Trading the markets with Alan Rich.

[timaru69]

[/QUOTE]Now all of these were hot stocks in the sense that they were actively moving and presenting multiple opportunities for simple basic day trading and all had spreads of one or two cents and were very liquid so were very easy to trade.[/QUOTE]

Can't make it any clearer than that

[/QUOTE]For instance, my pre-selection of stocks I will be looking at during the trading day consists of the value range of the stock (I'll only look at stocks in the $20-80 range), 30-day historical volume will need to be 1.5 million of higher with a 30-day historical range of $1 or more. That's my starting point.[/QUOTE]

1+1 =2 maybe?

Cheers

AC

 

[PitBull]

My definition of HOT would be that it doesn't have to be a stock that is "IN THE NEWS", but sometimes this helps, but it offers larger intraday swings than normal with greater than average volume and a lot of these chart patterns can be predictable. A lot of stocks have been hot the past few days due to the heavy sell off....larger intraday swings than normal? HOT doesn't have to mean volatile, just that they move and movement offers opportunity!

 

[Mr. Charts]

As usual, right on, Pitbull 🙂
Richard

 

[Danger Field]

LOL
Hope you got the material I sent you and found it useful, samtron. If it didn't arrive, email me.
Richard

Is this material available to us all Mr. Charts or just for samtron? If it is an email only thing, may I have your email address?

 

[Mr. Charts]

I think you already have my email address..................🙂

 

[samtron]

LOL
Hope you got the material I sent you and found it useful, samtron. If it didn't arrive, email me.
Richard

Yes & yes ,thanks Mr Charts, wonderful thing hyperspace how did we cope before it was invented?

 

[PitBull]

Beas

A nice quick 40 cent scalp in 3 mins.
Long 12.79 on pullback on 1 min, out 13.20 when L2 said it was time to exit

 

[Mr. Charts]

Nice trade, Lee.
Funnily enough I got an almost identical set up entry and exit on INTU at 3.21pm for an almost identical profit.
I find that 95%+ of the time you can find movers even on the flattest of days, but you do have to put effort into finding them, whereas it's very easy to find lots on days with a couple of trends in them. The directional trades are there for those who can find them and are sufficiently competent traders to know what to do.
Richard

 

[dvdh]

Another very easy day's trading today 🙂
One thing that hasn't been mentioned here, of course, is coming across/finding HOT STOCKS during the trading day as well as before the market even opens.
Like everything else in the markets, it does require a little effort, but once you've got your structure and methodology it merely becomes routine.
In the middle of the afternoon today, for example, I found several potential set ups, three of which triggered. GENZ within one minute of mentioning it , FFIV and also CELG within minutes - mentioned elsewhere on the web before the trades triggered.
GENZ was a continuation long, FFIV a continuation short and CELG produced two continuation shorts followed by a classic bounce reversal. I'm not going to post the charts or images of any of them. Now all of these were hot stocks in the sense that they were actively moving and presenting multiple opportunities for simple basic day trading and all had spreads of one or two cents and were very liquid so were very easy to trade.
If you read that hot stocks are difficult to trade you must consider the nature of the stocks themselves. Are they liquid with narrow spreads? Are they readable? If so you can consider them. If not, pass up unless you are experienced.
Let's put it this way. To say hot stocks are dangerous is as ignorant as saying that kitchen knives are dangerous. Yes, in the sense that they are if mis-used, but in the right hands they are indispensable.
Another analogy: playing football can be dangerous. True, you can get a broken leg; but kicking a ball around in the garden with the kids isn't particularly dangerous as long as you are careful.
The stocks I mentioned earlier were very safe to trade for any reasonable trader.
If a stock has a wide spread, then you need to acquire the skills to trade like a market maker inside the spread and capture part of that spread for yourself. However, that's another and more advanced skill for the very experienced. Beginners, NO.
Now, I have coloured hot stocks red.
If I had coloured hot stocks blue would you think they were safer to trade?
This might seem a silly point at first, but perhaps it's worth considering as colour affects human judgment. A good trader moves beyond such responses to see objectively, not to have their minds coloured by the way something is presented (the mind thinks HOT is red and is dangerous) because that is the way we are conditioned.
If you want to trade successfully and not be part of the mass who lose or live in tiny boxes which they think constitute all there is in the world of trading, then you move out; you expand the envelope and base your understanding of what is going on, FACTS not your own opinion and subjectivity and much less the opinions of others on BBs. Think for yourself.
Another thing: most people skim through posts and see only what they want to see or expect to see. I'll be happy if just two or three people read this post and understand what I am saying. The rest won't. They are the people who take the wrong side of trades..................
Richard

Again, Richard, I totally understand your post!

