**OFFICIAL** Trading and Investing Thread- Part -II-

[againstall0dds]

Yea i trade the ES (S&P Futures) mostly just scalp, but sometimes get a nice move every once in awhile.

How do you scalp?

[DCarruso]

For guys that use Trade Station...when you look at longer term charts for futures (Monthly/Weekly Bars). Do you guys use the continuous contract (@GC.C) or the regular contract (@GC). Or do guys use a custom contract based upon open interest/volume/days to expiration?

Thanks

If you are to look at longer term, ie not just the front month contracts, you will need the continous contract. Otherwise the charts are distorted at the rollover points.

I just look at the front month contracts, separately, for my index futures trading.

[DCarruso]

How do you scalp?

What happened with your god? Have you found a new god?

[DCarruso]

yes...it can be risky but if you've got a good feel for the market, it can be very profitable. writing calls is a great thing to do right now.

so is baiting wolves with your manhood, running red lights, going hunting while drunk, having unprotected sex with cheap hookers.....

Like mom used to say," it is all fun and play, until someone loses an eye."


Writing calls are fine and profitable, until the Grim Reaper arrives with that call with your name on it.
If you must tempt fate, then at least start with writing covered calls.

[cletus van dam]

ZILA was up 140% from wednesday to friday. don't know if i'm going in on it yet. picked up 300 shares of PMU @ .23 last week, might have been better off with lottery tickets.

as far as bonds go, the vanguard institutional index fund is up 9% in the last month.

[SamsoniteP]

Should have bought some HIG, lol.

I was thinking that, but did not have enough cash to add to it...

besides they might go BK....

[arizbiz]

If you are to look at longer term, ie not just the front month contracts, you will need the continous contract. Otherwise the charts are distorted at the rollover points.

I just look at the front month contracts, separately, for my index futures trading.

I know that, thats why I was asking.. the continuous charts on tradestation aren't even right. For example the high in crude using @CL.C shows 160.88 which isnt even close. @CL is just jacked all over the place. BUT if you use a custom contract, it is dead on- the high is 147.27

[DCarruso]

I know that, thats why I was asking.. the continuous charts on tradestation aren't even right. For example the high in crude using @CL.C shows 160.88 which isnt even close. @CL is just jacked all over the place. BUT if you use a custom contract, it is dead on- the high is 147.27

I have Tradestation i2000, which is no longer available for sale. You must be referring to Tradestation online. I have heard many horror stories about the reliability of the real time datafeed. It is a shame as I really like TradeStation a lot. The company has gone downhill ever since they transformed into a brokerage.

Referring to your question, continuous contract readjusts the historical prices when it rolls forward to the next front month contract. So over time, it is possible that the past prices are totally out of line with the actuall price at any specific time points.

You can read up on it here. http://www.premiumdata.net/support/f...ontinuous2.php

There are really not many choices: you can use spot price, specific active contract, or use the backward adjusted continous contract.

[jaysal555]

How do you scalp?

Scalping is when you trade in and out for small moves. The es trades in .25 increments and each one if worth $12.50. One point in the S&P 500 futures is worth $50.

So I'll enter in a trade when i see my setup, put my stop, and usually get out for a couples ticks, couple points if im lucky. Of course today I bought the absolute bottom 859.25 and sold for a tick and as I type they just hit 873 or a $700 move. AHHHHHHH FML!!!

[908]

ZILA was up 140% from wednesday to friday. don't know if i'm going in on it yet. picked up 300 shares of PMU @ .23 last week, might have been better off with lottery tickets.

as far as bonds go, the vanguard institutional index fund is up 9% in the last month.

I heald ZILA sometime last year I think. I can't remember whether or not it played out well for me.. I'd assume it probably didn't.


Can anyone explain what the penalties of trading with unsettled funds is? I remember reading something about it before but it didn't make much sense.

[SamsoniteP]

I heald ZILA sometime last year I think. I can't remember whether or not it played out well for me.. I'd assume it probably didn't.


Can anyone explain what the penalties of trading with unsettled funds is? I remember reading something about it before but it didn't make much sense.

