{"id":60488,"date":"2016-11-13T00:05:36","date_gmt":"2016-11-13T08:05:36","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=60488"},"modified":"2018-03-25T07:08:32","modified_gmt":"2018-03-25T14:08:32","slug":"swing-trades-open","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/swing-trades-open\/","title":{"rendered":"Ask Al: Swing trades on Open"},"content":{"rendered":"<h2>Trade selection &mdash; bad swing trades<br \/>\n BPA trading room Q&amp;A: July 27, 2016<\/h2>\n<p class=\"content-box-green\">Question 1: I bought the open for a swing up. Sold the B4 high, for a swing down, and then bought above B6 for a swing up. After which I was too upset to continue. Can you comment on these trades?<br \/>\n <em>Video duration: 6min 17sec<\/em><\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/a09adfbb1318e5c428\/16d987fb3c828fbd?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/9pQ2nXDQ9aY\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube Channel<\/a> if needed.<\/p>\n<h3>Patience \u2013 wait for information<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-the-Open.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-the-Open-300x222.jpg\" alt=\"ES S&amp;P500 Chart Swing Trading the Open\" width=\"300\" height=\"222\" class=\"alignleft size-medium wp-image-60492\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-the-Open-300x222.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-the-Open-768x567.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-the-Open-600x443.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-the-Open.jpg 788w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Okay, so he bought the open, a <a href=\"https:\/\/www.brookstradingcourse.com\/ask-al\/breakouts\/\">breakout<\/a> above yesterday\u2019s high for a swing up. My first thought is on the open, a lot of times, usually, it\u2019s better to get information and buying bar one is not enough information for me to buy. As soon as I see the close of B1, if I did buy the open of B1, I\u2019m going to get out below B1. And then he sold the B4 high for a swing down. I don\u2019t know if you were in the room at the time. I was talking about B4 being a buy setup for an opening reversal and I talked about all of the opening reversals that we\u2019ve had over the past month. That so many days, we\u2019ve had strong sell offs and then a quick early low of the day, despite a strong sell off. So, I personally would have not bought the open of the day. This is a weak rally and there\u2019s just no way that I\u2019m going to be buying high after a weak rally, at resistance &#8212; the all-time high. So, there\u2019s zero chance I would take that buy. So I think that\u2019s not a good buy. <\/p>\n<h3>Trade selection<\/h3>\n<p>Obviously, the markets up there so the traders bought. For every seller there has to be a buyer, but not an individual trader\u2014an institution maybe. Trade selection, I would not have taken that buy. This [above B4] is a buy setup more than a sell setup. And then [the trader] bought above bar B6 for a swing up. I think it\u2019s okay to buy the B6 close. I think it\u2019s okay to buy it above B6. But if you do, you\u2019ve got to be aware that you\u2019re buying right at resistance. The B3 high, and the high of the day, and yesterday\u2019s high. So, you\u2019re got to be pretty quick to get out. So if you buy the B6 high, where do you get out? Do you get out below B6? Maybe. Do you get out on a second pullback bar &#8212; bar 8 falling below B7? More and more bulls were exiting through here [B7-9]. That\u2019s why we\u2019re getting the series of bear bars and ultimately, the final bulls gave up on bar 11. <\/p>\n<h3>What\u2019s your objective &#8212; swing or scalp?<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2015\/08\/swing-trading-see-saw-300x255.jpg\" alt=\"Swing Trades or Scalp\" width=\"300\" height=\"255\" class=\"alignleft size-medium wp-image-42281\" title=\"\">It depends on what your objective is. If you are trading for a swing, you have to use swing stops. The swing stop for the bulls buying the B1 open, the swing stop is below B1. The swing stop for the bears selling the B4 high is still above B1. Selling that B4 high, my stop is up here [above B1 or B3]. And for the bulls buying above B7, you\u2019re buying at the top of a developing range. I talked a few times early on, if you read my post at the beginning of the day. I said it looked like a trading range open, so if you\u2019re buying above B6, you\u2019re buying at the top of a trading range. In general, that\u2019s a bad thing to do. <\/p>\n<h3>Low probability trades<\/h3>\n<p>I think trade selection is the issue. It sounds like you\u2019re very eager to trade, and very eager to trade breakouts in a market, where