-Dave.

 

[Mr. Charts]

Well that's no surprise, Dave ! ;-)))
Kick ass, man !
Richard

 

[dvdh]

Well that's no surprise, Dave ! ;-)))
Kick ass, man !
Richard

LOL.

I'm definately kicking ass. Been shorting aapl from 64.80's. and now fighting it on the longside. Been buying this thing from the lows. Caught the bounce. Thank you squawkbox. This thing is soo helpful when we're trading high energy everywhere! BIG TIME action in the pits. ALL SELLERS, WIDESPREAD SELLING over there in chicago. We are ROCKING!!

-Dave.

 

[dvdh]

And just caught a nice short just before the cash close. All because of the squawkbox. It just tells you what's gonna happen before it happens!
TIP for you guys, that wanna know how marketmakers work. Take a trial at www.tradersaudio.com for the S&P 500 squawk from Ben/Tzvi Lichtenstein. (It's ben usually) and learn how to understand what they say. This explains you exactly how marketmakers work. Marketmakers are the locals in the pit.

-Dave.

 

[Mr. Charts]

Brilliant Dave !
I got AAPL short a little later than you at 64.73 and covered at 63.40 for $1.33 a share.
My initial stop was 64.82 so not bad for a 9c risk. It never moved a single cent against me from the get - go.
This is just the sort of situation where the evening only trader comes home from the day job, goes through the routine and BANG ! the opportunity presents itself and $1330 from 1000 shares. That's got to be better than working for some employer ! Not bad for 10 mins of prep and 39 minutes of trading.
SIZZLING HOT HOT HOT 🙂
Sorry if anyone is offended by the enthusiasm - well actually I'm not sorry at all !
You don't need luck in this business, you need hard work, application and self -discipline.
Richard

 

[Mr. Charts]

Yes, Dave, I remember you telling me about that squawkbox when we met in Chinatown.
That was a great night.
Which do you think is best, broadcast or background or squawkbox?
I normally like trading in silence so I don't know whether I'll get on with it or not. Often I can tell what is going to happen before it does using micro-analysis, but I'm curious to see the co-relation between pit noise changes and level 2 positioning. Hey Dave, I've been trading full time for a living since 1999, but I'm ready to look at anything a trader of your quality does and maybe add to my abilities further.
Real traders aren't anally retentive LOL
See you, man,
Richard

 

[BlackPanther]

some great posts guys, and some fantastic trading!

when my internet stabilised just in time for open, i managed to pull out a little 35 cent short from AAPL. All managed on Level II and over in 41 seconds 🙂 looks like i missed a fantastic afternoon...

but as has been said, the market always has opportunities for those prepared to find them!! i wish i'd found out about trading 4 years ago when i dropped out of college! who wants university debts?!? not me!

 

[Mr. Charts]

Hey BlackPanther,
Good trading and consistent over your first three days ;-)
Yet another great trader in the making ;-)
Stay focused, methodical, cautious and very humble and you'll be fine...really fine.
You know where I am if you need any help.
You've obviously settled back in Brazil (I'm sure it's ok to say that since you have put the flag alongside your name) without much jet lag !
Take care,
Richard

 

[Chicken Curry]

You don't need luck in this business, you need hard work, application and self -discipline.

Stay focused, methodical, cautious and very humble and you'll be fine...really fine.

New traders should heed Richard's words carefully because the above quotes really do say it all.

The technical aspects of trading are the easy parts.

You need to add the above attributes before you can hope to be successful.

For me the discipline thing has been the hardest part - correcting a lifetime of undisciplined, arrogant behaviour has not come easily. 😱

 

[PitBull]

I got AAPL short a little later than you at 64.73 and covered at 63.40 for $1.33 a share.
My initial stop was 64.82 so not bad for a 9c risk. It never moved a single cent against me from the get - go.

