Top critical review
7 people found this helpful
Disappointing. His first book is actually better.
on January 3, 2004
I had read and gained great insight from his first book called Trading for a Living.
This new book did not add significantly to the content contained in the previous book hence I have given the book 2 stars. Minimal value added.
The essence of the book is to trade with the trend but to find value points within the trend. But as another reviewer has indicated, the example trades given in the diary section do not do this. Invariably these trades are of the bottom-picking variety, albeit with the technical rationale laid out pretty transparently. One is left with a feeling of confusion with respect to whether the author trades in accordance with the main part of the book, or in accordance with the example trades given in the trading diary.
The book is broadly split into 3 areas. Mind, Method and Money Management.
The section on trading psychology (Mind) is coherent, but for a more useful insight into this aspect of trading, I would strongly recommend Mark Douglas' books, for example Trading in the Zone or The Discipline Trader.
The section on trading methods (Method) is hardly revolutionary. As I have already alluded to, if you understand what a trend is and can identify pullbacks within it, this is all that you will gain from the book. The author does however have an interesting segment on multiple timeframe analysis (what he terms the Triple Screen).
The section on risk management (Money Management) is very weak and potentially dangerous in my view. The author recommends the "traditional" per trade risk of 2% of account size. Even a rudimentary Monte Carlo analysis would lead one to the conclusion that such an approach would result in an extremely volatile equity curve. As another reviewer may have indicated, a more prudent to risk management can be found amongst the works of Van K. Tharp, for example in Trade Your Way to Financial Freedom.
Sometimes the better path to a rounded knowledge is to gain it from several sources, rather than to attempt to squeeze it all into one book.