I think you get warned...if you do it three times they suspend your account(might depends on broker)....

I can sell a stock then buy with unsettled funds, but I can't sell that stock I just bought until like 2-3 days later. but if I had a good profit screw it I am selling.

[908]

I think you get warned...if you do it three times they suspend your account(might depends on broker)....

I can sell a stock then buy with unsettled funds, but I can't sell that stock I just bought until like 2-3 days later. but if I had a good profit screw it I am selling.

lol ok. Just trying to figure out if it was something really serious or not. I remember selling with unsettled funds once and nothing happened so I was wondering why they even bothered giving a warning.

[NY Money Mike]

lol ok. Just trying to figure out if it was something really serious or not. I remember selling with unsettled funds once and nothing happened so I was wondering why they even bothered giving a warning.

ive been doing it daily,. I have yet to get a warning (scottrade) but I wouldn't be surprised to find my account suspended one day

[Sirtitan]

http://www.telegraph.co.uk/finance/c...lls-apart.html

"Where is the money to come from? China, the Pacific tigers and the commodity powers are no longer amassing foreign reserves ($7.6 trillion). Their exports have collapsed. Instead of buying a trillion dollars of extra bonds each year, they have become net sellers. In aggregate, they dumped $190** over the last fifteen weeks."

[CEO Josh]

ive been doing it daily,. I have yet to get a warning (scottrade) but I wouldn't be surprised to find my account suspended one day

I use scottrade too, is it a good system or should I use a different online site for trades when I gain more money?

[2coop]

ive been doing it daily,. I have yet to get a warning (scottrade) but I wouldn't be surprised to find my account suspended one day

in order to PDT you need 25,000 in your cash account. If not, then yes your account can be suspended. I learned this the hard way a long time ago being new to the trading and not knowing about the PDT rule. My account was suspending 90 days to only using cash for trades. (etrade)

[NY Money Mike]

in order to PDT you need 25,000 in your cash account. If not, then yes your account can be suspended. I learned this the hard way a long time ago being new to the trading and not knowing about the PDT rule. My account was suspending 90 days to only using cash for trades. (etrade)

I am aware. I just feel like I should get a warning first.



So who's feeling bullish for tomorrow?

[2coop]

I am aware. I just feel like I should get a warning first.

on etrade you do get a warning....which i neglected haha...

[arizbiz]

I have Tradestation i2000, which is no longer available for sale. You must be referring to Tradestation online. I have heard many horror stories about the reliability of the real time datafeed. It is a shame as I really like TradeStation a lot. The company has gone downhill ever since they transformed into a brokerage.

Referring to your question, continuous contract readjusts the historical prices when it rolls forward to the next front month contract. So over time, it is possible that the past prices are totally out of line with the actuall price at any specific time points.

You can read up on it here. http://www.premiumdata.net/support/f...ontinuous2.php

There are really not many choices: you can use spot price, specific active contract, or use the backward adjusted continous contract.

What do you like better CQG, NeoTicker, something else?

[DCarruso]

http://www.telegraph.co.uk/finance/c...lls-apart.html

"Where is the money to come from? China, the Pacific tigers and the commodity powers are no longer amassing foreign reserves ($7.6 trillion). Their exports have collapsed. Instead of buying a trillion dollars of extra bonds each year, they have become net sellers. In aggregate, they dumped $190** over the last fifteen weeks."

We will have to monetize it. Print the bonds in one hand, and print the money in the other. We buy our own bonds, with our own money and we tell everyone to GTFO. We don't need foreign investors.

[DCarruso]

What do you like better CQG, NeoTicker, something else?

I have used the following two services, and like them both.

DTN IQ http://www.iqfeed.net/

Esginal www.esignal.com


For my current intra day futures trading, TOS' free charts work well enough that I no longer pay for 3rd party external datafeed. After years of wild goose chase, I found that simplicity trumps everything else.

[DCarruso]

Scalping is when you trade in and out for small moves. The es trades in .25 increments and each one if worth $12.50. One point in the S&P 500 futures is worth $50.

