Currently still work in progress, but I am looking to trade very early after the open to add to my arsenal. Using 1 min charts and also reading the tape. Just trading flat 100 shares for now to see how it goes.
Love the blog. How are you planning on determining your stop once you start trading larger share sizes on the 1 minute chart? It seems like a lot of slippage could take place when using a set number of shares causing larger losses than expected if not careful.
Steady on t-money...I've only just started on 1min..never mind increasing size...lol.
But you are correct in terms of slippage. There are a couple of points worth considering:
1. Trading stocks which are higher priced and thus move 1 or 2 points in first move of the day means that you can trade smaller sizes.
2. Trading by reading the tape, Level 2 etc allows the possibility of scaling in and out of a trade thus avoiding the need of one big size to enter a trade.
Nice work. I'm looking at busystocks(naz most expensive on the list) and cnnmoney(s&p %) >$20for my premkt WL, chart them up 6-8a page 2" or 5" period and leave it at that as there are enough stocks to look at, like vmc bmc tzoo cymi el. TraderX uses 2 min charts, 1 min awfully fast. Hope that works for you.
Yes 1 min is fast, but practising reading the tape gives you some confidence.
Deciding which stocks to trade > For 1min timeframe you have to do it pre-market. You can't really do it via scans once the market is open. So pre-market scans and pre-market news to decide on which stocks you want to follow.
Setups : Momentum trades which have broken thru previous day range and stocks which are reversing thru the open. I'll provide more details as we go along.
But let's not get carried away on basis of just one good day. I might even have made as much using the 5min charts, haven't really checked the setups.
7 comments:
Love the blog. How are you planning on determining your stop once you start trading larger share sizes on the 1 minute chart? It seems like a lot of slippage could take place when using a set number of shares causing larger losses than expected if not careful.
Steady on t-money...I've only just started on 1min..never mind increasing size...lol.
But you are correct in terms of slippage. There are a couple of points worth considering:
1. Trading stocks which are higher priced and thus move 1 or 2 points in first move of the day means that you can trade smaller sizes.
2. Trading by reading the tape, Level 2 etc allows the possibility of scaling in and out of a trade thus avoiding the need of one big size to enter a trade.
Thanks.
Nice work. I'm looking at busystocks(naz most expensive on the list) and cnnmoney(s&p %) >$20for my premkt WL, chart them up 6-8a page 2" or 5" period and leave it at that as there are enough stocks to look at, like vmc bmc tzoo cymi el. TraderX uses 2 min charts, 1 min awfully fast. Hope that works for you.
Nice job!
Hi TraderAm,
What kind of set up are you looking for ? How do you define which stock to trade in such a short period of time ?
Best Regards,
Javier
Thanks for comments.
Yes 1 min is fast, but practising reading the tape gives you some confidence.
Deciding which stocks to trade > For 1min timeframe you have to do it pre-market. You can't really do it via scans once the market is open. So pre-market scans and pre-market news to decide on which stocks you want to follow.
Setups : Momentum trades which have broken thru previous day range and stocks which are reversing thru the open. I'll provide more details as we go along.
But let's not get carried away on basis of just one good day. I might even have made as much using the 5min charts, haven't really checked the setups.
Thanks for you answers.
Good luck !!!!
Javier
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