Quote from niccia:
"for just a one night stand I don't really need to know her name"
Lol...I really need to remember this line! Glad to see you back journaling on here
Thanks !! and Thanks !!
Looking forward to reading your journal
Bob
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Weinstein Trading and Fading
- Thread starter Robert Weinstein
- Start date
Thanks !! and Thanks !!
Looking forward to reading your journal
Bob
I just finished reading Trading On Target and I like the book a lot. Now I am reading Barbarians of Oil.
Here is my take on Trading On Target
For years I have heard many things about traders and the success rate. Often you will hear that 90% or more of traders fail. I am not sure what the number is but my experience would lead me to believe the number is very high but not nearly 95%.
At the same time, I have read about trading systems working year after year, and obtainable to anyone with a simple Google search. Many successful traders have advised me they could give away their trading system and it wouldn't matter because most people would not follow it anyway.
On one hand most people lose money, and on the other there are freely available systems that produce gains. It may certainly appear something is factually in error. If you believe people act in their own self interest as I do, how can it be true that traders and investors would willingly lose money when unnecessary?
I believe the gap between traders producing positive returns from trading and traders who lose money may be found in their thoughts and beliefs about themselves and those around them. In the book "Trading On Target" by Adrienne Toghraie and published by Wiley Trading, the importance of what it takes mentally to be successful in trading (and applicable to many other areas in life) is clearly identified with possible solutions to overcome the obstacles.
Toghraie writes in short, lesson type of chapters building on each other, making this book an easy and understandable experience. Toghraies writing style works perfectly for busy people who may not have a chance to sit down for an hour or more at one time to read. The comparisons of people entering into the world of trading are exactly what I observe in my chat room all too often. Those who take the time and move slowly without the great desire to "make a fast buck" and or treat trading like a trip to Vegas are the ones who are still in the chat a year later. There are many traders who I come across that I would like to hand a copy of Trading On Target to, and say "you will fail to read this at your own peril."
Toghraie masterfully describes why we do things that "just don't make sense" until the motivations behind our actions are revealed by reading. As most experienced traders will say, being overly intelligent is not a requirement to make large amounts of money (although strength in math really does help), and many traders have gone from little or nothing to riches beyond imagination. Trading is the great even playing field and the real enemy for most is within. Facing demons that are within are nearly impossible without first understanding what you're facing. Trading On Target brings to light the importance of your family support system, your expectations of yourself, motivations for wanting to be a trader and a lot more. After understanding the importance and finding what may be the weak link in your ability to extract gains from the market, methods and techniques of modifying and or improving internal and external influences are provided.
After reading many books on physiology in the last couple of years, I have increasingly realized the importance physiology has with what shows up at the end of the year in my PnL statement. After reading this book, I believe my results will be better this year and every year going forward. That is a big deal when you consider the small price to pay for an enjoyable book. I expect to also enjoy greater returns year after year. Reading Trading On Target could be the best trade you make all year. Get the book, read it, and after a while do what I plan on doing, read it again for a refresher.
Toghraie writes in short, lesson type of chapters that really make this book an easy and understandable read. Toghraie's writing style works perfectly for busy people that may not have a chance to sit down for an hour or more at one time to read. The comparisons of people entering into the world of trading are exactly what I see in my chat room way too often. Those that take the time and move slowly without the great desire to "make a fast buck" and or treat trading like a trip to Vegas are the ones that are still in the chat a year later. There are many traders that I come across that I would like to hand a copy of Trading On Target to, and say "you will fail to read this at your own peril."
Toghraie masterfully describes why we do things that "just don't make sense" until the motivations behind our actions are reveled by reading. As most experienced traders will say, being overly intelligent is not a requirement to make large amounts of money (although strength in math really does help), and many traders have gone from little or nothing to riches beyond imagination. Trading is the great even playing field and the real enemy for most is within. Facing demons that are within is nearly impossible without first understanding what it is that you're facing. Trading On Target brings to light the importance of your family support system, your expectations of yourself, motivations for wanting to be a trader and a lot more. After understanding the importance and finding what may be the weak link in your ability to extract gains from the market, methods and techniques of modifying and or improving internal and external influences are given.
