Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

I'm now going to move this on into a slightly different scenario. As I've said many times the method in this thread is only one of a dozen I use but it can be adapted as in this example from today.
AIG was on my watch list and although I snatched 20c from it in a very early momentum trade I kept an eye on it in case it presented a nice swing trade later.
It did.
This was traded on 5 min candles and produced a 70c move.
Everyone knows about dojis "after" trends forewarning of reversals; except that is only correct part of the time, there are plenty of dojis in the body of trends.
In this instance it worked well, but the market was trying to turn and if you have a feed and look at the 1 min candles you'll see a classic test of the low.
I have the strong advantage of using depth of market (level 2 T&S) but anyone could have traded this without the confirmation I saw on depth. It's straightforward on charts.
The exit was because I saw sudden selling on depth.
This was getting in close to the beginning of a new trend - an upward one.
Richard

 

[amit1986]

nice long trade on aig there Richard

I'd get restless if I were in a trade for a half hour !

 

[Mr. Charts]

I know, I know, Amit.
But just as long as it's moving and the profits are growing, the smile cracks open the restlessness
Richard

 

[Mr. Charts]

Here's another one from today; also a 70c gain.
Not difficult to find.
Nice tight stop loss at bottom of candle or at the ATR.
A few of these trades fail but using this stop methodology any losers are always small.
Keep an eye on the overall market as it's better not for it to be going in the opposite direction to your trade direction.
There was a stubby little reversal candle for the chart-only folk, but L2 T&S confirmed the entry and also took me out of the trade when I saw selling come in.
As always, I suggest people test the method in this thread (and this variant) extensively for themselves before trading it.
Richard

 

[amit1986]

Here's another one from today; also a 70c gain.
Not difficult to find.
Nice tight stop loss at bottom of candle or at the ATR.
A few of these trades fail but using this stop methodology any losers are always small.
Keep an eye on the overall market as it's better not for it to be going in the opposite direction to your trade direction.
There was a stubby little reversal candle for the chart-only folk, but L2 T&S confirmed the entry and also took me out of the trade when I saw selling come in.
As always, I suggest people test the method in this thread (and this variant) extensively for themselves before trading it.
Richard

Just got a nice and quick 20c per share scalp out of this method on GMCR 3-minute chart .

You should trade the afternoon session as well Richard!

 

[Mr. Charts]

Nice one, Amit
I need a break and family time
Speak on Monday,
Richard

 

[amit1986]

Nice one, Amit
I need a break and family time
Speak on Monday,
Richard

Okay. Have a good weekend!

Amit

 

[Mr. Charts]

You too.
Richard

 

[tonster01]

You too.
Richard

Great thread Mr Charts!

 

[Mr. Charts]

Thank you.

I traded yesterday evening (UK time) on a stock when it set up the method on this thread. I'd found it hours earlier but was busy trading other stocks.
It might not look much on the chart at first glance, but a 44c gain is $440 on a 1000 share position, $220 on 500 etc.
This is one of the many things I like about US stocks, people in the UK can trade them until 9pm when they come home from work; just as I did many years ago before giving up my career to trade.

Of course any trend can reverse at any time but a good steady trend is likely to continue on the balance of probabilities and with the ATR at 14 and the top of the candle just 8c away you can control your risk using the method in this thread.
The key for me is to always accept that some trades will fail, but as long as you use tight stops and follow the rules, consistent profits come.

I exited before any chart signal as I could see the selling pressure had simply died.

Richard

 

[amit1986]

This is one of the many things I like about US stocks, people in the UK can trade them until 9pm when they come home from work; just as I did many years ago before giving up my career to trade.

Also, the beauty of U.K.'s time difference is that you don't have to wake up so early in the morning to trade the U.S. morning session unlike the case with Toronto :innocent:

 

[Mr. Charts]

Lots of trades today, three of which were using the method in this thread.
Firstly JNPR, stopped out - almost for a loss - for just +3c

 

[Mr. Charts]

Next RHT. This was one of several trades in this stock, but the only one purely using this particular method.
+48c per share

Both the JNPR and RHT exits were on the chart stopping me out.

 

[Mr. Charts]

Finally CTXS for a very satisfactory $2.02 per share.
The exit was because I could see buying coming in.
You do get failures with this method like with any, but the key is to keep them small.
Richard

 

[Mr. Charts]

Quite a few trades today. Here's the one using this method.
Look at ATR or bottom of candle as being your choice of two stop loss positions.
Strongly trending stock so you've got that momentum on your side to begin with so the probability of success is on your side. Tight stops and proper position sizing as described earlier mean you can't lose much in a worst case scenario - and let your winners run.
Method, method, method.
KMX +66c

 

[MoreYummy]

How do you scan the stock to monitor ? Any specific criteria or a set of them everyday about the same.

 

[Mr. Charts]

I use esignal turbo scanner, but most scanners can produce a list. I've already mentioned this earlier in the thread.

 

[Latham01]

Hello Richard,

I have finally gotten to the end of this thread after accidentally coming across it and I just wanted to say thanks for the effort you have put in. The method you have shown here just proves that like everything in life the simplest way is usually the best and I intend to paper trade it to see how it goes.

No doubt I'll be in touch at some point to ask you a few questions which I hope won't put you out too much.

Thanks again.

Harry

 

[Mr. Charts]

Thanks for your kind words.

 

[Mr. Charts]

Things have flattened off a bit for now and despite the bond market being closed in the US and the Dow, S&P and Nasdaq flatlining, there have still been opportunities.
That's one of the great things about US stocks - there are almost always opportunities.
Three trades so far using this method and the variant.
WFC was a loser -4c stopped out.