This is a post to share ideas about what works and doesn't when starting out one's trading business. The main concern is content of education.
It seems there are a lot of webinars that offer some really great info. I have found, and by no means is this a dis on all those webinars I have watched because they are extremely helpful, that they provide necessary motivation and general global guidance.
Now, I am at a point where I require some more technical knowledge to which I can build my trading style and career from. For instance, the Al Brooks price action course is great at this and I imagine the noBSdaytrading courses will provide this as well. Both these courses offer extreme value IMO. For instance, I went to a three day workshop and they wanted a minimum of over 10000.00 for basically an indicator and all that surrounds it, including the opportunity to pay more money for more ultra-expensive courses. I am interested in learning set ups and trade management as well as account management.
So now I am at the point where I wonder if there is really good technical info in the context of auction theory that will aid me in looking at charts or reading the DOM and knowing where to enter, et cetera. I watched a good webinar tonight on market profile and it had a key message of keeping your knowledge basic. So, now I am faced with the counterintuitive move given my desire to learn about auction theory to wait a long while before studying Market Profile since I am focusing on price action and order flow. Also, I am not so sure I want to get involved with scalping, but I have heard it is key for the beginner to learn. As it seems, I have a lot on the table and really need help in putting all this into some kind of prioritization so I can follow a linear path to preparation to trade. Oh, and I had everything set on the ES and today I learn trade the CL since there are more ticks. Order flow wise it makes sense to go with the treasuries as, from what I hear, they are a bit slower than the ES??
I have a background in rule based systems and find that what I am learning is discretionary methods and that is a bit of a shocker as I have led myself to prefer directions and roadmaps as opposed to discretionary methods. So, knowing more about the nature (advantages and disadvantages or theory) of discretionary trading would be cool.
I hope I haven't stepped on any toes. Overall, the futures.io community and that which I have picked up from it has been extremely rewarding in just a month!! Just thought I would put all this here in case someone else has cleared these hurdles already. Any response to any of this would be great. Thanks community!
I am stilling watching webinars and have found they provide necessary global guidance. They are a great way to change the pace of things and enhance my learning. Also, they are a great way to breathe the air.
After two months, I have finished the Brooks course and am spending at least two hours each morning simming M6E. I am focusing on learning, learning, and learning. I am most concerned with placing trades based on PA reasons and letting them go to hit my target or stop. I could spend time on a myriad of stats and/or indicators, but I have to constantly remind myself to focus on the PA only - though, I do keep a small amount of stats relative to when I first started simming 2 weeks ago. To that extent, besides reviewing my trades I spend at least an hour a day going over a BTR file.
I am hoping PA is one of those bodies of knowledge that come to fruition instantaneously after a lot of time in the dark. Most say it is that way, sorta. One current situation: tomorrow I switch to 5 min bars from 3 mins. The 3 min bars are not giving me time to think and that is key to learning, speed is not a priority. I liked the 3 mins because I wanted more trade opportunities. But, now I know there a many, many opportunities.
Also, I spend time planning for the future. I check out FIO, hit google for answers to questions, and try to map the road ahead. I am half way through TYWTFF (the risk part is the best, then the psychology stuff - knowing I trade my beliefs helps tremendously in staying calm during a trade), once that is done it is Volman then Brooks new edition.
After it seems I have a grip on PA, it'll be Order Flow (most interested in reading T&S) then Price Levels. I have plenty of time so I plan to use it. But, I need to balance that with results.
Enjoying the journey, glad I have a space for planning, commitment, and accountability.
Currently, I trade the M6E because the first day I am live, far away from now, I plan to trade that since the costs are so low and it'll help to segue into using cash. It could be advantageous to gain familiarity with it now and also learn how I gained familiarity to ease problems associated with it so switching instruments.
I have checked out the Jigsaw educational material, free and paid for, and it is great. I plan to get to more of it eventually. And, the nobs stuff as well. At least the least expensive intro course first. I really am approaching my education like this as I am inspired by the fact some people pay thousands for education, and I am getting probably more value at a lot less cost, and learning more about me, which should contribute to any trading success.
I have considered trading the 6E eventually. I am wondering how did you get to trading that?
Also, are you trading PA? Speaking of free material, Mack's youtube videos seem accessible. I checked out Lance Beggs free pdf and it seems you have to know his stuff before understanding it. I put some lines on my chart this morning and it seemed to help - but, I would think Mack's stuff is a bunch more nuanced then that, afterall there are posts that say it does time time to learn it.
I looked at several futures contracts specifically at how many contracts are typically resting on the limits. Oil (CL) seemed too thin for me and it moved too quick. On the other end of the spectrum the Bonds seemed too thick for me and didn't move fast enough. The 6E was just right for me. I am also a "morning person" and intended to trade in the early AM and the 6E is very active in the early morning hours.
I have read Bob Voleman's books, I own several of Al Brook's books (difficult/painful to read ) but do not use price action in my trading. I just use the DOM/Tape and a footprint chart with a couple of moving averages on it.
The following user says Thank You to Wartrace for this post:
Well, I have been at this education process for about four months and am pretty satisfied the way things are going. Taking advice from FIO directly or where it leads me has worked out very well.
Accomplished: read TYWTFF and TITZ and am a third of the way into Link's High Probability Trading, finished the 2014 edition Al Brooks online course, opened an account with Stage 5 and have a couple months of sim of M6E, and I have a watched a bunch of webinars and AMAs and a week of Al Brooks TR, also I have a bit more direction for the future of my education, also started Adam Grimes course
Good Things done so far: staying dedicated, learning the need for calmness, coming up with a mechanical plan and doing an ok job of keeping track of trades - challenge being what all info to keep track of
Bad things done so far: not focused enough, jumping from thing to thing as well as not reviewing what all I am exposed
to, need to allocate a specific time of day to educate, need to work on organization
1. Finish Grimes, Link, and October 2016 of AB TR
2. Sim at least 3 times a week in morning (went on a literal vacation, then got back and it was difficult getting up early each day, also with work I will miss some mornings)
4. Set a study time, other than the pockets I can find during the day, i.e., at nine pm turn on either Al Brooks or Grimes except for Sat and Sun
5. Review something at 10:50 each nite for 30 mins
6. Allow myself one sidetrack a day. So time on surfing net or a webinar or correspondence doesn't get in the way of larger, more pressing goals.
I am pretty happy with these goals. Learning to separate what is necessary now versus later should be helpful in the future.
If you have taken the route of Al Brooks, I would advise you stay the course based on my personal experience. Look no further for technical analysis. It will pay off but you need to be patient and put in the time. I would also recommend reading Als' books. They are a tough read, but will give you tremendous insight into PA.
Get deeper, pick one or two setups like MTR or H2L2 entries and try to master all the subtleties and nuances surrounding it. Over course of time, you will get a sense of what reliable setups look like and the ones you need to skip (the later is more important).
I would also advise you try to sim trade the ES using NT or other platform and compare your observations with Al's end of day bar by bar analysis. In some ways, this is the closet it gets to having your progress evaluated by an expert. If you are going to trade another instrument, you are going to be pretty much on your own. But, I am speaking from my own experience.
Being able to read price action alone is not enough to become profitable. It is just one aspect. Trade management and risk management are things you need to figure out. Al has some good guidance on those, but you'll need a lot of screen time and practice to get better at those. In some sense, it is an eternal journey, but it is a lot of fun if you plan and structure your learning.
In terms of books, I would also recommend:
Art of Learning - Josh W.
Psychology books from Brett S.
Wish you the best in your journey.
The following user says Thank You to patrader65 for this post: