Best Thread How To Make Money Trading The Markets.
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Mr. Charts
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nine,
See post #4.
I'm looking for what is described there.
I am happy to enter the trade when it is trending and at a new high for longs or new low for shorts.
If it has been trending with the candles as described for quite a while I become more reluctant to enter. This is a matter of judgment and is based on reading the trades printing off; as long as they are steadily continuing I may well enter the trade; if they have tailed off, then the chances of a reversal have increased. As I've said, I'm looking for safe as possible bites out of the move.
No certainty, only high probability.
In addition to post #4, the charts posted so far illustrate examples of the entries and exits.
As mentioned there will be more to follow on different aspects of this method as and when I get time to post on this board.
Richard
See post #4.
I'm looking for what is described there.
I am happy to enter the trade when it is trending and at a new high for longs or new low for shorts.
If it has been trending with the candles as described for quite a while I become more reluctant to enter. This is a matter of judgment and is based on reading the trades printing off; as long as they are steadily continuing I may well enter the trade; if they have tailed off, then the chances of a reversal have increased. As I've said, I'm looking for safe as possible bites out of the move.
No certainty, only high probability.
In addition to post #4, the charts posted so far illustrate examples of the entries and exits.
As mentioned there will be more to follow on different aspects of this method as and when I get time to post on this board.
Richard
Mr. Charts
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Freeman,
Most live scanners will find the big movers of the day for you. I use eSignal Turbo scanner, but there are plenty available.
LZ,
For me personally I dislike trading the AAPLs and GOOGs of the world as I prefer the slower easily readable stocks where I can take larger position sizes with minimum risk and greater certainty.
Everyone to their own thing, though.
Good trading to you.
akindele,
This thread is not about "penny stocks" and they do not move as the stocks I trade, so what I've said so far and will be saying in the future won't be of much use to you, I'm afraid.
Perhaps search on this site for penny stocks and open a thread if you have questions about them
windowsill,
Thank you for your assistance
Richard
Most live scanners will find the big movers of the day for you. I use eSignal Turbo scanner, but there are plenty available.
LZ,
For me personally I dislike trading the AAPLs and GOOGs of the world as I prefer the slower easily readable stocks where I can take larger position sizes with minimum risk and greater certainty.
Everyone to their own thing, though.
Good trading to you.
akindele,
This thread is not about "penny stocks" and they do not move as the stocks I trade, so what I've said so far and will be saying in the future won't be of much use to you, I'm afraid.
Perhaps search on this site for penny stocks and open a thread if you have questions about them
windowsill,
Thank you for your assistance
Richard
timsk
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Hi Richard,
Great to see a new Mr. Charts thread!
Do you welcome subscribers to it to post charts of trades they've taken using the set up you describe so that you can then comment good / bad etc. (a la the pin bar set up on Trader_Dante's thread), or do you want the thread kept 'clean' with minimal red herrings and cul-de-sacs? I'm just trying to gauge how much audience participation - and of what kind - is welcome or unwanted.
Tim.
Great to see a new Mr. Charts thread!
Do you welcome subscribers to it to post charts of trades they've taken using the set up you describe so that you can then comment good / bad etc. (a la the pin bar set up on Trader_Dante's thread), or do you want the thread kept 'clean' with minimal red herrings and cul-de-sacs? I'm just trying to gauge how much audience participation - and of what kind - is welcome or unwanted.
Tim.
Mr. Charts
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I said in post #8 I would show the chart of the trade I did on Wednesday.
Here it is.
Again I think it is worth looking back at the other charts and you can see the similarities.
If you are going to test out this method for yourself, I think it is much easier to have these examples so you can identify the set up by visual comparison with what you see on your own screen as you find the possible stocks live.
This trade produced a profit of $1.10 per share. That's $2200 for 2000 shares, $1100 for a 1000, $550 for 500, and so on.
As always the entry is on the red X hairs and the exit at the time of the screenshot.
Again the exit candle proved to be the swing low on the 1 minute chart and the decision to exit was based on a growing sense during that minute that this might be a volume blow off and then when the selling seemed to stop, I exited immediately.
Again I was exactly right, but I'm not always right.
Sometimes there can be a pause and the stock can continue its move.
Sometimes I'll scale out of the move, sometimes close it completely.
When I'm proved wrong and the stock continues its move I have no regrets as I've traded on the evidence in front of my eyes and no-one can do better or ask more of themselves than that.
No certainty, only high probability.
Anyway, I've banked profits and it's time to keep an eye on the same stock for further opportunities and also look elsewhere for others.
