Posts Tagged ‘finance book’

Trading Book Review: Adxcellence

Friday, September 17th, 2010

Adxcellence

Author: Charles Schaap
RRP $219.95

Trading book review by Janene Murdoch from the Educator Investor Bookshop

ADX is the Average Directional Movement Index which was created by J. Welles Wilder and is usually plotted in a chart window along with two DMI (Directional Movement Indicator) lines. ADX is mainly used to quantify trend strength, however the unique combination of indicator lines also gives a visual representation of trend direction, momentum, and volatility.

This books contains a full and complete, detailed explanation of ADX and is the definitive and only complete work on this subject. It shows specific trading strategies including how to find attractive trading opportunities, enter and exit trades. A one-of-a-kind masterpiece that no serious technical trader of stock or futures should be without.

This book is available from the Educated Investor Book shop. If you would like to order this book please visit The Educated Investor Bookshop website.

By Janene Murdoch
Educated Investor Bookshop

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Turtle Traders and Table Tennis

Wednesday, May 20th, 2009

Inside the Mind of the Turtles

Author: Curtis M. Faith

Book Review


This is the second installment on the famous Way of the Turtle Trader by Curtis M. Faith, but this time rather than talking about how the Turtle Traders went about making their money he is actually giving his own opinion on how your mind affects the decisions that you make when you are trading.

This book is for the true traders amongst you that have a trading plan and wish to further refine it by looking for flaws that could be caused by your mind rather than what you do and don t actually know.

I think the best way to gain an understanding of this book is by way of retelling one of the stories Curtis uses to describe how people handle pressure differently. Basically the Turtles had a table tennis table where they used to play during the quiet times in the market. One of the Turtles used to be a red hot table tennis player, who the rest of Turtles had trouble beating.

One day the Turtles Traders decided to have a tournament where they would all put in $50 and the winner and the second place getter would receive a prize. This in effect changed the game from one of fun to one which had a prize at the end.

To cut the story short the gun table tennis player came up short and lost, which in the opinion of Curtis was due to the pressure of having to play for a reward. This story was then compared to trading by explaining how this is consistent with what happens when traders move from paper trading to trading with real cash.

The book also explains the importance of establishing trading rules and how some things that seem really difficult at first become easier after they have been implemented a number of times.

Rating of 7.5 /10

This book was slightly better than the original and actually made reference to the events in the financial markets over the last 18 months.

Reviewed By Damian Isbister

To buy this book now at the Educated Investor Book Shop, click here.

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Turtle Traders made more than $31,500,000

Wednesday, April 15th, 2009

Way of the Turtle the Secret Methods that Turned Ordinary People into Legendary Traders by Curtis M. Faith

This is a great book for those of you that don t know who the Turtle Traders were and how they went about making money trading basically everything.

A quick summary is that there were two traders who were very successful at trading Commodities. Richard Denis, William Eckhardt and Richard Dennis bet that they could teach the disciplines that were required in order take any person and turn them into a very successful trader.

This book details everything from how the turtles were selected, all the way through to the results they achieved along the way. Curtis M. Faith is the author of the book and he was one of the original and youngest of the turtles – so he’s well placed to write with authority on the workings of the group.

The book looks at the psychology of trading, the importance of having a plan and following it. There is a strong focus on probabilities and that is what the turtles were really relying on when setting their position size. The last chapter details the Turtle trading rules, so theoretically you could incorporate them into your trading plan. It also analyses the use of trading systems and what happens when they go wrong or are perceived to go wrong, and the effect of over tweaking.

As a bonus, the book is also written in such a way that it also makes for a good story!

I guess the best story relates to Chris talking about all the Turtles playing table tennis, as this was a way to see that even players with less skill could beat other players if they held their nerve and didn t allow pressure to affect their game.

The trading styles that are reference in the mostly in Chapter 10 are ATR Channel Breakout, Bollinger Breakout, Donchian Trend, Donchian Trend with Time Exit, Dual Moving Average and Triple Moving Average.

On a side note: for more information on Donchian Channel Jeff Cartridge our education manager has record a piece on implementing this strategy in MA, click here to check it out.

Rating: 7/10
The high score reflects the book’s ability to relate to your real life trading strategies.
Buy now at the Educated Investor Book Shop, click here.

Reviewed by Damian Isbister

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