Good Morning SPX Options Trader. This is the best post on ET I read in a very long time. Thank you. I appreciate you for reminding many of this in green. As traders, we often forget to manage trading as a Business. This is business and a business is about making money. In addition, and most important, its about validation of what makes money and what does not make money in a timely manner. For "my" trading business focusing on one style/theory/idea/concept of trading for +5 years to produce trading income/wealth is completely unacceptable. And with great emphasis, completely unacceptable. Within 1 year, I should be able to make a business decision if the trading idea, will be profitable in the future. Especially if you paying someone a service fee to shorten the learning curve. What is so funny/puzzling is, I have had this discussion with other trading people I know, who have spent thousands on trading tools, algo trading systems, teachers, courses....and they stay with the tools and teachers, even though no proof trading gained by themselves or the tool/teacher. I think as humans or competitors, we have this belief that, we are going force to work and make it work, regardless of the current outcome and if I just keep on working harder, eventually it will work. I am not sure if this is the best thing to do in business.
the main thing is how to handle conflicting signals......this has been my bug bear for 10 years.. i like to be confident when i take a trade and seeing these conflicting signals play hell with confidence. most good and experienced traders trust their stop......i have trouble doing that. the strong trend are easy....the conflicting signal are not much it is the other times - which is around 70%-when there is trend but it is not strong, that conflicting signals make us get out way too early. THESE CONFLICTING SIGNALS LEAD TO 'CORRECTIONS' AND SO ARE 'SCALPS' in bpa language getting out early is the NUMBER ONE SIN a trader can commit. because he is bound to make losses and that will wipe out a lot of profit. this is my problem and i am now after 14 years of confusion, I AM coming to recognise lesser conflicting signals, as opportunity to add on to positions rather than get out early. this will take a long time to show up in my p&l because of my huge losses......but i am happy to get things into perspective and make trades knowledgeably rather than ' put stop and pray ' type of trading. i know overnight will post that he is eating cow and ganesh meat sitting with his cow wife....but i cannot see those posts ..i have blocked him THE ONLY ONE I HAVE BLOCKED IN MY 14 YEARS OF ET
With so called 'price action' trading as popularized by Brooks and others before him it's typical with conflicting signals at times. Also, it can be hard to interpret what it all means. One of the weaknesses with such methods. There's double tops/bottoms, IHS/HS, flags and what have you. Each indicating different outcomes. Here's the thing, though. Even if you do decide to pursue this method you can CHOOSE to not trade when things aren't clear and you're getting those conflicting signals. You can go a long way simply by eliminating bad trades. Using higher time frames, i.e., 5-minute, 30-minute and finally 60-minute could help you to filter your signals. I'm not sure if Brooks teaches multi-time-frame analysis, but it's definitely important to gain some context, unless you're scalping for ticks. Finally, as I've said many times. Don't trust anyone. Don't trust me. Don't trust Brooks. Test if for yourself. Test, test, test. Learn, learn, learn. Take notes. Try again. Repeat. There's a lot of sick people on ET who don't mind leading you on and get a buzz out of having followers and getting likes, but your modus operandi should be to take what anyone here says with a grain of salt. It's a tough and lonely business for most of us. No shortcuts. But you can't go wrong by testing things yourself, making your own conclusions and finally not risking real money unless you sincerely think that's a good idea.
You are correct SPX Options Trader, I agree with everything you said in red. Traders need to understand Business and respect for themselves, and the must must must must, I repeat, they must understand, they are the customer first. Demand proof. Secondly, they have to understand the Salesperson agenda and their business money making math formula: Trading Course cost = $500 (lets call this constant A) Customers = 2000 (lets call this variable B) Potential Life Long Revenue (lets call this variable C) Millionaire Trading Business Formula: A x B = C $500 X 2000 = $1,000,000
Have you...seriously...considered being a Trading Guru/Teacher/Social Media Personality....instead of actually trading yourself? As you can see, it's very, very, profitable if you have the talent and personality and wit and energy to convince/con people into buying you. If you want to turn into the dark road, and become a demon for the money....I don't know, I won't necessarily judge you. You're human after all. And we are all chasing money.
Hello Laissez Faire, Yes this is another issue with trading methods and concepts. Alot traders do not know how to develop a testing plan to manual backtest and alot traders do not know how to program to test ideas in algorithm fashion to gain a sample data size of what "may work". You see the saleperson know this. The salesman knows that all I have to do is show a few examples on youtube, pay a youtube marketer to give me clicks. This is called Internet Marketing. The internet marketer sole agenda is to sell a product. So the marketer finds someone with some knowledge on trading. Pays the person for this knowledge, and the marketer produces content to sell it. The marketer hires another service company to gain views. The more views, the more youtube broadcast that video. fake comments and fake views in designed to find the naïve trader to sell that course to. This is the name of the game right now in the trading industry and it is very lucrative.
the problem with brooks is that he does not like leaving money on the table according to him. so he describes some ridiculous scalps but when he is teaching he goes to any time frame.... just to illustrate a trade. this does not mean you should take these.......but traders do..... brooks is not easy to understand but he is passionate about trading and chart reading.......of that there can be NO doubt it is not just about $$$$$$$$$$$$$
does he charge......they are mostly free no one likes hard work.....you tell them to trade you need 10 years work they will run away... and these marketers will starve.....
Hello SPX Options Trader, Good question. I did consider it, but man I just can not do it man. I will be lying my ass off to customers selling something I know do not make money consistently and no solid proof. I thought about it seriously. My friend is begging me to do it too, he always telling me selling that trading shit is where the money is at. He is a strong internet marketer selling guns and Gun rights/law, USA freedom of speech stuff to bunch white guys/girls on social media now. LMFAO, we laugh about it all the time.... We black guys selling bunch gun stuff and "Trump is our man" products to white guys. And we clearly did not even vote for him. LMFAO LOL hahahaha. We have good laughs over this. But that is how internet marketing goes. the customer can not see the seller, its all internet hidden and marketing. But no, for trading, I can not do it. Much more money actually trading. If I had about 1 year of solid proof, I would consider selling my services. But for now, nope. too much work teaching people and responsibility.
even better become a broker. my friend who used to trade with me did just that. no one trades for the money...if that was the case i would have left day one... no one becomes world no 1 for the money. they do it to do something no one else can they do that for the challenge. traders trade for the challenge ....money comes anyway