I understood every thing he said to my surprise I had his book collecting dust for 11 years . this show brought his book to life. The master Swing Trader.
Wow! This is the best interview! Wow, the idea that algorithms are looking at our stops, tops and bottoms and then wiping out retail investors is eye-opening!!!!🙀
Great information from the fantastic trader on Swing Trading. I have no critical comments to make, it is just so easy to see that Alan is a real trader who knows how to make money in the markets. This is fantastic information and it motivates me for sure to buy his books to learn more about Swing Trading. I don't think it gets much better than this.
Aaron & Alan, thank you both for this inverview. I managed to get hold of a copy of Alan's swing trading book after this interview - and it's made so many concepts click into place since chapter 1.
What he said is very true. When I didn't have good paying job. I was trying to trade making a certain quota making a little. Sometimes just breaking even. Instead of just waiting patiently for my strategic set up. Once I got a better paying job. It seems like I see the charts much more clearer waiting for the set up. Not caring if I miss it because it would be other opportunities.
convergence divergence is important and i am working on perfecting this. good interview i like this guy he seems real, everyone claims to be your friend and they say theyll teach you everything for a price. this guy admits you arent getting all of his secrets which is how i would be with potential competetion..
I have been grappling with stop-losses for a long times. Ever since I put on a trade with a stop loss and found my shares had been sold even before the stop loss price - the reason for that was because the price took a sudden dip which triggered the stop loss. After reading the small print it clearly says that stop losses are NOT guaranteed. It is all dependent on market movements at the time. As Alan said you could end with a considerable loss before a stop loss is triggered. So if your risk/reward is based on on where you place a stop and there is no guarantee of a stop activating at your stop price, its seems pointless placing one. Any feedback welcome on this issue.
I trade FOREX not equities. Types of risk management RM1 Before trade RM2 During trade at start RM3 During trade inflight You've heard and practice RM1 (set SL below previous low) and RM2 (amend SL as trade goes in your direction, move to BE or trailing SL). Consider RM1 if you can double your account and remove your initial deposit. You have effectively mitigated risk of losing all trades not just mitigated risk of one trade. Think about it? Then you can trade like you want, effectively a "wide SL" which is harder to trip allowing you forgiveness (Forgive poor trading skill when still learning best ENTRY and EXIT on trade). A "tight SL" choice assumes you have trading skill...hence risk 1% abd have 100 chances to blow your account. A "wide SL" choice allows for you to have no trading skill....hence risk 5% 20% 50% even 100% on a Single trade which gives you 20, 5, 2 or 1 chance to blow your account. I hear you say how? Well skip short time frames , go straight to long timeframe W1 MN1. Identify a macro trend already started. Ride it using "a small" sized position....maybe add to it as to follow trend unfolds Learn to get out at a reasonable protit 500pips or 100pips. Certainly Don't try to ride it to end...you will lose in a Swingturn. Point is a small trade position initial will build capital slowly, long trend will build capital to useful level, patience will let you double your account. Then you can use RM1 and change your whole trading style and learn how to trade more effectively.
Read Murphy's book on Technical analysis, and you will be up to scratch in no time. Everything he is talking about is pretty basic, except for the parts on psychology.
Agree hard to listen, I think the guy is more lucky than disciplined in his trading success RECAP4ME 24:02 - 29:39 Convergence Divergence using - first apply Dow Theory business cycle to market indexes (sp500 nasdaq Russel2000) to identify macro trend ie where you are in sinewave of buy cycle + sell cycle - second apply oscillator Rsi Stochastic for OBOS zone for confirmation price trending up-down or price ranging - third a Bollenger band for volatility indicator and relative strength indicator for exact confirmation of squeeze and breakout 32:07 - 35:10 Psychology improvement - he traded profits because he doesn't care (he had alt income streams = taken emotion out = focus just on consistency )
Awesome interview. Love Alan Farley's energy. Not a boring moment. I do disagree with his comment about breakout stocks or trading break outs don't work anymore. But other than that. Awesome interview.
I agree....breakout trading has "never worked well." Please let me explain.....Nothing's changed in over 100 years. In other words, you will always lose many more times than you win. It just seems like people forget that. But I will take 20 losses of $3000 and then get a monster winner like shorting oil in 2014- 2016 for a total $3.2 million profit any day.
Thank you for the video! A few suggestions if you don't mind: 1. Is it possible to include in the video a chart explaining your ideas. 2. I viewed this with three of my friends and we find it that we want to fast forward it but pretty afraid that might skip important details. So we highly suggest that to make the video more concise and a bit more direct to the topic. A video of 15 mins to 20 mins will be highly appreciated.
