TRADING VIEW REVIEW

TRADING VIEW REVIEW: 4 Ways it Has Helped me AUTOMATE

If you’ve watched any of my recent YouTube videos, you’ve likely seen TRADING VIEW.

TRADING VIEW is the charting service I use. I like them for a LOT of reasons.  In this Trading View Review, I’m going to share what I love about them, where it’s lacking and how I’ve dealt with it, and some key features to help you automate within the platform if you have it.

Top 3 things I LOVE about Trading View

1. EASE OF USE

It is very easy to annotate charts, view multiple time frames, journal, build watch lists, and publish to social channels.  Check out the video above.  I spend a few minutes on how I do each of these.

2. IT’S CHEAP:

A Pro Membership only costs $9.99/month! Before I found Trading View, I was paying about $150/month for charts and scanning software.  Now, Trading View does have a scanning component but it’s not something that I’ve found very useful.  I now use ChartYourTrade MRI to quickly scan for high-quality growth stocks.  You can read all about the various ways I scan for stocks, the parameters I set, some ways to do it for FREE or if you want to save time and spend just a little, some resources you can use.  Click here to read “How to Scan for the Best Growth Stocks.”

3. AUTOMATION:

They allow users to write what they call “Pine Scripts”. You can basically create any indicator you can dream up and add it to your charts!  This is perhaps the BIGGEST REASON why I LOVE Trading View.  One of the things I would do manually in that really expensive charting service I mentioned earlier was flag distribution days on the indexes.  So I would go 

One of the things I would do manually in that other really expensive charting service I used to have was flag distribution days on the indexes.  So I would go into each index, calculate if a distribution day had occurred, get the clunky annotation tool, and flag the day.  I’d do this on the S&P 500, NASDAQ, and NYSE… doing this every week would really only take 5 or 10 minutes… BUT IT ADDS UP!  20-40minutes per month…I can think of better ways to spend that time. 

Trading View is able to BOTH automatically flag distribution days AND keep a tally of the distribution days over a set period!  In keeping within the CANSLIM trading methodology, I’ve set mine up to 25 days.  The great thing about Trading View, you can get these codes and do whatever you want with them!  The customization is incredible!

 

CLICK HERE TO GET TRADING VIEW NOW

 

HERE ARE MY 4 FAVORITE AUTOMATIONS (and the codes I use for them)

Just copy/paste the entire code into the “pine editor” and save them. Follow the steps I use in the video…

1. RELATIVE STRENGTH (vs the S&P 500)  

study(“Relative Strength”, shorttitle=”RS”)
a = tickerid
b = input(“SPX500”, type=symbol)
as = security(a, period, close)
bs = security(b, period, close)
plot(as/bs, title=”Relative Strength”, color=gray)
len = input(30)
plot(sma(as/bs, len), color=navy)

2. DISTRIBUTION DAYS

//@version=2
study(“Distribution Days”, overlay=true)
is_down_bar = change(close) < -0.02 ? true : false
is_volume_up = change(volume) > 0 ? true : false
is_distribution = is_down_bar and is_volume_up ? true : false
plotshape(series=is_distribution)

3. DISTRIBUTION DAY COUNT

study(‘Distribution Day Count’ )
is_down_bar = change(close) < -.2 ? true : false
is_volume_up = change(volume) > 0 ? true : false
is_distribution = is_down_bar and is_volume_up ? true : false
sum = sum(is_distribution, 25)
plot(sum)

