Best Thread How To Make Money Trading The Markets.

[zing189]

This thread is filled with charts that look to good to be true. Richard contradicts himself and his trading style several times throughout this thread. Most vendors make more money from selling their methods than they do from actual trading.

I've gone through this thread in detail and have not found any instances where Richard contradicts himself. Can you be specific on those instances? I would be interested to see what I've missed.
Thanks

 

[Mayberry RFD]

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

"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."

 

[Mayberry RFD]

The method also works well on high volatility stocks, though they can be more difficult to "read". The chart rules are very effective, though.
You must reduce your position size as described earlier in the thread to match your cash risk to the maximum you are prepared to lose if it goes pear shaped.
This is CMG which produced $1.33 per share.
Richard

This trade is a high ATR stock. Very risky if you get caught on the wrong side of the market makers spread.

 

[Mayberry RFD]

lol was it fun? From looking at those candles and the insanely high ATR, it seems the LXK trade would have been the perfect recipe for a heart-attack!

Great trade though!

That's right Amit! Why did you leave trading? You were one of the best until you realized that you were not able to earn a consistant profit.

 

[neil]

That's right Amit! Why did you leave trading? You were one of the best until you realized that you were not able to earn a consistant profit.

Could you point to the post where Amit states he could not earn a consistant profit please ?

 

[Mayberry RFD]

Could you point to the post where Amit states he could not earn a consistant profit please ?

If you read Amit's thread regarding his trades you will see that he became very frustrated with the market in 2012. He left trading to work in real estate. Chalk it up to High Frequency Trading. Market makers are able to flash orders in less than a second across several exchanges.

 

[zing189]

"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."

For me there is no contradiction here. The preference is to trade slower easily readable stocks which means lower ATR's. The key word is 'preference' - if a good opportunity comes up on a stock with a higher ATR, you can still take it.

 

[D70]

For me there is no contradiction here. The preference is to trade slower easily readable stocks which means lower ATR's. The key word is 'preference' - if a good opportunity comes up on a stock with a higher ATR, you can still take it.

HI Zing189,
How long have you been trading like the thread?

 

[Mayberry RFD]

For me there is no contradiction here. The preference is to trade slower easily readable stocks which means lower ATR's. The key word is 'preference' - if a good opportunity comes up on a stock with a higher ATR, you can still take it.

Then why did Mr. Charts write an article for eSignal stating the opposite? He wrote in that article to trade 3 minute charts, low ATR stocks with tight spreads.

 

[Mr. Charts]

Facebook Investors Brace for Big Round of Unlocked Shares - Bloomberg

Worth keeping an eye on for US stock traders.
Richard

 

[Mr. Charts]

I mentioned FB (Facebook) earlier, two and a half hours before open.
Reasons self-evident.
I traded it three times as anyone who has read this thread properly and objectively could have done

Results:
First: profit +70c per share
Second: loss -7c per share
Third: profit +42c per share

Pointers at time of entry, image taken at time of exit.

Nothing in choosing this stock to watch or the trades done is rocket science, though the first one requires experience, the second and third were not difficult or challenging.
Those trades also exemplify the principle of cutting losing trades quickly and letting winning ones run - again basic stuff.

Another recent example of stocks mentioned on this thread BEFORE taking trades can be seen in posts 1811 and 1816

Any objective person can simply try the method for themselves paper trading 100 times and see what their results are and if the style suits them. Then if they wish they can try trading it live. I always suggest small position sizes to begin with whilst experience builds.

I've said that before and also this:
I don't say I will enter at a particular price - it depends on price behaviour at that key price level.
If anyone doesn't understand that concept, then they might start thinking about it as it's a very essential help in trading, imho. There have been threads about price action by others in the past including some very capable traders, but those members are no longer here having been driven away by the attacks of certain individuals. Shame for the objective members. But, hey, people will think whatever they choose and have their own opinions.
The key thing for people who are neutral and objective is to ignore all the noise and simply try and test for themselves.

Good trading to everyone,
Richard

 

[zing189]

HI Zing189,
How long have you been trading like the thread?

Hi,
I had typed out a more detailed message to your PM but when I pressed send the message disappeared and I was notified that I can't e-mail or PM until I get a certain number of posts. I am not an expert on this thread but I have started following it in detail as of the last couple on months.
Regards,

 

[zing189]

Then why did Mr. Charts write an article for eSignal stating the opposite? He wrote in that article to trade 3 minute charts, low ATR stocks with tight spreads.

It makes sense to me. I don't expect the multitude of variations to be detailed. You have to start somewhere. If I were writing an article for the general trading community, I don't think I would include higher risk trading strategies either. Someone is bound to blame you for their losses.

Have you tried paper trading the methods described by Mr. Charts?

