Customer Reviews

Rules of The Trade: Indispensable Insights for Online Profits

5 star:		(8)
4 star:		(2)
3 star:		(1)
2 star:		(1)
1 star:		(3)

 

 

Although this book has a copyright date of 2001, it apparently was written in early 2000, just at the start of the NASDAQ crash that ultimately resulted in a loss of over 75 percent of its value. Consequently, the author refers to a period of time when stocks traded in fractions, and high-flying tech stocks trading in the triple digits were "momentum" traded by daytraders. After the crash, many of those tech stocks trade in the single digits, all stocks now trade in decimals, and the "momentum" daytraders and their daytrading brokerage firms are now history. The author makes numerous references to "shadowing the axe" using Level II quotes to determine who is on the inside ask or bid. Nowadays, ECNs virtually always sit on the inside ask and bid, making it impossible to utilize that strategy. Even if a market maker had a large enough position to sit in front of the ECNs, he most likely would route much of his order to an ECN where it would appear anonymously in order to disguise his intentions.

The problem with writing a book about trading strategies or systems is that the markets are constantly changing, and trading systems become obsolete and must evolve over time. What doesn't change is the emotions and psychology of the people who compose the markets. The author states numerous times that trading is about 90 percent mental. While this is in fact correct, he then only briefly touches on the mental and psychological barriers that must be overcome in order to trade successfully. The best books on trading understand this, and are devoted almost totally to this subject.

There are also numerous inaccuracies. At one point, he details a month of trades from an "anonymous" daytrader who allegedly made 731 trades during the month, of which 377 were winners, with those trades averaging $93.03 profit. He then claims the trader netted $68,001.35 for the month. If you think about it for a minute, this is a mathematical impossibility. Also, he makes the typical mistake in believing a broadband connection is necessary to receive timely streaming quotations. Broadband speeds up downloads only with large size files. Streaming quotes do not fall into this category. I have timed my quotations against a T1 connection using an atomic clock accurate to 1 millionth of a second and have detected no difference. I do not use broadband, as it is not available in my area.

If in fact the author is a successful trader, it would have been much more productive for him to detail his own evolution as a trader, as well as the evolution of other specific successful traders he has known. This is the information that would be most useful to new traders. Unfortunately, the author only briefly discusses a few of his own trades, and gives no information whatsoever on the path he traveled to reach competence, assuming he has reached that level. It would also be interesting to see how he is trading in the post-bubble market, if in fact he is still trading successfully.

I bought the book based on excellent reviews here and very attractive description.

However, I have been very disappointed because the content does not reflect the attractive title and description. The book is almost 100% for daytraders trading with level II screen. This is not said anywhere. "Online" does not mean exclusively daytrading to my opinion. It keeps on repeating "be disciplined" to fill space. One of the example of trade record given does not fit the explanation given in the text. For example, the trader made most of his profit in a single swing trade lasting several days whereas Nassar wants to show us that the guy is a good daytrader...

Another interesting thing: This book is not for beginners but it describes in fact very general basic rules... in a tough style that assumes that the reader already knows almost eveything.

When you read the table of contents, it looks great: how to enter, to exit, etc... but none of this is given in the book. No techniques are given.

Conclusion: This book could be fine if the description was fitting the content. It is for daytrader watching level II screen and who trade instinctively.

I am nobody in the universe of traders. However, I am confident that I belong to the top 5% of traders who "seriously" carry on self study for better results so I deem myself qualified to write such a title. (I keep on reading and I had even gone so far to get a CFA) I dont write this paragraph for self boasting. I just want to emphasize that the author really had delivered what is implied in the book title "Rules of the trade - indispensable ...".

Neatly structured, the book consists of 12 paragraphs, each of which about a specific topic, such as rules for the stock selection, rules for entering trades, rules for evaluating performances, rules for money and mind management, rules for this and rules for that...In the beginning of each chapter, related rules are listed.

In "the rules for exiting trades", to name a few: dont expect to squeeze all the juice from the orange; exit on reaction, not price; set mental stops; when in doubt, get out; know why you are in a trade, and where you will exit etc.

In the rules for active traders: size the trade; average winners, not losers; never let a winner turn into a loser; take profits often; never mix disciplines; dont fight the tape etc.

In the rules for the technician: day trade the range and swing trade the trends; always use indicators to confirm charts and patterns; dont make it rocket science, cause it aint; never ignore volume regardless of your trading style etc.

To me, this book is an easy read, well written but still can serve as a good reminder of things I know I need to remember but had somehow forgotten after intensive trading activities. Not a classic nor really insightful, but definitely good value for money!

p.s. The author had named 10 books of note in the Appendix. Four of them would be in my own list of top 10 recommendations. That might be the reason why I consider this book so readable.

This is a great book. I make my living trading stocks and options, and this is the best book I have read recently on the subject of day trading.

