Day-Trading 2.0 for small traders
- Thread starter jjrvat
- Start date
- Status
I actually have a list of tradble stocks (about 6 stocks) so each day one of them have a very good day and i take advantage on it. Although i mainly trade AMZN and RIMM, yesterday, for example CROX had a very good day too but I didn't trade it, although it was in my list.
I've chosen this stocks based on paramters like average volume
(more then 4M shares), average range (at least 2 dollars) and average spread (no more then 3 cent), and more. I change my list from time to time, mainly if i loose to much on one stock, then it's out of the list.
You can change the parameters to fit your trading style and find stocks that works for you (I personally use Amibroker to find them). Get used to the stocks, get to know them like the palm of your hand and your good to go.
I've chosen this stocks based on paramters like average volume
(more then 4M shares), average range (at least 2 dollars) and average spread (no more then 3 cent), and more. I change my list from time to time, mainly if i loose to much on one stock, then it's out of the list.
You can change the parameters to fit your trading style and find stocks that works for you (I personally use Amibroker to find them). Get used to the stocks, get to know them like the palm of your hand and your good to go.
This is a bit off topic but I have some filters on www.stockfetcher.com in the filter exchange forum. The FADE THE GAP STATISTICS and RUN FOREST, RUN filters will show you the statistics of stocks.
For example, knowing that AAPL fills the gap about 66% of the time gives me an "edge".
hi all,
had some very though two-weeks and gave back all the money I've earned so far this year. My main problem is not with jjvrat method but with the entries and exits. a lot of time i get to high slippage and, with commisions i can end a day with 5 winners out of 7 trades and still lose money.
This took me to the thought that something I'm doing is defintly wrong. therefore i wanted to ask.
1) Does any of you use JJvrat method to scalp stocks?
2) if so, which stocks you find best to scalp and what bars do you use (volume,range,tick,time)?
3) what is you're entry method? I'm currntly using a 25HMA cross, the problem though is that i wait for a cross and then put a stop above the high of the bar that crossed (for a long trade) but using a stop order causes me to either get a very bad price or somtimes not succeding to put the order before the stock is already making it's way up and it's too late to enter.
On the other hand entering without a stop order can cause many loosing trades as many times the stock cross the 25HMA but then immidietly return back.
what do you use to enter in terms of trigger and orders?
4) when do you exit? do you scale out or do you have a fixed targets? I'm currently using a 20 cent target on AMZN but this cuases a 1/1 r:r ratio and including commish and slippage makes it almost a 2/1 Risk:Reward and this is definetly not good but trying to scale out i find the results to be not much better, because although you'll get 3-4 40 cents trades per day the rest of the trades you'll end up B/E with the secong half.
thank you all for your halp.
BTW
I still scalp AMZN and RIMM but I'm starting to think that with my profit targets (20-30 cent) these stocks are just to fast for me.
had some very though two-weeks and gave back all the money I've earned so far this year. My main problem is not with jjvrat method but with the entries and exits. a lot of time i get to high slippage and, with commisions i can end a day with 5 winners out of 7 trades and still lose money.
This took me to the thought that something I'm doing is defintly wrong. therefore i wanted to ask.
1) Does any of you use JJvrat method to scalp stocks?
2) if so, which stocks you find best to scalp and what bars do you use (volume,range,tick,time)?
3) what is you're entry method? I'm currntly using a 25HMA cross, the problem though is that i wait for a cross and then put a stop above the high of the bar that crossed (for a long trade) but using a stop order causes me to either get a very bad price or somtimes not succeding to put the order before the stock is already making it's way up and it's too late to enter.
On the other hand entering without a stop order can cause many loosing trades as many times the stock cross the 25HMA but then immidietly return back.
what do you use to enter in terms of trigger and orders?
4) when do you exit? do you scale out or do you have a fixed targets? I'm currently using a 20 cent target on AMZN but this cuases a 1/1 r:r ratio and including commish and slippage makes it almost a 2/1 Risk:Reward and this is definetly not good but trying to scale out i find the results to be not much better, because although you'll get 3-4 40 cents trades per day the rest of the trades you'll end up B/E with the secong half.
thank you all for your halp.
