Silent Service Method | Page 587 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Silent room 2 replies

Silent Success of Patience 10 replies

My silent journal 4 replies

bo7a method... method for GBP/JPY 205 replies

Seeing Through the Silent Crash 4 replies

Attachments: Silent Service Method
Exit Attachments

Silent Service Method

  • #11,721
  • Jan 27, 2011 1:38pm Jan 27, 2011 1:38pm
Thank you so much for all you do Chris! I was thinking this over during lunch...

I have saved up a lot of money. I actually do own rental properties with my brother (solid investing but they are a lot of work). I have my Roth IRA, I have my 401k, I have been putting money into both of these for 10+ years. I have a seperate account with Edward Jones where I just hold some mutual funds and some Citi.

Anyway, the only trading I do is through Oanda on the FX markets. I am very picky and I have not taking an FX trade since early December. I have a ton of money just sitting in a savings account to be saved up to be my trading fund one day.

If the FX markets don't give me plays, I should look to get into Stocks as well, to get me another set of charts to look for only the best set-ups.

I believe you mostly use Interactive Brokers and I had discussed this with you before. Are you still with Interactive Brokers, and if so, how much would you guess is a good starting point with them to trade stocks...

$5,000
$20,000
$50,000

etc.

Thanks for your help!

T.J.
  • #11,722
  • Jan 27, 2011 2:10pm Jan 27, 2011 2:10pm
Quoting clockwork71
If you trade LIQUID STOCKS ONLY, gaps aren't an issue. And if you know how to trade - you understand gaps are simply support and resistance.
Now that I think of it, it makes sense not to stick just to Forex. you can expand your list of instrument and thus wait only to the A+ setup.

Just two questions:

1) How do we know that a stock is liquid enough.
2) There are thousands of stocks, if we will reduce it by half (say half aren't liquid enough), How do we look for setups?. I mean, it's easy with forex, you just have to go over your list of 20-30 pairs. How do you do that with stocks?

Chris, I highly appreciate your help with this issue.

thx,
2pipsfx
PRICE is Lord, King, Queen and Country
  • #11,723
  • Jan 27, 2011 2:14pm Jan 27, 2011 2:14pm
Quoting unlv_tj
If the FX markets don't give me plays, I should look to get into Stocks as well, to get me another set of charts to look for only the best set-ups.
You had just read my mind
PRICE is Lord, King, Queen and Country
  • #11,724
  • Jan 27, 2011 2:15pm Jan 27, 2011 2:15pm
Quoting 2pipsfx
Now that I think of it, it makes sense not to stick just to Forex. you can expand your list of instrument and thus wait only to the A+ setup.

Just two questions:

1) How do we know that a stock is liquid enough.
2) There are thousands of stocks, if we will reduce it by half (say half aren't liquid enough), How do we look for setups?. I mean, it's easy with forex, you just have to go over your list of 20-30 pairs. How do you do that with stocks?

Chris, I highly appreciate your help with this issue.

thx,
2pipsfx
I would recommend getting to know the personality of 10 or so stocks. Me, personally, love ETF's...
  • #11,725
  • Jan 27, 2011 2:33pm Jan 27, 2011 2:33pm
Quoting 2pipsfx

1) How do we know that a stock is liquid enough.
2) There are thousands of stocks, if we will reduce it by half (say half aren't liquid enough), How do we look for setups?. I mean, it's easy with forex, you just have to go over your list of 20-30 pairs. How do you do that with stocks?

Chris, I highly appreciate your help with this issue.

thx,
2pipsfx
I use the scanner at Finviz.com. You can set "average daily volume above/blow _______" as a parameter to filter out less liquid securities.
  • #11,726
  • Jan 27, 2011 2:33pm Jan 27, 2011 2:33pm
Quoting 2pipsfx
Now that I think of it, it makes sense not to stick just to Forex. you can expand your list of instrument and thus wait only to the A+ setup.

