By now, if you scan the internet on stock trading, you probably find billions of information on how to be successful stock trader. Albeit, it’s a slow process as you have to sieve for the nuggets of true, practical and useful info. There’s an overwhelming feeling of information overload. Many advices are given, with good intention, but many seemed contradictory even in the same paragraph!
However amongst the many great books on trading, only one stands out in terms of practicality. Many books on stock trading , for novices or expert traders spent chapters on concepts, rules and when it comes to the actually 3M of trading, many a book fall short of do this, do that and instead speak in wishy-washy steps without going into explicit details. It’s as if, the secrets are too valuable to open to the readers.
By now you must be aware that a trading plan is but a beginning of your adventure towards financial freedom. It is a continuous step-like growth i.e. kaizen trading towards a system that fits you. No one can teach you all the skills of a consistent profitable trader by covering all nuances, thoughts and uncanny-like automatic response towards the market. The circumstances and market will always change as in Buddhist philosophy that the only constant in life is change. Hence the basic principles are the same and with that you need to fit those principles to your own trading plan.
Today I would like to introduce Daryl Guppy, author of ”Trading Asian Shares : Buying and selling Asian shares for a profit”. This man really epitomizes the small trader’s ideal for he truly shares his methodology in this book. Chapter 11, entitled, “Putting it All Together” is to me the most practical of all the books I have read. In it he wrote about
a) maintaining an updated list of ambush sites : get yourself a list of stocks you want to buy immediately or potential buys and a do-nothing list. It breaks down into weekly, daily monitoring to ensure no “fish” gets away
b) Set the ambush : here he goes into the practical step-by-steps using 9 screens e.g. creating the trend lines, countbacks, MACD, volume oscillator etc and finally into a Excel spreadsheet to find entry prices i.e. “preferred entry price”, a “last gasp” high price and a “forget it” price and similarly an exit price this is “preferred exit price” based on count-backs, “last gasp” or most profitable price and “abandon” price.
c) Spring the ambush : know the market intricacies during down-day, order-driven markets and taking the plunge.
He opines that trading stocks requires a methodical approach and he practically shows you all the how-to e.g.
i) how to calculate the daily count-back price,
ii) how to catch a break-out and set a stop,
iii) how to adjust trailing stops for better exits,
iv) entry enhancements and
v) exit enhancements all using bar charts.
This book is a must read for novices and experts and though this book is out of print, I suggest you hunt it down in libraries or get his other books <Click here>