Day Trading - A successful method for losers

[mhashe]

Quote from smashandgrab:

Hello biod,

My apologies for displaying thrash. I knew I shouldn't have put up a paper trade, but wanted to show something relative to the stock list I just posted. Without an actual trade, I guess the data is without weight. I'll refrain from showing worthless data in the future.

As for level II, I tried to use it in the past (when I first started), but had trouble following the data listed on it along with the streaming quotes I was following. There was just too much data to follow and learn at the same time, so I eliminated the level II. It sure wouldn't hurt to learn something new. Do you know where I could read up on it's display and usage?

I currently don't use a direct access broker. Could you recommend one?

By the way, I have a good example of what I've been doing for 3 years now. The stock is BMD, traded back in December '05 (only data I have on recent trades on my home computer). This is typical of the day trading plan. Quick in and out for 2% approx. As I said in my first post, I'm averaging 40% per year (actual money, no paper trading). I'm hoping to improve on that 40% with the help of others.

thanks for your reply

You can try the time and sales window. I don't look at the Level 2 gibbrish either. Most of it is nonesense these days. Open 2 time and sales windows, 1 for all T&S and second one with a filter for volume > 200 or > 1000 ( whatever suits you). Look at the *scroll speed* of the tape, right before a turn it'll speed as they try to fake out the weak hands and then there is a slow down as it consolidates at the reversal point.

It's difficult to explain, once you look at a few tape setups you'll get the hang of it. It's more effective if you're trading the same market ( or stocks) day in and day out.

btw, you should post whatever you want to post. It's your journal. If others don't like it, that's too bad, they can move on. If you're looking for a direct access broker, cyber-trader is good. Personally I think US stocks are entering into a brief bull market, if you're returns are that good, think about joining a prop firm and leveraging this trading system for all it's worth. Just my 0.02

 

[jzlucas]

Quote from smashandgrab:

Hi jzlucas and chadwick,

You both are correct. The CBP works. I just don't use it that often because I'm always worried about overhead (something I picked up from the bear market). There are times though that a stock will exhibit a perfect CBP that I just can't ignore.

How do you guys play it. Could you give me some details? Maybe with some good info, I'd feel better about using it.

thanks for your reply

Sorry, Im of no help here. I only swing stocks. I daytrade futures.

 

[Boib]

Quote from smashandgrab:

Level 2 Do you know where I could read up on it's display and usage?

Not realy I just kind of picked it up over the years. Check out the raw data on medved and also the time and sales. Its been a while since I use Quote tracker but I thkn the raw data window gives you a kind of level2 screen that may help you.No Marketmakers but some of the ECNs


I currently don't use a direct access broker. Could you recommend one?

I use IB and a Canadian firm Tradefreedom.

I mainly swing trade and will hold a stock until it reverses trend. I use the same setups as you do but trade smaller size with wider sops and look for a point or 2 each trade. Nowhere near 40% return. I'm looking for 1 to 2% each month . In theory thats 24% a year but it hasn't happened yet.

Don't stop what your doing, a lot of traders would kill for a 40% return. You should be managing a fund somewhere.

Best of luck with your trading. I'll shut up and watch. Maybe I can learn something.

 

[newfool]

Hi smashandgrab,

You're doing just fine. I venture to say that close to 95% of the people on this board would dream to get the returns that you're gettting. So: don't change a thing. If you decide otherwise, please take extreme caution.

BTW, this is my first post on ET. Hello everyone!

-fool

 

[jzlucas]

Quote from newfool:

Hi smashandgrab,

You're doing just fine. I venture to say that close to 95% of the people on this board would dream to get the returns that you're gettting. So: don't change a thing. If you decide otherwise, please take extreme caution.

BTW, this is my first post on ET. Hello everyone!

-fool

Welcome... love the username! LOL!

 

[smashandgrab]

Hi mhashe,

Thanks for the info on level II. I'm going to try it out Tuesday.

I'm especially interested in your comment about pro firms. What would a pro firm offer, hypothetically? I really have no idea how any of that arena works, except on TV. The idea of trading for a living sounds great. My profession is very unstable and having a second profession as backup would be nice. Any ideas on how to pursue this avenue?

 

[jmiles301]

not sure if what i has to offer is worth anything, or if it has missed the point of this thread entirely, but along the way i noticed that you put everything you have and then some into only one position. if that's correct, i would consider devising a more feasible risk/money management plan, because if you are caught on the wrong side of an unexpected event, then you will end up dead in the alley. long term survival is always the first goal. people seem to forget this at the beginning...

 

[independenceair]

earlier post asked for opinion or suggestion- ..may I suggest using multiple time frames simultaneously such as 5, 15, 60 and daily . Moving averages are excellent support and resistance and will vary for the market being traded.(try 10,20,30 sma).I use neoticker , they allow unlimited amounts of charts at one time the only limit is monitor space.

Varied T/A can be applied to multiple time frames- its simple and effective- also maybe try heavily traded issues (those that are usually heavily traded) timed with the corresponding index futures. They often move together with some lag which creates an opportunity.(example QCOM timed with NQ futures)

I also became hooked on the market at the beginning of the last bear and i didn't even know what short selling was- trying to go long only during a bear is like skating uphill.

 

[darnelds]

Smash,
Consider raising your minimum volume to at least 500,000. If you want to get good fills, you need more volume than 100,000. Since you only have one position on at a time, try > 1,000,000 shares/day. If you get too few candidates, cut back to 500k.

 

[smashandgrab]

Hi jmiles301,

There are times when I hold overnight being 100% invested in one stock. I can tell you right now, there is no sleep that night because of my fear of losing 20+ % due to some news blip that tanks the stock before I can sell it at the open. This has happens to me while holding overnight with a 25% exposure. Truth be told, it has been a long time since I've held overnight because of this fact.

The reason for this journal is to improve upon my returns. One way to do this is to hold longer. With most of my trades, I look back and find that I have, in most cases, sold to soon. Maybe one way to do this is instead of selling the whole position before the end of the day, sell 1/4-1/2 and hold the balance overnight.

The problem is I need to feel good about it (I'm a such a chickenshit when it comes to losing money). I'm hoping someone comes up with a indicator or an advanced way of trading I never heard of , that can statistically raise the probability of success.

I think independenceair could be on to something with moving averages. I haven't really used them because I felt that I would need to tailor each MA to the stocks rise, which could be too time consuming in the heat of battle, but I'm going to apply them as he suggests and just watch. Maybe one will be consistant and give me that break through I'm looking for.


Hi darnelds,

I'm not having too much problem with fills yet, but have projected and realized this problem with larger bank rolls. I came up with the same conclusion as you, which is raising my average volume per day requirement. I'm hoping by the time this happens, I've found the way to hold longer, making the need for higher requirements less important.