Just two questions:

1) How do we know that a stock is liquid enough.
2) There are thousands of stocks, if we will reduce it by half (say half aren't liquid enough), How do we look for setups?. I mean, it's easy with forex, you just have to go over your list of 20-30 pairs. How do you do that with stocks?

Chris, I highly appreciate your help with this issue.

thx,
2pipsfx
This is a great question. For simplicity, I would pick a stock market you want to trade. For example, you may want to trade American stocks. If you stick to just the Dow Jones Industrial Average stocks, you are by default trading the 30 of the most liquid stocks in the US. It's doesn't sound like that much for set ups, but if you still trade Forex......

You now have 50 charts to look at.
  • #11,727
  • Jan 27, 2011 2:36pm Jan 27, 2011 2:36pm
Quoting unlv_tj
Thank you so much for all you do Chris!...
Yes, I am still w/ IB. Minimum deposit is $10,000 grand, so 5k won't cut it. To be honest, if I were to open an account, I might start with $20,000 as it gives you plenty of flexibility as far as margin for various markets, including stocks. (I don't necessarily recommend leveraging up your stocks.....but you can.)
  • #11,728
  • Jan 27, 2011 2:38pm Jan 27, 2011 2:38pm
Quoting clockwork71
Yes, I am still w/ IB. Minimum deposit is $10,000 grand, so 5k won't cut it. To be honest, if I were to open an account, I might start with $20,000 as it gives you plenty of flexibility as far as margin for various markets, including stocks. (I don't necessarily recommend leveraging up your stocks.....but you can.)
Awesome, thanks Chris.

Who do you use for charting? If I remember correctly, IB's charts are sort of crappy. But I maybe wrong in thinking that way.

I have WHC Trader, and it has stocks and indexes, but I wondered if there was some service you were paying to use for charts.
  • #11,729
  • Jan 27, 2011 2:44pm Jan 27, 2011 2:44pm
I really need to work on my entries on these bigger time frames. I swear I spend more time in losses then I do in profit.
  • #11,730
  • Jan 27, 2011 2:57pm Jan 27, 2011 2:57pm
Quoting Low
I use the scanner at Finviz.com. You can set "average daily volume above/blow _______" as a parameter to filter out less liquid securities.
Is there a scanner for price patterns also?
PRICE is Lord, King, Queen and Country
  • #11,731
  • Jan 27, 2011 2:59pm Jan 27, 2011 2:59pm
I have a subscription to stockfetcher.com... pay under 10.00 /mo and you write programable like syntax for your stock screeners.

Only downside to it is that it only updates the data a few times each day. But, it's intention was that for daily and up trades.
  • #11,732
  • Jan 27, 2011 3:00pm Jan 27, 2011 3:00pm
Quoting unlv_tj
Who do you use for charting?
If you are interesting, I know this site: http://www.freestockcharts.com/

2pipsfx
PRICE is Lord, King, Queen and Country
  • #11,733
  • Jan 27, 2011 3:05pm Jan 27, 2011 3:05pm
Quoting 2pipsfx
If you are interesting, I know this site: http://www.freestockcharts.com/

2pipsfx
Nice I use that for scalping in my zecco account.
  • #11,734
  • Jan 27, 2011 3:20pm Jan 27, 2011 3:20pm
Quoting 2pipsfx
Is there a scanner for price patterns also?
Yes, but limited. If you can code stockfetcher might be a better alternative because you can define your own patterns.
  • #11,735
  • Jan 28, 2011 5:47am Jan 28, 2011 5:47am
Quoting clockwork71
Letting a winner turn into a loss depends on the definition. The people you are quoting will do move to b/e at 20 pips. 20 pips? Seriously? Someone farting at a trade desk can move a currency 20 pips.
What they will do, they will recognize a setup (let's say on the daily), see that the original SL should be 100 pips or so, they will set their SL to half of it (50 pips). their order will be filled and after 30-40 pips they will move to BE or close half of the position.

