Classic absorption short trade on $ES all shared in the YT livestream today!
📈Trade Breakdown (7/15/26):
- (9:36 AM EST) Aggressive buyers came in which established the HOD and immediately got rejected
- You know the rule, we don't initiate the short right away, we wait for price to make a reaction, retest the zone and confirm the direction.
- (10:17 AM EST) More aggressive buyers attempted to break HOD and failed again FOLLOWED by aggressive sellers (shown on footprint)
- Took an entry short @ 7621 (red square)
- Added into the short position after seeing large aggressive sellers stepped in @ 7616 (red square)
- Stop loss set at HOD (7626.25)
- Targeted prior high level @ 7603.75
- R/R: 2.0
I’ve had a long book list for years that I’ve shared and added to for anyone trying to become a trader. Regardless of what you might hear, there is definitely value in studying others and learning as much as you can about markets from books.
I will say that yes, the best learning will always come from the one book that matters most: the order book. Direct feedback from the market, reps, screen time, and getting punched in the face by price will teach you more than almost anything else.
That being said, there are two books I’ve always put at the very top of the list:
- Thinking, Fast and Slow by Kahneman
- Alpha Trader by Brent Donnelly
One is about understanding the biases and mental shortcuts that distort decision-making under risk.
The other is an incredible map for traders specifically.
So naturally, when Brent said he was releasing another book, I knew I’d buy it immediately. My only thought was: how could it possibly be as good as the first?
Well, it is.
Few sequels are on par with the original. This one is.
Suggest you get reading. Thanks @donnelly_brent
If you've traded successfully for long enough, you eventually know where your easy money comes from.
The hard part isn't finding new trades. It's having the discipline to sit on your hands when those opportunities aren't there.
I do think trading psychology is often overstated relative to having a real edge, but once you do have an edge, self-control becomes everything. A huge percentage of P&L comes from waiting and simply not being a dickhead.
For those who are interested, I made my own key levels indicator which I find extremely useful when I'm day trading
You can have it showcase RTH/ETH levels with the ability to have both on at the same time
It also auto plots overnight high/low + midnight open
Sharing the 🔗 below
Same setup, different day. Nice retest of aggressive sellers at high of day. $ES
📈Trade Breakdown:
- Aggressive sellers showed up at high of day (400 lots @ 7582) pink circle.
- We don't take the initial entry we wait for retest
- Retested the level where sellers showed up and rejected confirming the sellers are in control of the tape currently.
- Entered @ 7582 (red square)
- Stop loss @ high of day (7585)
- Targets were 7574 with a final target @ 7570 area.
- Missed my final target by a tick so closed it out at 7572.
- R/R: 2.57