What Is the Market? How to Set Profit Targets: How to Set Stops: Is This an A-trade? It remains at the top of many reading lists, as friends recommend it to friends and trading firms give it to their new hires. All these years, I resisted revising my book because I trusted and liked its internal logic. I traded, traveled, wrote other books, and taught a few classes. My late great friend Lou Taylor, to whom this book is dedicated, used to joke: In planning this update, I thought of a building complex in Vienna, Austria called the Gasometer.
At its core are multistory storage tanks, erected by Austrian bricklayers in When modern technology made huge gas cylinders obsolete, architects converted them into modern apartments.
They punched wide openings in brick walls, creating panoramic views, installed floors and elevators, and added glass-enclosed penthouses. I used to stay in one of them and wanted my new book to follow that model of blending old craftsmanship with new technology. Before you begin reading this book, ask yourself: Since I was actively practicing psychiatry while writing the original Trading for a Living, its psychology part stood the test of time and I changed it very little in this new edition.
Market analysis is very important—but remember that when we look at a chart, we deal with only five pieces of data—the open, the high, the low, the close and volume. Piling up masses of indicators and patterns on top of those five values only increases confusion. Less is often more. On the other hand, I added several new chapters that xi. I also added a section on stops, profit targets and other practical details. Money management is extremely important because financial markets are hotbeds of risk.
That was the weakest part of the original book, and I completely rewrote it. Psychology, trading tactics, and money management are the three pillars of success, but there is the fourth factor that ties them together.
That factor—which integrates all others—is record-keeping. Keeping good records will enable you to learn from your experiences. Keeping good records will make you your own teacher and a better trader. Create a free account Login. Embed or link this publication. Trading Tools and Systems.More...