+Yen Koe, it's a bit difficult to include visuals with the current format. In regard to your second point, you can find a summary here (chatwithtraders.com/ep-081-alan-farley/), but I have no intentions of reducing these conversations to 15-20 minutes-I prefer the depth.
+Fantastic World This was great, been searching for "swing trading stock strategies" for a while now, and I think this has helped. Ever heard of - Panincoln Swinger Blueprint - (should be on google have a look ) ? Ive heard some pretty good things about it and my cousin got excellent success with it.
Too bad you didn't understand some of the concepts he spoke about, he said it loud and clear, we are agaisnt each other, therefore don't expect any free lunch. Nonetheless he mentioned some interesting concepts, such as being a contrarian, that means extracting yourself out of the herd to avoid becoming lunch for the big boys 🤔
leave the length as it is. I do enjoy listening to it. only question I ask is to discuss with each successful trader on the performance per year. Reason I ask is because I feel we as your subscribers may be trading with a small acct ie. 5K or 10K. while these traders may be trading other people's money in the millions. so they just have to make 10% per yr to be profitable while we may make 30% on a 5K acct. so can you ask ur guest what a reasonable performance is for a 5-10K acct, so we as subscribers can know if we doing well or no
www.econ.yale.edu/~shiller/behfin/2004-04-10/barber-lee-liu-odean.pdf The only proper study in existence that I know of, To summarize, 20% are profitable at all, only 1% are consistently making money. Read it yourself, not very long at all
+westplace2001 - this has been discussed in various episodes, so it would be a bit repetitive to bring it up each time. But will take note of your comment.
Fast forward 4 years and now transactions are free from all the major online brokerages. This allows a new trader with only a $500 account the ability to learn the ropes and swing trade several times a week. One can scale into a 20/25% position, say a $150 allocation in 3 $50 increments, sell for a 10% gain of $15. Sounds mickey mouse, but do this enough over a couple years and a disciplined and educated trader can grow that account in multiples. Math doesn't lie, a $500 account compounded 5% every week on average for a year equals $5,000. But few have the patience and discipline to remove ego and emotions to adhere to strict risk management.
@@toabhijeetsingh It's not impossible, however there really aren't many people at all that can do it. Crypto showed us it could be done on some products. TSLA did it. However the opportunities are limited, and the skill set takes years full time to acquire. Even then, it's not likely you will build that skillset.
ok. he has some valid trade plays toward the end near 50 mins. not sure if he can execute though. he's all over the place.couldn't even describe multiple timeframes. aaron literally laughed after the shpeel. haha!
2:52 kinda like just observing everyone else's mistakes and writing a book about it. it that seems Douglas was not be able to turn his knowledge to practical account.
Had to turn this off .. couldn’t carry on listing to this narcissistic obnoxious blabbering with no substance .. Also makes me doubt he even does that well in the markets
Anyone who cites Linda loses my respect. But he does talk like Linda, lots of talk... good talker. No substance. Still, entertaining, but I didn’t learn a thing.
Totally agree! Also anyone who says that you don’t need to set a stoploss if you are watching the market all day is a non-trader. How do I know? Because this is exactly what I used to say when I started trading and didn’t know any better.
@@thoughtstream1114 read his book. He advises rightful strategic exits all over the place. His mention here is regarding the algorithmic stop loss raids that occur infinitum in today's world. If you're watching the market live, you really don't need preset stop orders technically. He advises the pre planned mental stop and price point violation of the trade to have for exit. A lot of his comments in this were in regard to stop gunning. That shit happened a lot last year until this current climate. And will def return again amidst a bullish momentum climate again
Between his arrogance. He said something extremely valuable that had been corroborated by many other long term successful trader chats.... that when you NEED to make money you trade worse.
hello, yes, I would like one quarter pounder with cheese, a coke, and some curly fries, and a 7-layer burrito, and a venti java chip frappuccino. hello?
54:00 breakout strategy
I understood every thing he said to my surprise I had his book collecting dust for 11 years . this show brought his book to life. The master Swing Trader.
Wow! This is the best interview! Wow, the idea that algorithms are looking at our stops, tops and bottoms and then wiping out retail investors is eye-opening!!!!🙀
Great information from the fantastic trader on Swing Trading. I have no critical comments to make, it is just so easy to see that Alan is a real trader who knows how to make money in the markets. This is fantastic information and it motivates me for sure to buy his books to learn more about Swing Trading. I don't think it gets much better than this.
