Best Thread How To Make Money Trading The Markets.

[0007]

John,
Yes, Murphy's book is all you need.
The two earlier links I gave you were so you could build up to Murphy gradually and also the t2w link has a lot of non-TA material.
Of course, the vast majority of TA is worthless, just as the vast majority of most University courses is worthless, but ideally you need the rigour and the immersion; you know what I mean.
Having said that the amount you need is maybe 2% of what is in Murphy but your questions suggest to me you would benefit.
For other people reading this I suggest a basic understanding of support/resistance, what a candle is, (not all the weird patterns or combos), ATR, bid/ask, spread are the essentials.
As for courses, trainers etc., there are a lot of sharks out there the vast majority of whom talk the talk but do not walk the walk by trading for their livings, so beware.
Hope that helps,
Richard

That is really good advice IMHO. Used properly, those few parameters will make you money.

 

[Cashboy]

John,
Yes, Murphy's book is all you need.
The two earlier links I gave you were so you could build up to Murphy gradually and also the t2w link has a lot of non-TA material.
Of course, the vast majority of TA is worthless, just as the vast majority of most University courses is worthless, but ideally you need the rigour and the immersion; you know what I mean.
Having said that the amount you need is maybe 2% of what is in Murphy but your questions suggest to me you would benefit.
For other people reading this I suggest a basic understanding of support/resistance, what a candle is, (not all the weird patterns or combos), ATR, bid/ask, spread are the essentials.
As for courses, trainers etc., there are a lot of sharks out there the vast majority of whom talk the talk but do not walk the walk by trading for their livings, so beware.
Hope that helps,
Richard

Richard,

I shall order the book from Amazon today.

Cheers once again...........John

 

[Mr. Charts]

My pleasure

 

[bangkoker]

Finally got up to date with this thread. Thank you very much for the info, it is very interesting and refreshing to hear this approach to trading with out the matter being over complicated.

I look forward to reading more from you Mr.Charts.

Thanks fro the time you have put into this.

 

[Mr. Charts]

Glad you've found it interesting.

 

[Mr. Charts]

ARNA announcing conf call to discuss top-line results from BLOSSOM (Behavioral modification and LOrcaserin Second Study for Obesity Management.

One of the more flowery acronyms the Americans are so fond of.

 

[Mr. Charts]

Should have a very large market....

 

[Mr. Charts]

I've just been looking at the emails building up and I am simply not going to answer questions about this methodology which I've already addressed in this thread.
As politely as I can, RTFT !

I'll catch up with the others as soon as I can.

Richard

 

[Mr. Charts]

I've described my exit technique for this method many times, but it seems from emails that a lot of people have an overwhelming urge to take profits too quickly and they can't resist the temptation - only to be met with frustration and self-annoyance when the price continues to go the original way.
Do learn to hold on till the exit is signalled if you possibly can, but there is another method which can be used, although I personally don't use it.
It's really a compromise between doing it the way I do it and the grab-the-profits-fast-even-if-I-realise-it's-not-the-best way.
It also introduces something else which I'm not keen on, but the vast majority of traders and wannabee traders seem to like and want.
To be continued......
Richard

 

[Mr. Charts]

Targets........people like having them as they can place an order to exit at a specific point.
As I said, I don't usually have them as I stay in a trade until the evidence suggests a possible reversal. Sometimes I'll exit half the position, but usually all of it.
Targets are also popular as people feel they somehow enable them to "calculate" risk:reward ratio.
Again to me that is usually meaningless as it is based on the false assumption that the probability of a risk level or a reward level being hit is 50:50

There was an MAC trade I did today which I'll post not only to illustrate the method but also to suggest a compromise between the way I do things and the way the vast majority of people do.
Some might find it useful.
I'll post as soon as I've got some time.
Richard

 

[Mr. Charts]

Here's the MAC trade from yesterday.
Nice straightforward trend.
You can usually find these even on choppy days and this ability is one of the reasons I like trading US stocks so much; there is so much choice you can find them even if 90%+ of stocks are stuck in a range.
No level 2 needed here, check out the exit point as price took out the high of the previous candle - a simple chart exit.
Entry on the red X hairs and exit at time of image as usual.
Profit 75c per share

 

[Mr. Charts]

Let's say your maximum tolerable loss is $200.
Opposite end of candle is 35c away from the entry point of 31.95 at 32.30. That's too far away, way too far, so check out the ATR
ATR 19

200 / .19 = 1052

Maximum risk 19c = $190
As I've said, very frequently I won't wait for a stop to be hit if there is evidence of it going the wrong way.......why wait to lose a specific pre-designated amount?
To me that can sometimes be like deciding to spend money just to be proved right........worth a thought, imho.

1000 shares to trade
75c means a profit before commission of $750, after commission $740.

But let's say you feel you must have a target. There are a variety of things you could do, although they will leave you with less profit than doing it my way.
For example, use ATR
tbc....

 

[amit1986]

No level 2 needed here

Hi Mr. Charts.

If you didn't use level 2 to decide on an entry, then did you only use Time and Sales? Were you not concerned that the whole number may provide some resistance? As you know, most stocks, after breaking a whole number, come back to re-test that whole number. What made you decide to enter on the first break of the whole number?

Thanks!

 

[Mr. Charts]

You could set your initial target at twice ATR, in other words 38c. That should satisfy those who seem to want an imaginary risk:reward of 1:2.
Of course, the belief that the probability of risk or reward being hit are 50:50 is also a product of imaginative hope over the application of intelligence.
If you reach the target of 38c you could exit half the position, locking in a profit of 38c x 500 shares = $190.
You could then move your trailing stop to 19c away (that is, one ATR) so that if it moved against you, you could then exit the other 500 for an additional profit of $95, total = $285.
If price continues to move in your favour having closed out 500 for that $190, you could then use my method of exiting so you had 75c on the remaining 500 +$375.
Total $375 + $190 = $565.

Not as much profit as using my normal rule, but enough to make most traders feel more comfortable in managing the trade because they have a sense of risk:reward and targets.
Personally I'm beyond that, but hey, I've been doing it for a living full time since 1999 so I don't have the psychological pressures and pre-conceived off-the-shelf and poor but popular approaches most people are hampered by.
But like most, they also influenced me in the early days of my trading.
Like with many things, you grow and develop with experience.
I must admit I did think from early on that maybe one of the reasons 95%+++ of would be traders failed might well be connected with doing what everyone thought was a good idea..............
Enough of the musings, I'm not into navel gazing much.
Richard

 

[Mr. Charts]

amit,
The rate at which the price was going down in front of my eyes told me it was not going to bounce any time soon so I knew with a probability of 80%-90% that it would move into profit immediately.
Nothing is certain, there are only probabilities.
Richard

 

[Mr. Charts]

amit,
Have a look at the 3 min candle chart of TRA which was a trade I entered just after my 5.06 pm post on this board and exited half as it approached the whole number and the other half when price took out the high of the previous candle. Result was +32c on 500 and +24c on the other 500.
Richard

 

[amit1986]

Wow - your ability to enter a trade at the perfect time is amazing!

 

[Mr. Charts]

amit,
I'd had TRA on my alert list since 4.14pm UK time and had already scalped 16c on it so that was the second trade.
Richard

 

[TAjammy]

i think it's great how you can find stocks that trend soooo cleanly, even if the rest are chop suey!

you must have some awesome scanner

 

[Mr. Charts]

Method, James, method, and method again.
Same with all my other set ups and techniques.
It ain't rocket science and really isn't complicated in any way.
Richard