. This is not the sort of very early trade people should take until they've built up some experience of recognizing this type of move.

The other one was WMB which went on the alert list an hour before open.It was much more the usual type of trade on this thread using this particular method.
+62c per share.

Obviously trades are not always successful but the key is to exit the ones which don't work fast so you only get a small loss.

Elsewhere on this site people are discussing whether or not to have stop losses.
For me it's very simple, let the flowers bloom and pull out the weeds when they are small. Why anyone should sit watching themselves lose money in a trade is beyond me ! I've been trading for a living for 15 years and staying in good situations and getting out of bad ones fast works ! Having small losers is the cost of doing business, simple as that.

 

[Mr. Charts]

Sometimes early on in the trading day I'll see one of my alerts shooting off in one direction after a mixed start and will jump on it.
CSIQ was on the pre-market list and after an unclear start everyone was buying it so as the candles rose I went long. When the move appeared to die I exited.
+92c per share.
After that my trades were mixed with three small wins and two small losses so that first trade made the day worthwhile

 

[Mr. Charts]

Most people don't bother looking for moves after a take over has been announced, but sometimes you get price shifting sharply. I alerted HNT pre-market (image on my blog together with winners and losers) and simply waited to see if one of my set ups occurred. The falling candle method did set up and produced 182c per share profit.
A nice trade ahead of the long July 4 weekend.

 

[darktone]

Elsewhere on this site people are discussing whether or not to have stop losses.
For me it's very simple, let the flowers bloom and pull out the weeds when they are small. Why anyone should sit watching themselves lose money in a trade is beyond me! I've been trading for a living for 15 years and staying in good situations and getting out of bad ones fast works ! Having small losers is the cost of doing business, simple as that.

Richard. With all respect. Trading without stop orders does not have to mean that 'the trader will sit there and watch themselves lose money'.
Even with your 15 years in (which I can match btw), Its entirely possible that the reason Its 'beyond you' is that you maybe a touch less savy than you think you are.

 

[seguna]

Darktone...not sure you appreciate Richard's view on this.

From my reading of his comments over the years, it's simple...just cut your losses as soon as you recognise a failed pattern/signal. That's it.

HOW you actually do that - stop loss orders or market orders - depends on a number of factors. In his case, as an aggressive very present day trader, market orders work best.

For trading styles that are more laid back with less time available, stop losses are all important.

 

[darktone]

Darktone...not sure you appreciate Richard's view on this.

From my reading of his comments over the years, it's simple...just cut your losses as soon as you recognise a failed pattern/signal. That's it.

HOW you actually do that - stop loss orders or market orders - depends on a number of factors. In his case, as an aggressive very present day trader, market orders work best.

For trading styles that are more laid back with less time available, stop losses are all important.

I think I do, and as a previous advocate of stops I see now see it as a flawed view, from the point of profitability at least.
Theres one order you missed btw, a limit order.

This is Richards thread, so thats all ill say here. Pop in to the I Stopped Using Stops and test your view.