A breakdown of The Essentials of Trading
Following up on my review response from the other day, here’s the breakdown of the main parts of The Essentials of Trading for anyone intested.
The first part of the book is an explanation of the very basics of trade execution, prices, following your open positions and stuff like that. If you’ve ever traded before (as we now know Katherine has done) then that part will be something you likely can skip over.
After the discussion of how and why prices move, the book gets into the Trading Plan area. That’s something important to all traders. It covers all the major decision making parts including markets, instruments, timeframes, analytic methods, risk management, and the like. It’s my experience that this is the area where the vast majority of new traders – and even somewhat experienced ones – fall short.
The third section builds on the previous one in that it goes through the system developement, testing, and evaluation processes. Basically, it helps you take the decision you made in the previous section and work them through into a solid, well constructed methodology for entering and exiting trades. It’s also a section which will show you how to test and evaluate systems you might come across from other people.
The book’s last chapter is a wrap up which provides some additional advice on things not already discussed and a bit of reinforcement on important stuff that has been. One of the appendices actually lays out a fully developed stock trading system – one I have used myself for years.
Let me state this as plainly and clearly as I possibly can. If you are not ready and willing to put some work into your trading education and building the foundation for trading success, don’t even bother to pick up my book. If you want a quick fix, go somewhere else and no doubt come away disappointed because there are none. Becoming a good trader is a developmental process, not a magic wand one. It takes learning and experience, both of which are major focuses of The Essentials of Trading.
Think of this book as a launching pad.
Struggling with support & resistance and knowing what the key market levels are? Check out the Price Distribution Analysis methods I use.
Comments are closed.