The Day Trading Thread

[ChimpTrader]

Any new good manual or book on "Scalping" for fresh perspectives? I mean no extreme scalping (like HFT or 15 trades per hour) but simple strategies on a 5-minute chart for an old-timer.

P.S. I tried to digest Al Brook's methods but somehow its very hazy without any clear cut set of rules.

 

[NQurious]

Any new good manual or book on "Scalping" for fresh perspectives? I mean no extreme scalping (like HFT or 15 trades per hour) but simple strategies on a 5-minute chart for an old-timer.

I have said elsewhere that Al Brook's materials, imo, are worth a look, especially his videos. He is a 5 minute PA trader. There is a guy named Volman or something like that who wrote a book on trading 5 minute charts. Perhaps you could find a free copy or sample somewhere to judge for yourself whether there is anything there for you.

In my opinion, for a day trader, especially a stay-at-home index day trader, I think the 5 minute chart is king. I also think there is no better instruction on trading the 5 minute chart to be had than can be gotten by closing your trading account platform and forget about making money, and opening a 5 minute RTH chart, and just sitting there and observing for a month from bell to bell. If you do that and can't figure out some consistently profitable PA set ups, then you would be better off finding an indicator based method.

 

[destriero]

Seaweed,

I am not attacking anyone, just wanted to provide you some input.

You gave me good advice before, so i am returning the favor buddy.

Be extremely careful with screenshots. Screenshots (web base) can be modified. Here is an example of million dollar trade I took in may below. See the proof below.

So that means I have million dollars right? WRONG it is fake. It took me 5 minutes to create a fake trade and post here.

See the real trade below buddy.

Be careful man. Make sure you can watch the trader trade in real time. Or get a 3rd party audit. I have friend who use to trade who was scammed out of about $88K with the whole fake account stuff.


View attachment 204126


View attachment 204127

That’s proof of nothing. I took a pic of IBTWS Mosaic displayed on my laptop screen with my phone. With the news time stamps on the bottom right, and the time stamps matched the post time within three minutes.

You pikers want an audit because you’ve never made more than a grand in a single day and never will. An audit on the day the money is made sounds reasonable. My audit is my tax return.

I have offered, repeatedly, to allow ppl to login on the weekend to view my PNL and have had ONE taker... and the guy was a proponent.

@MarkBrown is a piker joke. He will have an excuse until the day he kicks.

 

[NQurious]

I was under the impression (guess from reading here on forum),that indicators are the enemy for price action traders.

Reading this forum one can get the impression that it is an either/or decision as to use indicators or a naked price chart. I am predominantly an S/R PA only trader. I also use the DOM for entries and especially for profit taking. I've recently added the method used by @speedo which uses MA's and an oscillator in addition to my usual approach. The open minded who truly understand price activity and the nature of markets will be able to see the value in multiple approaches.

For the many for whom market action remains a mystery filled with assumptions of back room intrigue and the fear that "They are gunning for my stop" ... well, for them it has often become all or nothing. Some will say indicators are a must, while others will say indicators are lagging garbage and only PA matters, and still another group (the smallest and grouchiest) linger here only to remind us that trading is a fool's errand and that literally nothing works.

 

[SimpleMeLike]

Reading this forum one can get the impression that it is an either/or decision as to use indicators or a naked price chart. I am predominantly an S/R PA only trader. I also use the DOM for entries and especially for profit taking. I've recently added the method used by @speedo which uses MA's and an oscillator in addition to my usual approach. The open minded who truly understand price activity and the nature of markets will be able to see the value in multiple approaches.

Thank you so much NQurious for the response. Yes, it can be very misleading reading multiple people opinions and recommendations.

Yes, right now my chart are naked, and I want to experiment with adding an indicator(s) to help me with defining trend as I trade. Of course, I have back test and sim anything i see will work, but if an indicator can keep me out of the guessing and totally relying on price action to get trend right, then I am definitely all for it.

I believe adding an indicator will keep me patience.

 

[SimpleMeLike]

Destriero actually says this exact same thing. This is why he much prefers a shot with your phone. Its much harder to fake the picture of the screen, and even then he also suggests a timely post of entry and exit with a minute or two of the trade getting filled.

