By Kathy Lien and Boris Schlossberg
John Wiley & Sons, Inc.
406 pages, $39.95
Using a question and answer format, this book offers insight into the lives of a dozen traders, including background, trials and tribulations, trading methods and tools used, best and worst trades, key lessons learned, and how they achieved financial success. It begins by identifying one significant trading idea from each trader. While a few of these principles are common knowledge, others were more insightful. For example, using probative orders, knowing that revenge is never sweet, knowing yourself and knowing your trade. An explanation of each trader’s key lessons is summarized at the end of each chapter. I would have welcomed more trader interviews and viewpoints. Perhaps in the book’s revised edition, the authors will consider eliminating the background and family information, which was not very useful, and instead interview more traders. The most useful questions pertained to the trader’s approach, methodology and lessons learned. One excellent part provided guidance about when to start to trade. In particular, they covered the importance of being well capitalized, the reality of expecting to lose money for the first six months of trading, testing strategies before trading, trading to your personality, using stops and including the right tools for trading.
Overall, this book is best-suited for new traders and those looking to make improvements to their existing approach. The traders profiled provide many practical ideas that can hopefully be adapted by readers to improve their performance. Knowledge and a trading plan with specific rules are both critical elements to making consistent profits. This book offers a realistic look at how selected individuals made the transition to a successful trading career.
Leslie N. Masonson is president of Cash Management Resources. He is the author of All About Market Timing and Day Trading on the Edge. E-mail: lesmasonson@yahoo.com