Where Are the Pro Traders Are Placing Their Buy and Sell Orders?

[mccarthyj12 10]

I'm trying to figure out if you can look on a chart and see who's buying the stock? Is it the amateurs or the professionals? where is the safest place to place a buy order on the chart? I want to be trading on the professionals side. If anyone can help, I'd appreciate it.

[Bnet 10]

Can you give some chart examples that you are looking at? And what do you mean with "amateurs"?

 

I do know that in the currency markets amateurs account for a fraction of the big banks. Most of the time us "amateurs" [at home traders etc.] are just trying to ride the big boys' decisions.

 

Rather interesting question

[mccarthyj12 10]

By amateurs, I mean players who don't know what they're doing. I once attended a seminar that said you can tell when the amateurs are buying when the stock goes straight up and up and up without retracement.

 

Well for example stock SWN opened lower today and headed straight into resistance at 42.85 and turned around. I'm guessing this is where all the pro's got in and sent it lower...

 

what do u think?

[Bnet 10]

Hmm, interesting.

 

Any equity chart traders want to pitch in?

 

At least on currencies, I never heard of any way to tell when amateurs are trading. And when numbers went straight up & up [or down & down] it was often because resistance was broken... and there was no more resistance to contend with. Maybe one player put in enough cash to break the barrier [see Soros]. Eventually that run would halt, since a wise trader should start cashing out... but hey, if there are no barriers, it may keep running for a while.

 

Definitely, amateurs would not have the $$ to really move currencies. Mind you, though, half of these 'pros' probably don't know much either - who knows, maybe a young guy in his 20's clicking buttons in a bank office!

 

====

 

Stocks can be different though, I assume. My initial assumption, coming from a technical currency background, would be simply that sell orders were hit at around 42 [which makes sense based on the previous peak - resistance]. But I am not confident that just small cash guys had the power to move this stock up...

 

I would be interested in hearing from a stock trader on this one, actually!

 

p.s. What type of a seminar was it?

[mccarthyj12 10]

I went to an online trading academy seminar where they gave away tid bits of information to get you to buy the courses. Though I didn't buy the course, I did take away some important tips.

 

I would also like to hear from some stock day traders. Thanks for the feedback : )

[Bnet 10]

p.s. what systems do you use to day trade stocks? I am wondering if there are lots of similarities between at least the platforms and technical / fundamental analysis or not. I would love to follow equity charts, as well.

[mccarthyj12 10]

I just wait for setups like the one for SWN and trade those. I just stick with one setup and try to master it. No fundamental analysis here. What strategies do you use?