I have read many books on physiology in the last couple of years as I found have been realizing the importance it plays what shows up at the end of the year in my PnL statement. I opened up my first trading account around 1983 and I can say that because I read this book, I believe my results will be better this year and every year going forward. That is a big deal when you consider the small price to pay for an enjoyable book that will reap returns year after year. Reading Trading On Target could be the best trade you make all year, so why take a chance and lose out. Get the book, read it, and after a while do what I plan on doing, read it again for a refresher.
I do not get paid to write the review, and I do not get paid if you buy the book.
Here is my take on Trading On Target
For years I have heard many things about traders and the success rate. Often you will hear that 90% or more of traders fail. I am not sure what the number is but my experience would lead me to believe the number is very high but not nearly 95%.
At the same time, I have read about trading systems working year after year, and obtainable to anyone with a simple Google search. Many successful traders have advised me they could give away their trading system and it wouldn't matter because most people would not follow it anyway.
On one hand most people lose money, and on the other there are freely available systems that produce gains. It may certainly appear something is factually in error. If you believe people act in their own self interest as I do, how can it be true that traders and investors would willingly lose money when unnecessary?
I believe the gap between traders producing positive returns from trading and traders who lose money may be found in their thoughts and beliefs about themselves and those around them. In the book "Trading On Target" by Adrienne Toghraie and published by Wiley Trading, the importance of what it takes mentally to be successful in trading (and applicable to many other areas in life) is clearly identified with possible solutions to overcome the obstacles.
Toghraie writes in short, lesson type of chapters building on each other, making this book an easy and understandable experience. Toghraies writing style works perfectly for busy people who may not have a chance to sit down for an hour or more at one time to read. The comparisons of people entering into the world of trading are exactly what I observe in my chat room all too often. Those who take the time and move slowly without the great desire to "make a fast buck" and or treat trading like a trip to Vegas are the ones who are still in the chat a year later. There are many traders who I come across that I would like to hand a copy of Trading On Target to, and say "you will fail to read this at your own peril."
Toghraie masterfully describes why we do things that "just don't make sense" until the motivations behind our actions are revealed by reading. As most experienced traders will say, being overly intelligent is not a requirement to make large amounts of money (although strength in math really does help), and many traders have gone from little or nothing to riches beyond imagination. Trading is the great even playing field and the real enemy for most is within. Facing demons that are within are nearly impossible without first understanding what you're facing. Trading On Target brings to light the importance of your family support system, your expectations of yourself, motivations for wanting to be a trader and a lot more. After understanding the importance and finding what may be the weak link in your ability to extract gains from the market, methods and techniques of modifying and or improving internal and external influences are provided.
After reading many books on physiology in the last couple of years, I have increasingly realized the importance physiology has with what shows up at the end of the year in my PnL statement. After reading this book, I believe my results will be better this year and every year going forward. That is a big deal when you consider the small price to pay for an enjoyable book. I expect to also enjoy greater returns year after year. Reading Trading On Target could be the best trade you make all year. Get the book, read it, and after a while do what I plan on doing, read it again for a refresher.
Toghraie writes in short, lesson type of chapters that really make this book an easy and understandable read. Toghraie's writing style works perfectly for busy people that may not have a chance to sit down for an hour or more at one time to read. The comparisons of people entering into the world of trading are exactly what I see in my chat room way too often. Those that take the time and move slowly without the great desire to "make a fast buck" and or treat trading like a trip to Vegas are the ones that are still in the chat a year later. There are many traders that I come across that I would like to hand a copy of Trading On Target to, and say "you will fail to read this at your own peril."
Toghraie masterfully describes why we do things that "just don't make sense" until the motivations behind our actions are reveled by reading. As most experienced traders will say, being overly intelligent is not a requirement to make large amounts of money (although strength in math really does help), and many traders have gone from little or nothing to riches beyond imagination. Trading is the great even playing field and the real enemy for most is within. Facing demons that are within is nearly impossible without first understanding what it is that you're facing. Trading On Target brings to light the importance of your family support system, your expectations of yourself, motivations for wanting to be a trader and a lot more. After understanding the importance and finding what may be the weak link in your ability to extract gains from the market, methods and techniques of modifying and or improving internal and external influences are given.
