Broker: Advantage Futures, Ninja/TT and InvestorRT/IQFeed.
Trading: Treasury futures
Posts: 312 since Nov 2010
Thanks: 194 given,
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Good advice, and you might be interested why this is true. Researchers in psychology have identified a phenomenon they call "decision fatigue". It turns out that over the course of a day decision making gets worse the more decisions a person makes. Having a meal can temporarily reverse this phenomenon. There's a wikipedia article about this.
I didn't know about decision fatigue when I decided to start shooting for an easily attainable goal in the 5 Year Note pit at the CBOT, I just knew that I tended to make good money early in the day and give most of it back later. I found that when I shot for an easily attainable goal and then went home, I focused better, chose lower risk situations to trade, didn't get greedy nearly so much, and in general traded with much less emotion. After three years of inconsistent results before I started doing this, I went 6 1/2 years without a losing month.
"You don't need a weatherman to know which way the wind blows..."
The following 23 users say Thank You to jstnbrg for this post:
I have been making posts assuming that everyone has read the book. I think my comments would make a lot more sense if you understand what’s in No BS Day Trading.
I saw the value in this and so appreciative of Johns work that I have taken time out of my day to tell all of you. Once you understand these core trading concepts of the book, all other forms of order flow/ volume analysis become very clear and quite simplistic (eg. market footprint, market profile etc.)
Below is a summary:
Good core information: Choosing the Right Product, Commissions, Computer and Software, Position Size, Trading Economic Numbers, Exits.
There is some really good information here which explains good and bad products, reducing trading costs to an absolute minimum, what items are required to trade, and general times of trading.
The other part is Low Risk Entry Strategies- This is the most important part of the book. It explains concepts such as least resistance, accumulation, reversals, faking orders, pulling orders, stacking the book, manipulation of depth and other integral concepts of scalping. It details about 7 or 8 basic setups in order to basically decipher where the big money probably is and what prices many people may be leaning on. There is no mention of charts, this is pure DOM scalping.
It is by no means a mechanical system and applies mainly to the treasuries, but the concepts can be applied to other products if you conceptualize what is explained. You need to put these ideas to start thinking that scalping is no more than jumping on short term momentum and riding it until it stops. Markets move hardest in the direction that causes most pain, because this is where smart money is pushing it hard, and scared money is running. (Read the book and you will get this part.)
You need to put these ideas along with about 300-400 hours of screen time and you will be a great scalper. If you aren’t willing to put in the time, then don’t bother buying the book as you obviously aren’t serious about making money. The ideas seem quite counter-intuitive on first glance, as most people are of the belief that technical analysis and fundamental analysis move the market. Sure some people take a position based on this, but it is a big time trader in a Chicago hedge fund who can swing 7000 contracts who will decide if that intra-day support holds. And start reading the DOM and utilizing these concepts and you will see that he shows his hand and you can profit by it.
The final comment is that now John Grady uses Jigsaw platform and he mentions it in some of his videos.
Ok, I am off to another thread to talk more about volume/ order flow analysis.
RD.
The following 16 users say Thank You to ReeceD for this post:
Follow the path of least resistance! Where else are we supposed to put our money? With yields below inflation, this market can only go one way - as dumb and irrational as it may seem. JMO
That is a fair call. For the short to medium term the outlook seems bullish as there is least resistance. I actually just had a conversation about it to a friend and we both agreed that it heavily favored the upside.
I guess I am just waiting for my next 'Livermore' moment. I might have to wait 0.5-2 years to get to ride this next bear market. But when it happens, I think the writing will be on the wall. Just like last time.
i was an attende to the live 10days webinar , and i was disspointed, because a big gap between , the books/basic/advanced/and previous webinars, and the things i watched live.
very different, almost not a single trade like the courses
a lot of hesitation to took the trades, on/off/on/off
a lot of looser
a lot of win to let a looser
probably was my expectations to watch a real long-consistency-winner trader, but i could n see the edge, also accordin the the trading inthe zone, the probabilistic approach, and the this trade has more than 50% of winning, and a lot to guess the future.
any other assistance there?
The following 3 users say Thank You to alejo for this post:
I read that you say "that scalping is no more than jumping on short term momentum and riding it until it stops", but for the experience to hear and watch in the webinar live of nobsdt oct 2013, it looks to me that he is saying exactly that it is
short term momentum and riding it until it stops
dont you think so?
I've been thinking of getting the basic book but now your post has me thinking that maybe the book is outdated and maybe he was still learning/honing his method when he wrote the book. Would you still recommend the book?