On the occasions when level 2 T&S doesn't give me any clues - and it often doesn't or there is so much noise it's of little use, then I will exit on the chart rule as described in an earlier post (post #4).
Richard
Here it is.
Again I think it is worth looking back at the other charts and you can see the similarities.
If you are going to test out this method for yourself, I think it is much easier to have these examples so you can identify the set up by visual comparison with what you see on your own screen as you find the possible stocks live.
This trade produced a profit of $1.10 per share. That's $2200 for 2000 shares, $1100 for a 1000, $550 for 500, and so on.
As always the entry is on the red X hairs and the exit at the time of the screenshot.
Again the exit candle proved to be the swing low on the 1 minute chart and the decision to exit was based on a growing sense during that minute that this might be a volume blow off and then when the selling seemed to stop, I exited immediately.
Again I was exactly right, but I'm not always right.
Sometimes there can be a pause and the stock can continue its move.
Sometimes I'll scale out of the move, sometimes close it completely.
When I'm proved wrong and the stock continues its move I have no regrets as I've traded on the evidence in front of my eyes and no-one can do better or ask more of themselves than that.
No certainty, only high probability.
Anyway, I've banked profits and it's time to keep an eye on the same stock for further opportunities and also look elsewhere for others.
On the occasions when level 2 T&S doesn't give me any clues - and it often doesn't or there is so much noise it's of little use, then I will exit on the chart rule as described in an earlier post (post #4).
Richard
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Mr. Charts
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Hi Richard,
Great to see a new Mr. Charts thread!
Do you welcome subscribers to it to post charts of trades they've taken using the set up you describe so that you can then comment good / bad etc. (a la the pin bar set up on Trader_Dante's thread), or do you want the thread kept 'clean' with minimal red herrings and cul-de-sacs? I'm just trying to gauge how much audience participation - and of what kind - is welcome or unwanted.
Tim.
Thanks, timsk,
To be honest I'd prefer the thread kept clean without other people's charts so anyone reading it can see what I do and not get confused with the way other people do things.
They can then decide, uncluttered, if they want to test out this technique for themselves.
I'm prepared to clarify any points about this particular technique as long as I haven't already done so earlier in the thread.
Also my micro-analysis approach is beyond what I want to talk about in detail here.
I want to keep it chart focused.
There is simply no way I have time with my other trading commitments to comment or analyse other people's charts, I'm afraid.
Off to get some breakfast now - my two finger typing is very slow and I need my coffee and my wife's apple cake !
Richard
Mr. Charts
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See posts #4 and #24, but more entry rules for this particular method, one of about a dozen methods I use, will be posted when I've got time, as will stop loss rules, position sizing etc.
Scan for big movers, apply rules in posts #4 and #24, check example charts to aid identification.
To be continued....
Scan for big movers, apply rules in posts #4 and #24, check example charts to aid identification.
To be continued....
Mr. Charts
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jj,
Very little time as preparing for the markets.
I can find a trending STOCK most of the time. Even if the index is not trending, there are usually many stocks which are.
As I said, stops will be dealt with in a later post.
Strike rate is very high. If I posted it openly I'd just get disbelief so I won't bother.
If you EMAIL me, I'll tell you. I no longer read PMs.
Richard
Dasnaq
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I agree with Mr Charts, even on days when the market is flat or range bound, oportunities are always out there.
I am curious about your dislike of GOOG Mr Charts. It can be chopy but when it trends it trends well I think. Even when it is range bound that 30c spread is nice to catch and often low risk when rangebound.
In my opinion.
I am curious about your dislike of GOOG Mr Charts. It can be chopy but when it trends it trends well I think. Even when it is range bound that 30c spread is nice to catch and often low risk when rangebound.
In my opinion.
nghislainf
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I love you Mr Charts!!!!!
How many times a day do you trade?
I know it's really hard to keep discipline in day trading,What instruments do you use? Any broker suggestions?
Thank you
How many times a day do you trade?
I know it's really hard to keep discipline in day trading,What instruments do you use? Any broker suggestions?
Thank you
Mr. Charts
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As mentioned above,
I no longer read PMs.,so if you want to ask something, click on my name top left hand corner of this post and click on "email".
I don't read PMs any longer as I get some quite odd ones and I find people who bother to actually email are usually sensible and don't ask daft questions like "what is you trading?" or "how much money you make every day?" and actually expect a reply.