I have read many books on physiology in the last couple of years as I found have been realizing the importance it plays what shows up at the end of the year in my PnL statement. I opened up my first trading account around 1983 and I can say that because I read this book, I believe my results will be better this year and every year going forward. That is a big deal when you consider the small price to pay for an enjoyable book that will reap returns year after year. Reading Trading On Target could be the best trade you make all year, so why take a chance and lose out. Get the book, read it, and after a while do what I plan on doing, read it again for a refresher.
I do not get paid to write the review, and I do not get paid if you buy the book.
My sleep over with RIMM worked out well. I added in premarket and at the open I sold $24 strike calls expiring today. I had an average of under $24 by this point and believed the stock would pin that price. As it turns out that is what happened. Nice when a plan works. I covered before the close though so I ended up buying back the calls at a net loss but the stock was up enough to close out the whole trade with a gain.
DSW option dividend capture plan worked out ok. I ended up with just a little more than I would have received if I would have been exercised. The annualized yield is great and so no complaints. I will roll over the capital into another dividend capture next week.
GA gave me problems today. Actually not GA but rather Interactive brokers. In one of my accounts that does not have a lot of money in I bought GA puts and instead of selling I bought GA stock to use to exercise with. With about a minute to go in the trading day, Interactive brokers decides its a good idea to close out the puts and sends me an email after closing to let me know. After being on hold for over 10 minutes I am told that there was not enough margin in the account to cover the short position if the options are exercised. I had to explain to the support person that no short would be created as that account had enough stock to fully cover it. After several times of being put on hold "to check into it" I was told that there was nothing he could do, but he would put a ticket in to the risk department to see if it was a valid liquidation. I asked to speak with the risk department and was told I could not. I asked to speak with a supervisor and was told I could not. He did tell me he would take down my number and a supervisor would call me back. I did not receive a call back. I advised him that the account now has 900 shares left that are not going to be put as a result of the liquidation. At this point it was after hours and about an hour after the close so the bid ask was huge. I advised the rep that I understood nothing can be done about the options but the account holder is not going to take a loss because of a wrong liquidation and my goal was to simply get it made whole. I then said I was willing to close out the position but the price would not be as favorable as if the stock was put to the writer of the option. He said I should talk to the risk department on Monday. I asked who was going to take the weekend risk of the stock falling in price. Of course he didn't have an answer for that anymore than he had an answer for anything else.
To me it was obvious that there was a computer error due to the special dividend that was paid out last week and the programmers didn't figure it out. Pretty much par for the course from my years with IB. I have seen countless bugs and problems as well as heard about others with TWS. I hate calling up IB and have never had a phone call end where I thought they give a damn about customers. As a result I have generally gone to the chat. Not any better customer service (except at night when you get someone from Hong Kong as they actually do seem to know whats going on and care), but at least I do not have to devote exclusive attention to a phone call and can do other things while waiting for the chat. I have already been doing more trading at Tradestation and I think its time to make a move from IB if they screw this up. I have also looked at hold brothers and they seem to have a good program and prices but no options so that's a tough call.
For my other accounts with GA the trade was pretty much a wash. I consider that a win as the bet was really about if the company would pay the dividend or not.
The INTC puts I wrote expired today out of the money. I always like that.
I am still short Oct COCO puts that have dropped in value about 50% so far from time decay and coco moving higher in price. As long as COCO can stay above $2 it will work out well.
DSW option dividend capture plan worked out ok. I ended up with just a little more than I would have received if I would have been exercised. The annualized yield is great and so no complaints. I will roll over the capital into another dividend capture next week.
