Best Thread How To Make Money Trading The Markets.

[Lúidín]

Overall exit rules are on the first few pages of the thread. It was a momentum play, so the exit was at the point of momentum dying off. The next bar would have been an exit anyway as per the mechanical rules.

Just out of interest - how would you have managed your exit if you were short? What information had you seen to tell you there was more downside to come ?

I take it Mr Charts can reply for himself..but as you asked..i will answer you

the stock made a long series of NRB's the previous day..then it gapped down..took out the PDL..this means the odds of it moving lower were high..which it did

when a stock gathers momentum..you must maximise the moment..as this is what correct position sizing is all about

you can not apply the same rules at all times..as a stock does not move the same all of the time..horses for courses!

there is a term called "waterfall"..it is well worth learning about..if you can find the correct way that explains it..that is

this is a cheap stock..which is not good to trade..as there are far better opportunities to be had trading +$50 stocks..but to do that effectively..you of course need adequate money..which most retail traders do not have..money makes money..that will never change

 

[tar]

Many times when momentum dies off it indicates continuation , that what happens when the stock slightly reverts back to the MAs before moving on with the initial trend ...

 

[Lúidín]

Many times when momentum dies off it indicates continuation , that what happens when the stock slightly reverts back to the MAs before moving on with the initial trend ...

i do not use any lagging indicators for trading..can you show an example of same with a chart

as we all know..there is no right or wrong way to trade..as you can make money by just clicking the mouse..but..some ways are much better than others in relation to risk versus reward..

a stock can do anything..at any time..but..at certain times..it is more likely to do the same thing..within certain boundaries..which can be predictable up to a certain point..but never 100%..which is why you should always lock in profits when trading

the correct balance is only achieved by knowing what works best..which only comes with experience

no person can show another their experiences..as to think and act like another person..one must have had the attached emotions..as it is the emotions that enforce the memory..and the ability to quickly act when required

this is why teaching others does not work in the majority of cases..and it is not the students fault..but the teacher..as..to teach correctly..one must know how to get the student to remember easily

 

[tar]

i do not use any lagging indicators for trading..can you show an example of same with a chart

as we all know..there is no right or wrong way to trade..as you can make money by just clicking the mouse..but..some ways are much better than others in relation to risk versus reward..

a stock can do anything..at any time..but..at certain times..it is more likely to do the same thing..within certain boundaries..which can be predictable up to a certain point..but never 100%..which is why you should always lock in profits when trading

the correct balance is only achieved by knowing what works best..which only comes with experience

no person can show another their experiences..as to think and act like another person..one must have had the attached emotions..as it is the emotions that enforce the memory..and the ability to quickly act when required

this is why teaching others does not work in the majority of cases..and it is not the students fault..but the teacher..as..to teach correctly..one must know how to get the student to remember easily

I dont use any indicators either , i dont consider MAs as indicators though but i add them to my charts non the less - volume as well if applicable - . And there is no such thing as lagging vs leading indicators they are all lagging no one can know for sure whats going on in the future .

 

[Mr. Charts]

Overall exit rules are on the first few pages of the thread. It was a momentum play, so the exit was at the point of momentum dying off. The next bar would have been an exit anyway as per the mechanical rules.

Just out of interest - how would you have managed your exit if you were short? What information had you seen to tell you there was more downside to come ?

Exactly right, of course

 

[Mr. Charts]

Opinions will, of course, vary as to what is a suitable stock.
For me, within reason and certain parameters, what matters in a momentum strategy is that the price is moving, not whether it's a $10, $20, $50, $100, $500 stock. You simply adjust your position size based on your chosen risk levels and the ATR and your worst case exit strategy. I have discussed these earlier in the thread.
I use a variety of set ups, of which the rising/falling candles method is just one, but the key to all of them is momentum - price action momentum, not some unreliable indicator.

 

[Mr. Charts]

Here is one from today, LNKD alerted before the open and which was a simple clear falling candles move.
This produced a nice juicy 199c per share, that is $1990 for a 1000 shares, $995 for 500 shares and pro rata.
I covered this one very near its low of the day so far.

 

[Mr. Charts]

A good day so far for this particular method.
7 trades total, 4 using this method
1 small loser, 3 good winners from those 4
All trades, winners and losers, on blog as always.

