Customer Reviews

Trading Rules that Work: The 28 Lessons Every Trader Must Master

5 star:		(17)
4 star:		(2)
3 star:		(0)
2 star:		(4)
1 star:		(1)

 

 

The author, a 20-year trader and market analyst, provides 28 concrete trading rules in this 192-page book that will aid the newbie or experienced futures and FX trader control their inner self when trading. It is also useful for traders of equities and other investment vehicles.

According to the author there are three keys to successful trading:
1. A trader understands their his own psychology
2. A trader masters the psychology of his personal trading rules, and
3. A trader understands and masters the market's psychology

The book is equally divided into four parts: getting in the game, cutting losses, letting profits run, and trader maxims. Jankovsky devotes one chapter to each of the 28 rules. A number of the rules are well known such as have a trading plan, cut losses and let profits run, don't overtrade, and never add to a loser. Others are not as well known such as keep good records and review them, don't second-guess your winners, and all markets are bearish.

In all cases, the author provides excellent insights, a thorough discussion, and good advice on how to implement each rule. Jankovsky notes that traders who consistently make money have a trading plan with specific rules, while losing traders typically have no plan. He believes that it is critical for the trader to keep accurate and comprehensive records of all trades, especially recording what you were feeling and thinking while making the trade.

The author suggests that those interested in trading read books by great traders and focus on how they think and leverage their experience into your own. Also provided is a list of recommended reading, which includes eighteen books focusing on psychology, contrary thinking, and crowd behavior. It is important how a trader creates the market in his/her head, since trading success will depend upon how you see and interpret the market's input.

The book has only a few tables and charts. Unfortunately, a few of the charts are only one-third of a page in size, and the small-boxed comments are hard to read. Half-page charts would have been clearer.

In summary, anyone considering trading for a living, whether using futures or equities, can glean very useful, practical and implemental trading rules that will provide a basis for trading success. This book is a welcome addition to the field. As the author of Day Trading on the Edge: A Look-Before-You-Leap-Guide to Investing published in November 2000, and a voracious reader of over 500 trading and investing books, I found Jankovsky's book easy-to-read and very worthwhile.

First, let me say that I do recommend this book to any trader no matter what level they are at.

I did like what Mr. Jankovsky is trying to point out to traders out there - that there is more to trading than just a trade "strategy". There are some things in this book that a trader needs to really think about ie their trade plan, thinking thru your exit strategy, really think about your own psychology, etc, which is where the 2 stars came from in my review of this book.

However, the book falls short of really giving the reader something useful in other areas. For example, 80% or so of market movement are traders getting out of their positions. That's great to know - but how do I trade with that knowledge? If I look at a chart now with that knowledge will I see where to get in and to short now or go long? No, because he doesn't explain how to actually use that knowledge. Another concept from the book: you have to ask yourself where is the loser? Well, again, how does that help me? He doesn't point out how to see where the losers are. That's like saying "You really need to go long when price hits the bottom." Ok, but how do I know where the bottom is? The ideas like that he presents is about as useful as "Buy low, sell high."

He seems to be little negative about technical analysis and how that doesn't work and that the real question is where is the crowd going to panick and figure out that their long is no longer valid and decide to bail out. But again, he doesn't tell us how to determine that. HELLO!!! You don't need to sit there and try to get into trader's minds that you can't even see or know because there is this thing called "technical analysis" that incorporates all the emotions and strengths and weaknesses! For example, if I see a big spiked rejection hammer at the top of a run, I don't have to take 15 minutes and talk to myself trying to evaluate what all the traders were thinking when that happened - a hammer at the top of a run shows huge weakness. Period. Done. If there is another way to determine what the bulk of traders are thinking, then I wish Mr. Jankovsky would have shared it with us. If there was, then why didn't he simply tell us how? He wrote this entire book, but then didn't really tell us anything about how to determine things like that. It's like writing a book on the cure for cancer, but never actually giving out the formula for the drug. Very frustrating to read this book in that regard.

But the other things mentioned in the begininng of my review do make this book worthwhile to read.

After 4 and half years of very little monetary success, this book has revolutionized my thought processes into the nature of price movement. Some say trading is a science. Others say it's an art. Being a mathematician by trade, I was partial to the physical science side. Now, I firmly believe it's a combination of physical and behavioral science with a dash of art. Repetitive human nature and the ability to plot that behavior graphically are the behavior and physical sciences in concert. To manipulate those graphs over varying time frames for profit utilizing these 28 trading rules is truly an art form made possible by the aforementioned sciences.

I found Mr. Jankovsky's use of phrases and concepts ("net order flow") to be refreshing and provocative.

Mr. Jankovsky has given me a renewed energy and zest to pursue the most challenging undertaking of my life. With the economic times we're facing, trading may become the last profession for the average person like me to attain any type of financial security. No other job on earth allows the flexibility of hours and workplace to say nothing of the breath-taking profits that can be achieved. The market will reward you for your efforts in understanding the nature of price movements. As a lot us can attest to - there is no guaranteed direct correlation between hard work and rewards in the corporate world. Trading is truly a blessing but it is hard work. Trading is as stable a profession as there is on earth.
If something were to happen to the stock market, we would all have biggest fish to fry at that point!

All I can say is thank God I didn't give up before reading this book!!

Don't surrender at the dawn of success!!!

