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Consulting with Toni Hansen Continued:
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CONSULTING WITH TONI HANSEN CONTINUED... |
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| ...of
how others are approaching the markets and steps you may want to take
in getting started. There are a number of classes in the member's
section that also supplement this discussion, such as the Trading Journal Class that you
should take a look at. 1/13/2003 - Getting Started [18:02] Toni - okay [18:02] Toni - ready? [18:03] Member - yea [18:03] Member - more than you know :-) [18:03] Toni - k.. so how much attention have you been paying to the room lately? [18:03] Member - I have been watching everyday, although at times I have to perform my duties as the General Manager [18:04] Toni - k, good... [18:04] Toni - what times do you find you are most free to watch? [18:04] Member - one thing I have noticed is that there is a lot of futures trading going on [18:04] Toni - during the day [18:04] Member - mornings and afternoons I am usually pretty free [18:04] Toni - yep there are... since the new PDT rules there are more and more futures traders [18:05] Toni - mornings and afternoons is pretty broad =) [18:05] Toni - is there any time you find you watch the most? [18:05] Member - well it depends on my work, but I am usually in the office by 7am, and I am there watching the market open till about 1030 usually unless something major pops up [18:06] Member - I would love to be able to trade the open and then get stuck in at work.....more [18:06] Member - then when I make the transition to full time continue this way but maybe get involved in some late afternoon trades as well [18:09] Member - [18:08] Member - I want to really master a few strategies, but I need them to be strategies that will stand the test of time, ie: I am not good at jumping around, I realize that this gets me into trouble [18:09] Member - few = 1 - 3 max [18:11] Member - ok, up to date [18:11] Toni - k =) [18:11] Toni - ok.. so really though... you need some strategies that are going to work in the morning [18:11] Member - yea, that would be best case [18:11] Toni - ok [18:12] Toni - are you wanting to stick with stocks? [18:12] Member - but don't get me wrong I am there for the afternoons as well [18:12] Toni - right.. but during the transition you are free mainly in the mornings [18:12] Member - I would prefer stocks, but a method that can potentially be used with futures would be good to [18:12] Member - yes, mainly mornings [18:13] Toni - ok... well one thing with stocks is that you probably aren't going to want to focus on the phoenix and avalanche as much at these times [18:14] Toni - you just aren't likely to find them as much [18:14] Toni - they will only happen maybe once or twice a week on like a 5 min time frame in the overall market so early in the morning [18:14] Toni - mainly when you have an initial move in the morning [18:15] Toni - that is coming out of a several day move [18:15] Toni - and then reverses around 9:45-10:45 [18:15] Member - k, but are they the most consistent plays ? [18:15] Toni - so you will get them.. but maybe not as much as you want [18:15] Toni - yes.. they probably are [18:15] Member - hmmm [18:15] Toni - we've been using them in the room for years [18:15] Member - well I believe that is something I need more than anything [18:16] Member - I am not good at accepting a loss [18:16] Toni - the avalanche was the pattern forming that helped us nail the highs several years ago [18:16] Member - I can do it, but the more I win the better for me imho [18:16] Toni - if you could stay more into 12:00 you'll get these patterns more [18:16] Member - oh really, wow ! [18:16] Toni - we called it a hells triangle back then [18:16] Member - well I can do it, I will do it :) [18:17] Toni - just renamed it =) [18:17] Member - ok [18:17] Toni - with stocks one thing too is that you are probably going to want to focus on patterns on 5 minute charts [18:17] Member - well, if you believe they are the most consistent, most winning percentage wise, then I think that is what I need to focus on...imho [18:17] Toni - presuming are are looking at daytrading only due to getting into it gradually [18:17] Toni - one key [18:18] Toni - is to watch for the main reversal periods in the market in the morning [18:18] Toni - 9:45, 10:15, 