BTW
I still scalp AMZN and RIMM but I'm starting to think that with my profit targets (20-30 cent) these stocks are just to fast for me.
i had been studying this strategy and i ffe the same. there is som much price movement on individual stock that its difficult.
u can try AMZN which is little slow compared to RIMM or AAPL.
u can try AMZN which is little slow compared to RIMM or AAPL.
Amitman,
Sorry to hear you've had a bad period.
I don't know if this will help, but here's what I see from your post...
If you're getting 5 winners out of 7 trades and losing money it says two things:
1) 5 winners out of 7 says the method you are using works
2) losing money on that performance ratio says the math is wrong
If you are using a 20c profit target (which, in my view, is about right for those stocks), and your stop gives you 1:1 R/R, and this becomes 2:1 R/R with commission etc, your commission is too high proportionately for the trade size, and/or your slippage is too high. You don't break them down, so it's not clear which, or both. At those ratios, it sounds like you may be trading lots which are too small for the method. I wouldn't ask what size lots you trade, but for example, $5 commission on 1000 shares x 20c is very different from $5 on 100 shares x 20c. If that's where the problem lies, you need bigger lots, or a bigger timeframe -- $5 on 100 shares x $2 is OK, too...
Ref: "I still scalp AMZN and RIMM but I'm starting to think that with my profit targets (20-30 cent) these stocks are just to fast for me."
I trade similar stocks to you, with similar stops and targets. I'm sure these stocks are not too fast for you -- they may just be too fast for your current execution method. I don't know if you are familiar with any of the third-party execution systems, but I use NinjaTrader -- here's a couple of things which may be relevant to your post: you can set up Stop Limit orders in advance -- eg limit is 5c above stop for long entry. You can also set up simple strategies in advance, where stop loss and profit targets are set as soon as you are filled, at levels you set up in advance. Once those parameters are set, you can place the order very quickly with one click on a chart -- this is how I do it, I get filled pretty much every time, and at decent fills. With a 5c limit above stop, I can still use a 20c target.
I think you're dead right about scaling out, too. My experience has been the same. When you look back at charts it looks like a bigger target would get hit, but in practice I found that after exiting half and moving the stop to B/E, most often the second half of the position fell back and stopped out.
I would say, don't get discouraged -- 5 out of 7 is great going, (as long as your losers are not too big...).
Rob
Sorry to hear you've had a bad period.
I don't know if this will help, but here's what I see from your post...
If you're getting 5 winners out of 7 trades and losing money it says two things:
1) 5 winners out of 7 says the method you are using works
2) losing money on that performance ratio says the math is wrong
If you are using a 20c profit target (which, in my view, is about right for those stocks), and your stop gives you 1:1 R/R, and this becomes 2:1 R/R with commission etc, your commission is too high proportionately for the trade size, and/or your slippage is too high. You don't break them down, so it's not clear which, or both. At those ratios, it sounds like you may be trading lots which are too small for the method. I wouldn't ask what size lots you trade, but for example, $5 commission on 1000 shares x 20c is very different from $5 on 100 shares x 20c. If that's where the problem lies, you need bigger lots, or a bigger timeframe -- $5 on 100 shares x $2 is OK, too...
Ref: "I still scalp AMZN and RIMM but I'm starting to think that with my profit targets (20-30 cent) these stocks are just to fast for me."
I trade similar stocks to you, with similar stops and targets. I'm sure these stocks are not too fast for you -- they may just be too fast for your current execution method. I don't know if you are familiar with any of the third-party execution systems, but I use NinjaTrader -- here's a couple of things which may be relevant to your post: you can set up Stop Limit orders in advance -- eg limit is 5c above stop for long entry. You can also set up simple strategies in advance, where stop loss and profit targets are set as soon as you are filled, at levels you set up in advance. Once those parameters are set, you can place the order very quickly with one click on a chart -- this is how I do it, I get filled pretty much every time, and at decent fills. With a 5c limit above stop, I can still use a 20c target.
I think you're dead right about scaling out, too. My experience has been the same. When you look back at charts it looks like a bigger target would get hit, but in practice I found that after exiting half and moving the stop to B/E, most often the second half of the position fell back and stopped out.
I would say, don't get discouraged -- 5 out of 7 is great going, (as long as your losers are not too big...).
Rob
- Status