Brian,

First, I'd like to say "thank you".
I've been meaning to post this for quite some time since I read all 3 threads of your journals to this last post.
Quite inspiring for me because I went through similar situations,,,even the small account.

Anyway the reason I decided to write in today is that after reading the last post of yours I wanted to comment with what Al Brooks keeps saying.

Most of time when there's a setup he says "this is good for scalp but risky for swing trade"
I still can't figure it out,,,,and in that you are way ahead of me.
Anyways, Brooks does use fixed stop for scalp and market based stop which is usually bigger for swing trade most of time. If it's too big he scales down. I don't have that option because I operate single car still.

I began trading with Brooks method about 18 months ago and it was too hard for me and naturally drifted away from it to indicator based method but after finishing your journals I went back to his method.

This time it's much clearer and I think it's because of your journals,,,,and I'm doing way better than when I started.

If you haven't done so I recommend his book (I only read the first one that people say very difficult go through) only because I think there's lots of common ground the way you read the chart and his way.

If you want I have digital copy also that I downloaded somewhere.

PS. You might have read it already but Rule 1 & 2 from Phantom of Pits article would also help I assume. I could understand those rules but couldn't not adapt them especially Rule 2 at my newb stage yet.

I hope I'm not stepping on your toes by these comments. I only want to see you get there so I can benefit also if you know what I mean.

I like that part in the book where he shouts back to the other traders in the pit , "Take your losses!", in context with that particular story.

I'm glad you've enjoyed the journals...its been a tough journey to be sure.

I made the decision today to scale down and take the trade anyway if the risk is to large for more than 1 lot....and set my targets at least 1:1...30 tick stop equals at least a 30 tick target.....if there is less room than that in the trade, don't take it.

I have read Al Brooks book....or should I say I suffered through it. I found it incomprehensible. And I am an excellent reader that does not easily loose track of the big ideas in books.....I read several hundred words a minute when I read for pleasure and I can read over 1000 WPM if I need to...slow by true speed reader standards but far more than most people......Al's book slowed me down to probably less than 100 WPM....very trying for me... I got bored really fast. Perhaps I'll give it another go.....

I would like a copy of the Phantom of the Pit....I've never heard of this article before....please share if you can....

Lastly, I find it incredible that your trading improved after reading my stuff.....I suppose you could just do the opposite of me and do well... But seriously, however your improvement happened, I am truly happy for you....may your good fortune continue indefinitely....

Another trader I know says "Every trade starts as a scalp". By that I believe he scales out of the trade early to remove risk and lets a runner go until he reaches a predetermined target or he gets a counter signal.....That is the skill level I want to get to.....

If I remember correctly, Al Brooks defines a scalp as 4 ticks on ES. Four ticks on 100 lots is a big deal....and on ES, you can scalp 100 lots. On CL, not so much, you can but the slippage will put your fills all over the place.

I think if I can get over the stop size, I'd like to move to the 5M chart. There's less noise, the entries SEEM to be clearer and the targets on CL are much larger.....the one drawback I can see is continuation entries on big bar moves. CL can produce 100 tick bars during periods of high volatility but if the entry occurs at a news event like it did today, then you can get left behind if you have to be flat for news but can get in just after a few 1M bars have formed. I suppose one could enter on a 1M chart during those periods......but use the 5M for stop and target guidance. Something to think about.

Here's to a future filled with profitable learning.....

Cheers.

hello, PandaWarrior. I believe this is the book Kalalex mentioned to you. I happen to have it on my computer and I think it is not copy right protected.

this book reads a lot easier than Al Brooks` Reading Price Action Bar by Bar, since it is in a conversational style between 2 friends. but this is more a trade management book, it focuses on what to do after entry, it does not say much about how to enter the trades.

for entering trades, I`d recommend Mr Brooks` other three books. he rewrote that Bar by Bar book and it turned into a much better written 3 book volume. you can find excerpts of them at Google Books.

your journal and Mr Brooks` books turned me into a scalper. I tried to swing trade a number of contracts. it worked very well on trend days, but I always gave back the profits in sideways market. your journal showed me that it was possible to scalp successfully, and Mr Brooks` books showed me how to do it.

have you tried to trade Gold and DAX instead of CL? I have found them a lot more energetic than CL, and profit targets are much easier met. I practice with Gold for the Asian session, and then concentrate on DAX when european market opens.

Brian,


If you haven't done so I recommend his book (I only read the first one that people say very difficult go through) only because I think there's lots of common ground the way you read the chart and his way.

If you want I have digital copy also that I downloaded somewhere.

PS. You might have read it already but Rule 1 & 2 from Phantom of Pits article would also help I assume. I could understand those rules but couldn't not adapt them especially Rule 2 at my newb stage yet.

I hope I'm not stepping on your toes by these comments. I only want to see you get there so I can benefit also if you know what I mean.

Is that the "Reading Price Charts Bar by Bar" Book?

The first one , I think...

I couldn't get through it the first time... I should try again...