Brooks biggest mistake as a teacher

[padutrader]

trading 5 min when there are huge bars. i have learnt it really fantastic to shift to 1 min to stay with market reality

 

[padutrader]

It's exciting to get an ah ha moment and you want to share that joy with others.

Best of luck to you I hope this is the final combination # to unlock your vault.

thks
you have the right attitude for trading and for life.
it is always the next day that success will be obtained but focusing on the present and making the most of that gift, will eventually get us there.
stay with and all the best to you ,mate

 

[padutrader]

As regards using 1 min charts, my experience is that they provide too
much raw data. For me that data needs to be smoothed out and the best
way to do that is to move to longer time frames. Anything less than 5
min is (for me) useless

In fact, I have been showing a friend how to use 15 min candles and
this seems to filter out the whipsaws that causes most newbies to
wash out.

In the instance below (today's Emini) we had typical price action, with
transitions from spike breakout to trading range, then an attempted
breakout to test a "magnet" that failed. The reversal (a late day reversal)
is easy to see on this time frame.

I taught my friend to use just one setup, and that is what I call a "reversal
bar". In the correct context, it is about 80 percent reliable and easy (for him)
to see. Entry is at the conclusion of the first strong bar after the reversal

I was asked by another trader whether I was concerned about giving up my
edge and I replied that it isn't a concern, since the real issue isn't when to
enter, but how to manage the trade once you are filled. This is why automated
systems prevail (and beat the human traders most of the time). Bottom line
is its all about mental discipline.

when 5 min or any other time gives too little information THEN it is useful to shift to a smaller time frame.
like the xray does for doctors when they want more information

 

[padutrader]

I was concerned about giving up my
edge

you need others to do the same AS YOU since you cannot move the market and must rely upon other to get the market to target.
so if you have some secret method which no one knows, that method will fail.
that is why there is no secret for entry, as you correctly said.
and mismanagement is often the reason for failure ,as you correctly pointed out, since knowledge about technical analysis is freely available for free.

when i started trading in 1987 only a handful knew something like TA even existed

 

[zghorner]

thks
you have the right attitude for trading and for life.
it is always the next day that success will be obtained but focusing on the present and making the most of that gift, will eventually get us there.
stay with and all the best to you ,mate

me? nah i quit lol. trading is for pros and suckers. Currently seeking employment in the fast food industry.

 

[StevenBruce]

you need others to do the same AS YOU since you cannot move the market and must rely upon other to get the market to target.
so if you have some secret method which no one knows, that method will fail.
that is why there is no secret for entry, as you correctly said.
and mismanagement is often the reason for failure ,as you correctly pointed out, since knowledge about technical analysis is freely available for free.

when i started trading in 1987 only a handful knew something like TA even existed

One suggestion for Padutrader

The idea that you need "others to do the same as YOU" is perhaps
a misunderstanding. I have heard informed participants suggest
that about 70% of the volume on an index like the EMini for example
originates from software programs. That estimate is probably
understated. Simply put, a skilled programmer can create software
that does not get tired, or need to use the bathroom, or eat lunch
and can monitor the markets on a 24 hour basis, looking for repetitive
behaviors to take advantage of.

Clearly the biggest institutions are hiring the best programmers to do
this, and so retail traders are competing against a relatively small
group of people, most of whom are better (at trading) than they are.

What any of you CAN do as retail traders, is to learn how institutions
act in the markets, and (eventually) learn how find opportunity.

In my opinion, Price Action is a good start, and I like Dr. Brooks contributions
to education, but if a retail trader wants to transition to professional status,
they will need to go further (and obtain different tools) to make that transition.

Just changing to a different bar size, probably isn't (in my opinion) going to
provide a lasting difference. Your description of a sustained losses is sad, and
I wish you good luck.

 

[SimpleMeLike]

what is hugely different is that i am using 1M something that Brooks has always strongly recommended against doing.

Hello padutrader,

Why does it matter what Brooks says?

What is the importance of doing exactly what Brooks says?

 

[Jzwu2017]

when 5 min or any other time gives too little information THEN it is useful to shift to a smaller time frame.
like the xray does for doctors when they want more information

I use 5-min candles and 1-3 mins line charts. Any more candles than 5-min are too much for my eyes. The lower time frame lines give me more details than the 5-min candles when needed. Mostly I make decisions based on the 5-min candles.

My current biggest challenge is emotional control and the mental strength to stick to my plan and correct trades. Wrong trades get stopped out automatically.

 

[Jzwu2017]

This morning I sensed AMD weakness and shorted around 10:30am but got out during the subsequent volatile bars with only a small profit.

 

[Laissez Faire]

LOL. Seems like Al Brooks is doing just FINE as a teacher and a vendor with risk-free money flowing into his pocket even when he sleeps!

I mean - why trade when you can sell the dream and make millions with zero risk???