+Fred Bradley, good to know you liked what Alan had to share-thanks!
I like the excitement in Alan's voice, sounds like a man who knows his business 💯👌
His book takes a lifetime to internalize and master. It's a gold mine of experienced based information
Aaron & Alan, thank you both for this inverview. I managed to get hold of a copy of Alan's swing trading book after this interview - and it's made so many concepts click into place since chapter 1.
P0 pp ppp pp ppp pp ppp
What he said is very true. When I didn't have good paying job. I was trying to trade making a certain quota making a little. Sometimes just breaking even. Instead of just waiting patiently for my strategic set up. Once I got a better paying job. It seems like I see the charts much more clearer waiting for the set up. Not caring if I miss it because it would be other opportunities.
Damn, hits hard bro. I also remember this saying, money comes to those who least need it.
convergence divergence is important and i am working on perfecting this. good interview
i like this guy he seems real, everyone claims to be your friend and they say theyll teach you everything for a price. this guy admits you arent getting all of his secrets which is how i would be with potential competetion..
People posting negative comments about this interview but I think it was really good. Some very nice insights from Alan.
Remove the boasting and maybe Alan has something to teach
Personally he knows about 25% of what he should
Always hard to get a word in edge-wise with Alan. Very enjoyable interview.
I have been grappling with stop-losses for a long times. Ever since I put on a trade with a stop loss and found my shares had been sold even before the stop loss price - the reason for that was because the price took a sudden dip which triggered the stop loss. After reading the small print it clearly says that stop losses are NOT guaranteed. It is all dependent on market movements at the time. As Alan said you could end with a considerable loss before a stop loss is triggered. So if your risk/reward is based on on where you place a stop and there is no guarantee of a stop activating at your stop price, its seems pointless placing one. Any feedback welcome on this issue.
I trade FOREX not equities.
Types of risk management
RM1 Before trade
RM2 During trade at start
RM3 During trade inflight
You've heard and practice RM1 (set SL below previous low) and RM2 (amend SL as trade goes in your direction, move to BE or trailing SL).
Consider RM1 if you can double your account and remove your initial deposit. You have effectively mitigated risk of losing all trades not just mitigated risk of one trade. Think about it?
Then you can trade like you want, effectively a "wide SL" which is harder to trip allowing you forgiveness (Forgive poor trading skill when still learning best ENTRY and EXIT on trade).
A "tight SL" choice assumes you have trading skill...hence risk 1% abd have 100 chances to blow your account.
A "wide SL" choice allows for you to have no trading skill....hence risk 5% 20% 50% even 100% on a Single trade which gives you 20, 5, 2 or 1 chance to blow your account.
I hear you say how? Well skip short time frames , go straight to long timeframe W1 MN1.
Identify a macro trend already started.
Ride it using "a small" sized position....maybe add to it as to follow trend unfolds
Learn to get out at a reasonable protit 500pips or 100pips.
Certainly Don't try to ride it to end...you will lose in a Swingturn.
Point is a small trade position initial will build capital slowly, long trend will build capital to useful level, patience will let you double your account.
Then you can use RM1 and change your whole trading style and learn how to trade more effectively.
[Post-Chorus]
I'm still standin' (yeah, yeah, yeah)
I'm still standin' (yeah, yeah, yeah)
When Alan speaks he is so excited that makes me feel there’s really secret in the market that we must discover 🤣😂🤣❤️
Terrific interview! Lots of good knowledge dropped here (as is usual with Chat with Traders interviews).
this is one of my personal favs
Good
Technical
1. Learning Process: 7:10-9:55
2. Swing Trading
Fantastic interview. This guy was great!
+Rodolfo “Rudy” Rodarte, pleased you liked it!
One day I’ll e able to understand everything he’s talking about
Just read and watch/practice setups relentlessly. Over the course, you will start to link the concepts.
Lol 😂 same
Read Murphy's book on Technical analysis, and you will be up to scratch in no time. Everything he is talking about is pretty basic, except for the parts on psychology.
