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Prop Trader Journal
- Thread starter Shanb
- Start date
http://www.tradingraw.com/index.php?option=com_content&view=article&id=13&Itemid=77&limitstart=3
Video at the bottom of the page...he mentions it in the beginning.
Video at the bottom of the page...he mentions it in the beginning.
Quote from Shanb:
http://www.tradingraw.com/index.php?option=com_content&view=article&id=13&Itemid=77&limitstart=3
Video at the bottom of the page...he mentions it in the beginning.
Yeah I disagree with him. He is right the move will be bigger if the stock opens flat, but it's also going to be more chaotic. I would not trade that. The gap open to me gives me a reference point. The best trades are the ones where the stock gaps up huge then gets faded on the open. You place a buy stop on the high. When the stock comes back up and takes out the high, it's going to fly. So you have a reference point there. If the stock opens flat it's just going to swing wildly up and down and you really don't have a reference point.
Quote from Shanb:
Currently 23 years old and have been trading for the past ~1.5 years...never got consistent in that time period. I recently joined a prop firm and will be starting a journal to get some feedback and track my progress!
Looking forward to it!
how did you join a prop firm what were the qualifications >? thanks
Quote from Maverick74:
Yeah I disagree with him. He is right the move will be bigger if the stock opens flat, but it's also going to be more chaotic. I would not trade that. The gap open to me gives me a reference point. The best trades are the ones where the stock gaps up huge then gets faded on the open. You place a buy stop on the high. When the stock comes back up and takes out the high, it's going to fly. So you have a reference point there. If the stock opens flat it's just going to swing wildly up and down and you really don't have a reference point.
I would assume this would be true on the flip side as well? I'll look into this setup and acutally flipped through some in-play stocks and saw that this worked in a couple instances. Watching this play out numerous times will help.
I'm going to hopefully catch a stock that opens flat with news attached to it and I will check it out and see if I see anything different. I will also look for something that setups up in the way you describe as well along with other things! Thnks again
Quote from Shanb:
I would assume this would be true on the flip side as well? I'll look into this setup and acutally flipped through some in-play stocks and saw that this worked in a couple instances. Watching this play out numerous times will help.
I'm going to hopefully catch a stock that opens flat with news attached to it and I will check it out and see if I see anything different. I will also look for something that setups up in the way you describe as well along with other things! Thnks again
Just keep a tight stop. If and when price makes a new high or low, it should run. If it trades through and fails, get out!
Quote from Maverick74:
Shan, when you get some time, read through this entire thread. I basically wrote a book on tape reading.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=56373&highlight=short+selling+chat
Maverick thanks for the bits you have posted in this thread. One question:
For a trader trying to learn in this current market, would you recommend much emphasis on tape reading? My understanding is that all the algo and hft trading going on has kind of made tape reading obsolete, and the easiest money is trying to catch longer intraday trends.
Does tape reading serve much purpose in trying to catch bigger intraday moves?
Quote from baggerlord:
Maverick thanks for the bits you have posted in this thread. One question:
For a trader trying to learn in this current market, would you recommend much emphasis on tape reading? My understanding is that all the algo and hft trading going on has kind of made tape reading obsolete, and the easiest money is trying to catch longer intraday trends.
Does tape reading serve much purpose in trying to catch bigger intraday moves?
You can still tape read but you need to be very selective. No NASDAQ stocks, only NYSE. Look for thin stocks that avg under 500k shares a day. Try to focus on stocks no one has heard of. The algos avoid the thin stocks, they are looking for rapid turnover.
Quote from Maverick74:
You can still tape read but you need to be very selective. No NASDAQ stocks, only NYSE. Look for thin stocks that avg under 500k shares a day. Try to focus on stocks no one has heard of. The algos avoid the thin stocks, they are looking for rapid turnover.
Funny, I've always found nasdaq stocks easier to read than listed.