"Trading Day by Day" by Chick Goslin

[fastnet]

Stand by ya beds! Cotton turning co-current on SMR EOD charts +3 Bullish rating. Ross Hook after 1-2-3 from base taken out - looks ready to take off.

I'll be standing by and watching unfortunately - too tight to pay Fins spread of 60 points!!

Cheers, FN

 

[Roberto]

Thanks very much for the "alert" ... will certainly take a look. (60 points?! Aren't there laws about that sort of thing?! )

 

[ardhill]

How does the "percentage of margin" profit taking rule work for trading stocks? Does anyone have any ideas?

I don't trade futures so I can't tell you for sure, but if you look at the figures on the charts in the book (see p.74 for example), it looks to be a 10% margin he is talking about.

So, if your stock moves 5%, then this is 50% of margin, 10% would be 100% of margin and 15% would be 150% of margin etc.

If a $100 share moves to $105, then it has made a '50% of margin move'.

As I said, I don't trade futures, and haven't even finished the book, but that is what it looks like to me.

Interestingly, SB companies usually look about 10% initial margin.

 

[Panman]

Just curious,,,

Did anyone here actually take a ES short on Friday Jan 21st ,for a few points, using this methodology?

Awesome stuff imo.

How would i test this using TS-8 for buy/sell signals?
Any help is much appreciated. As I am dumb as dumb gets. Sorry to say.

TIA
Panman

 

[danfreek]

WOW, this thread is amazing. It's taken me so long to read. When I first started to read it I wasn't interested at all in buying the book, but now I'm about to place my order with Chick. I'm not sure if I'll do it online or if I'll call him up, but I know I want this book.

Thank you to everyone for this thread so far, it's not often that you can get so much information on the pros and cons of a book before you decide to buy it or not, we should all do this more with other trading books.

I'll let you all know what my opinion is on the book when I've read it.

 

[Bigbusiness]

Fot those that don't want to spend money on a charting package, I have just started using the free EOD charts with Prorealtime http://www.prorealtime.com

Looks like an excellent way to test the methods in the book . I haven't mastered the software yet but here is a chart from 1929

 

[FetteredChinos]

why isnt it in sepia?

 

[ardhill]

Possible Chick Set Up on Low Price Stock

Here is a possible set up using Chick's method, I will give you the chart, and you can make your own mind up.

The last 3 days gave us a flat 49 SMA, but as you can see from the white dot 49 days ago, it is likely to go down. The status therefore is Bearish, concurrent and -2 points.

The stock has also broken down through support today as you can see. Some would call this support a 'Head and Shoulders' formation, others would say it is too vague - but what do the holders of the stock say?

Do remember, this is a low cost stock, so may behave slightly differently than an index or higher price stock, though it did have a volume of 10,111,543 today.

CIEN - Ciena Corp (Nasdaq)

 

[Bigbusiness]

why isnt it in sepia?

Just for you, to get the sepia version, I took a trip in Socrates time machine and went forward 100 years.

 

[ardhill]

OK, time to embarrass myself...

I entered CIEN today near the close of the day @ 2.53
My initial stop is @ 2.83

Though the lines are not totally clear in the direction of Chick's indications, I entered today allowing for the margin of error on the ML.

Todays price activity was interesting, the market generally was strong, with the DOW, Nasdaq and S&P all well up on the day after a strong beginning, they didn't give up much, though CIEN, went down all day. Looking at the 30min charts, I could see that Chick's indicators were strongly bearish and concurrent over the past two days. The ADX was also decidedly down over the two days also.

So, I entered short @ 2.83 and set my initial stop above consolidation and fib level @ 2.53


TAKE NOTE: Anyone even thinking of following my trading - I still drive an old car and it ain't an old Porche either. (I think that should suffice as a strong warning)

 

[ardhill]

Anyone from the UK here subscribe to SMR?

I just wondered what the timing of the post was to the UK. I know that you get daily updates on the web site, but I though that it would be nice to get the paper charts in some sort of reasonable time.

 

[ardhill]

I thought that I would continue my CIEN trade on another thread - I thought that the strategies section of the forums was more appropriate that continuing in the review forum.

Anyone interested in this or adding your comments or adding your trades etc
http://www.trade2win.com/boards/showthread.php?t=13595

Would appreciate a little input from the more seasoned traders in this style over there on that thread.

Thanks

 

[danfreek]

I've almost finished the book now. It's definately one of the best books I've read. It has already saved me money, although it did lose me a little at first until I realised that I wasn't counting the points properly! A stupid mistake, but I've learned my lesson.

Dan

 

[jcwonder8]

I've almost finished the book now. It's definately one of the best books I've read. It has already saved me money, although it did lose me a little at first until I realised that I wasn't counting the points properly! A stupid mistake, but I've learned my lesson.

Dan

I'd agree with this and the chorus of approval on the thread. Its a great book. And not just for the system but for the trading and life insights, the cool Zen style, the clear illustrations of the techniques. Just great in all respects. Thinking of getting his newsletter. My favourite book with Alan Farley's encyclopedic and brilliant but dense and slightly impenetrable in places Master Swing Trader which seems to be a book you either love or loathe if you read the Amazon reviews.

 

[danfreek]

One of the best parts of the book is how he goes through the charts day by day explaining every little movement in the price and indicators. Most people just brush over the action and don't offer nearly as much insight into the trades as he does.

 

[danfreek]

One of the best parts of the book is how he goes through the charts day by day explaining every little movement in the price and indicators. Most people just brush over the action and don't offer nearly as much insight into the trades as he does.

 

[ottos]

Would it be possible if someone , who actually trades this book method , could attest to claimed " universality " of this method ?
Methods which claim to be effective on many instruments and time frames usually fall very, very short of such claims.

 

[nine]

I have read the book and can tell you that the strategy is universal on anything that has trends in the timeframe you are trading. This method is not rocket science. Its simple, straight forward but has a few nice twists in thinking that I hadnt seen before.

The book is primarily about the eod timeframe but if you read the thread you will find comments by intraday traders.

Learning the truth about Hillary Clinton was almost worth the price of the book anyway.

 

[danfreek]

Kiwi,

thank you! I know that it wasn't the purpose of your comment, but you just made me realise something that should have been glaring me in the face! I've had a bit of success trading the method, but not as much as I had thought it would produce. I've just realised my problem, when you said it's "universal on anything that has trends in the timeframe you are trading" it made me realise that I had picked completely the wrong timeframe for the method, although using a highly trending market (i.e. the forex) I was trading in a timeframe that didn't trend nearly enough for the method.

It did still catch the trends that did come along and keep me in them until the end though, with some very profitable moves. I just got wipsawed most of the time when the trend wasn't active, changing the timeframe has helped to stop that no end!

Dan

 

[jonnyy40]

Just saw the picture on the 'about Chick Goslin' page and he's the spitting image of a friend of mine.It says he grew up in England among other places,so maybe there's a family connection.I'd say there's a 95% similarity between them.