The Three Skills of Top Trading Behavioral Systems Building, Pattern Recognition
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Praise for The Three Skills of Top Trading
"Professor Pruden's new book, The Three Skills of Top Trading, is unquestionably the best book on a specific trading method and the necessary attributes for trading that I have read. His logic, understanding of human foibles, and use of the Wyckoff method of trading are broadly referenced, readable, understandable, and entertaining."
- Charles D. Kirkpatrick, II, CMT, coauthor of
Technical Analysis: The Complete Resource for Financial Market Technicians, Editor of the Journal of Technical Analysis, and board member of the Market Technicians Association
"At long last, someone has taken the time and effort to bring the work and insight of Wyckoff to wider public attention-and Hank Pruden has done so masterfully, with great clarity and eloquence. Hank has taken the best of Wyckoff's work, combining it with the essential aspects of trader discipline and psychology, to provide a highly readable and particularly useful guide to trading. MUST READING!"
- Jacob Bernstein, www.trade-futures.com
"Hank Pruden puts all of the elements needed for successful trading into one volume. This book not only belongs on every trader's shelf but should be close enough for continuous reference."
- Martin J. Pring, President, www.Pring.com
"Dr. Pruden has brought together his lifetime of work in developing a modern approach to analyzing and trading the markets built upon classic market analysis from the early part of the twentieth century and topped off with modern-day tenets of behavioral finance and mental state management."
- Thom Hartle, Director of Marketing for CQG, Inc. (www.cqg.com)
"I usually consider a book to be well worth reading if it gives me one paradigm shift. I believe that this book will give the average investor a lot more than just one."
- Van K. Tharp, PhD, President, Van Tharp Institute
This book is written about how three mutually reinforcing links make a complete trader.
1). Pattern Recognition and Discretionary Trading.
Using the Wyckoff method you will see chart representations of how hot stocks are accumulated in bases for long periods of time, have pull backs then break out to new highs. You will also see how they eventually have exhaustion tops that fail to rally and they behind to break down in distribution. The author encourages discretionary trading through experience by being able to identify market action through the past models. I agree completely.
2). Behavioral finance and systems building.
You must be flexible in your trading. You are merely a ship on a sea of opinion. Follow the prevailing sentiment during the middle of the the trend, and go contrary to it at the extreme tops and bottoms. Hope, fear, and greed are the dangers in the market and move the markets in many ways. The action of the stock market is nothing more than a manifestation of mass crowd psychology in action. The Pruden model shows a chart of how accumulation, mark-up, distribution, and markdown works in the market tied to price, volume, sentiment, and time. It truly explains how the market in growth stocks works.
3). The ten tasks of top trading:
Daily self analysis
Daily mental rehearsal
Developing a low risk idea
Stalking
Action
Monitoring
Take profits or abort
Periodic review
Daily briefing
Out
The book covers all the aspects of trading psychology in depth, I found this information to revolutionize my trading and I have read over 100 trading books. It is worth the price of the book alone.
The book also discusses the principle of the "Composite Man", it is much like Benjamin Graham's "Mr. Market". It explains that you must think of the market as one person you are trading against and your job is to understand how he is trading to adjust your trading accordingly.
This book is geared toward traders who rely on patterns and psychology, and will appeal to traders interested in these styles. This book is a key book for all traders who truly want to be successful.
Product Details
Ebook: 304 pages
Publisher: Wiley; 1 edition (April 6, 2007)
Language: English
ISBN-10: 0470050632
ISBN-13: 978-0470050637
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The Three Skills of Top Trading Behavioral Systems Building, Pattern Recognition
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