10:45, 11:00, 12:00 [18:18] Toni - these start off patterns like the phoenix and avalanche [18:18] Member - k [18:18] Toni - on trading range days you are going to get more of these setups than you will on trend days [18:19] Member - Toni, do you still use realtick ? [18:19] Toni - on trend days you aren't likely to get more than 1.. typically right as the trend starts [18:19] Toni - yes I do [18:19] Toni - I'm looking at a new platform that B is helping one of our friends with though [18:19] Member - what do you think I should have on my page ? [18:19] Toni - for all the patterns I trade I only have a 20 and 200 sma intraday [18:19] Member - I need it simple, but obviously enough to get me in and out of trades [18:20] Toni - then a 10, 50 and 100 also on the daily [18:20] Member - ok, so you what do you suggest I have on my page [18:20] Toni - the same [18:20] Member - first, what indices ? [18:20] Toni - do you have futures? [18:20] Toni - quotes? [18:21] Member - I am going to make a whole new page, I will write it down now and then set it up later so we can focus now [18:21] Toni - if not then use the nasdaq comp and sp500 index [18:21] Toni - $compx [18:21] Toni - $spx.x [18:21] Member - I get futures with IB but not permissioned with MBT I don think [18:21] Toni - ok [18:21] Toni - how many screens do you have? [18:22] Member - unfortunately just one at work, two at home but that is useless :) [18:22] Toni - lol [18:22] Member - but I am very good at jumping around with windows :) [18:22] Member - what are the futures I should be watching just in case I have them, what are the real tick symbols please [18:22] Toni - ok.. then just stick with a small 5 min of the nas comp [18:23] Toni - and you can overlap it with a 15 min [18:23] Toni - /esc3 [18:23] Toni - /nqc3 [18:23] Member - hey, that is what I have been watching for years, 5 min $compx....I must admit I have a very good feel for it [18:23] Toni - yep [18:23] Toni - do you tend to trade mainly nasdaq stocks? [18:23] Toni - or mix with nyse [18:24] Toni - to limit it it may be best for you to only do nasdaq and mainly watch nasdaq comp [18:24] Toni - and then just pay attention to my market alerts for anything else that may come up [18:24] Member - I would prefer to keep it simple and just trade one, but in time I can do both when confidence grows and finding plays comes more easy to me [18:24] Toni - and if you need me to translate to where it would fall on the nasdaq comp then just ask in the room [18:24] Member - ok [18:24] Toni - and i'll be glad to do that [18:24] Member - :-) [18:24] Toni - it will save you space =) [18:25] Member - thx :0 [18:25] Member - :) [18:25] Toni - =) [18:25] Toni - now if trading a 5 min time frame [18:25] Toni - you should have a small daily to watch out for main daily resistance [18:25] Toni - you can keep this under another chart [18:25] Toni - then have the 5 min the largest and a 15 min with it [18:26] Toni - you could overlap the daily with a 30 min [18:26] Toni - and the 5 with the 15 min [18:26] Member - ok [18:26] Member - by overlap [18:26] Member - you mean [18:26] Toni - or just mix them around to see what you use most [18:26] Toni - for instance.. if you watch 5 and 15 most [18:26] Toni - then have the 30 and daily behind them [18:26] Member - on top of each other correct ? not two separate charts [18:26] Toni - two separate charts [18:27] Member - ok [18:27] Toni - tiered [18:27] Member - so watch 5 with 15 [18:27] Toni - so you have the corner of one sticking out [18:27] Member - and 30 min with daily [18:27] Toni - and just have to click and it comes to the front [18:27] Member - k [18:27] Member - and only have 20 and 200ma on intraday charts [18:27] Toni - i'll post what i mean.. just a sec [18:27] Member - sma [18:27] Member - and then 10, 20, 50, 200 sma on daily [18:28] Member - k [18:28] Member - and 100 [18:30] Toni - http://www.tradingfrommainstreet.com/img/charts/charts.gif [18:30] Toni - on this i have a 5 and 15 min overlapped [18:30] Toni - and a 1 and 30 min overlapped in upper right hand corner [18:31] Toni - it's just one of the scanning pages i use at night [18:31] Member - I see [18:31] Member - what's the squigy line on the daily chart above volume ? [18:31] Toni - CCI [18:31] Member - do I need it [18:31] Toni - Commodity Channel Index [18:31] Member - ? [18:32] Toni - not really [18:32] Toni - i use it mainly for my