So I'll enter in a trade when i see my setup, put my stop, and usually get out for a couples ticks, couple points if im lucky. Of course today I bought the absolute bottom 859.25 and sold for a tick and as I type they just hit 873 or a $700 move. AHHHHHHH FML!!!

It can easily have gone the other way and you would be thinking how smart you are that you have both made money and avoided a landmine. These kind of things cut both ways.

We must trade our edge. You have got to have an edge. If you don't know what your edge is, then you don't have one.

[mcichocki]

It can easily have gone the other way and you would be thinking how smart you are that you have both made money and avoided a landmine. These kind of things cut both ways.

We must trade our edge. You have got to have an edge. If you don't know what your edge is, then you don't have one.

Amen brother. If you can't define your edge you're gambling.
Luck will pull your card sooner or later.

[arizbiz]

DCarusso and mcichocki...you guys hit right on the head.

What do you guys think of Murphy's Technical Analysis Book?

[mcichocki]

DCarusso and mcichocki...you guys hit right on the head.

What do you guys think of Murphy's Technical Analysis Book?

Never read it.

The keys for me have been...
+Finding the right blend of timeframes to analyze and keeping it simple.
+Looking at ma's as trendlines helped when that finally clicked.
+The hardest part that I'm finally able to read into somewhat is knowing what timeframe trader/investor has the market at any given time. Do you wan't to swing trade if scalpers or daytraders have hold of the market? Probably not. What levels are likely to bring out long term investors? etc...
+Swing traders should avoid chop and trade trends. Buy bull pullbacks and sell bear rallies. Go with the flow, if there is no flow don't trade.

Just some tips/hints.

[DCarruso]

DCarusso and mcichocki...you guys hit right on the head.

What do you guys think of Murphy's Technical Analysis Book?

Never read it.

It doesn't matter what anyone says about a method or a tool, you MUST back-test the method/tool with historical data, as well as real time data. You must examine how each tool works and fails to work, under different market condiitions. Everything works, and everything fails. That is not a smart ass answer. That is the ultimate truth. Everyone knows oscillators work great when they work and fail spectacularly when they fail. But if you do enough testing, you will find some ways to combine oscillators with trend following indicators and make the combination works.

One more smart ass comment. If you try to come up with something that wins all the time and catches every profit opportunity, then you will fail.


P.S. With TradeStation you can easily examine how various indicators or various combinations of different indicators work over time. You can learn a ton just by going through the historical patterns and see what works when and why.

[DCarruso]

Never read it.

The keys for me have been...
+Finding the right blend of timeframes to analyze and keeping it simple.
+Looking at ma's as trendlines helped when that finally clicked.
+The hardest part that I'm finally able to read into somewhat is knowing what timeframe trader/investor has the market at any given time. Do you wan't to swing trade if scalpers or daytraders have hold of the market? Probably not. What levels are likely to bring out long term investors? etc...
+Swing traders should avoid chop and trade trends. Buy bull pullbacks and sell bear rallies. Go with the flow, if there is no flow don't trade.

Just some tips/hints.

Wise words from the wise.

[DCarruso]

Amen brother. If you can't define your edge you're gambling.
Luck will pull your card sooner or later.

Gambling is such a dirty word. Around here, we prefer the term 'smart coin tossing'.

[OTG]

Never read it.

The keys for me have been...
+Swing traders should avoid chop and trade trends. Buy bull pullbacks and sell bear rallies. Go with the flow, if there is no flow don't trade.

The best point there IMHO

[arizbiz]

Never read it.

It doesn't matter what anyone says about a method or a tool, you MUST back-test the method/tool with historical data, as well as real time data. You must examine how each tool works and fails to work, under different market condiitions. Everything works, and everything fails. That is not a smart ass answer. That is the ultimate truth. Everyone knows oscillators work great when they work and fail spectacularly when they fail. But if you do enough testing, you will find some ways to combine oscillators with trend following indicators and make the combination works.

One more smart ass comment. If you try to come up with something that wins all the time and catches every profit opportunity, then you will fail.


P.S. With TradeStation you can easily examine how various indicators or various combinations of different indicators work over time. You can learn a ton just by going through the historical patterns and see what works when and why.

agreed