Trading the US the Naz/Mr. Charts Way

[Mr. Charts]

....3

It reversed immediately and moved up until it reached 35.47 when it pulled back for a minute or so with mixed evidence on micro-analysis and then suddenly the sellers came in and I exited as shown. It has continued to drift down ever since and is currently a whole dollar lower.
Both swings gave me a total of $2.20 per share.
No indicators used, just one of my patterns of trading behaviour, watching the market moves and confirmation from micro-analysis.
I hope some find this interesting and some decided to watch the stock after my heads up before open and actually made some money.
I always think it's useful to see how other traders think and trade.
Richard

 

[JumpOff]

Before market open I posted mentioning IMCL at the top of my list.
I watched its behaviour when it broke at $34. It was met with clear selling, came back below the whole number, had another attempt north and slipped back. I was also watching level 2, T&S in using my own style and interpretation and could see confirmation of selling pressure so I shorted as shown.
Richard

Hi Richard,
Regarding your post number 130, can you explain what you mean by "I shorted as shown"? Is there some mark or notation that I am missing? Where was your entry? Sorry to be so behind the curve, I'm just now finding some time to follow along this thread.

Thanks,
JO

 

[Mr. Charts]

Each of the above images was taken within a second or two of taking the trade.
In other words I took the trade and then hit PrintScreen to preserve the image.
Sometimes I post those images here or elsewhere.
This means that I have an image of when the trade was taken. So when I said "I shorted as shown" that means the trade was taken "when shown on the chart." $33.97
As a t2w moderator would you like me to use those words whenever I post a chart.............?


PS You have email

 

[JumpOff]

I was just asking as a 'regular Joe'. The screenprint thing makes sense to me, I guess that makes your entry at the close of the last bar (or the current position if the bar isn't done yet) . Thanks for the explanation.

JO

 

[lloydsc]

GAP Play Methodology - TSRA 9.6.05

I've spent some time reading posts by the generous people on this, and other US stock, T2W related threads and I've plucked up enough courage to post an example of my own.

I did not trade this stock, to be honest I've not traded any stock whatsoever, therefore I can accept any comments regarding how hard it is to trade with real money.

The purpose of this example is to invite constructive comment and criticism and to establish a strategy forward for me to build on before I paper trade.

If the contents make you laugh or smile, fair enough, if you are a beginner as I am and it help's you then I am pleased.

The document maps out the movement of TSRA on 9th June - I watched this stock's movement before and after the event which is a whole lot easier than in real time. However I did pick it up as a pre-market mover and I did have a strategy in place before I traded it (which I didn't!!!!).

The least I have derived from writing this is how everthing, to some degree, that I have learnt seemed to play a part.

Anyway 'head on the block ' - see what you think .
Cheers
Steve

 

[scotch750]

Trading RIMM

Pseudo trader looking for advice on RIMM:
I'm currently paper trading the market while a full time student (my degree is my hedge in case I deplete my trading account). One stock I like to follow is RIMM. While paper trading, I trade 1000 shares a pop using limits getting in and stop losses/trailing stops/brackets getting out. So far my system has been working like a champ, but of course who's paper trading adventure didn't? I want to know the difficulty moving 1000 shares in RIMM. When starting I will start small, but I want to know what I can somewhat "expect" when I go live.

A little bit about my style. I am a discretionary trader, using a combination of technical indicators, patterns, and price movement. I like to use the 5 min chart for entries, unless the day is choppy. If it is, then I move to 3 minute charts or move to a different stock. Time and sales as well as level two are always in view. I hold the stock anywhere from a minute or two to a couple of hours depending on the day and volatility. I get into the market before the break occurs rather than waiting for it to break and then waiting further for confirmation. After studying RIMM for awhile I feel its moves are pretty predictable. My stop loss is set at .10 below entry and and typically when the stock moves .1 in the expected direction, i move my stop to .02 above entry i or get out if I think it will reverse. I like to scratch my trades (after commissions and fees) and get back into the market because a little churn is made up with RIMM's price movement. If i get the chance to trade a full day, I typically make anywhere from 15-30 trades.

 

[Mr. Charts]

I trade 1000 RIMM - no problem getting fills.
Your trading must be hyperactive with RIMM since intra-one minute bars frequently show a range of 15-20c.
I would therefore expect a high percentage of whipsaws with that approach.
What sort of percentage are wins, scratches, losses?
What is your average win size to loss size ratio?
How significant are your commission charges trading like that with RIMM?
Thank you for contributing and I look forward to your further posts.
Richard

 

[Salty Gibbon]

Give me another 6 months Richard and I will be trading 1000 RIMM.

Looking good.

 

[scotch750]

my winning percent is around 75%. For example, I traded the morning on Friday from 9:35-11:30 making 13 trades wining 10 and losing three. Highest gain was .85 and biggest loser was .1. Range of winners was .05-.85 with average of .232. Range of loser was from .04-.1. with average of .7333. The morning was choppy and entries exits were made on three minute charts. As of now I don't track time in the trade, but I would guess I held each for about 3-6 minutes. I love to trade the range from .80-.20. When price is within this range and not blowing through these prices it goes up and down frequently. I scalp for .20 until price moves out of this range. Check out the chart (6/10/05) starting at 9:48-10.24. I made multiple trades in this range until price fell through the range. When trading this approach I don't use the strategy I provided in my first post by moving my stop .02 above entry for long or below entry for short. For example, I look at L2, time and sales, and two indicators for my entry. An example of my strategy is to buy on .00 and sell on .20 then immediately short at .20 and wait for the decline to .00. When price falls to .80 i let my indicators and L2 let me know if I will go long and get out at .00. Another approach I like to to wait for consolidation and load up before the break. Same 3 min chart look at time from 11:03-11:12, signs screamed long and trade went as planned. Hyperactivity is the way i like to (paper) trade this stock--limits my risk and slowly builds my capital. The results I posted are typical. A few weeks I when I have been able to trade the full day, I have made over 5000. I have only had a couple of losing days. All trades are based on 1000 share blocks.

