No, chasing does not comply with my rules at all. The only reason chasing looked good is because today happened to be a day when if I chased my late entries they would've worked out well. The truth is, MOST of the time they leave me, as Hog said, frustrated by a whipsaw trade. It's far better for me to correct the problem of hesitation than to ever think chasing the runaway trade is acceptable. It was so fantastic to enter my X trade immediately, the moment price broke the low of the day and have immediate profitability to work with.
Nodo,that how I trade,try to trade ES at the open,and than play stocks,but still bulk of my profit comes from stocks.
I've been trying to get through this Brooks book as well and couldn't agree more. It seems like this guy is really onto something, edge-wise, but OMG! It's not just about experienced vs inexperienced trader, it's about basic respect for your reader. Numerous inconsistencies and errors, and references to trading pattern acronyms in early chapters that aren't explained until hundreds of pages later make this an extremely hard read. In fact, the author suggests reading the book several times for complete comprehension - dude, how about you think about your reader and mix in a little foresite and common sense. One suggestion - read the book backwards. Just when I think I've figured out the difference b/w a H1 and H2, I see another chart example that gets me scratching my head. Mr Brooks, if you are considering another book, let me know, I'd love to be your editor.
I agree that Brooks book is not easy to read, reminds me of Farley's Master Swing Trader which had similar overtones. But it could be a good thing in disguise, less people will read and get through the book saving the good parts from becoming too common
I think it's a secret Trader IQ Test. "How long did it take you to realize Al Brook's book was shuffled and pasted together in random order?" Or it could be the Coriolis Effect...
Ha! Imagine me, having accessed my IRA account for the first time EVER in February 2008, wanting to buy a stock, unable to find the "Buy" button in E*trade for at least 10 minutes, never having looked at a chart in my life, then reading this book on trading I got from the library a month later: "Volume should taper off and dry up as negative feedback builds. A trendline drawn above the volume histogram will downslope to reflect this declining condition. Near the end of range development, price and volume synchronize at the empty zone, that quiet terminus between negative and positive feedback. Participation reaches its nadir as the crowd turns away in boredom within this neutral interface. Watch closely from this center of apathy for evidence of the awakening trend. Use subsequent volume as one measure to locate an impending setup. When properly identified, participation on subsequent bars provides valuable feedback on the direction and strength of the impending move. For example, false breakout odds increase if price surges out of an apex without sufficient volume." -Alan Farley, The Master Swing Trader I now own this book and it's like finding the keys to a magic kingdom, but it was like reading a foreign language back then.
Well Duh! Actually, I prefer this approach: "For example, if the bars on the left are near the lower left corner of your monitor and the bars on the right are near the upper right-hand corner and there are not many large upswings and downswings in the middle of your screen, then this is a bull trend." Al Brooks, Reading price charts bar by bar But mostly his book is like a few hundred pages of this: "Bar 8 was a small bull inside bar after a larger bull inside bar, and that bar followed a second probe below the trend channel line. This might also be a Higher Low test of the Bar 3 low of the bear trend. The rally to Bar 4 broke all bear trendlines, so you should be looking to buy a test of the Bar 3 low, and the Bar 8 ii bull inside bar was a great long setup." Where the referenced chart is on another page! Yeah, it's a real page turner
if you treat it as a gambling, then it is a gambling game. gambing is for entaintainment, not for bussiness. I treat every trade as a business sale or bidding a project. I agree technical does help, but do not overuse it, it is an assistance tool, think or bleive it is an edge, truely it is not. just like a doctor, he uses X-ray to detect tumor or other disease, also he need blood-sample or other sypotoms to confirm his diagnosis, if a doctor sees a spot on x-ray image, he concluded that person got cancer tumor, do you think it is riduculous or just a laugh! yesterday I shorted STEC at 31.8, and bought it back at 29.53, I toke the trade. the reason is I first read the news , I suspect it will dop more, then I monitor it technically to confirm suspect, it does, I went with it. almost risk free.pocked 2.0k+ as for AIG, there is a wall street saying "buy on the rumor", the rumor is there, then watch it technically, take action when it is confirmed. I did pretty well, sold it at 28, plus another wesnday's trade, pocketed almost 14K. almost risk free too. most people are misleading by technical anaylsis. Jessie livemore once told a story, in his book, a tipman told a professiona trader"some big man are buying some stock", the trader did not buy it right on the tip, he sold short it first, tat shocked the tipman, then exam the selling report, after he confirmed technically, he reversed and went long. that is his edge.
I woke up really late after seeing a late night movie. I thought to myself I don't even really want to trade on Friday. Then I open my charts, saw I missed a perfect trade if I had woken up earlier. Then I saw a trade that matched all my signals, so instead of taking it with real money, I did it in SIM, and of course it worked out. So made $ 0 today. I almost revenge traded, and went in with real money on the pullback of the previous winning trade, but I was able to control myself, since emotional trading never works out.
lol... oracle wizard.. your story is soo sad.. wouldn't it be nice just for once to end a friday with a big day.. order up the limo .. invite some friends out and cover them.. then head to a casino and blow everything you made today in a few hours and say .. whatever.......there is always monday!!!!!!!!! Get rid of the sim .. get rid of your negative attitudes and stop being a big wimp.. shoulda woulda coulda... you are nothing but pocket change waiting to drop into my pocket.. have a great weekend. lol