4. NEW HIGHS vs NEW LOWS on NYSE

study(“[RS]jangseohee NYSE – NHNL Indicator V0”)
timeperiod = input(“D”)
NH = security(“HIGN”, timeperiod, close)
NL = security(“LOWN”, timeperiod, close)
plot(NH, color=green, style=columns)
plot(-NL, color=maroon, style=columns)

showvectorchannel1 = input(true)
showvectorchannel2 = input(false)
showvectorchannel3 = input(false)
showvectorchannel4 = input(false)
showvectorchannel5 = input(false)

topvc1 = NH[2] < NH[1] and NH[1] > NH[0]
botvc1 = NL[2] < NL[1] and NL[1] > NL[0]

topv1 = topvc1 ? NH[1] : na
botv1 = botvc1 ? -NL[1] : na

plot(showvectorchannel1 ? topv1 : na, color=silver, offset=-1)
plot(showvectorchannel1 ? botv1 : na, color=silver, offset=-1)

topvc2 = topvc1 and valuewhen(topvc1, topv1, 1) < topv1
botvc2 = botvc1 and valuewhen(botvc1, botv1, 1) > botv1

topv2 = topvc2 ? NH[1] : na
botv2 = botvc2 ? -NL[1] : na

plot(showvectorchannel2 ? topv2 : na, color=gray, offset=-1)
plot(showvectorchannel2 ? botv2 : na, color=gray, offset=-1)

topvc3 = topvc2 and valuewhen(topvc2, topv2, 1) < topv1
botvc3 = botvc2 and valuewhen(botvc2, botv2, 1) > botv1

topv3 = topvc3 ? NH[1] : na
botv3 = botvc3 ? -NL[1] : na

plot(showvectorchannel3 ? topv3 : na, color=black, offset=-1)
plot(showvectorchannel3 ? botv3 : na, color=black, offset=-1)

topvc4 = topvc3 and valuewhen(topvc3, topv3, 1) < topv1
botvc4 = botvc3 and valuewhen(botvc3, botv3, 1) > botv1

topv4 = topvc4 ? NH[1] : na
botv4 = botvc4 ? -NL[1] : na

plot(showvectorchannel4 ? topv4 : na, color=black, offset=-1)
plot(showvectorchannel4 ? botv4 : na, color=black, offset=-1)

topvc5 = topvc4 and valuewhen(topvc4, topv4, 1) < topv1
botvc5 = botvc4 and valuewhen(botvc4, botv4, 1) > botv1

topv5 = topvc5 ? NH[1] : na
botv5 = botvc5 ? -NL[1] : na

plot(showvectorchannel5 ? topv5 : na, color=black, offset=-1)
plot(showvectorchannel5 ? botv5 : na, color=black, offset=-1)

 

Check out some of our other blog posts:

Trading Tips for 2018

8 TRADING TIPS for 2018 and Beyond

HAPPY NEW YEAR!  As we begin 2018, here are my Top 8 Trading Tips for 2018 that will keep you on the path to success:

  1. Self Awareness and Introspection
  2. Run your own race
  3. Have a strong why and persevere
  4. Have a support network
  5. Be Consistent
  6. Keep your losses small
  7. Start a Trading Journal
  8. Get a Mentor

 

Self-awareness. Introspection

We must know who we are, where we’re at in our journey’s, what we’re capable of, and what our available time allows us to do.  For many of you watching, trading isn’t your full-time thing.  Much of the teaching that we read in books from great traders comes to us from a full-time perspective.  How do we make that work part-time?  How do we make it work for us? 

 

Run your own race

We need to run our own races and compete against ourselves. It’s real easy to look around on social media and find someone boasting about outstanding returns.  Their returns don’t matter… YOUR RETURNS DO!  Someone can say they made 150% on bitcoin in a week, or have made 400% this year.  People can say anything without substantiating it… and by that I’m not even talking about showing you verified returns.   If they’re not sharing the nuts and bolts…the details…the dirt and grit that got them there…then their claims aren’t worth your time. 

 

Have a strong why and Persevere

This may come as a shock but trading is hard! If it were easy, everyone would own a few islands somewhere.  It’s hard… but its worth it!  It’s a skill that once we’ve learned it, will last us the rest of our lives!  So how do we persevere…? 

We need a strong why.  Why are we doing this instead of the million other things we could be doing?  A lot of people point toward things like Financial Freedom, or to be able to buy something really big, or help save for the kid’s college fund but there are other ways to achieve those things… Why do we want to achieve them through trading? 

