Trading the US the Naz/Mr. Charts Way

[sall]

I know everyone is very busy making loads of dosh on this thread , could someone when they get a breather from making all that dosh post out the link for Direct access elite.

Thanks

 

[Mr. Charts]

http://www.directaccesstrader.com/
Was that quick enough?
Richard

 

[Mr. Charts]

PS You are more likely to get fast accurate answers if you privmail Naz or myself.
Google is good at finding things.
Richard

 

[sall]

Mr. C Thanks very much , i did try google it was pointing to loads of stuff, wanted the correct one Thanks .

 

[Mr. Charts]

My pleasure, sall
Richard

 

[sall]

:cheesy: By the way that was a lightening level 2 fast response.

 

[Salty Gibbon]

It would be helpful if someone could elaborate on the importance ( or otherwise ) of order routing in the context of intra-day trading of Nasdaq stocks.

 

[Trader333]

Routing becomes of great importance if a market starts to move very quickly which can and does happen a lot with momentum based trading. I once did a side by side experiment with another trading colleague where we tested the likes of "SMART" order routing against me using the route I considered most appropriate. We then picked a number of volatile stocks and ran tests to see how quickly each of us got filled and how it affected our P&L position.

The results were quite interesting in that for stocks that were not moving with any real momentum there was little difference in the P&L for both of us and in fact my P&L was slightly worse because I was directing my trade with specific routes. However, when a fast momentum move occured the difference became quite noticeable. In certain cases I would get a better fill by up to 25c than my colleague did but note this was during extremely fast moves.

Learning to use order routing is important if you use IB, it is less of an issue if you use DAE because this is a true Level II platform.


Paul

 

[Salty Gibbon]

Thanks Paul

Now that I am becoming profitable on a daily basis I feel that it is time to start dealing with the more subtle intricacies of trading such as order routing and other issues which will improve my efficiency.

Presumably, order routing becomes more and more important as you increase the size. At what size of transaction would you say it becomes of major importance ?

 

[Mr. Charts]

Inside day on Nas futures y'day; no motive news pressures so far
Richard

 

[Mr. Charts]

RIMM looks promising though.

 

[Mr. Charts]

RIMM did prove to be profitable on market open but quickly became unstable. However, not before giving me a fast 30c profit.
SINA shaped up well, I entered but my reading of sentiment on the tape told me it was not going down any further so I exited for a scratch trade (tiny loss after commission). Although I have a maximum worst case stop, I rarely let a losing trade get to that loss when I can see from my integrated reading of price, volume, level 2, time and sales indicates the trade has a higher probability of going against me. I do not believe anyone should sit watching themselves lose money by waiting for a stop to be hit when the trade is moving against them. I simply exit before break even if possible.
This approach means that my momentum trades (the vast majority) have a very high success rate and the occasional losing trade is only very small - as in the case of SINA today.
This is a different approach to most people and it has worked very well and consistently for me for the last five years.
Worth considering, imho.
Richard

 

[compoundup]

The philosophy of never giving money back to the market is one of the best rules IMHO.

I missed a nice run up on WYNN this afternoon, despite having seen it on the scanner more than once recently - and thereby having it on a secondary watch list.

Looking forward to seeing you next month Richard

 

[Naz]

IMHO.Trading the first half hour should be bread and butter for any full time Nasdaq trader,because $1 runs during this time are common place almost every day.ie after this post i've shown three of them in about a week on this thread. This is also the time when the high or the low of the day can be made in a stock,so this is another reason to watch this time frame.

I like to trade the Nasdaq using both charts and level 2.This means i have the best tools for the job in any instant in time.Without a level 2 being mentioned here's one such t/a move from yesterday.

Chart one.GOOG bounces off a fib level and a whole number.it sails through the next whole number and the entry is taken with the stop under $187.With first half hour momentum even late entries can be rewarded.

Chart two.It breaks out the high of the day and pulls back to use it as support.I have numerous ways for understanding pull backs and know if they're sell offs or continuation patterns.

Chart three.Sell into strength as GOOG is running into resistance from a few days earlier.this by the way way was the high of the day.

Chart four.Showing the resistance from a previous days high and the reason for selling.

Voila! a $1 run.using charts.

Naz

 

[Salty Gibbon]

Nice post Naz

 

[Mr. Charts]

Nice googling Naz ;-)
It's hard not to be trading and making money this afternoon, isn't it !
Best wishes,
Richard

 

[Mr. Charts]

compoundup,
I'm looking forward to it too - lots of good profitable stuff to show you as well ;-0
Happy Hols
Richard

 

[Naz]

For anyone that wants to get quite deep into some research,the consumer electronics show is being held in Vegas between Jan 6th-9th.This is where lots of new ideas are looked at and journalists write many articles on these different products that can make a companies share price soar.The web site that lists all the companies showing is http://www.cesweb.org/default.asp

I attach a chart showing the movement in stock price from one such company previewing their new "Gizmondo " product there last year. It now trades at $24 one year later.

 

[Mr. Charts]

Interesting stuff, thanks, Naz.
Steve Jobs is expected to announce new products at Macworld on Jan 11th., so it's worth keeping an eye on AAPL in the run up, on the day and shortly afterwards - I'd expect some intra day and swing oppys.
Richard

 

[Mr. Charts]

What a lovely stock AMZN has been today - and what a no brainer - a screaming "buy me" time after time.
Richard