Readers reviews of Snap Shot Trading
You can add your
review of this book by
contacting us . We will then place your
review on this page. (You can request to have your name deleted if you wish)
Australian Investors Association February 2003
is a reasonably priced book on the Australian share market by Daryl Guppy who
has made significant contributions to the education of Australian share traders
through his books and seminars. This is a book for the trader who is prepared to
be active in the market; someone taking intraday trades or trades of up to 5
days. While some of the techniques may also be of interest to the position
trader, this is not a book for the investor.
Snapshot Trading is not an entry-level book to short term trading and assumes
that the reader is already familiar with the terminology and procedures of the
Australian share market. It is also assumes that the reader is computer
literate and has access to charting software and appropriate data.
Snapshot Trading is divided into five sections:
Examines the myths of insiders and their influence on short term trades and
emphasises that “day trading and short term trading are built around the idea
that a fast ride ends suddenly but we control when we get on and off.” Success
depends on skill and knowledge and not insider information. His detailed
analysis of the recent Enron debacle provides a good example of this.
Identifies the different opportunities that exist in short term trading,
emphasising that the “best short term trades are taken by those who prepare
and wait for the opportunity to emerge”.
Focuses on the use of leverage as the key to profitability in short term
trading. Guppy says that with short term trading “how effectively we shift
money from the market into our bank depends to a significant extent on
leverage”. He discusses two forms of leverage, price leverage where the trader
uses the low prices stocks, which comprise the bulk of the Australian share
market and the use of derivatives. His discussion of derivatives emphasises
the use of the market inefficiency of warrants. The subject of options is not
covered but reference to sources of information on option trading in the
Australian market is provided. There is no reference to Australian share
futures presumably because they have very low liquidity and remain a very
minor part of the Australian market.
In this section Guppy discusses chart patterns including volatility, different
types of gaps, flags and triangles. He examines ways in which these patterns
may be traded as well as techniques for managing trades.
Covers the mechanics of trading which are so essential to success in short
term trading. These include data forms and brokerage services. There are now
many books on trading available which discuss trade entry as if it was the key
to profitable trading. In fact, exits are much more important and with short
term trades profitability is critically dependent on the exit. His analysis of
how broker services contribute to trader success with entries and exits is
important and needs to be understood by all traders.
Guppy’s comments on stockbroker services are noteworthy. Guppy says that the
most essential services a stockbroker can provide are rapid execution of
orders and allowing the trader the prerogative of placing stop loss and
contingent orders in the market. He emphasises that discount brokers who do
not have straight-through processing and/or will not allow placement of stops
in the market, may in fact provide a very expensive service, since the poor
execution of an entry or exit can cost many hundreds of dollars in a single
trade. If enough traders heed these comments then pressure may be brought to
bear on the broking fraternity to provide better services in this regard.
The index is a minor annoyance with this book. There are a number of instances
where an index reference does not exist on the indicated page. In another
situations the index refers the reader to a page where there is only passing
reference to an item while pages which cover the item in detail are not
mentioned in the index.
In his books Guppy makes frequent use of analogies to topics such as fishing
and mining etc. Snapshot Trading is no exception. In this book he uses the
analogy of the sharpshooter who needs to take careful and rapid aim to hit the
target. While his writing style may not appeal to everyone, he is effective in
getting his message across. Part of the Guppy style includes the frequent use
of case studies - a good clear technique, particularly when the examples are
of actual trades taken from the Australian market. The charting software most
frequently referred to is Metastock and Guppy includes the code for a number
of Metastock explorations of interest to the short-term trader.
This is one of the few books that address short term trading for the
Australian share market. Anyone with an interest in short term trading will
certainly find something of value in Snapshot Trading.
View our Privacy and Internet Security Policy
guppytraders.com Pty Ltd,
ACN 089 941 560