Top critical review
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No logical explanations for the trades provided
on March 28, 2017
Mastering the Trade presents tons of example trades with various indicators over many types of markets. Unfortunately, the author rarely ever explains why he picked the indicators he does, or why the trade should work. Most of the example trades given are winning trades with very few losing examples, showing how much the trades were cherry picked.
The book trails off on side stories too often. Constant mentions of the author's wife are made and what she thinks of his trading profession, and his wife even writes one chapter in the book. While it was fine in the introduction it got very tiring, especially in the later part of the book where he spends multiple pages describing a situation where he went to a concert with another woman and returned home drunk to find his wife very upset.
Somehow the author denigrates long term investing as an extremely risky approach. He says staying in a trade overnight is a crazy risk to take, as he explains how you never know what could happen in the world. Yet in the beginning chapters the author talks about how he blew through his life savings and a down payment on a house and had to lie to his wife about it. The author writes that as a trader you will certainly go bust many times while trading.
There's plenty of links to the author's website and at this time (2017) the website seems to not functioning well. The author is selling different courses and products there. It is fairly obvious that the book is a cross promotion for his products.
Additionally, there are very few back-tests and many sample size issues. The author never runs simulations, he seems to trade just based off setups and ideas. In one trade he just looked at the MACD and some pivot points and realized it was a great setup; of course this trade was a big winner for him. At some point I was wondering why the author is trading in so many different markets with tons of different setups.
Some stories stretch beyond the point of absurd. The author says how he was planning a trip to Europe. Before going, he wanted to hedge out his currency risk between the EUR and the USD as he thought there might be some currency fluctuations that would impact him badly. At first, I thought he was making the trade just as a fun thought experiment. But after reading the story fully, it seems like he actually was concerned about having exposure to the EUR currency for a 2 week vacation.
I am giving the book 2-stars because there was some okay information explaining the futures market and how the mini-S&P works. Otherwise this book is definitely not worth the time.