GA gave me problems today. Actually not GA but rather Interactive brokers. In one of my accounts that does not have a lot of money in I bought GA puts and instead of selling I bought GA stock to use to exercise with. With about a minute to go in the trading day, Interactive brokers decides its a good idea to close out the puts and sends me an email after closing to let me know. After being on hold for over 10 minutes I am told that there was not enough margin in the account to cover the short position if the options are exercised. I had to explain to the support person that no short would be created as that account had enough stock to fully cover it. After several times of being put on hold "to check into it" I was told that there was nothing he could do, but he would put a ticket in to the risk department to see if it was a valid liquidation. I asked to speak with the risk department and was told I could not. I asked to speak with a supervisor and was told I could not. He did tell me he would take down my number and a supervisor would call me back. I did not receive a call back. I advised him that the account now has 900 shares left that are not going to be put as a result of the liquidation. At this point it was after hours and about an hour after the close so the bid ask was huge. I advised the rep that I understood nothing can be done about the options but the account holder is not going to take a loss because of a wrong liquidation and my goal was to simply get it made whole. I then said I was willing to close out the position but the price would not be as favorable as if the stock was put to the writer of the option. He said I should talk to the risk department on Monday. I asked who was going to take the weekend risk of the stock falling in price. Of course he didn't have an answer for that anymore than he had an answer for anything else.
To me it was obvious that there was a computer error due to the special dividend that was paid out last week and the programmers didn't figure it out. Pretty much par for the course from my years with IB. I have seen countless bugs and problems as well as heard about others with TWS. I hate calling up IB and have never had a phone call end where I thought they give a damn about customers. As a result I have generally gone to the chat. Not any better customer service (except at night when you get someone from Hong Kong as they actually do seem to know whats going on and care), but at least I do not have to devote exclusive attention to a phone call and can do other things while waiting for the chat. I have already been doing more trading at Tradestation and I think its time to make a move from IB if they screw this up. I have also looked at hold brothers and they seem to have a good program and prices but no options so that's a tough call.
For my other accounts with GA the trade was pretty much a wash. I consider that a win as the bet was really about if the company would pay the dividend or not.
The INTC puts I wrote expired today out of the money. I always like that.
I am still short Oct COCO puts that have dropped in value about 50% so far from time decay and coco moving higher in price. As long as COCO can stay above $2 it will work out well.
The best show Netflix put on today was the stock action. Wow, did you see it? If not you missed a good one. In the chat room we talk about how stocks are on crack all the time, but today with NFLX was the real deal. At one time I believe it was down about 15%, and right about the same time I was looking at pulling the ripcord. I started to fade the move down in the 113.xx range (via call options) slowly at first, and really added the size on under $110 or what was about $1-1.15 for the call options expiring TOMORROW. Knowing the options decay at a rapid rate I ended up leaving a lot on the table. It was not a huge surprise that Netflix was able to blast its way back up over $5 in about 15 minutes, but I was only around for about half the move. Shortly after Netflix fell again, regained its footing and was able to close out a very large losing day with some hope for investors the worst may be over. The very worst thing about Netflix is watching it trade up to 137.88, and then falling below $120. I made a bet with a friend, Rocco Pendola, that NFLX would trade 140 before 120. Now I owe him a beer, and he drinks the expensive imported stuffâ¦.. LOL
Losing the beer did not come as a total shock, as I knew if it did not bounce over $140 on september 26th it was unlikely to do so. Each day meant the odds moved against me (note to self, when the computer calculates the safe money is on $134, donât get smart and say $140).
I traded NFLX, but I should have also traded SINA. It was called out but I didnât move it to a scanning chart until about five minutes after the long signal would have triggered. I then had the pleasure to watch it climb higher and higher. I did get a lot of computer work done so it was not a waste of a day. I am looking at some dividend capture stocks and hope to put some positions on that I wrote about tomorrow.
HP even managed to carve out a positive day today after a tough day for SPY. It was an upday from yesterdays close, but a down day from the open. This means that we had greater market selling pressure than buying pressure for the day, even though the market was up from yesterday. Overall it appears to be a bullish day, but the bears led the way and if not for a late strong rally it might have really been ugly.
COCO still struggles to find a bottom. Strange stock and perhaps time to look at adding. Any good news or buyout rumor could send it flying (just be ready to walk away if things get dicey)
Losing the beer did not come as a total shock, as I knew if it did not bounce over $140 on september 26th it was unlikely to do so. Each day meant the odds moved against me (note to self, when the computer calculates the safe money is on $134, donât get smart and say $140).
I traded NFLX, but I should have also traded SINA. It was called out but I didnât move it to a scanning chart until about five minutes after the long signal would have triggered. I then had the pleasure to watch it climb higher and higher. I did get a lot of computer work done so it was not a waste of a day. I am looking at some dividend capture stocks and hope to put some positions on that I wrote about tomorrow.