Are you an aspiring trader? Have you ever wished that you had connections in the trading business, a mentor to guide and teach you? This book is the closest thing you will find in print.
All too often as traders our focus is on indicators, historical price action, and our interpretation of fundamentals. We compile that data, interpret it as we will, and enter our trade.........only to see our position move against us almost immediately. Now what? YOU REVIEW YOUR SYSTEM, OF COURSE! Maybe, just maybe, there is more to it than that.
Jason Jankovsky tells us that we must understand ourselves to trade effectively. But then he does more. He explains how a lack of such understanding can consistently destroy ANY trading system. He explains that a true understanding of your motivations, and the motivations of those trading against you, is more valuable than any indicator, and he correlates his commentary with examples that you can relate to. In Jason's own words: You don't really need to answer the question which price is coming next; you need to answer the question where and when will the loser quit?" Then Jason shows you how to figure that out.
Buy this book! You won't regret it.

This is no ordinary trading or trading rule book. It's the best amongst the approximately two hundred ones of its kind I had ever read. The author had cut into the core of successful trading "Where is the order flow?" and the unique characteristics of zero sum games "Where is the loser?" in a well written, organised and analytical manner that links or even goes beyond discussion of sheer TA, FA and psychology. Highly insighful and useful. A must read!

Below please find some of my favorite passages for your reference:-

About 80 to 90% of price action is simply the losers liquidating their losing trades. When you begin each day, and before you place a trade, ask yourself this question: "Where is the loser?" pg 7

Different time frames are competing, and the intention of one time frame is not always the intention of another. Your best trades occur when your own time frame is the same as the time frame currently in control of the market at that point. When that changes, your trade is over. pg 27

Once the news is out, traders will behave not according to the news, but according to their perception that the news was either better than, worse than, or as expected. Once they execute from that perception, the market has order flow. How the market behaves with that order flow is a clue to the market's real nature, not the market's expected nature.....The point is simply that observing the market's actual behavior post news gives the clearest indication of how traders are currently positioned., how nervous or confident they might be, and how willing they are to execute. pg 127

This guide blueprints 28 rules for trading success. Straightforward and simple in their statement, they are pregnant with meaning for anyone who has ever ventured into a zero-sum trade.

Jason Alan Jankovsky is the exception to the rule that those who "can, do and those who cannot, write books." Leaf through this book's first few pages and you will quickly recognize the depth of his insight. His rules are clearly and concisely stated. The author explains the psychology behind each. His explanations drip with the insight that can only be bought with one's money on the line. Once understood, the rule becomes easier to employ.

The rules, perhaps they are better defined as guidelines fall into four categories:

* Part One: Getting in the Game outlines the psychology of market price action.
* Part Two: Cutting Losses shows you how to protect yourself in today's markets--even when it is emotionally difficult to do so--by developing a set of unique trading rules.
* Part Three: Letting Profits Run covers the few simple rules you should follow in order to remain in a winning trade.
* Part Four: Trader Maxims examines trading's most common rules.


When I read the work of a master, and make no mistake, Jankovsky has earned that title, I always pick up something. Personally, Part Two was a revelation. I had never thought to commit my personal trading rules to paper. Detailed, specific and goal-oriented rules that can be review each day - both before the opening and after the close. It was hard work writing them. It is even worse, trying to remain true to them. Yet I have seen a discernible improvement in my discipline as a result of this exercise

Successful trading takes discipline, desire, knowledge, and skill. The 28 rules, insights, and guidelines found in this book will push you towards your goal of consistent trading success in what for many is anything but.

A must-have book on trading. Why? It really forces you to think for yourself. To paraphrase a well-know fishing analogy, teach someone a system, they trade for a while...help someone to think and they can trade for a lifetime.

And trade is the key word, you are not investing, etc, but placing your psyche and cash on the line. Each of the "rules" gives you the chance to think through a critical concept and come to grips with what can work with you.

Each "rule" is clearly and concisely developed. No BS or watered-down drivel. Each is consistent within the larger picture.

I could write more for you to read here, but your time would be much better spent reading Jankovsky's 28 Rules for yourself.

This book simplified what is really going on. For me it was easy to read and understand. It cleared a lot of that mysterous fog asto why and when prices fluctuate the way they do. I have implemented some of these ideas and I am alreay benefiting from better trade entries and exits.

If you are looking for a how-to book on trading, forget it.
If you are looking for set-ups, entry points, etc. forget it.
If you are looking for a list of trading rules, save your money, you can find (basically) these same rules for free on the web.
Actually READING this book will not help you AT ALL.

Then, why do I give Trader X/Jankovsky's book 5 stars? Because in my view it is one of the best trading books out there, provided that you use it not as some sort of recipe, but as it was meant, as food for thought.

Keep in mind that the premise of the book was to explain why rules DO NOT work (from the Introduction: ... that became the basis for this book - answering the question "Why don't the rules work?"). Actually, if you think that you can have a set of rules handed to you, follow them and then trade profitable, be ready to join the legions of guru followers that waste both their money and their time because they simply REFUSE TO THINK.

I have read this book already three times, and every single time I learn some new insight (ok, it maybe I'm a slow learner! Yet I'm more inclined to think the book is that good).

Jorge

I give this book 5 plus stars. I was about ready to give up and thought maybe currency trading wasn't for me. I had listened to Mr. Jankovsky speak every day from Infinity Brokerage for about a year but I still wasn't happy with my ability to trade currency.

When Mr. Jankovsky suggested reading his book, I perked up because I learn much easier by reading and re-reading.

This book turned my attitude around.....I didn't give up.....and I applied the principles the book suggested and found they worked!

Am I rich yet....no but I am on my way to becoming a profitable currency trader.

P. Murch