Tribute to Brooks

NumberZ said:
You should post your understanding of "exactly" what he says so others can judge whether you are trading "exactly" as he says. Maybe you are trading exactly as you think he says. Which may be different from exactly what he says.

Good Luck to you!
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The illusion during trading... So dangerous.
 
longandshort said:
my question is what makes you think that al brooks' understanding of the market is rooted in reality?

as volpri mentioned, there is a claim that behind every tick is an intention -- when in reality this is not true. most investors (so the vast majority of the incremental volume you see) do not trade based upon tick data. e.g. if an institution is buying F shares they are not looking at the 2 minute chart thinking "oh this is going to reverse let me buy/sell here". Instead, most large investors (whom Brooks concedes drives trading) need to budget their orders over a longer period of time -- days, weeks, sometimes months.
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How do you know your reality is right though ? You just got your reality from studying economics however economics isn't a science, it's made up.
 
Heydrrich said:
How do you know your reality is right though ? You just got your reality from studying economics however economics isn't a science, it's made up.
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It’s a combination of training and experience.

I worked as a trader and PM for banks and hedge funds (8+ years in the industry, trading as a kid through school for 4 years, so approx 14-15 years of trading experience both retail and institutional). While at banks I went through their training programs and then applied it. While at funds we went next level.

Foundational stuff taught begun with Fama & French (both won Nobel prizes in their work) but that’s like 3 paragraphs out of years of training, most of it is understanding market anomalies (things that should not exist in strong form EMH but do, and the rationale behind them e.g. slow diffusion of information, etc.), market structure with a focus on trading frictions, flow models, and liquidity. I am not discounting finding meaning in a price, like I said, my contention with Brooks is that what he teaches is so far off what actual market participants know/think/do, and his analysis is not robust. My recommendation if you want to be a successful trader is to first know what the market knows (e.g. learn how to think like a trader or PM) and then apply your analysis to generate your insights and trading decisions.
 
Heydrrich said:
How do you know your reality is right though ? You just got your reality from studying economics however economics isn't a science, it's made up.
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He, i.e. longandshort doesn't know IMO. Actually, he appears to be quite ignorant about how markets really work. Nor does he know what Brooks teaches simply because he has never studied Brooks nor put into practice the concepts Brooks teaches. If I remember correctly he stated he just skimmed one of Brooks book.

His mind is made up. He doesn’t seem to be teachable. I don't think he is open minded. Nor does it appear he even want to learn. He ought to know I have posted many charts in my journal. He is here because he apparently has an axe to grind against Brooks….and may be also trying to promote his so-called “trading knowledge” to either sell something or get folks to give him money to manage.

He is a follower of Fama. Believes strongly in EMH, Brownian BS, and Randomness.

I wouldn't give him $10.00 to manage.

I just don’t think I will waste any more time discussing issues with him. IMO he is acting more like a troll.

$17 mm?? Seriously?.. ROFLMAO.
 
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