I think there may be a misscommunication by what I mean by gut. Seems like someone misunderstood me and everyone tagged along lol. When I am trading..I am trading with PA and vol. However, I am consistently using three setups when trading. I have mentioned some of them in the journal. Selling L1 and L2, Buying H1, H2. Also entering on breakout pullbacks that confirm with price action(inside bar, bar pattern configuration). The discretion comes in when I decide what setups to take. There will be innumerable setups that happen throughout the day..it depends on which are taken. I also look at Volume...simple volume should increase in the direction of the trend and decrease on pullbacks. Many different volume patterns(divergence, climactic) I just apply which ever one fits in context. Using primarily the 5 min and 1 min for confirmation on volume. The setups are there....the context is up to the trader to define(Trend, R:R, S/R)
Yea Bano is a profitable trader and he doesn't necessarily take big risks...he manages his trade knows when to cut. He trades large too so he must scale in. I have been having a hard time applying the tape reading I have learned there, nonetheless it is a good tool ya know. I hear you on the office environment! sometimes I just itch to find a new trade, especially if i am already down on the day...have gotten better this past week tho!
Setups/Conditions/Patterns Here is a chart that shows some of what im looking for. *Note shorted the L2 towards the end of the day. Volume divergence with a reversal. SPYs feeling like they were turning with many of same characteristics of above chart.
Can you show me a chart of what you mean by selling L1 and L2 / Buying H1 H2???? And on breakouts, you let them breakout and then buy the dip? I don't like that technique, you miss the best breakouts. If anything, you should buy a dip before the breakout level... If a breakout dips back to a good entry price, its not a great breakout... But that's just me, I know it is a popular technique, I just feel you miss out on $$$$$
I have some on the above chart...a L1 is the first 5-minute bar that goes below another on the leg of a pullback. L2 is the second. H2 is reversed with buying in an uptrend. so I wait for the bar to break. just helps for confirmation. Or I may enter if volume confirms before. The breakout pullbacks I wait for and inside bar or L1 to break and swipe in with the momentum plays. Stop should be to be because if it fails after the move starts then momentum is not there.
you are right on the euro money. i salute your money and time saving advice for those eager beavers, not only those learning how to trade but also for those learning how to trade profitably.... 3 cheers sir/mam :eek: :eek: :eek:
Love this post. Lol. Shanb, be very careful where you get your advice. Guys like the above poster should be ignored. Stay focused on what you intend to achieve. Protect your psychological capital. Focus on strengthening/increasing your psychological capital and developing your edge/approach. Lol @ "the stock market is too efficient to be traded in the short-term..." What a joke.
Yes because the 1% of day traders who actually make money are skilled and that's not what you would expect from chance alone. If day traders consistently made money and you add exponential growth (scale-able strategy) the 1% would be billionaires. To have any edge in the market you need to have great patience and take trades that have good risk-reward. If you think you can trade everyday or consistently in the short-term then you're a jacka$$... otherwise exponential growth would make you the ridiculously rich. Lol for you to think the stock market, especially the US mkt, is inefficient. It's the most liquid mkt in the world, news comes in an instant, there's a bunch of money managers tracking every tick, a bunch or algo arbs taking advantage of any price inefficiencies, HFT, and you think the stock market is inefficient. Is that why even Pareto's law looks generous when applied to the markets you buffoon lol? If you think that you can extract money from the stock market on a daily or consistent enough basis then god bless you. Enjoy your $10,000,000 house, $3,000,000 yacht, $350,000 car, trophy wife, etc. Btw ElecEquity, I saw your journal and hope that you enjoy your $1k up or down days after trading 100,000 shares. Those commissions, regardless how inexpensive, are not your friends huh? Please advise the OP how to churn his account and consistently beat the market in the short-term.
My man...do you get a kick out of playing the know-it-all. You have given little tid-bits throughout this thread, but they are overshadowed by crap like the above post. Any type of trading is hard. In order to consistently perform at a top level in this game is HARD. only ~5% of traders make the big bucks because it is hard...it wouldn't be as lucrative if it was easy!! Don't know what point you are trying to make. I know it is hard, but guess what some people get a kick out of trying things that are hard. I like challenges and having a career that challenges me. I DONT want to do something that doesn't stimulate and engage me and offer me a challenge! I'm sure the guys that make it in this game have a similar outlook! BTW ElecEquity...your log is great man. Learned alot reading through it!