Registered User
Joined: 1/5/2005
Posts: 14
|
I was wondering if you could tell me how to set my stochastic indicator for day trading? The setting that I have at this time are: PERIOD:5 SK:2 SD:2 SIMPLE Basically what I'm looking for is something that will indicate to me that a particular stock is ready to move up. Also is there another indicator that will help me in this regard? From what I've noticed stochastic is a very good indicator. Thanks Again for all your help!
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
As trainers here in the forum, we cannot recommend specific indicator settings. There is much written about stochastics out on the web. I will move this topic to the Stock and Market Talk forum so that others who may use stochastics for day trading signals might see your question and share settings that they've found to be useful.
All technical indicators could be used to signal when a stock might be ready to move up...that is really the crux of technical analysis...to analyze the price and volume charts to determine when you think price is ready to make a move in one direction or another. All technical indicators you'll find on a stock chart are based on price and/or volume, and have been designed to help you interpret what price and volume might be telling you.
- Doug
Teaching Online!
|
|
Registered User
Joined: 10/7/2004
Posts: 2,126
|
Ok Armani you are where I was 7 yrs ago. I will tell you that this is not the solution to success in trading, but I suppose we all have to go through the learning curve of trial and error.
Just so you know stochastics without level II and time and sales is like rollerblading with your eyes covered.
I will give you the settings, but without the two other tools they will be meaningless.
Here we go: For %dslow - %K interval:15, %d interval:5, and %dslow-interval:2
For %d - %K interval:15, %d interval:5
This settings are only valid for 1-minute chart.
good luck.
|
|
Registered User
Joined: 1/5/2005
Posts: 14
|
Hey BIGBLOCK thanks for your reply. But I was hoping maybe you could elaborate a little on how it is that you use all 3 meaning stochastics, level II and T&S to make wise decisions. Thanks again!
|
|
Registered User
Joined: 10/7/2004
Posts: 2,126
|
Armany that would take lots of time. Level II and time and sales is a hands on experience kind of thing. No books outthere on the topic. Its all realtime so hard to go back and review.
If you are interested in day trading a good place to start is by reading anything you can from Jea Yu.
He explain somewhat about all of this thing and lots more.
good luck.
|
|
Registered User
Joined: 1/5/2005
Posts: 14
|
Thanks again man, I appreciate it. If you or any other experienced day traders out there have any tips in the future I'd really appreciate them. In the mean time I'm going to find that book your talking about. Talk to you later!
|
|
 Gold Customer
Joined: 2/1/2005
Posts: 51
|
I have been day trading for 3 years on a full time basis. I have also attended multiple seminars, and you will learn a great deal, with a great deal of hype, and everyone trying to sell DVd's, all day seminars, and T-shirts. Many of the books are written by writers that aren't traders, they only regurgitate the basic principles of Gann, Wycoff, McGee, etc..
I belong to a trading club that has in excess of 130 seminars per year from top traders. Mainly since they would like to push their all day seminar for $900 to $1500 per weekend, and we have 1100 members in the group to influence and get these speakers in.
First, forget about Level 11, that hasn't been used by serious traders in the last 5 years.
Secondly, find a good, cheap brokerage, with max of .01cents per share maximum, good fills, and intraday price feeds and flexible charting opps. I use TC2000 for end of day, scanning purposes, etc..
Third, most day traders have a few methodologies in common, mainly CCI, Fibonacci, and Candlesticks. Stochastics in fine as a lagging indicator, but don't
take my word for it, watch stochastics and MACD, etc..
Fourthly, few day traders trade stocks, most trade e-mini, due to the high leverage, and the lack of manipulation you will find in the market with equities, and options.
|
|
Registered User
Joined: 12/3/2004
Posts: 8
|
What is an e-mini?
|
|
Registered User
Joined: 1/5/2005
Posts: 14
|
Hey amigo thanks a million for your input, but I was wondering what are e-minis? I'm getting ready to do this on a full time basis and I'm a little nervous about it. I'm starting out whith $25,000 since that's the minimum amount aloud to be a day trader. Also where can I find info on your trading club and seminars. I understand that education is the best investment you can do in order to do this well, but some of the prices they charge for these seminars are outragous. Anyways, my other question was What are CCI's and Fibonacci's? I've heard of them but don't quite understand them. And if I seem to be asking a little to much just tell me. Thanks again!
|
|
Registered User
Joined: 10/7/2004
Posts: 264
|
Arman, don't want to burst your bubble but if you're going to do this full time and expect to eat you'll need a lot more than $25,000 imo. My suggestion is take the next several months and learn everything you can before you start trading and then trade small to start. Good luck.
