true it also has to be aligned with your psyche. and with market conditions... scaling in when there is a strongish trend is suicide. brooks make this point strongly ... he says he can make the same money swinging BUT he scalps..WHY? because he finds it the comfortable thing to do......if you find swing comfortable go for it...but you should be comfortable with what you do. trading is individual. brooks is interesting
because i can only do that 20% of the time in trends as my teacher says. if i scale in on a range day my stop never gets hit
markets move just like brooks says they do.......they repeat. the problem is in understanding it, seeing it in live markets and then trusting it..... it is a process that takes time and most give up before time
wide stops yes but big risk no......trade small scale in small and do it many times. but this takes commitment and trust [with your read] and patience all trends even the strongest ones slowly become ranging......it is here if you buy above bars and sell below that you may get whipsawed
I agree with this for sure. Trusting it is imperative. Managing it is imperative. Everything is imperative. You must not make any mistakes on no days. Or Drawdown will kick our ass.
trend development or trend cycle ,as brooks calls it, is critical: it is necessary to understand where the market is wrt to trend cycle. once there is a pb, which brooks defines as as one bar going [ in a bull trend ] above a high of a bar, then the market starts channeling if this channel is tight then in a bull you can only buy. once it gets wide you can trade both ways. once it gets wide, traders will buy all strong bear bars and sell all strong bull bars. if that is done you cannot put a tight stop. i use a catastrophic stop. since we are in a range or channel it is unlikely that there will be follow through and any follow through will be a 2-5 weak bars. ideal for scaling in. if the follow through is strong-the unlikely or low probability event-then it means the market is no longer in the channel and you close and reverse. this is simple stuff. all it takes is a little understanding of market , confidence in your knowledge commitment ....and a decade or two of live practice. it is trading the market, reading the market, without having an opinion, of where the market should go. better lose your opinion than your money. you do need a sprinkling of context to spice up things:that is provided by the trend cycle i do not wait for setups .........
That is right backwards. Scaling in long (averaging down long) in a strong bull trend puts odds in one’s favor that profit will be made as the bull move continues. If you are averaging down when your averaging down direction is against the prevailing trend then yes, high risk. For instance, averaging down LONG in a prevailing bear trend then yes, that is a risky proposition, unless the bear trend is simply a bear leg in TR. I will average down LONG in a bear leg all the way to the bottom of a range betting a BO of the bottom of the TR will fail within 5 bars and price will head back up towards the range, giving sufficient move back into the range for a profitable scalp.