HP even managed to carve out a positive day today after a tough day for SPY. It was an upday from yesterdays close, but a down day from the open. This means that we had greater market selling pressure than buying pressure for the day, even though the market was up from yesterday. Overall it appears to be a bullish day, but the bears led the way and if not for a late strong rally it might have really been ugly.
COCO still struggles to find a bottom. Strange stock and perhaps time to look at adding. Any good news or buyout rumor could send it flying (just be ready to walk away if things get dicey)
No trades today, but I did watch a few things like netflix. I also finished a book and wrote an review of it.
I recently finished reading a fascinating book by Sandy Franks and Sara Nunnally entitled Barbarians Of Oil: How the Worldâs Oil Addiction Threatens Global Prosperity and Four Investments to Protect Your Wealth Published by Wiley. Many may simply think of oil as something used in making gasoline. Unless youâre an investor in oil commodities, or industry related companies, why engage much thought beyond the time standing at the pump wondering why the dollar dial spins so much faster than the quantity pumped? We should give the subject more thought, though, because almost every aspect of our lives is shaped in one way or another by the availability, as well as the cost of oil and the products produced from oil.
Franks and Nunnally walk the reader through a guided tour from the beginning of the oil industry to modern day world politics. While some of the names including Rockefeller, British Petroleum, and Exxon are familiar, Barbarians Of Oil tells the rest of the story. Beginning with a journey back in time when each building block was laid in place to create the monster known as the âOil Industryâ. Interestingly, many of the original products derived from oil, were actually waste products only to be discarded. Even gasoline was originally a waste product until men like Daimler and Ford began over a century of almost unabated demand. Barbarians Of Oil carefully captures how within every tire track in the road is a trail of blood, money and power of epic proportions. The authors describe oilâs influence upon nations, the standard of living of citizens, and the call to arms like the Gulf War. Could the Gulf War have been avoided if planners acted differently? Barbarians Of Oil argues planners who while arbitrarily creating country boarders in the gulf over a hundred years ago set in motion events leading to the US occupation in the middle east. What if the planners had more knowledge of the people impacted as a result of locations of national borders? Barbarians Of Oil makes a compelling case of the caution that must be exercised when making decisions due to their possible unintended consequences. Franks and Nunnally articulate exceptionally well just how ruthless and unrelenting people may become. The seeking, and maintaining the mountains of wealth springing from the ground and pouring into coffers for those cunning and skillful enough to outmaneuver the other players is vividly brought to life.
As may be anticipated by the title, Barbarians Of Oil does display somewhat of a left tilt flavor. However, the authorsâ leanings do not detract from the well crafted story. Barbarians Of Oil is a story of importance, and of invitation to the reader to reflect in the upcoming reality. We unquestionably face an end to sticking straws into the ground, receiving unlimited energy with no end in sight. Barbarians of Oil clearly describes the current perilous growing dependency, which may not be dismissed as unsubstantial without risking our nationâs future.
Barbarians Of Oil provides the reader with many public companies investors may consider. I very much enjoyed reading Barbarians Of Oil, although I have not examined the financial prospects of the suggested investments. I did trade BP daily during the worst of the gulf spill, and BP is mentioned, but not as an investment idea. Because I have not researched further into the investment ideas, I have no opinion either positively or negatively and will leave that question to the readers to weigh the opportunities presented. I do believe though, investors will find Barbarians Of Oil a valuable study of oilâs history and recommend this book for their library.
I don't get paid to write reviews or commissions on sales.
I recently finished reading a fascinating book by Sandy Franks and Sara Nunnally entitled Barbarians Of Oil: How the Worldâs Oil Addiction Threatens Global Prosperity and Four Investments to Protect Your Wealth Published by Wiley. Many may simply think of oil as something used in making gasoline. Unless youâre an investor in oil commodities, or industry related companies, why engage much thought beyond the time standing at the pump wondering why the dollar dial spins so much faster than the quantity pumped? We should give the subject more thought, though, because almost every aspect of our lives is shaped in one way or another by the availability, as well as the cost of oil and the products produced from oil.
