19 of 21 people found the following review helpful
Trading success comes only with your winning trading system,
This review is from: Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude (Hardcover)Although I am in agreement with most of the statements that define the problems a trader faces such as:
"You need to develop a winning attitude and not expect the market to give you what you want. Your success as a trader depends on you and not the market."
"If there is a thing as a secret to the nature of trading, it is:
(1) Trade without fear or overconfidence
(2) Perceive what the market is offering from its perspective
(3) Stay focused on the now market open flow
(4) Spontaneously enter the "zone" which is an unshakable belief in an uncertain outcome with an edge in your favor."
I disagree with the author on the solution as I will discuss below.
Furthermore the author says that when you ask successful traders what their secret is, they give you generic answers like "cut your losses" etc.
The author postulates that all this points to that successful trading is a mindset and a winning attitude rather than a " Trading System".
My experience in moving from being a boom and bust trader to a consistently profitable trader with a growing equity curve, has convinced me that to have the winning mindset needed to be successful and a winning attitude you must have YOUR winning trading system first.
Each trader has a different background and one trader's winning system may not work for another. I am convinced of this since before moving to my current location I belonged to a trade group run by a successful trader in the Midwest. His goal was to help participants develop their own trading systems. Although these systems were different they had several common themes: (1) Clear entry signals. (2) Clear exit signals. (3) Complexity of the system should match the traders background, a computer scientist or math expert are likely to have a more complex system than an art or science background trader.
Once you have a winning trading system with losses factored in, your mindset will change since you will have many more winners than losers, you will trade without fear or overconfidence. Your system will make your actions automatic and allow you to stay focused on the market and it will be easy to get out when your exit signals say so.
This will turn you from a struggling trader to a winner while no amount of psychology will.
In my opinion trading psychology books remind me of options. Amateurs buy hope (options) while professionals are happy to sell it to them. Buying such books is like buying hope and the author and publisher are happy to sell it to you.
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Showing 1-7 of 7 posts in this discussion
Initial post: Jan 3, 2009 5:40:01 PM PST
Posted on Feb 8, 2009 8:15:10 PM PST
Lois L. Jezek says:
Thanks, now I know what my problem is... I want to buy 'hope'...
You are so smart.
Posted on May 5, 2009 6:15:51 AM PDT
Daniel Ginensky says:
First of all, thanks for a thoughtful and well written review. I appreciate your ability to identify the value in this book while you disagree with one of the books central thesis (namely that having a trading system must preceed the mindset).
Would you care to recommend a book that offers a guide to developing an indidualized trading system?
In reply to an earlier post on May 9, 2009 6:27:26 PM PDT
[Deleted by the author on May 16, 2009 11:03:24 AM PDT]
Posted on Sep 8, 2009 11:05:42 AM PDT
In reply to an earlier post on Oct 23, 2009 8:20:07 PM PDT
Jeff Turner says:
Thanks for your compliment on the review. I started using the system described in Generate Thousands in Cash on your Stocks Before Buying or Selling Them: Third Edition and obtained encouraging results. I have reviewed this book on May 16 based on results I had with it the first couple of months. I decided however to delete my comments and wait until I had further experience with the book.
Initially I used my broker website to enter as many of the criteria as possible from the book . I was getting around 70 -120 stocks from the scan and then visually inspected them for condition requirements I could not incorporate in the scan to end with a couple to trade and few to palce on the watch list. This was tedious and time consuming so I decided that there has to be a more efficient way.
Since June I had used Metastock to code the criteria in the book's system and had scans producing less than 15-20 stocks.I was able to quickly zero in on one or two trades and since then I have been making a killing.I will not quote my returns since no one will believe me.
Luckily I am good at programming so I have somewhat of an advantage on some average traders. I am sure that there are other good systems or even an adaptation of the system I mentioned to fit your trading style may work. Unfortunately as I realized trading is not an easy way to make a living and I had to persevere to reach the profits I am at now.
Just my two cents for what it is worth.
***PLease note that Czytanka (comment Sept 8 2009)has also reviewed this book and also gave his opinion of it. This way you can make your own mind.
Posted on Oct 19, 2012 8:08:12 PM PDT
Thanks for your helpful review Jeff. So which book would you recommend as far as trading system.
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