It’s important to have a good and powerful why.  When the going gets tough (and it will) your why is what is going to help you persevere and keep going!  For me, I fell in love with the markets and enjoyed the process.  I enjoyed the climb.  I had a strong belief not only that people can be successful in the market but that I could.  ME! 

 

Have a support network

One of the things I found that helped me learn, focus, stay consistent, and grow faster was having a strong network. I eventually discovered the NYC IBD Meetup group and found a strong supportive group of people who were there to do nothing else other than help each other learn.  It was great, especially when times were tough but also when things were good as well.  We were able to be open and honest with each other.  I later became and still am one of the lead organizers of that group. 

You can build a support network virtually as well.  I’m trying to do that on Facebook and recently started a new CYT Family group.  If you’re on facebook, check it out.  But you can even create a group of people you follow on Twitter, StockTwits, Instagram…wherever.  Surround yourself with people that will help elevate you.

 

Be Consistent

If you want to be successful at anything you need to put in the work. We are what we consistently do… lets say that again.  WE ARE WHAT WE CONSISTENTLY DO!  Study, learn, fail, learn, fail some more, learn, continue failing… and eventually you will succeed!

 

Keep your losses small

You will fail and you will take losses. Every trader does.  Our batting average this year was only about .400  We took more losses than we had winners… and this was our BEST YEAR with a +60% return!  This doesn’t always happen but the point is that if you keep your losers as small as possible and you allow your winners to run, you can do extremely well!

 

Journal!

The best way for you to improve yourself over time is to study yourself… Your wins, your losses, your successes, your mistakes. The best way to study yourself is through consistent journaling.  It doesn’t have to be fancy.  I started out with a marble notebook and then eventually upgraded to a binder, and then a spreadsheet.  If you’d like a copy of the spreadsheet I created, click here and I’ll send it to you.

 

Get a mentor

This can be tricky. When I started out I had a lot of “aspirational mentors”.  All of the books I read, courses I attended, the meetups I joined…  These people didn’t know it, some of them passed away a long time ago, but they served as my early mentors.  But to speed up the learning curve, to get to the next level, having a person that you can speak to, ask questions, and get feedback from is extremely valuable… these are also challenging to find.  You want to be able to relate not only to the mentor’s trading style but also to their personality. 

I try to do the aspirational coaching through these videos, and the blog posts, and through social media.  Our Advanced Stock Reports members get a version of coaching as well.  They get to see what we’re doing with the model portfolio, what we’re planning to trade, why we’re planning to trade it, how we’re managing the trade, and when/why we ultimately exit.  They also get to reach out to my partner Adam and I at any time not just for questions about the stuff that we’ve put out there, but about anything they have on their mind and we work through it with them.

 

Here’s to a great 2018 and beyond!  I wish you many great returns!  If you have any questions or have a tip 9, 10, or 11 that you feel should have been included, leave it in the comments below.  I’d love to hear them and you’ll be helping out a fellow trader who happens to see them as well.

 

 

Check out these other blog posts:

5 Things I Wish I Knew BEFORE I Started Trading

When I first started trading, I made every mistake you can think of.  It took me a while, but after years of experience and being consistently successful, I figured out a process that can help save time and money.

Here are the Top 5 Things I wish I know BEFORE I Started Trading:

1) Identify your Goals and Lifestyle:

When we first start out, we assume we will put our money into the market and at some point in future it will grow.  Most people think this way, however, trading in the stock market is much more challenging.  Therefore, we need to first establish what are our goals and what we are trying to accomplish by trading.  Are you looking to generate a supplemental income, trade full-time, save money for retirement?  It is important to understand one’s goals prior to embarking on trading in the market since those goals will determine how you behave and it differs drastically based on your goals. 

You also need to identify what your current lifestyle will allow you to do.  Are you going to try to trade full-time?  Do you have a full-time career?  If you have a full-time job, it will be challenging to dive right in as full-time trader.  You will need more time to study and educate yourself on the market and do the necessary research.  What does your lifestyle allow?  

