Even though it was not put out by a major publisher, like John Wiley and Sons, it is fast becoming a modern-day classic. I collect trading books like kids [used to] collect baseball cards. In some ways these hobbies are similar: His general advice is straightforward and prudent. To anyone who has traded intraday, it also makes a great deal of sense.
He recommends that one scalp only when the spread plus commission is one PIP or less. He uses a tick chart with only one indicators—a period exponential moving average [e. To him, using multiple indicators is a losing proposition that only adds confusion and doubt.
He uses OCO orders [one cancels the other] with a target of 10 pips and a stop around 6 to 7. He describes trading exactly how it is: Get-rich-quick kinds will not necessarily like his assessment that the market cannot be beaten. Rather, a trader can only strive to beat those traders less proficient than himself.
In trading, there are no guarantees, so we must trade probability. Those who strive for glory in trading are simply deluding themselves.
His tactics are also clear. His advice on stops is worth heeding. He believes in real stops, not mental ones: Not exiting an invalid trade, in his view, is the cardinal sin of trading. He points out something that any reader of trading books already knows: On the other hand, he does not believe in getting out with a small profit if the underlying logic behind the trade is still valid.
He writes as a real trader, not as a professional writer whose income comes from selling books on trading. But I still consider this book relevant. The only weakness I see is the lack of supporting data to demonstrate the effectiveness of the tactics described.
To be fair, most trading books have that same shortcoming. This inconsistency really put me off the content in the book. His writing style is easy to read and it feels like he is a real trader.
But make no mistake, it is a highly discretionary approach nothing wrong with that! I have included his quotes about learning to trade in the Must Read book series, http: Your email address will not be published. Book Information Rating Useful. I had far higher expectations than this book delivered. With kind regards, MK. His style is discretionary.
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