Franks and Nunnally walk the reader through a guided tour from the beginning of the oil industry to modern day world politics. While some of the names including Rockefeller, British Petroleum, and Exxon are familiar, Barbarians Of Oil tells the rest of the story. Beginning with a journey back in time when each building block was laid in place to create the monster known as the âOil Industryâ. Interestingly, many of the original products derived from oil, were actually waste products only to be discarded. Even gasoline was originally a waste product until men like Daimler and Ford began over a century of almost unabated demand. Barbarians Of Oil carefully captures how within every tire track in the road is a trail of blood, money and power of epic proportions. The authors describe oilâs influence upon nations, the standard of living of citizens, and the call to arms like the Gulf War. Could the Gulf War have been avoided if planners acted differently? Barbarians Of Oil argues planners who while arbitrarily creating country boarders in the gulf over a hundred years ago set in motion events leading to the US occupation in the middle east. What if the planners had more knowledge of the people impacted as a result of locations of national borders? Barbarians Of Oil makes a compelling case of the caution that must be exercised when making decisions due to their possible unintended consequences. Franks and Nunnally articulate exceptionally well just how ruthless and unrelenting people may become. The seeking, and maintaining the mountains of wealth springing from the ground and pouring into coffers for those cunning and skillful enough to outmaneuver the other players is vividly brought to life.
As may be anticipated by the title, Barbarians Of Oil does display somewhat of a left tilt flavor. However, the authorsâ leanings do not detract from the well crafted story. Barbarians Of Oil is a story of importance, and of invitation to the reader to reflect in the upcoming reality. We unquestionably face an end to sticking straws into the ground, receiving unlimited energy with no end in sight. Barbarians of Oil clearly describes the current perilous growing dependency, which may not be dismissed as unsubstantial without risking our nationâs future.
Barbarians Of Oil provides the reader with many public companies investors may consider. I very much enjoyed reading Barbarians Of Oil, although I have not examined the financial prospects of the suggested investments. I did trade BP daily during the worst of the gulf spill, and BP is mentioned, but not as an investment idea. Because I have not researched further into the investment ideas, I have no opinion either positively or negatively and will leave that question to the readers to weigh the opportunities presented. I do believe though, investors will find Barbarians Of Oil a valuable study of oilâs history and recommend this book for their library.
I don't get paid to write reviews or commissions on sales.
no trades today to report. I didn't even log in last week Friday. spent most of the time going over what gifts to get my kids.
I tried to short ONXX but was a little late pulling the trigger. Was trying to get long $44 puts but IB was not being very helpful with the trading book trader. By the time I figured out I would need to manually enter in the price I lost the edge I was looking for. Very frustrated with IB.
I tried to short ONXX but was a little late pulling the trigger. Was trying to get long $44 puts but IB was not being very helpful with the trading book trader. By the time I figured out I would need to manually enter in the price I lost the edge I was looking for. Very frustrated with IB.
Here is my last book I finished. One of ETs own Mr. Covel's book is well worth the time and money. Here is a copy of my review:
Just when you may have started to believe it was safe to fade or dollar average a losing position, Mike Covel provides big reasons not to in his latest must read trading book âThe Little Book of Trading: Trend Following Strategy for Big Winningsâ by Wiley publishing. If I am truly honest, I have to admit I opened this book up with high expectations. I own other books written by Mike Covel including âThe Complete Turtle Traderâ and âTrend Followingâ. After all, I have read âturtleâ and âtrendâ cover to cover more than once and most trading books I donât even complete once.
Covel is able to articulate the emotions, trials, triumphs and most importantly the land minds waiting to blow up trading accounts. Covelâs rare genius of the pen is undoubtedly what many other authors hope to achieve when developing trading improvement books. In the little book, Covel brings the wisdom of many great traders and in a way that doesnât require three solid days of reading. I picked up and read a chapter here and there and before I knew it, the book was done and I was finding myself reading again the pages I dog-eared (and I have a lot of pages marked). Itâs hard to miss when you have names like Ed Seykota (one of the greatest traders ever on many levels), Larry Hite, Kevin Bruce, and many others. The biggest downside of The Little Book Of Trading is it ends near the 200 page mark. I would have been more than happy to keep reading upon reaching the last page. As someone who reads stock articles for hours a day, I really connected with the chapter titled âStories Donât Make You Moneyâ, and I have to fully agree. Most of what I read is simply worthless at best, but at least normally transparent in their motivation. Covel writes ââ¦And the demand is there. People want to understand so badly, and stories help to rationalize. Itâs comfort food for the financial soulâ, and this is so dead on. I have written negative articles about several stocks on seeking alpha causing a wave of angry comments that included all the reasons they read why âit was going to keep going upâ, or âkeep going downâ. I have largely given up trying to explain everything they know is priced in and once the emotion leaves (think lady luck) as it always does, rational pricing takes over.
