Readers Reviews of The Stock Trader - How I make a Living Trading Stocks
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Tony Oz 5/12/01
The Stock Trader is a "must read (and re-read)" book that has to
have a place on any experienced trader's desk, bookshelf, coffee table or lounge chair.
The book was written as a very detailed four week trading diary with the whole exercise
being set up in such a way as to be as transparent as possible. It is the first of its
kind and details with great clarity the total process of trade selection and management in
a real-life day and short-term private trading environment. Most importantly, it gives a
very good insight into Tony Oz' mental processes - the thinking behind his actions is
explained as well as his emotions and feelings and how he dealt with them, at all times
during the four week trading window on which the book is based. Some basic but absolutely
pivotal concepts are explained and illustrated with each and every trade in the book:
Total trade planning to cover all contingencies. Absolute Discipline, supported by
objective, quick and decisive thinking. A simple and consistent approach to each trading
plan. Having no fear of taking profits. The book is not one for new or inexperienced
traders. One needs to have been through the mill for a while in order to fully appreciate
and understand the mind games and processes described so well. It is written in a day
trading environment, but is equally applicable to longer term trading. (NOTE: The book is
written in the USA using US trading systems - ECN's, routing, market makers and so on -
which we in Australia are not greatly familiar with at this point in time. In order to get
some appreciation of those processes and systems, it can be useful for readers to set up a
trial/ demo account with one of the FOREX brokers such as WebForex. The speed of price
movements alone and need for quick thinking is most educational!)
Stuart Nicholas 17/8/01
It is not often we add a book to the must have list, but this is
one of them. It is the best and most practical book on day trading I have read. This is
real trading and we can learn of lot from it.
Initially the book description looks off-putting. The prospect of wading through 116
trades has the potential for boredom. The book was written in response to a challenge and
starts with $50,000 of real money in a new account. Profits are taken out each week. These
are real trades, not theoretical examples.
The book is fast paced and easy to read. More importantly it is a
unique view of how real day trading is conducted, complete with losses, ,missed
opportunities, technical problems and of course winning trades. It is a compete diary of a
4 week trading period. It shows how every trade was identified, managed and closed. Trades
were taken from the long side only buy low and sell high and this makes it
particularly relevant to non-American readers.
What makes it even more interesting is that the selected period covers the week of the
NASDAQ crash in April 2000. Survival here trading the long side is not only possible, but
Many aspiring day traders will be surprised at the small size of each
win, and the even smaller size of each loss. They will also be surprised that the none of
the popular technical indicators are used. Instead he uses a 50 day moving average,
support and resistance, trade statistics, such as new highs, and volume clues. The scan
parameters for finding candidates are fully listed at the end of the book. Yet the total
return is 35% in the four weeks. Position traders will also find the book useful. It
reconfirms several important lessons.
The need for absolute discipline
The need for very simple trading approaches
The need to cut losses quickly, cleanly, and at pre determined levels
The need to take profits based on what the market is telling you and
not on what you want to tell the market.
This is a practical trading book. It will not satisfy the
theoreticians, but it will satisfy those who really want to know how others trade.
This book can be ordered
direct from Traders Library at discount rates.
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