The support forum is built with (1) General and FAQ forums for common trading queries received from aspiring and experienced traders, and (2) forums for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
Brooks Trading Course social media communities
Hello, I was wondering how well the great information in this course applies to daily runners of cheap stocks under $20. I know those daily runners get an influx of volume 10x plus more of new speculators.
Can these concepts be applied to those daily runners which I call unhealthy stocks or just to healthy markets like the emini, forex, tesla, etc.?
Thanks, btw I love this course and this community. Once I finish the course I look forward to being a trading room member. If the trading room will benefit me now to understand the course more I will join ASAP. I love, love, my new knowledge.
Thanks,
Hi Anthony,
In the short term, like during intraday, price action is most reliable in markets of sufficient liquidity. Sufficient liquidity allows traders to benefit from the psychology of the masses. Over long term (months) fundamentals win out, but intraday when there's no major news, technicals rule. Intraday issues arise when a market is not liquid (e.g. very low cap stocks). In that case even a single piece of small news or a single person's/small group's volume may cause artificial/random moves. It's much easier to predict the actions of a mob rather than an individual. For this reason price action traders benefit the most from focusing on big markets only and avoid all news.
This is not to say that trading dollar stock events and news can't be profitable. There are strategies for everything. But BPA traders rely primarily on market inertia. Market inertia manifests most reliably via the ebb and flow of greed and fear of a very large number of traders.
Hope this helps,
CH
_________________
Thanks Mr. Carpet. I appreciate your insight every time.