When it comes to trading, seeing results is the first item that needs to be addressed. Only when the results are acceptable should you waste any time on going deeper like finding out about the method, etc.

Hello Seaweed,

You and I think alike, and I agree. screenshot with phone is better.

 

[SimpleMeLike]

I can't address how important it's to use indicators along with your trading method. However, majority of people use those indicators in a wrong way. They can't just add a bunch of indicators like MACD, RSI, STO and others with the expectation that somehow these indicators will work in a way they want them to be. Also, they can't just jam their charts with bunch of these indicators because they are meaningless if they show exactly the same picture. I guess maybe this is the reason why only a very few traders become successful because they know how to think outside the box. That said, you won't find a book or any online resources that would teach you how to use indicator(s) properly to help you to find an edge. You have to imagine things outside a box. The same goes with time frames. I've been using TFs that nobody would ever heard of and they have no clue how important those TFs are. Think outside the box my friend.

Btw, please don't get frustrated about this. I remember those years where my friends and others were off to travel during long weekend or holidays during xmas seasons. During those moments while people were celebrating, I was sitting in the basement keeping playing and twisting around those indicators to see if I could come up with any edge to trade. I could hear the firework during new year eve through window, but nobody cares that I was lonely by myself in the basement. It took years for me to realize how to use indicators properly. So, please don't get upset or disturbed if you still haven't figure out your trading edge yet.

Thank you humbletrader2016, good write up.

 

[SimpleMeLike]

Regarding to trading rules, each setup has its own rules and you must obey. Otherwise, you will often find market conditions where they look quite similar to your setup, but they are not the same. In those cases, if you can't distinguish the difference between your setup and a fake one, you will get trapped in from time to time. This is why for each setup, I must identify the key alpha signal and two others which means there are 3 alpha signals. Once 3 alpha signals get confirmed, it's very rarely a fake one. Then, what's next is your entry and exit point. Entry point is very important because you don't want to sit there to wait for hours to see it moves to your direction. During those hours of waiting, you are exposed to all kind of dangers. You'll find a lot of time that when your alphas get confirmed, price will take off very soon. So, it won't take you a lot of time to figure out your entrance point. Regarding to exit point, it is different for everyone. You can either rely on S/R from macro TF or using MA from a TF such as 5-minute chart to get out and etc....

humbletrader2016,

Thank you. Regarding entry method, in your opinion or recommendation should entry method be very specific and rule based? with price action trader and entry on the lower time frame sometimes bars look different but mean the same.

 

[humbletrader2016]

humbletrader2016,

Thank you. Regarding entry method, in your opinion or recommendation should entry method be very specific and rule based? with price action trader and entry on the lower time frame sometimes bars look different but mean the same.

I'm going to create a private thread so we can discuss further about this topic since I dislike to share it publicly to everyone. I'm going to show charts and stuff from time to time to help you improving your trading.

 

[destriero]

I saw the phone pic caps with the "blotted" out portion and while it looked nice, I recognized it as IB TWS, and it certainly can be run in sim mode. I don't really know who is for real here, but I'd like to think some here or in the past on ET are legit successful traders making at least over 100k a year. I would guess a more solid proof could come with broker statements with personal info redacted, but at least identifying an account number, and then permission given to the broker to verify them on a phone call or something.



I have a similar sentiment and experience with scam trading products and gurus. If I cut off all the time wasted with them, I could have shaved off at least five years of stumbling around, being fooled and still not reaching break even. tradingschools.org opened my eyes to the severity and pervasiveness of the out of control snake oil trading product & vendor scam industry and is my goto place for a chuckle at the next scam exposed.



Al Brooks and others often like to use the 20 EMA for more immediate trend but I guess the 200 can still work as a higher time frame and seems to be used with long term position chart reading. The RSI could be used to check for strength and may help with divergences. Just my opinion, but the s/r looks so cluttered. Maybe just use hi & low & close of yesterday and maybe R2 & S2 for early reversal signs. But then again, I barely tried s/r lines only for a short while, and moved on quickly. If you learn to read patterns like from AlBrooks or Bulkowski(www.thepatternsite.com), you can also look on more recent swing hi's/lo's as target or s/r areas without having to draw lines.

Sim-mode, jerkoff? With the same account number on every blotter. Hint, my account starts with the letter U.