Video duration: 58min 43sec
Trading price action: 5 Thoughts on psychology
Al Brooks gave a complimentary webinar presentation for futures.io giving his “5 Thoughts on psychology”.
This webinar will help you review those common problems when trading that frustrate so many traders, whether beginner or more advanced.
- Needing an edge
- Avoiding bad trades
- Holding losers too long?
- Taking profits too quickly?
- Losing after you increase your position size?
- Question and answer session
Date: Tuesday July 28, 2020
Time: 4:30pm Eastern Time USA (1:30pm PT)
Great video, thank you! Will there be a follow up as well since it was written ” Part 1″ at the beginning…?
Yes Amin, Al has his Part 2 prepared for a future webinar.
Fantastic webinar, thank you very much for continuing to share your valuable insights, Dr. Brooks!
I’m curious, you’ve mentioned on numerous occasions that you traded with other people online years ago. Were they all price action traders as well or was there a diversity of methods that were used? I do remember reading in your book on trading ranges about a trader that you knew who was scalping two ticks at a time in the ES (with a 100 contract position size!). I’m guessing he may have been a DOM trader. I enjoy experimenting so it’s always cool to hear about different people’s approaches to the markets!
He was not a DOM trader. I only traded with price action traders, and many were very good.
I think scalping for 2 ticks is dumb, and I do not think it can be done profitably long-term. Why? Trading has to be both profitable and fun. It cannot be fun scalping to 2 ticks, risking 5 – 10 points and scaling in. There are far better ways to do that.
In that respect, it is similar to DOM trading. I did it for a while, but found it boring and stressful. It lacked the fun factor. Plus, I think price action trading is more profitable.
Thanks for your response! I agree with what you’re saying about the DOM and not going for very small targets. I know of a trader who watches correlated instruments on the DOM and uses market making techniques looking for a profit target of 1-3 ticks and no losses greater than 2 ticks with a 80%+ win rate. I think it’s way too stressful of a way to trade and the commissions costs are significant (which is something you’ve discussed when talking about minimum scalp size).
The other group of successful DOM traders seems to be those who are watching for relative changes in auctioning speed following geopolitical news events so that they can trade the momentum and they have size and speed to lean on. This allows them to have relatively close stops and to scale in and out aggressively, but I think that’s a strategy best suited to a prop environment.
Although I’ve tried a lot of different things, my preference is also price action. I would rather make decisions based on the overall context of the market instead of trying to play a speed game where the opponent is already exponentially faster and will only continue to become faster. In some ways it’s like the difference between playing chess and playing a video game. I still have a lot to learn from you but I really appreciate all of your resources; they’ve significantly expedited the learning curve and have allowed me to conceptualize what I’m seeing on the chart in front of me. Thank you!
Question for Richard: will there be a recorded version available somewhere later on? Thank you!
There should be a YouTube recording within 1-2 days. I will put it up here when available.
Hi Richard, any update on the recording? Thank you!
Ok, video uploaded and ready for viewing!
Al, thank you. This was an impactful video. After many years a lot of things fell into place.
Thanks Dr. Brooks
As a trader looking to improve as rapidly as possible, I appreciate you being a educator. I’m very thankful for the course, trading room and the webinars that you do. I just pray that you don’t retire soon. I have so much to learn from you. Lionel in Arizona
Great webinar Al!
Thanks for letting us know about it in advance.