High Probability Trading

6 Responses to “High Probability Trading”

1. James Lor says:

   September 12, 2010 at 8:18 pm

   Review by James Lor for High Probability Trading
   Rating:
   I’ve read some of the reviews (or should I say criticisms) of this book. They write that it’s for beginners, there are just a couple of setups, and the obligatory discipline “cut your losses” warning chapter. I think people are missing the big picture.If you want a detailed book about technical analysis, with lots of explanations, setups, etc. etc., there’s “Technical Analysis Explained” by Martin J. Pring, or you can buy something by Jack Schwager or John Murphy.If you want a book about building and testing a trading system, there’s “Trade Your Way to Financial Freedom” by Van K. Tharp.If you want a self-help book about discipline / psychology, there are a lot of those, some in the investment section, some in the psychology section.If you want a book about day-trading, there are a ton of those as well.The thing I like about this book is that everything is there in one place. At the end of each chapter, the author gives you pointers on what to do and what to avoid doing to reinforce your memory of the principles. The book is written in a very readable style. I got this book about three weeks ago, and by applying some of the principles I learned from the book, I made two profitable trades (which I would not have normally made) and avoided making a trade which I normally would have made. This trade would have been a loser. As a result of reading this book, I made and saved enough money in the last three weeks to buy ten copies of this book. Isn’t that why we read these books???

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2. a professional trader says:

   September 12, 2010 at 9:14 pm

   Review by a professional trader for High Probability Trading
   Rating:
   This is probably one of the most realistic books on what it takes to trade professionally. The author starts by correctly stating how difficult it is to trade successfully. He gives a time frame of 3 to 5 years, although he states it took him seven years to be consistently successful (he refers to himself as a slow learner).

   He also discusses unrealistic expectations of beginning traders, who typically open accounts of $10,000 to $25,000, and expect to make a living trading such accounts. The author notes that the best fund managers on Wall Street, who can consistently return 35-40 percent, command salaries in the seven and eight figures. Even if a beginner could produce such returns their first year (extremely unlikely), could they live on 40 percent of $10,000? When Wall Street investment firms want to hire a trader, they go to the best business schools, recruit the top graduates, pay them maybe over $200,000 their first year just to sit in training classes for months. They tell these trainees they do not expect them to make any money for at least two years, and these are individuals who have access to some of the most experienced traders on Wall Street. When they do finally start trading, they are closely watched and given only modest amounts to trade. Would you be surprised to know that the average professional trader is successful on only approximately 50% of their trades? With some futures trading systems, it is closer to 30 percent. This is why taking losses quickly is the single most important aspect of successful trading.

   The book also covers the basics of trading systems, including indicators, stops and exits, typical trading system characteristics, backtesting and system writing.

   While he also touches on trading psychology, this is the weakest part of the book, and is mostly biased towards his own hurdles, which were taking too large a position in too many different markets. He refers to this as “overtrading”, although I would define overtrading differently. For those looking for a book on trading psychology, try Mark Douglas’ books, such as “The Disciplined Trader”, and “Trading in the Zone”.

   Finally, the book is interspersed with anecdotes about real trades and traders, which are invaluable about how not to trade, and are often hilarious. One example, the author stated he once held positions in 15 different futures markets at one time on a $5000 account, although this seems impossible, if one was to meet the margin requirements of each market.

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3. bemydemon says:

   September 12, 2010 at 9:39 pm

   Review by bemydemon for High Probability Trading
   Rating:
   At the risk of being repetitive, I’m going to have to give this book another stellar review. Like many others, I have read a hundred other trading books and this one stands heads above the rest. The author is obviously an active trader and is not ashamed to divulge his weaknesses, even current ones. He covers all of the necessary bases (psychology, money management, risk management, setups, tradeable markets, etc.) without being exessively wordy. He is one of the few traders who can actually write relatively well. He manages to explain arcane and complex trading concepts using understandable and economical word choices. The review structure at the end of each chapter is an excellent technique to enhance the learning process.Yes, most of the information is more useful to the novice trader but one neeeds a basic comprehensive understanding of trading to get the most benefit. On the flipside, since it is so inclusive, the book could serve as an excellent refresher for the seasoned trader. That trader might even come across a concept long forgotten and be able to turn it into a profitable strategy.HPT has become my primer. I come back to it every few months to review sections that I feel weak in. I recommend this book to everyone who asks me for that “one book” that can get them a head start in learning to trade.Great job Mr. Link! I eagerly await your next contribution to the world of trading literature.

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4. Book Maverick says:

   September 12, 2010 at 9:43 pm

   Review by Book Maverick for High Probability Trading
   Rating:
   I would re-title this book to read, “Basic Trading Concepts”. The book is nicely put together and does provide a good deal of information but the title is totally misleading in my opinion. Most of the material provided is general trading knowledge and not specific “high probability trading” methods. I was expecting actual techniques and specific entry and exit systems. If you’re new to trading, this book will give you the basics. If you have been trading awhile, this book is mostly milk and no meat.

   JD in Pennsylvania
   

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5. ServantofGod says:

   September 12, 2010 at 10:33 pm

   Review by ServantofGod for High Probability Trading
   Rating:
   I had read tens if not over a hundred trading books (and written many reviews here on Amazon), This is by far the best I ever picked. It really helps!The author had covered most of the topics that should be included in a compleat guide of trading (trading psychology, uaage of TA, money management, trading system development….). Some of his key points are:-1. Top traders are essentially pro gamblers who only bet when the odds are in their favor.
   2. Trading must be dealt focusedly as an entrepreneurial business with loss (must be relatively smaller than profit) taken emotionlessly as regular business cost.
   3. Good money management is the common denominator of all successful traders irrespective of their style.
   4. TA is bascially a trend/fact finding process to be searched through multiple time frames, verified with different indicators, and that TA can be applied on indicators as well (trendline in MACD, and CD between price and MACD)I personally like the no nonsense and humorous writing of the author much. The summary and point form “do’s and dont’s” in the end of every chapter did help me to memorise what I had studied for long. His clever use of graphs in the TA tools section is really outstanding. Believe me or not, his use of less than 10 pages on the explanation of MACD is a lot more powerful than many TA books that used up over 100 pages on this single topic. In short, it’s a must read for any player who wants to improve his/her edge over the ocean of competitors in the market. My salute to the author who writes me this excellent book.

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