daily analysis [18:32] Toni - it's just another tool [18:32] Member - ok [18:32] Toni - confirmation tool [18:32] Toni - not something i use intraday at all [18:32] Member - well I want to be confirmed [18:32] Member - lol [18:32] Toni - =) [18:32] Member - ok fair enough [18:32] Member - so that's it on the page [18:33] Member - obviously a L2 buy and sell window somewhere [18:33] Member - anything else [18:33] Toni - minders [18:33] Member - k [18:33] Member - what am I look for in these [18:33] Toni - will you have a basket of stocks to focus on? [18:33] Toni - or certain scans you are using? [18:33] Member - lol..no clue, you tell me [18:33] Toni - hehe [18:33] Toni - ie.. gainers and losers scans [18:33] Member - nope, I am hoping you tell me how to do all that [18:34] Toni - then you want to have that on there [18:34] Member - ok [18:34] Toni - i have then on the left [18:34] Toni - the minders on the left are scans [18:34] Member - k [18:34] Toni - the list of scans is linked to the list of stocks in a particular scan [18:34] Toni - so i click on say [18:34] Toni - nasdaq gainers [18:34] Toni - in the lower minder [18:34] Toni - and it pulls up all nasdaq gainers in the upper minder [18:35] Member - realtick does that right [18:35] Toni - then i click on a stock in that minder and all my charts tied to my level II change [18:35] Member - ? [18:35] Toni - yep [18:35] Member - ok, now what scans do I need to have up ? [18:35] Member - gainers, losers [18:35] Toni - gainers and losers will basically be it [18:35] Member - good, I want simple [18:35] Toni - there's not really anything else i use [18:35] Member - perfect [18:36] Toni - then i also will scan through the nasdaq 100 [18:36] Member - yup and look for things that may be setting up [18:36] Toni - which is the minder i have in the middle right [18:36] Member - k [18:36] Toni - it's also linked to all the charts and level II [18:36] Member - ok, so that is the page right ? [18:36] Toni - then you will probably want a few small charts [18:36] Member - lol k [18:36] Toni - for stocks you are watching develop [18:37] Member - I see [18:37] Member - what time frame [18:37] Toni - just keep em scrunched up [18:37] Toni - 5 min [18:37] Member - k [18:37] Member - so I am going to try and stick to avalanches and phoenixes on the 5 min only [18:37] Toni - you can put them so they just stick up a bit behind your level II [18:37] Toni - so you just pull them up every several minutes to see if they are getting closer etc [18:38] Toni - today is a good example of getting the setup in the morning [18:38] Toni - in the nasdaq you had that avalanche we took in the futs [18:38] Toni - which you could have found indv. stocks with the same setup [18:38] Toni - like i think brcm was one i came across [18:38] Toni - will check.. [18:39] Member - I see the avalanche in the 5 min, but I don't see the ma resistance it came into, the 20 and 200 ma are low down [18:40] Toni - hold on... need to fix my chart =) [18:40] Member - I am looking at $compx [18:40] Member - k [18:41] Toni - ok.. got it [18:41] Member - k [18:41] Toni - yep.. brcm 5 min had one [18:41] Member - ok [18:41] Toni - often right away when you get them they set up at the 10 ma instead of the 20 [18:41] Member - I see the candle pattern [18:41] Toni - on avalanches [18:41] Toni - out of the open [18:41] Member - ok [18:41] Member - that helps [18:41] Toni - so you can't rely completely on the 20 sma [18:42] Member - so put a 10ma on my 5 min ? [18:42] Toni - you can if it helps [18:42] Member - and use that early but then focus on 20 ma a little later [18:42] Toni - yes [18:42] Toni - brcm [18:42] Toni - actually [18:42] Toni - had a phoenix today too [18:42] Toni - broke around 12:15 [18:42] Member - I see it [18:43] Toni - can see this pattern isn't always "pretty' [18:43] Toni - and not always perfect =) [18:43] Toni - but even the sloppy ones have good r:r [18:43] Toni - K this am had a sloppy avalanche [18:43] Toni - just after 10:00 [18:44] Toni - AAPL phoenix just before 12:00 [18:44] Member - yup see it [18:44] Member - ok, next step [18:44] Toni - ALTR is one i mentioned too [18:44] Toni - just after 12:00 [18:44] Member - take me through how you would find all this [18:45] Toni - but it wasn't deep enough so removed it [18:45] Member - lets start at night with preparing for next day [18:45] Member - what should I do at nights [18:45] Toni - well one thing with intraday phoenix and avalanches [18:45] Toni - you don't have to do too much research at night [18:45] Toni - mainly you'll be spending it looking over your trades [18:45] Toni - and keeping your journal [18:46] Toni - also try to have an idea if there are better odds for a trend day [18:46] Toni - or a trading range day [18:46] Toni - you'll tend to get more setups on trading ranges [18:46] Toni - like today [18:46] Member - ok [18:46] Toni - and yesterday [18:46] Member - k [18:46] Member - so, in the morning [18:46] Toni - whereas if it's looking like good odds for a trend day [18:46] Member - k, sorry [18:46] Member - go ahead [18:46] Toni - then you won't want to really touch anything after 1:15 [18:46] Toni - 10:15 [18:47] Toni - if it's odds for a reversal day the you'll get the setups more over noon [18:47] Toni - for instance if there's been several days in a daily move already [18:48] Toni - then higher odds for trading range to reversal day [18:48] Toni - so you are more likely to get avalanches and phoenixes [18:48] Member - I see [18:48] Toni - whereas if today was an NR4 or NR7.. then less likely [18:48] Member - yup because of coiling etc etc [18:48] Toni - yep [18:49] Member - hopefully this is where my knowledge can help me out [18:49] Toni - =) [18:49] Member - ok, so in the morning, what is my plan of attack [18:49] Toni - her is a good example of a stock you wouldn't have looked for it in: [18:49] Toni - AMZN [18:50] Toni - amzn was basing 4 days already at highs.. so higher odds for trend move [18:50] Member - yup [18:50] Toni - less odds for phoenix or avalanche.. [18:50] Member - I see that [18:50] Toni - although it tried for an avalanche going into 11:30 =)_ [18:51] Toni - just wasn't able to get it and would have been higher risk if it had due to the daily [18:51] Member - yea, that may have suckered me [18:51] Toni - so that's where looking at the daily helps [18:51] Toni - try not to go against the daily [18:51] Toni - hence having the little daily [18:51] Member - ok, so if the daily is in an uptrend [18:52] Toni - then watch for resistance to get avalanches off of =) [18:52] Toni - like that BRCM [18:52] Toni - 200 day sma [18:52] Toni - resistance [18:52] Member - k [18:52] Toni - and previous highs [18:52] Toni - avalanches are common off the main daily mas [18:52] Toni - intraday [18:52] Toni - so a 100 day sma you'll get them on the 5 min intraday [18:52] Toni - off 200 sma [18:52] Toni - even off 10, 20 and 50 you can [18:53] Toni - the more it moves into it though [18:53] Toni - the more luck you'll have [18:53] Toni - plan of morning attack [18:53] Toni - look for stocks starting to have strong counter-moves [18:53] Toni - ie XYZ had a large rally into the open [18:54] Toni - then pulls back faster off say a 15 min 200 sma [18:54] Toni - or some other strong resistance [18:54] Toni - pulling into 5 min 20 sma [18:54] Member - ok, so look for stocks in uptrend and downtrend on daily charts, then look for them coming into sma or price resistance or support, then look for setups on 5 min chart which is the opposite of the daily trend [18:54] Toni - then bases at the 20 sma [18:54] Toni - so you keep a watch on it for a breakdown [18:55] Member - Toni> ie XYZ had a large rally into the open [18:55] Member - you mean rally on the daily ? [18:55] Toni - use brcm for instance [18:55] Toni - with the large gap [18:56] Toni - the gap is your rally in this case [18:56] Member - k [18:56] Toni - or [18:56] Toni - use brcm from yesterday [18:56] Toni - see the strong rally all morning? [18:56] Toni - then pulled sharply lower at highs [18:56] Toni - into the 5 min 20 sma [18:56] Toni - based and then broke lower [18:56] Toni - on an avalanche [18:56] Toni - both are examples of a strong rally [18:57] Member - k [18:57] Toni - one thing that will help you i think [18:57] Toni - is that we're going to be splitting the rooms [18:57] Toni - so that futures are in one [18:57] Toni - and stocks in another [18:57] Member - k [18:58] Toni - while all market alerts will be in both [18:58] Toni - and all class will be in both [18:58] Member - k [18:58] Toni - u know.. i have been watching brcm the last several weeks [18:59] Toni - that is one i think you'll want to watch quite a bit [18:59] Toni - it trades well [18:59] Toni - and is a good one to follow intraday for opportunities [18:59] Member - any others