The New Trading for a Living

Market analysis is very important—but remember that when we look at a chart, we deal with only five pieces of data—the open, the high, the low, the close and volume. Piling up masses of indicators and patterns on top of those five values only increases confusion. Less is often more. If you’ve read Trading for a Living, you’ll see that I’ve reduced the number of technical chapters and moved some of them into a downloadable addendum. On the other hand, I added several new chapters that focus on new tools, notably the Impulse system. I also added a section on stops, profit targets and other practical details.

Money management is extremely important because financial markets are hotbeds of risk. That was the weakest part of the original book, and I completely rewrote it. One of many tools you’ll discover will be the Iron Triangle of risk control.

Psychology, trading tactics, and money management are the three pillars of success, but there is the fourth factor that ties them together. That factor—which integrates all others—is record-keeping.

Keeping good records will enable you to learn from your experiences. It’ll help you break out of the vicious circle of small gains and big losses, running like a squirrel in a barrel, sweating and stressed but never getting anywhere. Keeping good records will make you your own teacher and a better trader. I’ll show you several types of records you need to keep and will share several of my trade diaries. If you’re a new reader, welcome to the journey. If you’ve already read Trading for a Living, I hope you’ll find this new book two decades smarter than the first.