😂
agreed, hard to listen to this, mostly talked about his success. I was looking for some TA inside. other interviews are on point tho. good luck
Agree hard to listen, I think the guy is more lucky than disciplined in his trading success
RECAP4ME
24:02 - 29:39 Convergence Divergence using
- first apply Dow Theory business cycle to market indexes (sp500 nasdaq Russel2000) to identify macro trend ie where you are in sinewave of buy cycle + sell cycle
- second apply oscillator Rsi Stochastic for OBOS zone for confirmation price trending up-down or price ranging
- third a Bollenger band for volatility indicator and relative strength indicator for exact confirmation of squeeze and breakout
32:07 - 35:10 Psychology improvement
- he traded profits because he doesn't care (he had alt income streams = taken emotion out = focus just on consistency )
Awesome interview. Love Alan Farley's energy. Not a boring moment. I do disagree with his comment about breakout stocks or trading break outs don't work anymore. But other than that. Awesome interview.
+tvil1969, cheers!
I agree....breakout trading has "never worked well." Please let me explain.....Nothing's changed in over 100 years. In other words, you will always lose many more times than you win. It just seems like people forget that. But I will take 20 losses of $3000 and then get a monster winner like shorting oil in 2014- 2016 for a total $3.2 million profit any day.
I enjoyed this! People are complaining about the length of the video, just speed it up.
+adis tekesic, thanks for listening dude.
Lol. He already speaks twice as fast as a normal person. Speeding it up would make him practically impossible to follow
I agree that he boasted a bit too much, however, some of what he had to say was really good stuff.
Love your Show Aaron Thanks one day u will interview me :-)
How's the trading going?
@@santiorduna5374 😂😂😂lol
Howz trading man ?
Great stuff. It helps to think of waiting as an action.
Hi thanks for teaching, happy holidays to you.
Love his advice, if a system is proven to make money, why would he/she wants to share with the world? Unless it is not working as well as before :D
He is not giving away specifics, like his risk management system etc.
Awesome interview
Very good interview priceless information. Love his personality real veteran Trader. Thank you
+Kareem. M. Andebe, cheers for listening.
Kareem Andebe
Love the podcast. Good stuff as usual.
Great commentator! A wonderful video.
Agree the TA is more fun and it reveals more. Charts don't lie.
Thank you for the video!
A few suggestions if you don't mind:
1. Is it possible to include in the video a chart explaining your ideas.
2. I viewed this with three of my friends and we find it that we want to fast forward it but pretty afraid that might skip important details. So we highly suggest that to make the video more concise and a bit more direct to the topic. A video of 15 mins to 20 mins will be highly appreciated.
I would rather have more and skip through, rather than not have enough to begin with. People need different information
+Yen Koe, it's a bit difficult to include visuals with the current format. In regard to your second point, you can find a summary here (chatwithtraders.com/ep-081-alan-farley/), but I have no intentions of reducing these conversations to 15-20 minutes-I prefer the depth.
Lmao. Entitled af
This makes me happy....
great information
Love from india bro
Best podcast
I love these videos
I really did not like his ego. He really did not say much of anything but to brag about him self. Good job Aaron as always you did great !
+Paulo Justiniano - fair enough man, I don't expect everyone will click with each guest. Still, cheers for listening.
too much boasting right?
+Fantastic World This was great, been searching for "swing trading stock strategies" for a while now, and I think this has helped. Ever heard of - Panincoln Swinger Blueprint - (should be on google have a look ) ? Ive heard some pretty good things about it and my cousin got excellent success with it.
Too bad you didn't understand some of the concepts he spoke about, he said it loud and clear, we are agaisnt each other, therefore don't expect any free lunch. Nonetheless he mentioned some interesting concepts, such as being a contrarian, that means extracting yourself out of the herd to avoid becoming lunch for the big boys 🤔
I got lost a couple time but he does sound very passionate about trading
I thought the tile was swing trading break out did I miss it?
Great interview, thanks!
Man reading the comments is kind of a downer I found everything he said to be fairly illuminating.
leave the length as it is. I do enjoy listening to it. only question I ask is to discuss with each successful trader on the performance per year. Reason I ask is because I feel we as your subscribers may be trading with a small acct ie. 5K or 10K. while these traders may be trading other people's money in the millions. so they just have to make 10% per yr to be profitable while we may make 30% on a 5K acct. so can you ask ur guest what a reasonable performance is for a 5-10K acct, so we as subscribers can know if we doing well or no
www.econ.yale.edu/~shiller/behfin/2004-04-10/barber-lee-liu-odean.pdf
The only proper study in existence that I know of,
To summarize, 20% are profitable at all, only 1% are consistently making money. Read it yourself, not very long at all
+westplace2001 - this has been discussed in various episodes, so it would be a bit repetitive to bring it up each time. But will take note of your comment.