you like [18:59] Toni - I'll run through nasdaq 100 for you =) [18:59] Member - lol [19:00] Toni - ADBE can be ok but can get too much overlap at times [19:00] Toni - AMAT is good [19:00] Toni - AMGN [19:00] Toni - AMZN more on dailies than intraday [19:01] Toni - ATML actually trades very well but is very cheap so need larger setups =) [19:01] Toni - BEAS at times [19:01] Toni - BGEN is good [19:02] Toni - BRCM is good =) [19:02] Toni - CMCSK [19:03] Toni - sometimes COST [19:04] Toni - CSCO trends well but doesn't really move enough intraday [19:04] Toni - CTAS can give you 20 cent moves fairly easily on avalanches, etc [19:04] Toni - does have overlap problems at times though [19:04] Toni - CTXS also can give you 20cents easy but not as much overlap issues [19:05] Toni - DISH [19:05] Toni - EBAY can give you 50 cent moves but more overlap [19:06] Toni - ERICY trades well, but small moves [19:06] Toni - ERTS is usually good [19:07] Toni - FISV not bad [19:07] Toni - some overlap issues [19:07] Toni - GENZ same [19:07] Toni - IDPH good for 20-40 on moves intraday [19:08] Toni - INTU is good intraday [19:08] Toni - easy with 50 cent moves [19:08] Member - nice [19:09] Toni - JNPR [19:09] Toni - KLAC [19:09] Toni - also good for 50 cent moves [19:09] Toni - LLTC [19:10] Toni - MCHP [19:11] Toni - not really a fan of the popular MSFT [19:11] Toni - it gets lots of overlap [19:11] Member - k [19:11] Toni - oh.. your CMCSK can be CMCSA now =) [19:12] Member - k [19:12] Toni - NTAP not bad [19:12] Toni - NVDA sometimes [19:12] Toni - NVLS is good [19:14] Toni - PSFT [19:14] Toni - PTEN [19:14] Toni - QCOM [19:14] Toni - QLGC [19:15] Toni - RFMS depends on how large the pattern is [19:15] Toni - RFMD rather [19:15] Toni - ROST is good [19:15] Toni - SEBL [19:16] Toni - SNPS [19:16] Toni - SYMC is good [19:17] Toni - VRTS can be [19:18] Toni - and there ya have it [19:18] Member - :-) [19:18] Member - Thanks Toni [19:18] Toni - those are the ones in the nas 100 i would watch [19:18] Toni - any others don't move enough [19:18] Member - excellent [19:18] Toni - are too sloppy [19:18] Toni - or too thin [19:18] Member - :) [19:18] Member - so, what else do we need to cover ? [19:18] Toni - so you can create your own minder with those [19:18] Toni - and save time =) [19:18] Member - yup, will do [19:19] Toni - mainly [19:19] Toni - the biggest [19:19] Toni - thing [19:19] Toni - is make sure to keep a very good trade journal [19:19] Toni - with images [19:19] Toni - and your thinking on a trade [19:19] Member - k [19:19] Toni - also don't forget in it [19:19] Toni - to record your emotions [19:19] Toni - how did you feel entering? [19:19] Toni - confident? [19:19] Toni - nervous? [19:19] Toni - scared? [19:20] Toni - hesitant? [19:20] Toni - drunk? [19:20] Toni - hehe [19:20] Member - lol [19:20] Toni - i would like to see you start [19:20] Toni - by only taking the most text book [19:21] Toni - ones you can find [19:21] Toni - and then watch the others [19:21] Member - ok, will do [19:21] Toni - until you are comfortable [19:21] Toni - so you'll start not too active [19:21] Toni - a couple a week probably [19:21] Member - makes sense [19:21] Toni - and if you have questions on one [19:21] Toni - then ask [19:21] Member - sounds good :) [19:22] Toni - =) [19:22] Toni - do you have any questions? [19:22] Member - I am going to get all my pages etc setup this week [19:22] Toni - or do you think you are ready to get going slowly? [19:22] Member - and then probably start off next week with trades [19:22] Toni - you can always ask questions intraday too [19:23] Member - Yup I am going to start slowly [19:23] Toni - =) good [19:23] Member - yea, thanks [19:23] Member - ok, well thank you very much Toni [19:23] Member - I really appreciate the help [19:23] Toni - yw =) [19:24] Member - I am hope I can do this [19:24] Member - I am so sick of real work...lol [19:24] Toni - lol [19:24] Member - well, not work, I don't mind working [19:24] Member - but staff problems etc etc [19:24] Member - is a nightmare [19:24] Member - anyway [19:24] Member - you have a good night ;-) [19:25] Member - and I will keep you updated [19:25] Toni - good =) [19:25] Member - next week Monday will be the kick-off hopefully [19:25] Member - thanks again for all of your help ;-) [19:25] Member - Have a great night [19:25] Toni - yw =) |
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