The e-minis are futures contracts provided by the Chicago Board of Trade and Chicago Mercentile Exchange, among others. Go to their websites and you can get a lot of info, including recorded webinars about how people trade the products. The advantage of the e-mini is that they are great for daytrading because they are not subject to the pattern day trading rule (can start small), can be shorted without the uptick, and are highly leveraged. The downside is that they are highly leveraged. You WILL loose everything if you are not a diciplined trader. Good luck.
|
|
Gold Customer
Joined: 2/1/2005
Posts: 51
|
Golfman is correct, you can obtain most information from the CBOE. The e-mini's are smaller future contracts. You will find that you don't need 25K, a minimum of $10K should do to be able to at least get 3 contracts. The SP-500 e-mini's are the most popular since they will have reasonable volatility, and trade reasonable volume in contracts. The Russell is also popular, although volatility will get quick moves of multiple ticks in seconds. You can get a definition and complete info at the CBOE.
Yes there is a downside, although as a trader you have to mitigate your losses with discipline, consequently, stop losses. Due to the nature of e-mini's, you can alway's scalp a few ticks and get a reasonable reward.
I will provide information on where to obtain CCI and Fib info in the next few day's.
Also Golfman is correct on testing the waters carefully. You can paper trade prior to actual involvement, although it doesn't work because you are circumventing greed and fear that is predominant with beginning traders. You can be in a paper trade, be down 10% and your reaction is quite different than if you had real $$$ involved. Although you should watch the market for quite awhile prior to jumping in. Find what suits you, intraday charts, 2/3/5 minutes ? learn the indicators, as previously indicated I use Fib, a momentum oscillator (CM03), Tim Tillson's T3's (smoothing averages), and just learning CCI. It is alway's an education process.
Remember, everyone is looking for the holy grail, and most of the time we end up with just the grail.
|
|
Gold Customer
Joined: 2/1/2005
Posts: 51
|
Armani, per your request. Fibonacci explanation is beyond the scope of this forum. I would advise finding and downloading information via web. Throughout your struggle to understand, just remember, it is a leading indicator, with projections that work based on two factors, nature, and self fullfilling phrophecies. Traders, hedgers, most good technical analyst use fibs, therefore you can see the activity around 21.8,38.2, etc..
Secondly, CCI, look up WoodiesCCIclub that should help for an understanding of CCI.
Thirdly, remember you need to find your trading style, everyone will give you a different methodology, luckily certain leading indicators will be fractal, can be used on 2minute to monthly charts.
As far as books recommendations, first I would look at
Technical Analysis of Stock Trends - this is classic Edwards and Magee. Also fun to read, and realizing that nothing has changed is Reminiscence of a Stock Operator-Levebre.
Referencing books on market makers, there are many and at least you can alway's pickup information from each book. Look for tidbits of information, including VWAP, volume weighted average price. This will affect the price of a stock during the day, reason accumulation by traders, hedge funds, mutual funds. Very few people understand that if you have been accumulating in the area of $12, you will be upset if VWAP is below that price, consequently the market makers will jack that price up by the end of the day. As an important customer, you expect them to purchase at the most reasonable price, especially due to volume they suppply. This is all basic information on how the market really works, this is the only business I can think off that not only sells inventory you have, but also borrows the inventory, and returns at a lower price.
|
|
Registered User
Joined: 1/5/2005
Posts: 14
|
This forum is really better than I thought. You guys don't know how much I appreciate your tips. It just seems like the more I learn, the more I realize I don't know much at all. I guess it's like BigBlock said; what I need is "hands on experience", so here we go!!!!!!!!!
|
|
|
Guest-1 |