Author : Gary Smith
Date of Publication : 1999
This was the very first trading book that I have read. I remembered I was still very new to the stock market when I picked up this book. However, Mr Gary Smith's free-flowing writing style enabled me to understand the trading rules, principles and techniques shared by him.
In the prologue, Mr Gary Smith described the routines he would go through in every typical trading day. The steps he took might seem “boring” and mundane but after I started trading on my own for a period of time I realised that the steps he took every day were important. To be a good trader, I realised that he or she must have the discipline to monitor the market, especially the market indexes like the Dow, Standard & Poor’s (S & P), the Nasdaq 100 etc. diligently & consistently so as to equip oneself with the latest information about the market sentiments before making an important decision to enter a trade or to exit a trade. His diligence was revealed in how he described he would tape CNBC programs to review them when he weren’t available to watch them live.
Mr Gary Smith shared various kinds of sentiments indicators that he has tried and tested in his trading journey and the relevance of these indicators in his trading decision.
Mr Gary Smith used mainly pure price action (momentum & divergence) to trade mutual funds. Chapter 12, considered the most important chapter by Mr Gary Smith, detailed the various momentum & divergence patterns eg. V-bottom upside reversals, late-day upside price surges, Friday-to-Monday momentum etc. that he had used in his real trading between 1998 and early 1999 to show investors how he has harnessed this patterns to grow his portfolio. Frankly speaking, I have yet to find out whether such momentum patterns would be applicable to stock trading, but Mr Gary Smith did mention that such momentum patterns might be applicable when trading tech-related futures & options, though he traded mainly tech-related funds when such patterns evolve.
Conclusion : In my opinion, I find this trading book an interesting & informative read for investors of any levels. If you are a momentum trader, this would certainly be an important book for you, especially the different momentum trading patterns shared by Mr Gary Smith in Chapter 12. Do tell me your experiences and your opinion after reading this book.
You can also read further reviews of this book from Amazon.com before buying it. This book retails at $30.40 at Amazon.com
Yours Truly
Carol Leng
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