{"id":44248,"date":"2015-10-11T08:58:03","date_gmt":"2015-10-11T15:58:03","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=44248"},"modified":"2015-10-12T06:01:39","modified_gmt":"2015-10-12T13:01:39","slug":"where-does-price-action-traders-edge-come-from","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/where-does-price-action-traders-edge-come-from\/","title":{"rendered":"Ask Al: Where does the price action trader’s edge come from"},"content":{"rendered":"

BPA trading room Q&A: October 2, 2015<\/h2>\n

Can you talk about where the price action trader\u2019s edge comes from, especially when institutions are very good at price action and can hire the best traders?<\/p>\n

Audio duration: 4min 34sec
\n <\/em><\/p>\n

 <\/p>\n

Audio transcript<\/h2>\n

Do not worry about institutional trader’s edge<\/h3>\n

\"Ask<\/a><\/p>\n

My thought is that\u2019s irrelevant. If the market is going to move one way or the other and it\u2019s doing so with enough force, it doesn\u2019t matter if an institution enters two bars before you. For example, let\u2019s say the institutions bought above 8, it does not matter if you buy on 15. You\u2019re still going to make a good living, right?. Over here, it does not matter if an institution bought above here (24) or above 28. If you buy on 34, you\u2019re going to make a good living.<\/p>\n

Follow the price action—make your own money<\/h3>\n

So, I never worry about somebody being better than me, although I sincerely doubt that there are very many traders at the best institutions who know price action as well as I do. I know that sounds arrogant, but that\u2019s the truth. But I never worry about somebody being better than me. I don\u2019t worry about them having any advantage because if the market is going to have a swing, it doesn\u2019t matter when I enter, I\u2019m going to make money. If the market\u2019s in a trading range and I start selling above bars or buying below bars and use an appropriate stop, a wide enough stop and scale in properly, it does not matter that some institutional trader is doing it better than I\u2019m doing. As long as I\u2019m doing something that makes sense mathematically, I\u2019m confident that I\u2019m going to do well. I don\u2019t care if somebody else is better than me.<\/p>\n

Just do your best—and be objective<\/h3>\n

If I\u2019m a baseball player and I\u2019m batting .300, do I really care that somebody else is batting .310? No; I\u2019m making $20 million a year and I\u2019m happy. If I\u2019m averaging 25 points a game as a basketball player, they\u2019re paying me $10 million a year, I don\u2019t care that somebody else is making 27 points and $20 million, $25 million. All I care about is am I doing something well and am I doing it to the best of my abilities. Am I consistent and am I not letting my emotions get in the way?<\/p>\n

I don\u2019t worry about the best traders. Anybody can be a good trader if they understand what they\u2019re doing and if they can remain objective. You can be a very emotional person, but when you\u2019re trading it\u2019s better not to be an emotional person<\/a>. It\u2019s better to be able to put that on the shelf and just try to be objective. And that\u2019s part of the enjoyment for me, and I\u2019m sure it\u2019s part of the fun for everybody. Can you do it? You know you can do it for five minutes. I can be objective for five minutes. Can you be objective for six hours? And that\u2019s part of the challenge and that, for me, is part of the enjoyment.<\/p>\n

Inspired by others doing good stuff<\/h3>\n

It\u2019s one of the reasons I play tennis; it\u2019s one of the reasons I watch a lot of sports. I enjoy competition. I enjoy seeing people try really hard. I enjoy seeing people excel, people who have trained really hard to become very good. And to be honest, I don\u2019t care what activity it is\u2026 even if it\u2019s some activity that I have very limited interest in pursuing. If I see somebody doing it really well, it makes me happy to know that they\u2019re doing it well.<\/p>\n

Snowboarding\u2026 I\u2019m not a snowboarder, but I watch a little of it when the Olympics are on. Even synchronized swimming, which I hope nobody is a synchronized swimmer here\u2026 I think it\u2019s one of the dumbest things in the world, but I\u2019ll even watch that for a few minutes and I\u2019ll feel happy because I\u2019m impressed by how well the people are doing it.<\/p>\n

To me, I enjoy doing things well. I enjoy training hard. I enjoy big projects, like creating the videos. \u00a0It\u2019s a huge project. I\u2019m really getting burnt out on creating all the slides, but at the same time it\u2019s personally satisfying. I enjoy doing something good. I enjoy spending my time doing something good, and I enjoy trading for that reason as well. It makes me feel good to see that I can do something really well and do it for hour after hour after hour. It\u2019s fun.<\/p>\n

Do your own thing—be consistent and good<\/h3>\n

So I don\u2019t worry about the institutions being better than me. I don\u2019t care if the top trader at Goldman Sachs<\/a> makes five times more than I make. I don\u2019t care. I don\u2019t care if a hedge fund trader makes a lot more money than I make. I don\u2019t care. All I care about is am I doing something that\u2019s rational, logical? Am I being consistent? When I do something stupid, am I fixing my mistakes immediately and not getting upset about the loss? That\u2019s all I care about. And I just know\u2026 I just trust that, over time, it works. Even over time, I mean over the course of a day, I\u2019ll come out okay. So, even if I make a mistake or two during the day, I\u2019m still confident that I\u2019ll end up ahead. To me, the goal is to be consistent and good. It\u2019s nice to be great, but you don\u2019t have to be great to do very well at this.<\/p>\n

Al Brooks<\/em><\/p>\n

Information on Al’s Online day trading room<\/a><\/p>\n

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BPA trading room Q&A: October 2, 2015 Can you talk about where the price action trader\u2019s edge comes from, especially when institutions are very good at price action and can hire the best traders? Audio duration: 4min 34sec   Audio transcript Do not worry about institutional trader’s edge My thought is that\u2019s irrelevant. If the […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-44248","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/44248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=44248"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/44248\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=44248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=44248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=44248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}