OT: Asking a Favor and Making a Plea

Investing Strategies Technical Trader's Sanctuary
21

B&H,

Simon made a bundle right out of the gate starting at the “V”. Simon saved out butts, got us out per the rules before the “V”.

Investing is a Business and must be treated as such.

If you’re not employed, you write on the 1040 tax as INVESTOR as an occupation. You are entitled to a lot of tax deductions.
Computer write offs and supplies etc. etc.

Check with your Tax Attorney or CPA for advice.

On an accounting sheet (4 columns)

Top of the page write 2 0 2 3 Investment Expenses.

Journals & Periodicals (underline)
date - Forbes - add price in column 1 etc.
date - Wall Street Journal
date - Barrons
date - The Epoch Times

Supplies & Materials (underline)

Software / Hardware (underline)
New printer - add price in column 1 etc.
New router - add price in column 1

Service investments (underline)

Fios Cable @ dollar amount/ month - total price in column 1etc
Barchart - add prices in column 1.
Stockcharts
Oxford club

Free chart from the IBD Investor Business Daily. I am not a subscriber to the IBD.

With no price labels however if you click on the Intraday tab, you will see with labels on a 5-minute chart.
Good for Day Traders applying the Simon Sez rules.

https://research.investors.com/stock-charts/nyse-freeportmcmoran-fcx.htm?cht=pvc&type=daily
https://research.investors.com/stock-charts/nyse-southern-copper-scco.htm?cht=pvc&type=intraday

https://research.investors.com/stock-charts/nyse-teucrium-sugar-fund-cane.htm?cht=pvc&type=daily
https://research.investors.com/stock-charts/nyse-disney-dis.htm?cht=pvc&type=daily
https://research.investors.com/stock-charts/nyse-disney-dis.htm?cht=pvc&type=intraday

https://www.tradingview.com/chart/pLXQT71J/?symbol=NASDAQ%3AMSFT
https://www.tradingview.com/chart/pLXQT71J/?symbol=NASDAQ%3AAMZN

Stock Heatmap — TradingView - click on a chart from the HEAT MAP and then click the upper right-hand corner.

The above charts don’t tell me when to buy out of the gate and at the finish line, but only using the moving averages. Simon does. :o))

Barchart setup per template if you get a default chart. If you have problems give me a buzz.

Have to set up a Template/s for fast executions per the template that one would like to use.

creating the template by adding applied studies

Add the Current studies.
MATRI (5) - Moving average Triangular (red line)
MAWEI (10,0) - Moving average Weighted (green line)
PARTP (20,2) - Parabolic time/price (SAR)
TSI (16,8.4) - True Strength Index (red and green lines) green has to cross up and over heading north for a buy signal.

under symbol tab
period daily
2-month

high/low price markers
show

extended hours - check mark box

Realtime Cboe BZK data (US equities) - check mark box

EVENTS tab

show - check off dividends and earnings.

My Attorney only trades two (2) Copper stocks because copper is used in the EV vehicle’s. FCX and SCCO for several years.

https://schrts.co/urFCIEdt

  1. Out of the gate: Place your cursor on 9/28/22 what RULE do we use? 1000 shares and we wait and wait and wait.
  2. Finish line: Place your cursor on 12/14/22 what RULE do we use? we would have made about $14,000.00 profit.
  3. then we buy out of the gate on 12/23/22 1000 shares - what rule do we use
  4. then we sell at the finish line on 1/19/23 for about $7,000.00 profit. Not to shabby.
  5. we don’t care until the next BUY signal.
  6. Stir - rinse - and repeat until the Cows come home.

let’s look at ACP | StockCharts.com

  1. Out of the gate: Place your cursor on 9/27/22 - what RULE do we use? 1000 shares and we wait and wait and wait.
  2. Finish line: Place your cursor on 1/19/23 - what RULE do we use? we would have made about $ 32,000.00 profit.
  3. We wait and wait for the next buy signal.
  4. Stir - rinse - and repeat until the Cows come home.

When you’re ready, the default charts come up with SMA’s and we have to insert the EMA’s or leave it alone as the default. Easy fix.

Same procedures for the Tetter Totters - the recession is coming. Sold SPXL and bought SPXS. Sold QQQ and bought PSQ with a possible head fake.

Have fun in your studies. Stay Healthy, Wealthy and Wise.