Covel wrote in chapter 5 titled âThink Like A Poker Player And Play The Oddsâ and this chapter alone has more required information than many complete books in regards to the mental aptitude, fortitude, and preparation required to succeed in the markets. â
If youâre playing a positive expectation game, you donât want to be knocked out. Good stuff always takes care of itself, but you have to stay alive. You canât play if youâre deadâ. This is such an important point, and I see the KIAâs of the trading battlefield all the time. I have been in the same chat room for almost every trading day for the past four years and on a regular basis for about 10 years. The warning signs are everywhere and usually the same. Traders put up large numbers, both winners and losers relative to their account. Then, like clockwork, a big fast moving stock captures everyoneâs attention (not just the chat room but usually all of Wall St.) and the only sound before the explosion is the click of a keyboard. Unlike real KIAâs, many of the trading blow ups actually speak afterward. The focus on how much can be made instead of how much they can lose is the driving forces of every trading account implosion. Covel says it so well with the fact that even if you know ahead of time what an investment will do, itâs not enough information to maximize the return on investment. If you leverage up to far, you likely to get killed as the market zigzags its way to the ultimate price.
Timing is also vital and Covel covers this topic splendidly with tactics that do NOT include using judgment calls while in a trade. In a nutshell, when you are truly trend trading, you are always exiting when a trade is moving against you, and never trying to guess when the price is âtoo high / too lowâ or âhas to come back someâ. What really gives this âlittle bookâ and trend trading in general is greatest power is the ability to formulate a road map and plan of attack, which removes the thinking while in the trade. Removing the decision making while in âthe fog of warâ allows the trader to focus on becoming better instead of trying to predict the future.
I opened up Michael Covelâs latest book with high expectations, and once again I have finished reading regenerated and mentally more prepared to start my trading day tomorrow. Interestingly enough, I am not a trend follower, not at least in the sense of what most consider trend following. Nonetheless I gained a great deal of value by reading the book and so I am very confident you will also. Get a copy of this book, its mandatory reading if you want to know as much as you can about trading. You will very quickly understand why I say you donât buy a Covel book; you invest in your trading knowledge.
I do not get paid to review or for sales of books I write about
Just when you may have started to believe it was safe to fade or dollar average a losing position, Mike Covel provides big reasons not to in his latest must read trading book âThe Little Book of Trading: Trend Following Strategy for Big Winningsâ by Wiley publishing. If I am truly honest, I have to admit I opened this book up with high expectations. I own other books written by Mike Covel including âThe Complete Turtle Traderâ and âTrend Followingâ. After all, I have read âturtleâ and âtrendâ cover to cover more than once and most trading books I donât even complete once.
Covel is able to articulate the emotions, trials, triumphs and most importantly the land minds waiting to blow up trading accounts. Covelâs rare genius of the pen is undoubtedly what many other authors hope to achieve when developing trading improvement books. In the little book, Covel brings the wisdom of many great traders and in a way that doesnât require three solid days of reading. I picked up and read a chapter here and there and before I knew it, the book was done and I was finding myself reading again the pages I dog-eared (and I have a lot of pages marked). Itâs hard to miss when you have names like Ed Seykota (one of the greatest traders ever on many levels), Larry Hite, Kevin Bruce, and many others. The biggest downside of The Little Book Of Trading is it ends near the 200 page mark. I would have been more than happy to keep reading upon reaching the last page. As someone who reads stock articles for hours a day, I really connected with the chapter titled âStories Donât Make You Moneyâ, and I have to fully agree. Most of what I read is simply worthless at best, but at least normally transparent in their motivation. Covel writes ââ¦And the demand is there. People want to understand so badly, and stories help to rationalize. Itâs comfort food for the financial soulâ, and this is so dead on. I have written negative articles about several stocks on seeking alpha causing a wave of angry comments that included all the reasons they read why âit was going to keep going upâ, or âkeep going downâ. I have largely given up trying to explain everything they know is priced in and once the emotion leaves (think lady luck) as it always does, rational pricing takes over.
