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Does Al cover these situations in any video (either in the course or in the trading room or in the blogs) in detail, with examples? It's an aspect I've always struggled with.
You enter a trade for all the right reasons. Then either the entry bar is disappointing, or the next few bars are dojis, or the market simply goes against you. Does Al elaborate with examples when to simply get out without waiting for your stop to get hit, and when to hang around with the hope of getting out break-even?
I mean he covers the general topics in the course, but are there examples, like:
- If you see ABC, get out straightaway;
- If you see XYZ, you can give it another bar or two with the hope of getting out breakeven, etc.
I mean, in the trading room he does say things like "I bought there, but I scalped out at 1 point", but he doesn't necessarily point out what needed to have happened for him to give it more time. And in the small number of BTR recordings I've seen, I haven't come across a situation where he entered, but then the market went against him straightaway and he got out with small loss. I can understand this doesn't happen to him very often, but happens to me all the time - so I need some guidance.
I appreciate that things get better with better reading of the context, but useful info nonetheless.
Appreciate that BTC videos 51-52 Al covers these questions. If there are any other resources, especially bar by bar commentary on trade management, I'd very much like to know.
You can refer to the swing trading and scalping examples in the second part of the video course. That has been immensely helpful for me personally. Videos 49-50.
On top of that, going through the daily setups is an absolute must.
However, at the end of the day, bottom-line is, there are several ways to manage a trade and no single way about it. So, your best bet will always be experience that you'll get through screen time.
Internalise the material thoroughly and then trade very small quantities of the SPY ETF. You'll be able to compare your trades with Al so you'll get proper insight as to what you did right and what you can do better.
That is the only way, in my humble opinion.
Agreed. Trade mgmt is definitely lacking in the course (and I agree, probably the most important). It has been THE most difficult part of this journey for me. I hope you find the answers you're looking for!
There are some examples here and there but yea Al doesn't spend nearly as much time on it in the course as he does on finding entries. In the webinars he tends to say things like -- if you are long, exit below a bear bar closing on its low or a scalp's distance below a bull bar (such as 5pt). These suggestions are a starting point and not necessarily optimal for all situations, so you'll have to figure out how to tweak the management as you gain experience.
In the books/videos/webinars, he will say things like "some traders will...". At first, I thought he was just giving me an idea of what "other" traders are doing so I can understand the market better, but he was also giving ideas of how I could manage the trade myself.
Can't remember 100% if he actually said this, but he might say "some traders will exit if the entry bar is bad". He's not saying you must manage it this way, but it's one of many ways you could manage it.
To me, it seems good to try and think about what would invalidate your thesis. Does a single counter-trend bar invalidate it? If yes, then ok exit. If not, hold through the pullback. Does 3 dojis immediately after entering reduce the odds too much of a move in your direction? If so, exit. If not, hold despite the bad entry bar and follow through bars.
One of the things about trade management is that it is very different for an expert like Al and most of us. Al has shown many times that having the ability to add on to trades that make sense dramatically increases the odds of breaking even or profiting rather than taking a loss. If you are using a price action stop then it makes sense to stay with that stop and only change it when the subsequent price action changes the picture. One of the most important things I've learned is to have patience both in waiting for the best entries and staying with the trade as long as the original premise is intact. That is what is behind the "Walmart Trade" that Al always talks about.
I am struggling with this aspect as well, and hope you guys could share some insights on my current trade?
I sold at the top of the channel, TR and was also part of a wedge. The entry bar was good and although it had bad follow through, I thought that it created a gap. However the trade is going against me now and I am now sure if I should have closed position when the original trend had a good signal bar
Just to add in that I did try the "Walmart" method, but after coming back the price is still sideways, like neither here nor there and I am not sure if that means I should just get out since the market is 50-50, or just hold on to my position and be patient
I would suggest to not compress your chart that much because if you didnt do, you could see better you have sold in the middle of a TR.
I noticed you're the second person who has commented that I entered in the middle of a trading range and realise that I should do something on working on my entries now. I think my problem is that I sometimes identify the wrong bottom of TR. What's got me is that I had two opporunities to get out with a slight profit but stayed in the trade because I thought that the market could get to the area of where I initially marked as a the bottom of the TR. Thank you for your reply by the way
My first thought was also that your chart is way too compressed. Can't see the patterns as clearly..
Thank you bro for your feedback, I will really need to adjust it now. Haha, I'm getting the feeling that this explains why I often find it hard to distinguish a tight trading range from a trading range
Looking forward to my session tomorrow with this new settings, I tried adjusting my bars to match Jord's screenshot and noticed that he has 12H worth of bars inside, will see how it goes for me tomorrow 😊
Thank you! 😊👍
Sorry if it's off topic but just wanted to ask you guys opinion if my bars still too compressed. I am kinda getting use to this and quite liking it, just that I tend to zoom out once in a while to just have a look at the larger picture but I am not sure if that's needed as I trade the 5m and sometimes I refer to as far back as 12 hours