Spooky........I traded AAPL too and got filled at 64.70, just as the lows broke but it came back on me so I scratched it for zero. Oh well, can't win them all but it turned out a B-E-A-U-T-Y. Well done Richard and Dave

 

[dvdh]

Yes, Dave, I remember you telling me about that squawkbox when we met in Chinatown.
That was a great night.
Which do you think is best, broadcast or background or squawkbox?
I normally like trading in silence so I don't know whether I'll get on with it or not. Often I can tell what is going to happen before it does using micro-analysis, but I'm curious to see the co-relation between pit noise changes and level 2 positioning. Hey Dave, I've been trading full time for a living since 1999, but I'm ready to look at anything a trader of your quality does and maybe add to my abilities further.
Real traders aren't anally retentive LOL
See you, man,
Richard

Hi richard,

I use this broadcast: S&P 500 Pit Broadcast #1. This guy, the quoter, Ben Lichtenstein, tells you about everything that happens in the pit. He'll tell you when locals of paper(banks) are buying or selling. Whether it's a big bank, big institution, on of his top 10 locals. And Yesterday for example before the sell off. It was quiet everywhere. In all stocks and indices. And suddenly there was one of these top 10 locals making a push lower in the index. Selling futures to get in some low prints. And as soon as he got that low print in. Paper sellers came in. But I heard him say: "I got a top ten local trying to push it lower here BIG TIME", and paper's looking BIG TIME on these lows" That's what he said. So then I know, as soon as this local gets a low print in, paper will sell a boat load. And then I looked at AAPL. It traded almost the same as the s&p 500. So I knew that this could make a big push lower too. And then the local traded a new low in the pit. And the quoter screamed, MERRIL LYNCH coming in a HUGE seller here. He pushed it down a point. And when he said that I shorted AAPL, and that was a 15 cent scalp in less than 10 seconds. And this happened several times on the way down.

Then suddenly I heard him say: We're seeing a bid from these lows, Locals have been selling it hard on the way down, now coming in well bid. Merrill also on the bid. So I know, that it usually means the end of the move for now. And I started buying AAPL, cuz it traded exactly the same. Bought it from the lows and payed up quite a few cents, and that trade made me a good 36 cents.

I also have the squawkbox on during lunchbreak. And when I hear it's getting noisy I get back to my office, cuz I know everything is moving. You could also see it as an action indicator?!?! When there's action in the pits there's action everywhere.
They rarely have an outage, but when they have one. I don't like trading. I need the sound of the pits around me, it's soo good. Without this squawkbox I can't concentrate.

I hope this explains a little.

-Dave.

PS. click this link http://home.wanadoo.nl/~fileserver/fomc1.wav for an example of a busy day. This is an FOMC day. There's action from 2:00 mins to 10:00 mins.

-Dave.

 

[rols]

Hi richard,

I use this broadcast: S&P 500 Pit Broadcast #1. This guy, the quoter, Ben Lichtenstein, tells you about everything that happens in the pit. He'll tell you when locals of paper(banks) are buying or selling. Whether it's a big bank, big institution, on of his top 10 locals. And Yesterday for example before the sell off. It was quiet everywhere. In all stocks and indices. And suddenly there was one of these top 10 locals making a push lower in the index. Selling futures to get in some low prints. And as soon as he got that low print in. Paper sellers came in. But I heard him say: "I got a top ten local trying to push it lower here BIG TIME", and paper's looking BIG TIME on these lows" That's what he said. So then I know, as soon as this local gets a low print in, paper will sell a boat load. And then I looked at AAPL. It traded almost the same as the s&p 500. So I knew that this could make a big push lower too. And then the local traded a new low in the pit. And the quoter screamed, MERRIL LYNCH coming in a HUGE seller here. He pushed it down a point. And when he said that I shorted AAPL, and that was a 15 cent scalp in less than 10 seconds. And this happened several times on the way down.

Then suddenly I heard him say: We're seeing a bid from these lows, Locals have been selling it hard on the way down, now coming in well bid. Merrill also on the bid. So I know, that it usually means the end of the move for now. And I started buying AAPL, cuz it traded exactly the same. Bought it from the lows and payed up quite a few cents, and that trade made me a good 36 cents.

I also have the squawkbox on during lunchbreak. And when I hear it's getting noisy I get back to my office, cuz I know everything is moving. You could also see it as an action indicator?!?! When there's action in the pits there's action everywhere.
They rarely have an outage, but when they have one. I don't like trading. I need the sound of the pits around me, it's soo good. Without this squawkbox I can't concentrate.

I hope this explains a little.

-Dave.

PS. click this link http://home.wanadoo.nl/~fileserver/fomc1.wav for an example of a busy day. This is an FOMC day. There's action from 2:00 mins to 10:00 mins.

-Dave.

Hi Dave

Just listened to the clip.

He sounds like Road Runner on speed!

Does it become more intelligible with practise I wonder or is there a possibility that some may be driven completely bonkers by it?

I agree that we should use as many of our senses as possible to trade with and I have a little midi app that plays price action on futures. Perhaps I might try both together...

All the best