Covel wrote in chapter 5 titled âThink Like A Poker Player And Play The Oddsâ and this chapter alone has more required information than many complete books in regards to the mental aptitude, fortitude, and preparation required to succeed in the markets. â
If youâre playing a positive expectation game, you donât want to be knocked out. Good stuff always takes care of itself, but you have to stay alive. You canât play if youâre deadâ. This is such an important point, and I see the KIAâs of the trading battlefield all the time. I have been in the same chat room for almost every trading day for the past four years and on a regular basis for about 10 years. The warning signs are everywhere and usually the same. Traders put up large numbers, both winners and losers relative to their account. Then, like clockwork, a big fast moving stock captures everyoneâs attention (not just the chat room but usually all of Wall St.) and the only sound before the explosion is the click of a keyboard. Unlike real KIAâs, many of the trading blow ups actually speak afterward. The focus on how much can be made instead of how much they can lose is the driving forces of every trading account implosion. Covel says it so well with the fact that even if you know ahead of time what an investment will do, itâs not enough information to maximize the return on investment. If you leverage up to far, you likely to get killed as the market zigzags its way to the ultimate price.
Timing is also vital and Covel covers this topic splendidly with tactics that do NOT include using judgment calls while in a trade. In a nutshell, when you are truly trend trading, you are always exiting when a trade is moving against you, and never trying to guess when the price is âtoo high / too lowâ or âhas to come back someâ. What really gives this âlittle bookâ and trend trading in general is greatest power is the ability to formulate a road map and plan of attack, which removes the thinking while in the trade. Removing the decision making while in âthe fog of warâ allows the trader to focus on becoming better instead of trying to predict the future.
I opened up Michael Covelâs latest book with high expectations, and once again I have finished reading regenerated and mentally more prepared to start my trading day tomorrow. Interestingly enough, I am not a trend follower, not at least in the sense of what most consider trend following. Nonetheless I gained a great deal of value by reading the book and so I am very confident you will also. Get a copy of this book, its mandatory reading if you want to know as much as you can about trading. You will very quickly understand why I say you donât buy a Covel book; you invest in your trading knowledge.
I do not get paid to review or for sales of books I write about
Quote from jnbadger:
"Covel�s rare genius of the pen..."
Seriously?
I have no reason or motivation to defend Covel, I enjoy reading his books and that is my opinion.
Yes seriously. Most trading books I have a hard time making it though the second chapter before I find fatal flaws in theory. I have read and own three of his books. Off the top of my head, the only other author I have three books by is Tom DeMark.
As one cheese head to another, can you name ten other authors with three readable books? (I mean this question in a polite tone, not argumentative ).
Its been a long while since you stopped in the chat. Stop in, or if not let me wish you and yours a great holiday season
Robert
Quote from Robert Weinstein:
As one cheese head to another, can you name ten other authors with three readable books?
No I cannot, and I absolutely meant no disrespect. But when I think of genius of the pen when it comes to trading books, I guess I am more inclined to go with Sheldon Nattenburg or Peter Berstein, or maybe even Mark Douglas (I only own 2), simply because of his ability to make you delve into yourself and make you realize you won't be successful unless you know who you are. Hell I may even go with Soros's The Alchemy of Finance, especially as it deals with Heisenberg's uncertainty principle and the round about way that relates to the markets.
But I digress, and you have sold me. I have learned that if you dig it, I probably will also. I have Trend Following on my droid's kindle, but will most likely check out his most recent book first.
But what I have mentioned before, and for some reason still haven't touched is more of DeMark's writings. I have developed more of a market making mentality lately, but not necessarily mean reversion, if that makes sense. And I would like to read all of his books.
Anyway, so much to read, and so little time.
As far as the holiday wishes, I reciprocate. All of the best to you and yours, sir.
Good trading.