To the point, and tells it as it is. Not a cheesy sales promotion like so many other books out there. This author has class and style, and it shows in his writing and content. I recommend this book highly.

I have been trading for 17 years and am getting more and more active because of the new technologies out there. As I trade more, I find trading more a mind game than anything else. I found so many insights in this book that explained the mistakes I have made. The rules are right on the money!

What is also great about this book is the price. I have read books that repeat the same old information four times the price of this one and not worth 1/4 of it. This book is fairly priced and worth four times the cost! It is fresh and new. It teaches something much different than what I have read before, and I read a lot of books on the market. It focuses on real issues we all (traders) face. There are rules about the market, buying, selling, keeping losers, averaging down, emotions, motivations, relationships; all factors that made sense to me. If I could have understood these rules better when I started trading, I know they would have helped me even more. Beginner or experienced, this book captures your attention and keeps it.

Buy this book and refer to it often, because it will help you!

This book is a must read for anyone considering trading for a living-assuming you want to trade successfully. The author, David Nassar, is not only the CEO of a trading firm, but also an experienced trader, educator, and speaker at trading expos. He is highly knowledgeable and he gave one of the best CEO interviews in my book Day Trading on the Edge. David provides nitty-gritty, specific no-nonsense hard advice on trading. There is no filler or fluff in this book, just hard earned trading lessons learned from years of trading. Trading is much easier to talk about than do successfully, and knowing the key tenets of trading can greatly decrease your learning curve. The focus of the book is on eleven chapters containing 95 trading rules that cover all the critical areas that must be mastered to be a profitable trader. The rules cover:

Preparing to Trade; Rules for Trading; Stock Selection; Entering/Exiting Trades; Active Trader;Technical Trader; Evaluating Performance; Technology and the Internet; and Mind and Money Management

Readers of this book should compare how they handle their trading with the rules in this book to determine where they can improve. One excellent feature is the inclusion of a six page trading plan that covers all the bases.

This is one book that you cannot breeze through in one hour. It is not a difficult read, but it so full of information that more time is necessary to glean all the useful advice. The average reader will want to read this book at least three times to garner all the useful information provided. Be prepared with your pen to mark up this book as your read, otherwise you'll miss all the key points.

In summary, if you are seriously interested in succeeding in a very challenging but rewarding career, then buy this book as soon as you can, study it intensely, learn the tricks of the trade, practice discipline, money management, control your emotions and hopefully shorten your learning curve. Any trader will have to master the rules of trading early-on, otherwise the tuition payment to for a trading career may be very expensive.

What a great book. This book was an adventure to read! A real page turner, which is something you can not say about many financial books. I have traded for years and feel this book synthesizes the real essence of trading better than any book I have ever read and I read plenty of books. David has a real feel for the markets which comes through in his writing. Better than his first book, although I would suggest both since this book reflects a more confident writing style that speaks to the experienced trader much more.

As far as other books I think are notable, I would read the classic market wizards book, reminiscences of a stock operator, trading for a living, and the daytrader. There are several others I like but this should get you started. All in all, this is my favorite so far. Awesome job Nassar!

I have read lots, and lots, and lots, of trading books. Most of them are not that great but contain a few valuable nuggets here and there, so they are all worth reading to me.

This book is nothing BUT valuable nuggets. It is well thought-out and well written by a widely recognized successful trader/trainer/manager. It really captures the essence of what short-term trading is all about, of which daytrading is a major component. It's a trading book for traders by a trader. Those just wanting to swing-trade, well, ...good luck. Professional traders trade, period. Good swing trades are found by actively trading, from a daytrading perspective.

Yes, the trading landscape has changed when we went to decimals - for the better! What is discussed in this work transcends the eras. Therefore I consider it to be a 5-star classic. It is not for beginners, it is for stock traders who are constantly wanting to improve. It does not give specific trading set-up tactics that become outdated.

Not much has fundamentally changed in the markets since the tech bubble. Those mastering the concepts in this book will be ready to get rich from the next wave of irrationality in the market, whichever way it goes, and in the meantime can still make a nice living. It belongs on your shelf if you are serious.

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If you want a no nonsense, tell it as it is book, this is it. I love this authors writing style. This book is filled with experience and depth that comes through in an easy to read fashion. Finally a book that speaks directly to the issue of market psychology, and what it takes to be a trader.

The lessons taught focus at the core of what emotions and demons a trader can face. So many books are riddled with useless facts and information that makes them hard to finish. This book is a "page turner". Like a good movie, I didn't want it to end. The book and its author are direct, funny, and interesting.

I really loved this book. I am reading it again and giving it as many stars as I can!

I recently finished the book and think it is a sound choice to add to any trading library. The rules are spelled out and provide a great foundation for building a trading strategy. If you plan to start trading or are trading then this book will provide you lots of insurance against blowing up your account.
It is not however a how to book on trading, if that is what you are looking to read, you will need to search elsewhere.