There is a difference between that and the sort of question someone thinks it might be embarrassing to ask on the thread, like "what is T&S?". That sort of question is fine.
Richard
I no longer read PMs.,so if you want to ask something, click on my name top left hand corner of this post and click on "email".
I don't read PMs any longer as I get some quite odd ones and I find people who bother to actually email are usually sensible and don't ask daft questions like "what is you trading?" or "how much money you make every day?" and actually expect a reply.
There is a difference between that and the sort of question someone thinks it might be embarrassing to ask on the thread, like "what is T&S?". That sort of question is fine.
Richard
Mr. Charts
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I take that to mean you find some of my posts interesting or helpful........
Anything from about 5 to 15.
Like everything else it gets easier with practice.
What instruments? Not sure what you mean there, but I use eSignal and Interactivebrokers.
Hope that helps and thanks for your kind words
Richard
Mr. Charts
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Hiya,
It's just one of those personal preference things. I do often trade within the spread and capture part of it like a market maker, but in a momentum stock you don't always get your limit order filled as you know.
Good trading to you,
Richard
peto
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Just found this thread, very interesting, many thanks. I look forward to hearing about position sizing, ATR and managing failing trades.
With respect to the latter, I'm guessing it is important to enter (short) near to the top of a bar, and exit if price rises above that of the preceding bar which should represent a fairly minimal loss?
Pete
trendie
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hi Mr Charts, glad to see you have started a dedicated thread to your style. I have rated the thread 5-star, as this is simpler than repping every other post of yours!
timsk; as Mr Charts wants to keep the thread clean, why not set up a parallel "Potential Set-ups" type thread where followers can post their charts, in similar vein to the trader_dantes threads?
as I understand it; Mr Charts scans for yesterdays big-movers to focus on potential continuation moves on following day? then uses further filtering to narrow down best ones.
do you still use pre-market news and upgrade/downgrades as potential stocks to trade?
timsk; as Mr Charts wants to keep the thread clean, why not set up a parallel "Potential Set-ups" type thread where followers can post their charts, in similar vein to the trader_dantes threads?
as I understand it; Mr Charts scans for yesterdays big-movers to focus on potential continuation moves on following day? then uses further filtering to narrow down best ones.
do you still use pre-market news and upgrade/downgrades as potential stocks to trade?
timsk
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Done!
http://www.trade2win.com/boards/us-stocks/38462-mr-charts-trading-set-up.html
Perhaps the Mod's would be good enough to edit this thread in accordance with Richard's wishes and move any peripheral posts to the other thread.
Tim.
Newtron Bomb
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Ive got to love that line... there can be quite a lot under that personal preference title not related to the execution of a trade, brokers platforms, trading goog and so on. This is really what defines a traders personality.
Great thread Mr Charts, Lots of valuable infomration here is people prepared to do their homeowrk and read through and make the time to understand what is being said here.
On a slightly differnt note using the tape on FX last thursday (thats the last price on right hand side of chart...no time and sales on FX
) to trade gbpjpy after it had already dropped 600 pips (average at the moment is about 200-250) and a little cross tape reading between gbpusd and usdjpy was telling me that GJ was going to go lower as gbpusd and usd jpy were taking it in turns to trade down on what you call micro analysis... and no charts involved. As you described in post #4 sellers have the ball on GU UJ and as a result still influencing GJ.... Tape pausing on UJ while GU's tape making LH LL's pushing down GJ... then GU would pause and UJ would start moving down in the same way causing GJ to move further down.... You dont always get to see this on FX but on stocks as like you say you can find these trade set ups daily and is a most effective tool for trading.
Not traded NASDAQ for a while now but you have certainly re-kindled the fire again
When we last spoke about this I think the best way to describe this price action is to think of Paula Abdul's song - 2 steps forward and 1 step back
For those wanting fast, daily/regular and profitable action should consider Mr Charts method of trading
Mr. Charts
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Spot on, peto.
There are various ways you can manage risk. In this particular set up, which is only one of about a dozen I use, an excellent method is indeed to use the "wrong" end of the previous candle as your WORST CASE STOP.
Let's say your short entry is at $43.32 and the high of the previous "falling" candle is at $43.44.
If you trade without using Micro-Analysis (level2 buy/sell pressures T&S) then you can set your stop at $43.45 a potential maximum loss of 13c.
Let's say the maximum loss you are prepared to tolerate on the trade is $100, then your position size would be 769 shares ($100 divided by 13c).
Personally I really can't be bothered with odd numbers of shares so I round the number to the nearest hundred.
