The Art of Trend Trading bucks the trend of technicality to show readers how instinct and strategy can unite to bring about consistent investment success. Rather than diving ever-deeper into the overdone world of complicated modeling and forecasting techniques, trader, CEO, and bestselling author Michael Parness explains how making intuition a part of your investment strategy tends to result in more long-term profit. Using animal spirits as a metaphor and tool,
Parness helps readers understand how their natural tendencies may run counter to their strategy, and how this dichotomy may be the shackle holding them back from true market success. Readers will learn how this perspective lifted Parness from homelessness to making millions in both Bull and Bear markets, and will start developing their own market instinct as they refine and tune into their own natural intuition. Everyone’s looking for the “ultimate” system, a way to “game the market” and uncover the “secret” to successful investing. Over the years, Parness has observed that the best traders those who consistently make money are the ones that use instinct and intuition, as well as strategy.
This book shows you how to identify the natural trader within, and use your gut to inform an ever-evolving investment plan. * Follow the author’s journey from homelessness to millionaire * Identify and understand your own strengths and weaknesses * Develop your instinct alongside your strategy * Take a lesson from traders making consistent money There’s no substitute for good strategy, but it’s no secret that some strategies seem to be more profitable than others. The Art of Trend Trading helps you find that missing piece and turn it into more consistent investment success.
About the Author
Michael Parness is Chief Trader and Educator at Affinity Trading and CEO of World Series of Trading, the world’s first Fantasy Sports for Stocks educational platform. He has been featured as an expert on CNBC, FOX News, CNN, Reuters, Bloomberg, and many other programs, and his rags-to-riches life story was optioned by actor and director Dustin Hoffman. He has also been honored at the United Nations for his charity work with abused children, and his best selling book, Rule The Freakin’ Markets!, has provided thousands of individual investors with practical trading tips for reading the markets and trading with confidence without the help of brokers or analysts. He is the proud father of two beautiful daughters, Emma Grace and Joelle.
Sharing a few points from the book which I really found good to share. This summary also includes key lessons and important passages from the book as well as a few of my own thoughts and understanding:
D+TPST :: Discipline + Trend, Pattern, Trigger, Stop and Target.
Day Trading for Cents and Swing trading for Dollars.
You can’t make money without losing.
Slow and steady is the best way to attain wealth.
Don’t be in such a rush to loose (make) money.
Don’t get bored to make a foolish trade.
Power trading means trading all day with variety of patterns.
There will be losses. Hence Stop Loss (SL) and trailing SL (for protective profits) is required while trading.
Take small profits instead of turning a winning trade into a losing one.
Its not simple, its not easy – it involves ton of hardwork, a bit of luck, lot of inspiration and intuition.
If you make money that means you did your job well.
Trading is marathon and preserving capital is the key to succeeding over the long term.
Learn from whatever you can and change the plan if needed.
As trader/investor what we can do is setup ourselves to be in the right place at the right time.
We can setup trades that makes sense, that have a logic behind them and we can put them into play.
We don’t have control over the outcome but we believe through experience that if we make the right trade, if we have done our homework and we aren’t just willy-nilly closing our eyes and pointing or throwing a dart at the wall to pick our trades, more often than not, we will win.
Our advantage is picking our spots rather than taking shots (gambling).
Even in poker, good players play when odds are favourable or very favourable.
We have to let go of the results and keep playing the right way.
Choice is a wonderful thing as long as we choose wisely. We can choose to make the right trades.
As a trader you are on your own – you will either learn to hunt or starve.