4 Likes
22

That is a good idea Arindam. I have been selling puts and calls, and buying Calls. But there in lies the biggest problem. Buying Calls in a down market has been a killer. The only saving grace is that they are leaps. But still I should have managed them better to get out before I lost to much money. I have learned so much on the road of hard knocks. But now I am thinking that if charts could help, I wouldn’t have bought the calls but bought puts instead.

Andy

1 Like
23

Quill,

To file as a ‘trader’ and to be able to deduct expenses on Form 8828, a person needs to earn the bulk of his/her total income from ST trades, not LT investments. Most retirees won’t qualify, because the bulk of their income is from Soc. Sec and a pension.

Arindam

3 Likes
24

Quill that is outstanding. I really didn’t think about deducting all of my investment newsletters and computers and printers. But you are right my Job is an Investor and that is my business. I just signed into Barcharts and set up a Watchlist. I have a lot of work to do to catch up. Let me digest this post. There is alot to understand.

Andy

1 Like
25

That is good to know Arindam. The bulk of my income comes from my wife’s pension and my option trading.

Andy

26

Andy,

No, no, no. Don’t buy calls in a falling market. Sell them. How to know when prices are falling? The bars on a weekly chart are red, red, red.

Seriously. This market timing stuff ain’t rocket science, especially if you do two things.

#1 Give your TV to Goodwill and cancel every subscription to newspapers or financial magazines you have. (The “news” is noise, never timely, and mostly self-serving nonsense.)

#2, Once a week, preferably on a weekend when the hysteria of daily market action has ceased, mark yourself to market and chart some of the key indexes. The market herself will tell you what she’s doing better, faster, and more accurately than the talking heads.

If you do want an analyst/forecaster worth listening to, consider Jim Rickards or Doug Casey. Both think, speak, and write clearly and well. Ignore everyone else, for this reason. Though others might occasionally be right, the last thing you want in your mental life is clutter and monkey chatter. (“The man who has two watches never knows what time it really is.”)

Meanwhile, get hold of Ben Stein’s book. Work your way through it and take its lessons to heart. https://www.amazon.com/Yes-You-Can-Time-Market/dp/0471430161

2 Likes
27

Andy,

If the bulk of your income is from options trading, then you need to look into filing for trader’s status. There’s a couple of online firms that specialize in this. Also, the boys who hang out at www.elitetrader.com frequently discuss the topic.

1 Like
28

Quill,

Your charts aren’t opening the way you intend them to be seen. Instead of using BC’s linking feature, do a screen capture, save it as jpg file, and then upload it.

If you want to select just a portion of the chart, then instead of ‘screen capture’, use a Windows auxiliary feature called ‘Snipping Tool’ and from its drop-down menu select ‘rectangular’.

A

1 Like
29

thanks, will try and figure it out.

2 Likes
30

Thanks for your time Quill, So looking at this, I thought the rule was get a signal, wait one day, than buy. So on 9/28/22 that is the first green signal, than we wait, the next day we get another green signal on 9/29/22 so we go in with 1000 shares and wait. Than on 11/1 we get a red signal and 11/2 we get it again so we sell out? Why did you wait till 12/14? Than back in on 11/4?

Here is how I have mine set up now with your help.

Screenshot (14)
Screenshot (14)1920×1055 176 KB

I have a question about this. Is it set up correctly?

Screenshot 2023-01-22 131310
Screenshot 2023-01-22 1313102597×1607 249 KB

1 Like
31

LOL yea that was exactly my problem and it was an expensive lesson. But that is all water under the bridge and now I am moving on to learn how to correct my mistakes.

Thank you I will look both of them up.

Excellent Arindam, thank you for the information.

Andy

32

I set them up in Barcharts per your instructions and was able to ascertain what you were doing but I did have some questions.

Andy

1 Like
33

Andy,

You had questions??? ROTFL. Of course you did, because none of this stuff is obvious the first time through, as it isn’t with anything.

Caminate, no hay camino. Se hace camio al andar." [Roughly, “There are no roads but by walking.”]

1 Like
34

B&H

Are we having fun yet :o))

First the information you posted about red and green bars. You are talking about info on Barchart. Trying to figure what chart you are referencing.

the information I was talking about was on Stockcharts.
I made a typo error and meant to say 9/26 which pointing to the Day after the price label. The rest is correct.

next you posted the True Strength Index. The numbers are incorrect they should read.
Period 1 should read 16 then Period 2 should 8.
Period 3 should read 4.

and finally, your colours are upside down. They should read GREEN box on top and RED on the bottom. You want the green line to go up and over the red heading north. I always place the cursor on the crossover to see how the stock is doing besides a confirmation. re: FCX and see the cursor on 1/4/23.

click on apply.