I can't wait to get out of school to start for real. I have plenty of learning to do both in and out of the classroom and will utilize every chance I get to studying the market.

 

[Mr. Charts]

Thanks for the reply.
I certainly think you are wise to start small when you trade for real.
Scalping can be very profitable if your discipline is rigid.

Salty - I'm sure you are well on the road to being an extremely good trader. In fact I'd be sure you are already in the top 1%
Dick ;-)

 

[Salty Gibbon]

Richard

Thank you for your kind words.

I am certainly a winning trader - that much is for sure.

I have always treated this game with great respect and gone very very slowly indeed. In this way I have learnt how to trade, how not to trade and how not to lose.

As a result I now know how to win and I am slowly picking up the pace.

The last 2 years have been a massive challenge to me - especially the long long nights that I have spent going over charts again and again and again - but I can now see a light and it is getting brighter all the time.

I look forward to trading every day now whereas not very long ago I viewed 2.30pm with trepidation.

Your posts and encouragement have helped me a lot and many people might find it strange but I have also found Socrates' posts very helpful indeed.

Take care and have a good Sunday.

 

[Mr. Charts]

I will. You too.
Richard

 

[DavidS]

Hi Lloyd,

Interesting analysis

What was your trading strategy exactly? Your document doesn't show where (if anywhere) you might have considered a trade.

Cheers,
D

 

[neil]

Climatic volume

I've spent some time reading posts by the generous people on this, and other US stock, T2W related threads and I've plucked up enough courage to post an example of my own.

I did not trade this stock, to be honest I've not traded any stock whatsoever, therefore I can accept any comments regarding how hard it is to trade with real money.

The purpose of this example is to invite constructive comment and criticism and to establish a strategy forward for me to build on before I paper trade.

If the contents make you laugh or smile, fair enough, if you are a beginner as I am and it help's you then I am pleased.

The document maps out the movement of TSRA on 9th June - I watched this stock's movement before and after the event which is a whole lot easier than in real time. However I did pick it up as a pre-market mover and I did have a strategy in place before I traded it (which I didn't!!!!).

The least I have derived from writing this is how everthing, to some degree, that I have learnt seemed to play a part.

Anyway 'head on the block ' - see what you think .
Cheers
Steve

I briefly looked at your charts. What stood out was the climatic volume at the end of moves.

 

[Mr. Charts]

lloydsc,
A thorough analysis in my view.
However, I think that is too complex to assess in real time if you are looking at several stocks; one or two candidates only are feasible.
It seems to me you might need some set patterns that might trigger in real time without having to look at news flow during the market. That way you can keep your eye on several stocks at the same time and have several opportunities.
Only my opinion.
Richard

 

[Salty Gibbon]

Hi Richard

How many stocks do you think it is feasible to keep one's eyes on and effectively track simultaneously during a trading session ?

You are probably able to track rather more than most but for a guy like me still very much learning the ropes, how many do you think is feasible ?

 

[Mr. Charts]

A nice quick ERTS trade today.

ERTS is one of my core stocks so I'm always aware of what it's doing, but it was thrown up by a scanner anyway.
I entered long where the cross hairs are as it broke through the whole number and exited a couple of seconds before I took the image you can see. It had hit the whole number and was retreating with support shrinking on micro-analysis (level 2, T&S and players behaviour) confirming that the up move was over, at least for a while. This presented an opportunity to cash in 90c in 11 minutes.
Having taken the money out of the market I was ready to go long again if the conditions were right.
My personal approach is to consistently take profits. I'm quite happy to take a bite of the cherry not knowing whether the other side of the cherry is bad. When/if I then see it's fine then I'll take another bite. Commission is irrelevant when it's as low as $15 per round turn for 1000 shares - the equivalent of one and a half cents on the stock price.
Richard

 

[Mr. Charts]

Hello Salty,
For someone who is inexperienced, 4-6.
For you now, 40 ;-)
You can always zero in on the best likely opportunities as they develop.
Richard

 

[neil]

Salty

Just keep an eye on a couple of forex pairs maybe ?

 

[neil]

Scanner

ERTS is one of my core stocks so I'm always aware of what it's doing, but it was thrown up by a scanner anyway.
I entered long where the cross hairs are as it broke through the whole number and exited a couple of seconds before I took the image you can see. It had hit the whole number and was retreating with support shrinking on micro-analysis (level 2, T&S and players behaviour) confirming that the up move was over, at least for a while. This presented an opportunity to cash in 90c in 11 minutes.
Having taken the money out of the market I was ready to go long again if the conditions were right.
My personal approach is to consistently take profits. I'm quite happy to take a bite of the cherry not knowing whether the other side of the cherry is bad. When/if I then see it's fine then I'll take another bite. Commission is irrelevant when it's as low as $15 per round turn for 1000 shares - the equivalent of one and a half cents on the stock price.
Richard

Richard
What triggers the scanner?
Does a scanner alert you leaving enough time to trade it usually?
Does one have to subscribe to scanners?