the market has been sideways for 10 days. If the market is sideways for 10 days, in general, you want to buy low and sell high, not buy high and hope that this is going to be the start of a breakout. So you bought the B1 open and you bought the B6 high. Both times you were betting on a breakout, and the rally is just not all that strong, and we\u2019re at the top of a 10-day trading range. By definition, you\u2019re taking a low probability bet, and if you\u2019re taking a low probability bet, you\u2019re betting on a swing. If it\u2019s going to be a swing, it will become clear. I think it\u2019s not yet clear on the open of B1. It\u2019s not yet clear on the close of B6. Although the close of B6 is hopeful for the bulls. <\/p>\n<h3>Getting \u2018upset\u2019 is a problem<\/h3>\n<p>You\u2019re taking swing trades that are just not high probability and if you take them for the next 100 trades, I think you may end up making money. However, you are going to be losing 60% or more of the time, maybe 70% of the time. And it\u2019s just not fun to lose that much. Like you said in your question, I was too upset to continue, right? So, if you\u2019re taking low probability trades, you\u2019re going to be <a href=\"http:\/\/www.schwab.com\/public\/schwab\/active_trader\/trading_insights\/trading_strategies\/trading_behavior_emotion_vs_logic.html\" target=\"_blank\" rel=\"noopener\">too upset to continue<\/a>. Like you said in your question. And the problem is, the only way you can make money, taking low probability trades, is by continuing to take them, and you get occasional winners that more than offset all of the losses. However, really difficult to do, because you used the word \u201cupset\u201d. That is the problem. <\/p>\n<h3>Wait for high probability setups<\/h3>\n<p>You\u2019re a person, and I\u2019m a person, and if we\u2019re upset we cannot do what we need to do. And then if you\u2019re losing too much of the time, it\u2019s really hard to manage the occasional big winner well enough to make up for all of the losses. So for me, my comment is trade selection. I would be much more patient and wait for more information, and wait until it\u2019s clearly bullish or bearish. The B11 close, probably bearish. B13 close, high probability we\u2019re going down for some kind of a measured move. So wait for that, and it\u2019s much easier to make money. <\/p>\n<p class=\"content-box-green\">Question 2: Would you talk about the two or three best swing trades of the day?<\/p>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-Setups.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-Setups-300x222.jpg\" alt=\"ES Chart Swing Trading Setups\" width=\"300\" height=\"222\" class=\"alignleft size-medium wp-image-60517\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-Setups-300x222.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-Setups-768x567.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-Setups-600x443.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Swing-Trading-Setups.jpg 788w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Maybe selling the B10 close, stop above here [B7], and then getting out above B22. Selling the B13 close, stop would go above B13 or above B11, or above here [B7]. I think you\u2019d still get out above B22. Then buying above B22, that\u2019s not a swing. Buying above B36, theoretically it\u2019s a swing because it makes sense that the bulls had a chance of converting a spike-and-channel into a trading range. I\u2019m not sure the probability is high enough for a scalp. Then finally, buying above B56, or buying the B58 close, B59 low, or the B61 high, and you end up getting out below B73, making about a point. So some days you get really big swing trades; other days are days where you\u2019re going to get a lot of reversals and not much follow through. <\/p>\n<p>Hope everybody has a good night. <\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>Trade selection &mdash; bad swing trades BPA trading room Q&amp;A: July 27, 2016 Question 1: I bought the open for a swing up. Sold the B4 high, for a swing down, and then bought above B6 for a swing up. After which I was too upset to continue. Can you comment on these trades? Video [&hellip;]<\/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":"shadow","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-60488","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\/60488","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=60488"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/60488\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=60488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=60488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=60488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}