Power in the Book List

There are two books that I highly recommend and suggest everyone read. Technical Analysis for Dummies and The Market Makers Edge are two of the most beneficial books I have read on the list. The Power of Focus is also very good. I realize a couple of these books have been suggested by other members of this site, but I am confirming how important the two books can be to a trader.

I reached a point in my short trading career when I hit a wall-again. It was like "Writers Block". I could not do anything right. I would enter trades and shortly after, they would turn against me, causing me to lose money. I lost over $2000 in the last two months. That is a ton of money for me because my basket is limping along. I again reached that point where I felt defenseless and defeated. I consulted with some of you guys for a little guidance, but I continued to make mistake after mistake. I was "nickel and diming" myself. My losses were small, but they were adding up over weeks and months. If you lose $50-100 enough times, you will shave $2000 off before you realize your basket is slowly dwindling down.

I chose to dive back into reading and studying. I desperately wanted to learn a strategy that worked 80% of the time. This 40-60% stuff was not going to work. I had to make changes. Well, I picked up two books that I had already read- MME and TAFD. On Saturdays, I would isolate myself from everyone for about 4 hours and combed parts of both books. After praying, reading, studying and more praying, it hit me as I was reading about trading signals. I had my "Aha" moment! I sat up, read 4 or five pages again, and again, until I was convinced that I understood the concept and knew how to add a couple of Gary's other rules. I left the room and decided to return being a family man. I took my family to a movie, but did not enjoy a second of it because I wanted to test what I learned. When the movie was over, I rushed home and headed back to my office area. I tested the strategy once and it worked well. I tested it again. It worked well. I tried it again, and again, and again. I had tried this strategy 10 txs and every single time, it came my direction. That was the first time I had that experience. I thought it was a fluke, so I slept on it. I woke up the next morning and started testing again. Well, I have now practiced this strategy approximately 35 txs and it has come my direction EVERY SINGLE TIME! The point I am trying to make is, when using Gary's concepts and rules along with what is being taught in the books, trading with confidence can come through successful practice plays. I am pretty confident right now. I tested my strategy on one of the most volatile stocks- AMZN. It worked well again. I have had to identify 5 stocks in my basket because my strategy only shows about 2 txs a week in each stock. I have to wait until it sets up. When the critical peices are in concert, and you know it is a trade, BAM! Enter the trade! As Gary said, " If you find a strategy that works for you, do it over and over and over again".

Test strategies after market hours by using TOS "On Demand" function. That function alone is worth $100 a month. You are allowed to run the market in "Real Time" during any previous day over the past several years. You can fast forward, rewind, or pause. I use my SD for execution because those charts are set to parameters of Qcharts. I was able to test my strategies using real time. That has been extremely valuable to me. I clearly know what WOULD HAVE happened-if I would have been in a "real trade".

Really appreciate you sharing this! It really helped me keep on track and not to give up!

Yep...they are really good books...

Great words of advice! Through your learning, did you (by garys instruction) pick one stock then predict what the stock would do at each interval? I have read the first 15 books, but I am at a standstil. I will read TAFD. I guess I am looking for the "plan that works for me"

Bdollar20,

It has simply been a transition for me. I started by trading everything-trying to get my 40 trades in a week. This was really good for me regarding the basic learning aspect of trading, but it forced me to look at so many different stocks. I was never able to find that small number that worked well because I was trading in every sector. I was trying to follow all the rules, but I did not start to learn a style until I found a few stocks that I like. I only practice the stocks that are in my basket.

It is apparent that practically everyone has a different style or technique of trading. Some like holding positions for multiple days. Some are not as confident in the market and trade intraday. Some have limited time to sit at the computer and follow candle formations and again, intraday strategies. There are so many ways to trade and so many charts, indicators, philosophies, and concepts that Gary's students use. It has taken me forever (seems like) to find a strategy that works for me. I finally understand that holding overnight for me means, I do not sleep the night I am in a position-period! I can not abuse my body to that degree. I have recently figured a way to trade intraday. My issue is, the movements are small. I am almost pinpoint accurate, but many times, I get very small moves in my direction. It is not all about making tons of money, but I have to trade well enough to build funds and eventually reach my goals. I am working on ways to start trading larger positions. I have tested a specific approach well over 100 times and can count my very small missed trades on "one hand". I will stick with this approach because it works for me intraday, but I must trade much larger positions, if I plan to make money. This concerns me a little because if I miss big, I could loose a ton of money.

My style revolves around MA's, candle formations, previous day's activity, and broad market direction. I have my charts setup so I can see my 55 and 13 on the same screen. Those are my two main charts for intraday. I look at my 233 the night before only for trend. I take a peak at RTT. If it shows previous trends that are consistent with my direction, I have added confidence.

My humble advice would be, find your niche. How much can you "stomach" losing? Does your job allow you to keep a close watch on the market and news? Do you have all the tools you need? If you know your tolerance level, start practicing approaches around your tolerance. For me, I rarely look at the Daily because the 233 gives me the trend info I need for intrady trades. Read and study the section on the 4 trend signals in Market Maker's Edge. Most of my trading approach is found in that section of MME. If you have been reading and understand Gary's rules, those pages will glow like a light bulb.

I am sorry to write these books, but you guys are my only attachment to any of Gary's teaching. I get a little carried away sometimes. I hope this helps.