 

[Mayberry RFD]

It makes sense to me. I don't expect the multitude of variations to be detailed. You have to start somewhere. If I were writing an article for the general trading community, I don't think I would include higher risk trading strategies either. Someone is bound to blame you for their losses.

Have you tried paper trading the methods described by Mr. Charts?

I have tried and used Mr. Charts methods during paper trading and live markets. The problem I find in trading the current markets is being able to consistently make money from trading stocks.

I know of no one in the real world that makes a consistent profit from only trading and not from a combination of trading and being a vendor.

 

[evostik]

Just my opinion (no real evidence or anything), but I reckon DMA is a 'must' to trade (profitably) similar to the methodology described here. Without DMA, I don't know how a trader could stop/exit as needed.

Cheers
Steve

 

[wallstreetwarrior87]

I have tried and used Mr. Charts methods during paper trading and live markets. The problem I find in trading the current markets is being able to consistently make money from trading stocks.

I know of no one in the real world that makes a consistent profit from only trading and not from a combination of trading and being a vendor.

Here's an idea for everyone commenting on this thread, with regards to whether or not it is possible to trade like this;

Why dont you follow the rules at the start of this thread, and then try to actually do this in a live, realtime environment for 100 trades, and post EACH and EVERY TRADE, here for everyone to see. Also explain the reason for each trade and how you spotted the prospect in the first place.

100 trades in the public domain will be enough to see if you are really using the method as it is explained (not just your interpretation of it). Then if the results really are as bad as some make out, you may have some fuel for a debate.

So, how many are willing to be put under scrutiny for 100 trades? It is not hard to do, but I reckon there will not be many that will stand the test of time (100 trades), but this will not surprise anyone experienced as the majority want a sure-fire, quick fix, way to make their millions.

So there is the gauntlet, for those saying it cannot be done, is there any of you that want to report the next 100 trades?

5 trades a day will only be a months trading, so not much to ask in the grand scheme of things.

Just playing devils advocate

 

[mik1973]

Here's an idea for everyone commenting on this thread, with regards to whether or not it is possible to trade like this;

Why dont you follow the rules at the start of this thread, and then try to actually do this in a live, realtime environment for 100 trades, and post EACH and EVERY TRADE, here for everyone to see. Also explain the reason for each trade and how you spotted the prospect in the first place.

100 trades in the public domain will be enough to see if you are really using the method as it is explained (not just your interpretation of it). Then if the results really are as bad as some make out, you may have some fuel for a debate.

So, how many are willing to be put under scrutiny for 100 trades? It is not hard to do, but I reckon there will not be many that will stand the test of time (100 trades), but this will not surprise anyone experienced as the majority want a sure-fire, quick fix, way to make their millions.

So there is the gauntlet, for those saying it cannot be done, is there any of you that want to report the next 100 trades?

5 trades a day will only be a months trading, so not much to ask in the grand scheme of things.

Just playing devils advocate

Very difficult to do given that the "rules" for entry and exit are so vague.

Acccording to Mr Charts a lot of his decisions are based on "price action"- this can mean different things to different traders.

Another poster has also hit the nail onthe head- this type of trading could only be traded using DMA

 

[D70]

Here's an idea for everyone commenting on this thread, with regards to whether or not it is possible to trade like this;

Why dont you follow the rules at the start of this thread, and then try to actually do this in a live, realtime environment for 100 trades, and post EACH and EVERY TRADE, here for everyone to see. Also explain the reason for each trade and how you spotted the prospect in the first place.

100 trades in the public domain will be enough to see if you are really using the method as it is explained (not just your interpretation of it). Then if the results really are as bad as some make out, you may have some fuel for a debate.

So, how many are willing to be put under scrutiny for 100 trades? It is not hard to do, but I reckon there will not be many that will stand the test of time (100 trades), but this will not surprise anyone experienced as the majority want a sure-fire, quick fix, way to make their millions.

So there is the gauntlet, for those saying it cannot be done, is there any of you that want to report the next 100 trades?

5 trades a day will only be a months trading, so not much to ask in the grand scheme of things.

Just playing devils advocate

Hi WallStreetWarrior,

It's a good idea but I remember a post by you saying that backtesting and forwardtesting was pointless if you could put together logical reasoning about why a particular strategy should "work".

Can you explain to the thread why this strategy should "work" ?

Thanks,.

 

[ffsear]

Because this strategy is largely based on discretion and price action. Which you can't backtest.

Its not a case of if... a+b=c then trade. Hence he suggests trading this live.

 

[ffsear]

Mr Charts, your in the UK right? How and who do you use to trade US shares. What are the spreads like. I am developing a system to trade the US markets, off the 1hr timeframe. But im finding the spread too large.