Once you determine your goals and lifestyle, write them down and then match them up.  This will help you figure out how to achieve these goals based on where you are right now and where you ultimately want to be.

2) Surround yourself with Successful Mentors/Ideologies:

The road to investing in the market may feel daunting, but keep in mind that someone’s already successfully done what you want to achieve!  Research who these people are and their journeys to success.  For example, if you want to be a long-term investor and want to try value investing, then check out Warren Buffett.  If you want to look at growth stocks, check out the book “How to Make Money in Stocks” by William O’Neil.  His book talks about stocks that have historically been successful and identifies what those traits are.  This will help you set-up your scans when you are ready to buy stocks in the market. 

Surround yourself with mentors…whether it is a blog, YouTube channel, book, etc.  Social media also makes it so easy to reach out to these mentors.  You may be surprised that these people may want to help.  Remember, they started out just like you did at one point in their lives. 

3) Develop a Business Plan:

5 Things I Wish I Knew BEFORE I Started TradingDevelop a Business Plan around your methodology.  A book that I found useful is “Super Trader” by Van Tharp.  He goes into detail about developing a business plan around your trading, the psychology behind the trade, as well as risk management and position sizing.  Something I discovered is that Position Sizing and Risk Management are more important than the stocks you pick.    

Now that you have identified what your goals are and what your lifestyle is, the next step is to figure out what you intend to trade.  What type of markets, Stocks, or ETFs are you looking to trade?  Write this down and have a business plan for each method of planning and style of trading.  My advice is to have separate plan for each methodology.  For example, keep your “Shorter term trades” in one account, “Long-term retirement trades” in a another account, etc.  Focus on one goal, become proficient and then take some time to learn.  What may take you a year or two to learn will last you the rest of your trading career.  Take the time to learn your craft!   

Also, be sure to note the following in your business plan.  When do you intend to trade?  Where are your ideas going to come from (your own research, reading newspaper, blogs, etc.)?   Be careful about having too many sources because this larger funnel of ideas will be tough to manage.  Instead, try to focus on one. 

4) Create a Trading Plan:

Develop a trading plan for each trade you are going to have.  You can download a free trading plan template by clicking here. This trading plan will help keep you organized regarding what stocks you are trading.  Write down what your actual plan is for this trade and do all this grunt work before you enter the trade.  Note on your trading plan where do you plan to enter, under what circumstances, and what is your exit strategy.  Keep track of the reward and risk of the trade.  What are your reasons and basic idea for the trade?  What do you like about the company and the stock?   Whatever is the answer, write it down!  Also, remember that trading is also emotional so keep track of overall feelings about the transaction.  Trust your gut!  Think about the other person and why they are selling to you.  Step away as a neutral observer. 

5) Everyone Takes Losses

5 Things I Wish I Knew BEFORE I Started TradingWhen you are finally ready to fund your account and start trading, start out small!  Make sure it’s an amount you’re not worried about losing if you lose all of it.  You will make mistakes and everyone takes losses.  It’s a learning process.  Be prepared to lose.  Continue to adapt your process and when you are consistently successful, then allocate more dollars to grow your fund.  Don’t forget to review your trading plan and your business plan once a quarter or at least semi-annually to look at all trades.  This will help you continue to grow as a trader and see what’s going right and wrong.   

These are the 5 helpful tips I wish I knew when I first started trading.  This upfront work is going to save you so much time and money.  I wish you much success with your trading!

Leave a comment on below and share what tips have worked for you. 

 

 

4 Fatal Trading Mistakes to Avoid

 

There are many mistakes that traders make.  I feel as though I’ve made them all at some point.

Here I discuss the 4 Fatal Trading Mistakes that you must avoid in order to achieve success in the stock market. They include:

 

Mistake #1: Listening to Gurus.  