It a numbers game you, I know.

I had played with the numbers and found it dumb to act like that, on the other hand you ask yourself if you should argue with a great trader like James.

2pipsfx
PRICE is Lord, King, Queen and Country
  • #11,736
  • Jan 28, 2011 7:56am Jan 28, 2011 7:56am
Quoting 2pipsfx
What they will do, they will recognize a setup (let's say on the daily), see that the original SL should be 100 pips or so, they will set their SL to half of it (50 pips). their order will be filled and after 30-40 pips they will move to BE or close half of the position.

It a numbers game you, I know.

I had played with the numbers and found it dumb to act like that, on the other hand you ask yourself if you should argue with a great trader like James.

2pipsfx
2pipsfx, I have struggled with this, and I think the answer is complex...

#1) Just taking every Price Action bar with a full bar stop loss and going to BE at the first trouble spot will probably not make you money.

#2) But many on that thread go into further discussion, which really takes months or even years to digest.

The first thing is you can't just take every Price Action bar. There is much more to it than that. You have to expect price to react at a certain level due to confluence (a mix of Horizontal S/R, Diaganol trend lines, 365 EMA, and/or Fib retracement). You pick out an area where it looks like price might change directions or if it breaks through it might continue strongly.

Then at these levels you look for your Price Action bars. Doing this will greatly increase your w/l ratio.

Now, will doing this allow you to make money with a full bar loss and taking profit at the first trouble area? Probably, but it still might be close.

So then you have to look for reducing the stop based on Price Action bar retracement entry, or reducing the stop to less than the full bar and looking for a good S/R area to hide your stop loss behind. Or dropping in time frames to look for Price Action within Price Action to get in a trade retracement.

Doing this, you should make consistent profits. The key word is "should" because nothing is guaranteed and it also depends upon the individual.

I enjoy that thread, because it is a constant challenge to improve myself to become a shorter term trader.

I enjoy Chris' thread here, because it seems to be more focused on long term charts, long term set ups, lots of common sense and logic and this is awesome for looking for long term set-ups where we let the money work for us.
  • #11,737
  • Jan 28, 2011 8:47am Jan 28, 2011 8:47am
Quote
2pipsfx, I have struggled with this, and I think the answer is complex...

#1) Just taking every Price Action bar with a full bar stop loss and going to BE at the first trouble spot will probably not make you money....
Yes, I know. Taking only the A+ setups, that's what i'm doing (at least trying).

2pipsfx
PRICE is Lord, King, Queen and Country
  • #11,738
  • Jan 28, 2011 9:54am Jan 28, 2011 9:54am
Quoting clockwork71
I know that this answer will probably spark some kind of ridiculous debate yet again on this forum, but in order to answer your question honestly I am going to have to be a little bit blunt with my response.
....
Great post Chris!

You're one of the most realistic people in this forum. A handful of you vs thousands of jokers, that's what FF is nowadays...
Trading = a mirror to your human flaws. Fix them or be fixed.
  • #11,739
  • Jan 28, 2011 9:58am Jan 28, 2011 9:58am
Anyone else running shorts E/U from 3740? I am just in retrace mode right now... but curious to see how this plays out.
  • #11,740
  • Jan 28, 2011 10:14am Jan 28, 2011 10:14am
Quoting 2pipsfx
What they will do, they will recognize a setup (let's say on the daily), see that the original SL should be 100 pips or so, they will set their SL to half of it (50 pips). their order will be filled and after 30-40 pips they will move to BE or close half of the position.

It a numbers game you, I know.

I had played with the numbers and found it dumb to act like that, on the other hand you ask yourself if you should argue with a great trader like James.

2pipsfx
Yes, I should. And yes, I have. (Anyone who has been around more than a year remembers this.)

My biggest thing is this: Only trust those who will point out a trade before it happens.

Kind of narrows down the list, doesn't it?
12 traders viewing now