there is something that takes place during a momentum move away from anywhere like a high or low, that traders need to be aware of if they do not want to be ,what will appear to be ,a stop run, and that is this: any momentum move will be tested.....
it is this simple fact, which if understood, makes a scalping such a exhilarating and hugely profitable activity. those who do not understand this will call scalping ...silly... or something else similar
any sell or buy signal which comes without the market spending time in the uptrend or downtrend....without the market looking top heavy or bottom stable is a false one and should be expected to fail
I am learning a lot about how the market fools us by giving the same signals at different times and making some fail ..this is usually handled by stops but I am doing one better by figuring out which signals to not only ignore but to trade reverse the signal. in fact a trend may be defined and recognized by the continuous failure of countertrend signals....but by the time this is seen it is very late in the trend....also most of time traders who take these fraudulent signals are going to be so frustrated that they will not take a trade in direction of the trend recognizing that a counter trend signal is going to fail and taking the trade in direction of the trend is of course the thing to do
i am stopping this journal i do not want to put ideas into traders head here which may not blend in with their knowledge. i did not expect anybody to pay much attention to what i would write here....i am surprised to be wrong very wrong .... thank you for all the love and attention you guys have served upon me so generously.
the problem is I do not think they helped anyone make money...….not even me. that is the problem of markets...….
There's money if being realistic and a loss if unrealistic. But then you mentioned you were not in it for money but for the thrill, to kill boredom. So what do you really want, fun or money?
sorry believe or not.... you might not...I just saw this when I 'revising' my journal I keep forgetting what I used to get into trades....and now I found out.....just trend following...get in on a correction I keep getting lost in the forest which I enter for rest or for the scenery and then have to get back to the road.this is why I kept this journal. Al does not really have a method....but he has recorded or taught some techniques, old and tested ones, which he has found useful. such as getting in a trend or correction.... he by his own admission scalps but he also scalps out half and swings the balance.... he does describe such good things... his description of trend lines is very useful as is his two leg market movement.....but this latter is just the ABC correction. he does have a passion for markets which is very visible and there is a wealth of observations about market some very unique...some confusing ….but all very insightful. I think if you concentrate on any one chapter it is enough to make a living.....reading the whole book may just leave you wondering what to do...but everything is interconnected in markets...so just one concept is enough. I started this journal with the simplest of trading methods ...see the trend and figure how to get on the moving bullet train with out getting killed. my observations they may seem very insightful....but over thinking the markets, like I continuously do, is unnecessary as it is extremely unproductive and dangerous and something the markets encourage with glee. I think Brooks does that [ overthinking ] and that is why his books are very dangerous, to a novice, as they are informative and insightful. so is his books good for only scalping...no...they are also good for understanding the market [which is not essential],.swinging... getting lost in the enigma of markets....and getting bankrupt, though this last is not Brook's fault, but if are just a trader and not a student, not a researcher, not a lover, ….then you just wonder what the hell is the book about and put it away in disgust.