Hone your skills and listen only to the market.  You’ll be much better off.  No one cares as much about your money as you do.

 

Mistake #2: Buying at any old time

Just because you researched a stock and like it, doesn’t mean that you need to run out and buy it immediately.  You must develop a plan on when you will buy and how much.

 

Mistake #3: Not having an exit strategy

Just like in buying, we also need a plan for when and under what circumstances we’ll sell.  It is possible to lose money on a stock that goes up 100% if we don’t have a sell plan.  It isn’t about how much we make…it’s about how much we keep!

 

Mistake #4: Risking too much

This speaks to the question of “how much to buy” (a.k.a. position sizing).  If we buy too much and the stock moves against us, we can easily blow up our accounts.  Buy too little and if the stock moves in our favor, it won’t have much of an impact.  We need to think of Goldilocks and buy “just right”.

 

What are the biggest mistakes that you’ve made in the market?  

Leave it in the comments below… or BETTER YET… JOIN OUR FACEBOOK GROUP… ChartYourTrade Family

 

 

Check out some of our other videos:

How to Identify Relative Strength When Buying Stocks

How to Identify Relative Strength When Buying Stocks

How to Identify Relative Strength When Buying StocksStocks with high “Relative Strength” means that these stocks are outperforming the market.  They are beating major averages such as the S&P 500 and NASDAQ.   When stocks are displaying relative strength consistently, take notice!  You can then take advantage of these opportunities when they arise.  That’s what the market is about – making ourselves available for the opportunities when they emerge. 

Here is how to Identify Stocks with Relative Strength:

Find a Scanner that Works for You:

I scan for relative strength using the ChartYourTrade MRI scanner.  ChartYourTrade MRI runs 8 scans with +65 high growth criteria and then filters by an “Ideal Growth Stock” screen.   It creates a list of the next potential top-performing growth stocks with a single click.  That is why I like using it.  However, there are a broad range of scanners on the market.  You need to find the right one that works for you. 

How to Identify Relative Strength When Buying StocksPrice and Volume Matter in Your Scan Set-up

When I set-up my relative strength scan, one parameter that I include is that the stock is no more than 5% off its own 52 week high.   I allow for a little bit of consolidation in that stock while also making sure that it is a market leader.  

You want to set a 50-day 50 day average volume.  I set it to be at least 200,000 or greater.  I used to look at stocks 400,000 or greater.  I lowered this to 200,000 cast a slightly wider net while also knowing that the “Ideal Growth Stock” screen mentioned earlier would filter out the trash.  

In general, the higher the 50 day volume the stock has the better.  If the average volume is fairly low, then one big player can come in and dramatically move the stock.  You don’t want to wake up and see your stock down 30% out of nowhere because one major player changed their mind and wanted to exit.  So in general, you want to go with a higher volume stock so no one individual player can make or break the market in that stock.

Identify Ideal Growth Stock Traits

When I run my scanner, I filter on Ideal Growth Stocks and there are multiple parameters, which are outlined in this blog post here (https://chartyourtrade.com/how-to-scan-for-the-best-growth-stocks/).  The Ideal Growth Stock scan will show historically when major stocks made their greatest runs and you can filter on the best of the best growth stocks.  Then you can narrow your search, analyzing those in your scan showing the same historic qualities as those growth stocks.  When I run the relative strength scanner, I ensure that it has at least 50% of what an ideal growth stock has. 

What Industry Groups are Leading the Market

See which industry groups the stocks passing your scans are coming from.  If several stocks pass your scan from one industry group, then its an indication that something is brewing with that group.  You will want to put those on a special watch list and pay close attention to them. 

Be Mindful When Analyzing the Charts

When analyzing the charts for the stocks that passed your scan, be mindful of the following:  Are Prices coming in? Where is it stopping and how is it playing around at that level?  Is it reversing and is volume coming in?  Is it closing at its high?  Be sure to be mindful of these factors before choosing to buy.

 

Watch the full video on How to Use Relative Strength… 

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