It's hard to say, really. I'm curious... What kind of money are you making in your long-term accounts? I'm not sure if I understood it correctly in your last post. And how much money would you need to make day trading for day trading to be worth your while? Surely more than 10% per year, no? I think this is worth considering. Then consider if you think the Brooks approach can make you really big bucks or if it's just a win some/lose some approach. Unlike others in this thread, I definitely believe that it's possible to read and predict the market. However, the market is very complex and I think it's vital to find a way to impose order on what you're seeing. Utilizing statistics and introducing objectivity is the key here. I'm not saying it's impossible, but I think it's very hard and a very long process to be able to master a market simply from subjective interpretation every single day. There's simply too much to process. Too many patterns. Too much variation.
Technical analysis can work. The problem for day traders, even Al Brooks, is that computer programs designed by the most intelligent people in the world placed on computers in close proximity to the exchange can process technical analysis (among other concepts) far more efficiently than any day trader can.
http://www.elitetrader.com/et/index.php?posts/4178457/ Shoulda taken the trade, woulda more than paid for Brooks's course
I read a dozen academic articles on the role of HFT and algorithms in the futures and stock markets, you?
Not enough to live on, if that's why you're inquiring. The account had an increase of 22% from the start of that year to the end of that year. It had an increase of 8% from the start of the next year to the end of that year…calculated the way you would calculate any % of increase or decrease. The day account is down 3% from re-opening it this year (currently recovering from being down 5% after violating stop rules, which was a result of violating size rules). It is twice the size of the longer term account. Not trying to live off that, either. You certainly know this, but the percent of gains one needs to make to live on depends on the size of their account. If a day trader has a million dollar account, he should be quite comfortable with 10% gain on the year, unless he's living in NY or someplace similar. I know I would be where I live...even an account of 250K generating 10% would be nice. That's a new car paid for with cash. Both of my accounts are currently too small to generate what most people would consider income. They are intentionally designed to build my tolerance, practice my rules, etc… using real money, but not enough to care about (this helps me maintain objectivity more than anything else)...and if I trade successfully (avoiding the pitfalls of my prior years, and the ones I still occasionally make), they will grow to a point that if I want some spending cash other than my savings, I'll withdraw it from one of my trading accounts. I want the size of my accounts to grow, and still not care about the money as I increase my RR. That said, I don't have any debt beyond my house payment, so I'm in about as good a place financially to work out the bugs. I have other income. I'm actually quite well positioned to comfortably see if I can go beyond the win some/lose some approach you described...though I'd like to call it win more/lose less or at least win bigger and lose smaller if it's a 50/50 proposition at best...which it might very well be. Before I took time away, I was losing money I couldn't afford to lose, and that was a serious detriment to my objectivity. I have repeatedly mentioned in this thread that objectivity is my primary goal. Lack of it has been my downfall in prior years. I'd be curious how you use stats with it, though. Any recommended reading regarding that? I do agree, it is difficult trading patterns. I didn’t realize just how many variations there were until I read Brooks. That said, when I start looking at things I hadn’t previously looked at, like the number of pushes on a current, or even higher time frames, or stronger support or resistance higher up, including larger frame trend and channel lines, I then see patterns in the lower frames that might have a higher probability to succeed then if they were in a different location in that higher frame. I know Brooks prefers to look at only the 5 for the most part, with the 15 and 60 20EMA's superimposed, but I like to see the higher frame patterns visually, and I can see a lot further into the past on a 60, 120, 180, 240, 480, or daily, than I can on a 5. He claims he can infer other frames from the 5, and I know what he means. He states that lining up with higher frames isn't necessary, and I also agree, but I still like to see as many time frames line up as possible in the direction of a trade, and I like to see it visually. It's really almost impossible for me to discuss what I'm learning from Brooks without going into time consuming detail just on a very few things (as he does on everything, which I think is fine...that's why I paid for it), but this will have to be it for me in this thread, at least until we hear back from the OP on what he took from it. I've heard some other great ideas from you and others for which I'm grateful. It may not always seem so, but I have an open mind, and I'm finding this thread to be somewhat educational:eek:...we are in education, right? So, thanks to everybody who's offered constructive criticism or great ideas! Now it’s my turn to be curious, Laissez. Are you successful with your trading, and if so, do you rely on it, and are you making a comfortable living at it (I'm not interested in the actual amount you make, just if it's enough). How long have you been trading? How long did it take you to become successful? Any particular trading education along the way...courses, books, dvd's, etc? I won't get emotional if you tell me it’s none of my business. Good trading to all.
Good advice. Just remember how many different ways that pattern might look when you add in all the noise. I have 2 or 3 patterns I like, and they can have several variations.
This is great advice. Find one where you have the most confidence and have back tested it to an extent and the results are very good. Make sure the sample size is large enough to validate the results. Then trade in other markets that tested well. Trade small initially in case adjustments need to be made. Certain markets can't handle bigger size. Years ago I found that out in RBOB Gas, Heating Oil, Soybean Meal. Worked well but really couldn't do much size so it became a waste of energy to trade them when the P/L had such minimal effect on the whole book. If you find a pattern/strategy that works well regardless of what market you trade it gives you a huge edge. Trade the ones that are volatile enough and wait on the sidelines in the ones where the volatility isn't there. Throughout the year sometimes I am trading 2 markets at once, sometimes 6-8 at once. But having the luxury of being able to trade other markets will help HUGE in the discipline department and keep you away from doing the "I'm bored....I'll be stupid and do this trade for some action" trades. Those never work.
@EPrado @Visaria i really loved your profound insights per your sharp observations above. only on rare occasion that a trader would find such indepth exposition anywhere. thanks a mil for sharing your immense thoughts and trading processes. one way out request, if you would be kind enough to bestow additional trading wisdom for many of us who love to see words and thoughts in live actions; succinctly, we would love to see how all those ideas have been applied on your trading charts, whether real life or simm trading, it just won't matter one bit. hopefully, you would be kind enough to allow us to learn even more concretely from your graphics examples, please. i also understand that most consistently profitable traders would not even talk about what they do with their own spouses, much less show other eager beavers wannabe how they do it on live or simm chart. but you could be the one exception, sir/madam. wishing you best trading regardless of your decision. with all due respect, sir/madam.