From the October 01, 2011 issue of Futures Magazine • Subscribe!

Trade to Win: Proven strategies to make money

Book Review

Trade to Win: Proven strategies to make money
By Thomas L. Busby with Patsy Busby Dow
John Wiley & Sons, Inc., 2009
$60.00, 192 pages

In “Trade to Win: Proven strategies to make money,” professional trader, broker and trading educator Thomas Busby and ghostwriter Patsy Busby Dow, attorney, trader and educator, explore what it takes to be a successful trader, consistently over time in a 24-hour a day global market. How this can be done is a lesson for the trader and investor who is serious about making money.

“Born again, to trade again” could be an alternative sub-title to describe Thomas L. Busby’s longevity in the trading markets after nearly 60 years on this earth. That he has stuck to his chosen, ultimately successful, trading method despite “losing his shirt” in the crash of 1987, is a testimony to resilience, persistence, discipline, restraint and self belief: Qualities that Busby in his book avows are essential if others are to thrive in trading modern markets as well as he has.

“Trading is not easy, and I have suffered my fair share of setbacks and losses,” the author says in the book’s preface. “But, I have learned from my experiences and I am a survivor. I enjoy trading.”

That he enjoys trading and educating people to trade markets is clear throughout this down-to-earth and practical book that any trader seeking to understand markets and embrace the tools of the trade will do well to heed. Trading takes work and preparation; and the importance of educating oneself about the markets as they bend to the winds of change is, says Busby, axiomatic to making money.

Organized in three parts, Trade to Win begins by explaining the fundamental elements of Busby’s approach to trading. It outlines the importance and use of time, key numbers, and market indicators. Part two develops key strategies to deploy for trading stocks, options, futures, gold and exchange-traded funds. One key take way from this section is Busby’s admonition to jettison a stock that “is not paying you.” Busby says, “Once the profits fall, get out of that particular play.”

Part three, titled “The Wild Cards,” goes beyond the numbers and looks at a few, often overlooked aspects of trading, such as risk management, money management and how to curb the powerful emotions of fear, greed, arrogance, shame, glee and panic that can derail even the most educated and well prepared trader.

Throughout the narrative, each chapter is peppered with some 31 Pearls (of wisdom), such as, “When entering a position, always know where the exit resides” — aphorisms that, in effect, are cleverly placed illustrations of points the author wants you to remember. Well-placed figures and graphs round out an exemplary book that will help the novice trader step carefully through the minefield of market trading and offer the veteran trader some pointers to continuous profitability.

Patrick Kelly is a freelance writer with a background in commodity market reporting.

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