81 – Peter Davies: Order Flow Trading and Living in Thailand
28 Dec, 2015 / By: Brandon Clay
Learning order flow trading and its perks with Peter Davies.
Peter Davies has been trading for 10 years. He specializes in a different sort of trading than most are familiar with – order flow – and also teaches it to other traders. Originally from the the UK, he now hails from Thailand.
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Best Trading Advice
“Get in and get out when it’s not going your way.”
- Beware of automated trading
- Order Flow Trading
- Depth of Market
- Learning before trading
- Be wary of not overtrading
From the Trader’s Story
“I don’t really believe that anybody has actually developed a profitable system using those things (automated trading system).”
“As an order flow trader, it’s discretionary trading you will always improve.”
“All this stuff about 10,000 hours is nonsense.”
“Find out how professional traders trade.”
Newer Trader Resources
Other Resources Mentioned by Trader
Favorite Trading Book
Peter Davies was a great listen for me as I heard it again. He’s a smart guy and found a different sort of edge in the futures market that many traders haven’t exploited yet. And of course, if you’re interested in that kind of trading, you know where to go.
But instead of highlighting something about order flow trading, I decided to go a different route for the takeaway from this interview. And that is Peter’s idea of becoming a proficient trader in about 3 months. That was a novel concept for me. At least, it wasn’t something I heard in the same way that Peter said it before. When I asked him how long it would take to learn Peter’s system, he said…
“There are different benefits of order flow at different stages of development. As an order flow trader you’ll always improve. It’s not like you’ll learn it and you don’t get better. We have drills that new customers should use that lead them to see the things they need to see to get a basic understanding of overflow. So we recommend 60-90 minutes a day, 1-2 times per day. No more than that. If you do that, you should find within 2-3 weeks you should find within 2-3 weeks you should be able to use order flow to manage your trades.
Absolutely. You read on the internet about ‘10,000 hours.’ But if you go to a prop shop, the prop shops that trade futures, they’re going to pull you out of school, they don’t like people who’ve already been in the retail trading world much because they have a lot of things to unlearn. And they’ll put you in the prop shop and they’ll say ‘here’s what you need to look for, you look at the DOM, you scalp in and out of trades.’ And they’ll give you drills to do and there’s a lot of traders who come out of that 12-weeks later they’re trading 1-2 contracts live, prop-firm money. So all that stuff about 10,000 hours and that is nonsense. You can start out and make money scalping and then develop your longer term game after that.”
Really?! Prop shops expect their traders to trade real money in 12-weeks or 3 months. Real money. So this trading thing and consistent profitability doesn’t have to take years. Now it often does, but it doesn’t have to. If you were right out of school, were focused, joined a prop trading firm, and did what the trainers told you, you could become a consistently profitable trader in 12-weeks. Very cool.
By the way, that goes for you too. Trading success doesn’t have to take forever. Granted we’re all different and we all approach this trading thing with our own special set of circumstances. But take heart, if you succeed, it will not be an indefinitely long road. In fact, it could be as short as 12-weeks.
Thanks again for listening to this episode of the podcast.
A quick shout-out to Billy Ph, Billy wrote in his iTunes review:
“I found this podcast about a couple weeks ago and just now caught up. Wanted to finish before I left a review. The thing I love most about this podcast is that I can relate to Brandon and his guests on their journey to becoming consistently profitable trader(s). It’s not too technical or overwhelming. Simplistic enough for everyone to understand which is good, I, myself, am on the same path and have my down days. Hearing their stories and yours (Brandon) picks me right back up and inspires me to keep going. It helps to know that you are not alone and that it’s all part of the path. Keep up the great work! We will get there!”
And that we will. Thank you, Billy, for the 5-star rating and very helpful review. At the time of this recording, we have 99 ratings in iTunes for the US side and 84 reviews. One more rating and we break 100 guys. So join all the other traders to leave a quick 5-star rating and a couple sentences on how awesome the podcast is. I would greatly appreciate it.
On the next episode, we chat about goal setting for 2016…with a twist. You don’t want to miss that one.
Until then, all the best!