Fast forward 4 years and now transactions are free from all the major online brokerages. This allows a new trader with only a $500 account the ability to learn the ropes and swing trade several times a week. One can scale into a 20/25% position, say a $150 allocation in 3 $50 increments, sell for a 10% gain of $15. Sounds mickey mouse, but do this enough over a couple years and a disciplined and educated trader can grow that account in multiples. Math doesn't lie, a $500 account compounded 5% every week on average for a year equals $5,000. But few have the patience and discipline to remove ego and emotions to adhere to strict risk management.
5% week over a period of time is impossible
@@toabhijeetsingh It's not impossible, however there really aren't many people at all that can do it. Crypto showed us it could be done on some products.
TSLA did it. However the opportunities are limited, and the skill set takes years full time to acquire. Even then, it's not likely you will build that skillset.
Alan's is nuts
can u allow subtitle in ur youtube video, thanks
Whose here after taste banks mentioned the episode??????
Exelente. 😎👍
Time stamps would be nice.
So he didn’t make money till after he sold the book. Makes me wonder. I ordered the book. We’ll see.
this guy doesn't trade. i'll put it all on the line and bet my life on it.
he sounds like a huge newb.
Check BLB capital (Ben) on CWT. Out of New York. Real. check Hans Dederle as well.
ok. he has some valid trade plays toward the end near 50 mins. not sure if he can execute though. he's all over the place.couldn't even describe multiple timeframes. aaron literally laughed after the shpeel. haha!
@@CRENSHAW173 you bet your life and was wrong, why are you still alive?
So, according to him, the only true thing that works that he said is that he would never share a strategy that is actually working.
DUDETTE !! (new word)
why so excited about gettin an opportunity from the events of 2001
This Alan guy had me until he said he doesn't believe in "physical stop losses".
lol you must be a market-maker :p jk!
can empty zone's (EZ) be used as a s/r when price retests?
Comm8sions were a lot and john Murphy's book back then was 70 bucks.
2:52 kinda like just observing everyone else's mistakes and writing a book about it. it that seems Douglas was not be able to turn his knowledge to practical account.
I remember having to draw my charts as prices moved.
Had to turn this off .. couldn’t carry on listing to this narcissistic obnoxious blabbering with no substance .. Also makes me doubt he even does that well in the markets
Anthony Scaramucci will be a great guest as well!
Please....its likely he was an actual trader for just 11days !
Anyone who cites Linda loses my respect. But he does talk like Linda, lots of talk... good talker. No substance. Still, entertaining, but I didn’t learn a thing.
sorry you have no clue
54:00
This bum banned me on Twitter for telling him GME wasn't a $10 stock(his price target) in November
GME now $14.
Ego-centric, boastful and feels like a non-trader but a book writer.
Keep open mind I know he is hard to listen too for TA insight
Totally agree! Also anyone who says that you don’t need to set a stoploss if you are watching the market all day is a non-trader. How do I know? Because this is exactly what I used to say when I started trading and didn’t know any better.
@@thoughtstream1114 read his book. He advises rightful strategic exits all over the place. His mention here is regarding the algorithmic stop loss raids that occur infinitum in today's world. If you're watching the market live, you really don't need preset stop orders technically. He advises the pre planned mental stop and price point violation of the trade to have for exit. A lot of his comments in this were in regard to stop gunning. That shit happened a lot last year until this current climate. And will def return again amidst a bullish momentum climate again
Self complacency talk
lets compare financial assets....
Between his arrogance. He said something extremely valuable that had been corroborated by many other long term successful trader chats.... that when you NEED to make money you trade worse.
I’m not sure I like this guy
Who the hell takes a year off from trading to write a book. A loser trader, that's who. Someone who makes money writing books not trading markets
reverse moustache cat Can we go to Barnes and Noble to read his book for free...
Just kidding..
Rofl. You think money cares how it's made?
@@projectlivefeed7604 I never did. But people listening to his advice should.
hello, yes, I would like one quarter pounder with cheese, a coke, and some curly fries, and a 7-layer burrito, and a venti java chip frappuccino. hello?
This is the worst interview. The guy is blabeering away all around the place. He seems to be in some great hurry.
Is that guy really a teacher? He has a really hard time explaining stuff imho
not that bad bro ....
38:54 Why they gotta be white? 😯
attend a money show someday.
charlatan
This man is surely coked off his head.
only did coke twice, in the 80s, mostly to get laid.
@@alanfarley3233 you down bad bro 😭😭😭
Delete this one buddy.