Keepin' It Simple: Supply and Demand, Volume, and Price Action

[pmccandless]

Hey guys. Somehow I’m just now discovering this site as I’ve been involved in the markets for almost a year and a half now. Seems like there is some good information to receive from this place. Hopefully I can help some others who are just starting out as well.

I’ll start off with a lil’ about myself… I began working my way to becoming a Firefighter/Paramedic in highschool as I thought this would be the perfect job for me. After working 4 years in the field as a Paramedic and Volunteer Firefighter I realized it wasn't what I wanted to do for the rest of my life. I basically dropped everything and moved to Lake Tahoe, CA where I lived it up and worked seasonal positions as a Snowboard Instructor and dockhand. I soon came to realize more and more that my problem didn't lie within the jobs themselves, but the fact that I hated having a boss. It was December of 2008 that a buddy I met up in Tahoe doing the same thing as me turned me on to the markets. I fell in love instantly and have dedicated hours on end to eventually becoming a full time trader.

I now live in Scottsdale, AZ where I trade the index futures full time, though not my sole income as I still believe I have a lot to learn. My passion and desire to make this my career has been what drives me to keep educating myself day after day and not take any short cuts along the way because you just can’t do that with trading. I’ve seen numerous people try to get the quick route to success by buying high-dollar systems that just end up failing them. You just can’t become consistently profitable without putting in the hours and hours of hard work and research and really understanding how the markets work. Sorry to burst any bubbles out there.

I’ve tried enough indicators, oscillators, head-and-shoulders, cup-and-handle crap out there to make my head spin. It was the beginning of summer last year that I came across a guy who’s methodology really clicked with me and it turns out he mentored Brendan long before myself. Basically it was all about pure supply and demand, volume, and price action. Everything that the indicators and oscillators try to tell you, but receiving the information and putting it to use before the indicators and oscillators even know what’s goin on. After taking his course and private mentorship program my skill level has increased exponentially.

Anyways, enough about me. I just wanted to create a journal on here to share my strategy with everyone and show just how simple and straightforward it can be and hopefully learn from you guys as well. We all lose sight of even our own rules at times so it helps me to refresh on things I haven’t touched on in a long time also.

Making live videos of my trades has been a huge part of my growth so I will be posting as many as I can get in, but will also be posting the occasional screenshot with some notes. Alright this intro is out of hand I gotta stop…

Enjoy and let me know if you have any questions or comments.

[Brendan Egan]

Hey Pmccandless,

Glad to have you here and I think that was an awesome start and intro to your journal

I especially liked the parts where you mention that trading takes hard work, dedication, and there are no short cuts out there to learning how markets actually work. I think from seeing your videos and talking with you that you are on the right path with your trading and have a very bright trading future.

I'm looking forward to following your journal and hopefully I will even learn a few things from it. I think trading journals are excellent tools because everyone involved in them has the potential to at the very least refresh their methodology and at the very most learn something new and learn to be a better trader.

Take care and talk with you soon,
Brendan

[pmccandless]

Hey guys. I caught a very nice TTB today. I'm really glad I captured it live on video as this is an excellent example of my style right here. It's kinda long, but it's very informative with zero bulls**t. The last time I say, "I'm going to pause here and I'll be back." I accidentally hit the stop button and ended the video. I did however exit the trade at 1971 even for a $150 profit. Anyways, enjoy and let me know if you have any questions or comments.

[Brendan Egan]

Awesome trade I actually caught a really nice play similar to this on $AAPL today. It was my first really huge trade in quite some time and was very refreshing to have. Thanks for sharing the video and I'm looking forward to more

What would you say is the hardest part of taking this type of trade? I just actually finished up a lesson about these situations in the Advanced Price Action Course and in my opinion the hardest part is psychologically taking the long position as price broke out and is now back at the breakout point. A lot of traders without the confidence to take a trade like this would be looking to enter into a short position at this point, however it is extremely important to understand why you need to get long here until price shows that it is going to break back below the breakout point, or current area of support.