FDX alerted pre-market from news, EMR and ESRX from scans after open.

ESRX +105c per share (earlier trade lost -10c)
FDX +111c
EMR+60c

A good day and the sun is shining with Spring in the air. Don't you just love trading

 

[Mr. Charts]

I always have a pre-market alert list which changes from day to day, but one stock which I really keep a permanent chart up of and always alert is BABA. It sometimes moves very sharply for no apparent reason.
Just before the open it began to move up so I focused closely on it. It moved sharply from the start and once I saw the sheer momentum was there and there were rising candles (including pre-market) I bought it.
This produced a very nice fat profit of 209c per share. I exited extremely close to what proved to be the high of the day so far.
Although this sort of very early trade is only for those with some experience, you should always use a position size and exit strategy which limits any potential loss to what you choose in advance of taking the trade. If you are comfortable with 1000 shares ($2090 profit) or more, then fine, but you can always just take 100 shares ($209 profit).
I really don't care what happens after I exit a trade, I'm about taking money consistently out of the market time after time after time. Of course, I can always enter again if I want to. I act on the evidence in front of my eyes and if the evidence says the move might be over, then I exit. I think it's unwise to stay in a trade in the "wish" and "hope" it might make you more money when the evidence says it's moving in the wrong direction. That's my style anyway, and it suits me fine and has done since I started trading for a living 16 years ago.
As always, pointer at the time of entry and screen shot taken at the time of exit.

 

[Mr. Charts]

Apart from the above trade, it was a very quiet day for me with just four other trades, two small losers and two small winners, (on my blog as always), so I just love BABA today

 

[Mr. Charts]

The pre-market news and gapping made me put JPM on the alert list and it produced several opportunities including using the particular method on this thread. Pointer at entry price, image taken on exit.
+66c per share in the opening minutes alone.

 

[achi72]

Hi, i read somewhere yout methods work on other Instruments too with Little changes. What Kind of changes do you mean for e.g. Forex?
Thanks

The pre-market news and gapping made me put JPM on the alert list and it produced several opportunities including using the particular method on this thread. Pointer at entry price, image taken on exit.
+66c per share in the opening minutes alone.

 

[Mr. Charts]

more limited pre-entry trending with FX

 

[Mr. Charts]

If a stock hasn't trended much I prefer to wait till the trend is clear and obvious before entry.
URI was a pre-market alert and once the trend was established it seemed reasonably safe to jump on board. If the trade doesn't work out very quickly I tend to exit. Wishing and hoping aren't in my trading vocabulary.
Later I traded URI again and both times it failed.
However, the winning trade was +128c per share and the losing ones were -12c and -11c.
Let the flowers bloom and kill the weeds whilst they are small.
Other trades on my blog as always.

 

[Mr. Charts]

As previously mentioned, I always keep an eye on BABA.
Today, using this particular set up, it proved yet again to be the gift that keeps on giving.
+74c per share

 

[Mr. Charts]

Just because a stock (SRPT) has gapped down hugely is no reason not to go long........first trade produced +36c a share using a different set up
This image is of the second trade using rising candles +44c a share.
All trades, winners and losers, stocks and Forex on my blog.

 

[Mr. Charts]

I just love BABA !
+43c per share

All trades, FX and stocks, winners and losers, on my blog.

 

[Mr. Charts]

I usually get the first trades from my pre-market alerts, but today there was none of the price action I like right at the open so I ran a quick scan and found STX and it set up this method so..... +130 cents per share

 

[Mr. Charts]

Mr Charts,

I read this thread and find your trades very interesting.
You are a fast reader...you join, read the thread and post on the same day.....makes me guess as to who you are.........

How many monitors should I use? How many do you use?
Two

You posted that you have a quote screen with up to 20 stocks on it. Is that on one monitor?
Yes

You also said that you have a monitor with 16 charts on it. How can you watch all those things at the same time?

Do you look at the charts, then the quote screen and then the scanner?

It's like driving. You keep an eye on everything. Road, weather conditions, operate three pedals, wheel, check mirrors, obey road speed restrictions, read street furniture, etc etc and ANTICIPATE


Regards,

MT

See above

 

[Mr. Charts]

SRPT was a pre-market alert.
I could have gone in on the earlier rising candle set up, but was busy trading something else (VRX)
SRPT +52c per share