Template name is:
Simon Sez IV 16,8,4
clicking on studies then
Study
MATRI 5
MAWEI 10,0
PARTP 15,2
TSI 16,8,4

Simon III
MATRI 5
MAWEI 10,0
PARTP 20,2
TSI 16,8,4

then click on Settings tab.
Symbol (blue box)
Bar Type
Colored OHLC bars
green box red box s for small

Find EVENTS
check off Dividends and Earnings

you’re done.

Go back and click on your template name.
then click on the lower left-hand corner.
Manage Templates
You should see all the templates you may have created.
review all the left-hand names from symbol on down.

If you make any changes, don’t forget to click on SAVE.

3 Likes
35

the above don’t qualify.

My CPA CPF CHC uses Schedule A.
Schedule A form 1040: Itemized deductions under the title of Overflow statements.
Description: Investment fee and Research, APPS, SITES, MEMBERSHIPS, etc.
my old computers were prorated for the first five years plus any replacement parts.
this year I am getting a new 6 monitor high-speed water-cooled computer system for 2023 expenses. I just bring in the expense sheet as described to the CPA, and he takes from there. My last year’s taxes paperwork was over 1 inch thick for state and FED.

3 Likes
36

Yes I am starting to get a little understanding. Thank you. I am sure if I was sitting across from you and Arindam it would be much easier.

Right would you mind posting something using barcharts where we could work through it? Something that follows your rules? I really appreciate your help.

Thanks I changed them now.

Andy

1 Like
37

Hi Quillpenn and Arindam,

Thanks for posting this and teaching…I am shadowing here and trying to learn, along with Andy.

Is this set up right…This is in Barchart

Thanks a lot,
Charlie

image
image1199×739 98.1 KB

1 Like
38

Charlie,

If you invest for divs, keep the marker in the chart. If you try to invest/trade based on earnings reports, keep that marker in the chart. As for the rest of the lines, get rid of as many of them as you can. The cleaner, simpler your charts are, the easier they are to read. Also, because all indicators are based on the same facts of ‘price’ and/or ‘volume’, most of them are redundant to each other. E.g., MACD and TSI plot very similar to each other, as do the triplet StochRSi, CCI, and Wm%.

In the tech lit, this is called ‘co-linearality’, and it should be avoided. Instead, as you build charts and add features, ask yourself what new information each is providing. If the answer is “None”, then don’t clutter the chart.

2 Likes
39

So in Barcharts what exactly would you put in the charts Arindam. Could you tell me what you think the template should look like?

Andy

40

“So in Barcharts what exactly would you put in the charts? Could you tell me what you think the template should look like?”

Andy,

#1. I’m documenting my current thinking as fast and as clearly as I can. Just read my posts. If you see a chart you like, just reproduce it, and then stress test it by throwing a couple dozen stocks at it. If the chart does what you need a chart to do, you’re done.

#2. “No one can trade another man’s game.” Why? Because every investor is unique and has his/her own means, needs, goals, interests, energies, and opportunities, a point Schwager makes in his books on “Market Wizards” where he interviews traders doing the opposite of each other, and both are profitable.

#3. As a corallary to that, there are no “shoulds” in any of this investing/trading stuff. There is only what seems to work well enough that it shouldn’t be changed. (“If it ain’t broke, don’t fix it until it is.”)

All of that said, that Smoothed HA template is about as simple, clean, and effective as it gets, though I’m now exploring adding SAR.

At least two things are going on. One is that “Fundamentals matter.” Yeah, for sure, PE’s, PB’s, PS’s, Equity to Debt ratios, etc., etc., etc., can all be converted into charts and presented graphically, as can div payments, earnings reports etc. But that stuff is probably better done in spreadsheets, especially spreadsheets in which it’s easy to make comparisons to one’s other alternatives. (This is what I do when I’m shopping for bonds.) It’s “green eye shade” work, aka, forensic accounting.

The other point that needs to be made is there’s a diff between the charts one uses for ‘analysis’ and what one uses for ‘execution’. Typically, when I’m putting on or taking off a position, I’m using the DOM --which I need to document-- rather than a chart. But an explanation of that is going to have to wait until after market close.

1 Like