Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

Here's another today - one of several of this particular set up.
It's basically what I call a bread and butter earn your living steadily type trade.
+32c per share.
I didn't wait for the chart exit signal as I could see on the chart - and it was confirmed by the support on the level 2 screen - that it was unlikely to go down further in the near future , or at least probably not by much; hence it was time to take profits.
Sometimes it's not worth trading much during the US lunch time, but if the money is lying there waiting to picked up.........
Richard

 

[barjon]

Why do people always want to pick holes in people giving something for nothing?

You see it many times on here. People post the how and why they trade and take time to answer all questions and all they get is people saying "your method's crap, it won't work etc etc"

If you like it demo trade it or trade it small until you're sure it works for you.

If not either post sensible reasons why it will not make consistent money or leave the thread.

I haven't seen Richard or others that post here using this as a platform to recruit new members to their commercial activities. (and those that do are usually told to forget it asap by other members) They just seem to genuinely want to help the people who are a bit lost onthe market.

Guess that's human nature though isn't it.

ps this isn't aimed directly at pips-galore, it happens quite often on T2W and i guess it's just me having a general rant.

I'm real glad you had your rant, foredog

You're so right that this often happens on T2W - and then when we try to do something about it up go the cries of favouritism etc etc

It's absolutely fair dinkum to disagree and criticise what is being said, but it is not right for people to start attacking the person who is saying it. In this thread Mr Charts has advanced a methodology and it is that which matters.

So, we mods are going to don our flak jackets and clean up the thread later on. We'll probably ruffle a few feathers, but so be it.

Cheers

jon

ps: cleared out 27 of the recent posts - but leaving this one for the moment in case you wonder where your posts went!!

Apologies to those who posted good and reasonable stuff.

jon

 

[notlob]

Mr Charts, I was wondering if we would see a chart of CTAS from last Wednesday, it was a thing of great beauty as the chart (1 min) marched very steadilly without retracement all the way past the days high to give a gain approaching $2. CTAS was in the news that day, did that share fit your criteria?

More modest a move, XRX on Friday gave a nice 40c for very little risk, another news stock that trended, can I ask if that one was also on your list?

Thank you again for this excellent thread.

 

[notlob]

lovely trending in TFX today

 

[Mr. Charts]

will reply when time, notlob

 

[notlob]

many thanks Mr Charts

 

[Mr. Charts]

hi notlob,
I think you've got the hang of this
I was away last Wednesday doing something trading related but not trading myself so I can't answer that question, I'm afraid.
On Friday XRX was on my pre-market list 10 minutes before the open.
Richard

 

[notlob]

Thank you for your reply, Mr Charts

I think I am slowly getting the hang of it.

You have mentioned before that discipline is required, at that, perhaps, is the hardest part of all.
The 'obvious' set ups and strongly trending shares are fine, it is when I am tempted by others that perhaps are not as strong for whatever reason, that things can go astray.
Trying to learn that less can be more and only take something that has a high probability of success is not always that easy!

I am very pleasantly surprised by the number of stocks that appear in the news and offer good opportunities in any given week, and am trying to confine myself to these, although I did find TFX, which, although not in the news, was trending in too good a way to turn down.

I look forward to your postings of more trading examples, which I find very interesting and instructive, when you have time, ofcourse.

 

[mitch101]

Please can someone tell me if it would be possible to apply the strategies detailed here using a bank of £250?

 

[notlob]

well, you can spread bet using more or less nothing, they require a deposit,but as the strategy involves closing out all positions before end of day, the deposit is never actually required, least not with the sb company I use (IG index)
But with £250, clearly you would have to be very careful, with perhaps 50p per c stake tops.

 

[poisonivy0]

Does (Mr Charts) methods work on Spread Betting as you get large 4-6 point spreads so unsure if its profitable using SB to say your in and out in a blink on an eye.

 

[notlob]

It is profitable, but your universe of shares is less, as SB's cover a more limited range of shares, but IG do dp around 2000 US Stocks.
On some popular shares the spread is not too bad, 3c-5c, not as good as dealing direct, but not too bad considering there is no tax or paperwork to worry about and minimal funding required.

eg, XRX last Friday was 3c spread, gave 40c profit
Cintas last Wednesday was 5c spread, gave close to $2 profit
Teleflex on Monday was 10c spread, don't really like doing ones where spread is that large, but the opp looked too good to refuse, 100c profit.
Just have to keep the losses to a minimum, when the spread is 3c-5c and the opp looks good and the share is relatively slow moving, then keeping losses in the 10c-15c range tops is not too hard

 

[Mr. Charts]

notlob,
I've been very busy recently but I have to say your replies to poisonivy and mitch are spot on.
Thank you
Richard

 

[Mr. Charts]

The market has been extremely profitable recently, apart from the occasional quieter day, but I always keep building my library of images of trades I've taken for another place so I'll put some of those up here to further illustrate this particular technique.
I'll also post some more on my stop loss approaches.
Very often it is not possible to predict possible "reward", but the one thing you can control almost exactly is the risk.
As long as the risk is minimised and the open position management is very good, profits almost take care of themeslves.
People seem to cling to the belief that risk and reward have an equal probability of happening, so they think if you find something with a clearly defined risk, all you have to do is predict the probable reward and then will take the trade if the risk:reward is 1:3, for example.
Most people don't seem to recognise that the probability of the "reward" might only be 25% and the "risk" they are accepting might be 75% likely to occur.
What's more, even when the very occasional trader does understand that, they then realise there is no reliable way they can actually assess the probabilities anyway.
In trading like this, and with this particular set up, the one thing, (apart from your own behaviour), that you can control, is risk.
Obviously you don't do things like going long into nearby resistance, or short into nearby support when you are a beginner.
When you are experienced there are some instances when you can do that profitably, but that is way beyond what I'll talk about in this thread.
Keep it simple and repetitive and build up the profits consistently using the set up in this thread.
I'll go into the detail of stop losses another time though I have mentioned them earlier here.
Richard

 

[notlob]

thank you, Mr Charts, for your kind comments

Look forward to seeing some more images of your trades.

 

[Mr. Charts]

Another fantastic day's trading with loads of opportunities using this set up (as well as others).
Richard

 

[byeung7]

Another fantastic day's trading with loads of opportunities using this set up (as well as others).
Richard

Hi Richard,

Is it me or is the attachment missing?

Ben

 

[suresh1_1]

Can anyone help me to know is it the right time to invest in stock market.

Is the market heading towards North or still bottom has to be seen.

 

[Mr. Charts]

byeung7,
There is no attachment to that post.

suresh,
Welcome to t2w.
This thread is not the best place for a question like that as it is limited to day trading of US stocks.
You could open a new thread and try and canvass opinion.
Personally, I trade what I see and on the evidence, not on other peoples' opinions, not even on my own - just on hard evidence.
My opinion, for what it's worth, is that we have already bottomed out; degree of confidence in that view, about 75%.
As I said I would prefer to have this thread focussed on the subject and if you started a new thread you would probably get a much wider range of opinion.
Richard

 

[shopsmart]

Hi Mr. Charts/notlob,

Thanks very much for sharing this method. Could you please touch on how you identify trending stocks in a certain day? (Is it ADX> 40 or something like that?)

Thanks in advance.