If my level 2 T&S screens were to show sudden strong buying pressure and weakening selling pressure and the trades printing off reflected that, then I wouldn't wait for my worse case stop loss to be hit and would be out earlier. However that is beyond what I'm talking about in this thread and we'll stick purely to charts. This does NOT mean indicators, but READING what the market is telling you.
My attitude is that if the evidence in front of your eyes says you are losing this trade, why wait for a stop loss to be hit and produce a larger loss? I feel you are simply paying money to the market in the hope of being proved "right" in such circumstances.
Of course the situation is different if the approach involves using ATR as a stop and then maybe, just maybe, what you are seeing is intra candle noise. There are plenty of techniques which employ ATR like that.
For those who have carefully read my earlier posts on this thread, you will recognise that this end of candle stop loss exit is the same as the taking profit exit. In a down move when the high takes out the high of the previous candle; in an up move when the low takes out the low of the previous candle.
This in no way "guarantees" you have exited at the right or best time, but it does mean you can continually take profits from the market.
Remember the "right" or "best" time can only be recognised as such in retrospect. You must always act on the evidence in front of your eyes at the time, never "wish" or "hope".
There is another approach which is very useful, but has to be used in context.
After paper trading, which has its limitations as we all know, you can start trading 100 shares at a time and gradually increase your position size as you develop and proceed and meet satisfactory success targets.
You should ONLY do this in my personal opinion if it is a slow moving stock with a low ATR and you can read it on level 2 very easily. What I mean is that if the stock is liquid (plenty of trades going through) and ticks up or down slowly at 1 cent at a time you can easily exit whenever you want and control your risk very easily. A stock like DELL would be like this.
I would not use such an approach on a stock like GOOG where the price can leap around by 20c or
30c in the blink of an eye. You are not in control in such a situation, at least not in sufficient control for a financially risk averse control freak like me
I use 1 min, 3 min and 5 min candles - the method works well on all those time frames.
TBC
Richard
There are various ways you can manage risk. In this particular set up, which is only one of about a dozen I use, an excellent method is indeed to use the "wrong" end of the previous candle as your WORST CASE STOP.
Let's say your short entry is at $43.32 and the high of the previous "falling" candle is at $43.44.
If you trade without using Micro-Analysis (level2 buy/sell pressures T&S) then you can set your stop at $43.45 a potential maximum loss of 13c.
Let's say the maximum loss you are prepared to tolerate on the trade is $100, then your position size would be 769 shares ($100 divided by 13c).
Personally I really can't be bothered with odd numbers of shares so I round the number to the nearest hundred.
If my level 2 T&S screens were to show sudden strong buying pressure and weakening selling pressure and the trades printing off reflected that, then I wouldn't wait for my worse case stop loss to be hit and would be out earlier. However that is beyond what I'm talking about in this thread and we'll stick purely to charts. This does NOT mean indicators, but READING what the market is telling you.
My attitude is that if the evidence in front of your eyes says you are losing this trade, why wait for a stop loss to be hit and produce a larger loss? I feel you are simply paying money to the market in the hope of being proved "right" in such circumstances.
Of course the situation is different if the approach involves using ATR as a stop and then maybe, just maybe, what you are seeing is intra candle noise. There are plenty of techniques which employ ATR like that.
For those who have carefully read my earlier posts on this thread, you will recognise that this end of candle stop loss exit is the same as the taking profit exit. In a down move when the high takes out the high of the previous candle; in an up move when the low takes out the low of the previous candle.
This in no way "guarantees" you have exited at the right or best time, but it does mean you can continually take profits from the market.
Remember the "right" or "best" time can only be recognised as such in retrospect. You must always act on the evidence in front of your eyes at the time, never "wish" or "hope".
There is another approach which is very useful, but has to be used in context.
After paper trading, which has its limitations as we all know, you can start trading 100 shares at a time and gradually increase your position size as you develop and proceed and meet satisfactory success targets.
You should ONLY do this in my personal opinion if it is a slow moving stock with a low ATR and you can read it on level 2 very easily. What I mean is that if the stock is liquid (plenty of trades going through) and ticks up or down slowly at 1 cent at a time you can easily exit whenever you want and control your risk very easily. A stock like DELL would be like this.
I would not use such an approach on a stock like GOOG where the price can leap around by 20c or
30c in the blink of an eye. You are not in control in such a situation, at least not in sufficient control for a financially risk averse control freak like me
I use 1 min, 3 min and 5 min candles - the method works well on all those time frames.
TBC
Richard
