Trading as a Business: The Methods and Rules I’ve Used To Beat the Markets for 40 Years
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Trading as a Business: The Methods and Rules I’ve Used To Beat the Markets for 40 Years gives you a behind-the-scenes look at how Dick Diamond has become a successful independent trader for more than four decades. This vital resource reveals Diamond’s methods for analyzing the market and knowing the right time to get in and out of trades. With this book in hand, you’ll be able to tap into Diamond’s strategy of 80/20 trading which offers an 80% chance of making a winning trade. Diamond also includes his six statistics that are critical for determining where the stock market is headed.
Auhtor’s Introduction:
I’ve been around the trading game for over 40 years. I’ve seen a lot of traders come and go. But while it’s a tough and unforgiving game, it is possible to make a great living from trading. The keys, as I discuss throughout this book, are emotional discipline and risk control. I’ve organized this book, Trading as a Business, in much the same way that I teach attendees at my seminar. I recount a little bit about my own history as a trader. I discuss the principles that I use to guide my trading and explain the technical indicators that I use. Finally, I reveal my four trading templates and provide dozens of examples of how I use the templates to place trades.
I would suggest reading the entire book from beginning to end and then returning to Chapter 2, ‘‘Emotional Discipline’’; Chapter 3, ‘‘Principles of Successful Trading’’; and Chapters 5 through 8, which discuss trading with four different templates. After you’ve mastered the material, I suggest you set up the trading templates on your computer and begin analyzing the markets every day using the templates. Just as I do in Chapters 5 through 8, you should try to identify 80/20 trades (trades that will produce a profit four out of five times).
I have taught many traders, and I certainly understand that readers will come to this book with different levels of trading experience and expertise in technical analysis. Many of my most successful students adapted parts of my methods to their preexisting approach and evolved into better traders. Roberto Hernandez, a former student who now teaches with me, uses his own trading template, which incorporates some indicators that I do not use at all. If you’re going to modify the templates or use your own template, I would suggest a few things. First, and most importantly, do not rely on a single indicator or even two indicators. The markets are too complex to be reducible to a single indicator at all times. I advocate using three to five indicators in a template and waiting until all the indicators align before putting on a trade. Second, make sure that your template is effective in identifying 80/20 trades. From my experience, it’s tough to maintain emotional discipline when your template is wrong almost as much as it is right. Finally, read and reread the chapters on trading principles and make them part of your trading DNA. Trade small, use tight stops, and cultivate emotional discipline.
While it’s fine to modify my templates or create your own templates, I believe the majority of traders will be better off using the templates in the book. They are the templates I use in my own trading; I know they work. As I discuss in the chapter on emotional discipline, it’s essential that you feel confident in your trading strategies and your trading rules. A trader without confidence will have a hard time pulling the trigger and will constantly second-guess his/her system and rules. A trader with confidence will consistently follow his/her trading signals, will adhere to his/her trading rules, and will accept with equanimity the occasional loss. Remember, as long as you followed your signals and followed your rules, you made a good trade—regardless of whether it produced a profit or loss.
My goal in this book is to give you all the tools you need to trade successfully and to trade with confidence. If you study the material here and work hard to implement the strategies and rules in the market, there’s no reason you can’t become a consistently profitable trader.
Contents:
- My Life as a Trader
- Emotional Discipline
- Principles of Successful Trading
- Technical Analysis and Trading Concepts
- Trading with theMoving Average Template
- Trading with theMoving Ribbons Template
- Trading with the Bressert Template
- Trading with the RMO Template
- A Day of Trading
Trading as a Business: The Methods and Rules I've Used To Beat the Markets for 40 Years By Dick Diamond pdf
| Author(s) | |
|---|---|
| Format | |
| Pages | 157 |
| Publication Year | 2015 |
13 reviews for Trading as a Business: The Methods and Rules I’ve Used To Beat the Markets for 40 Years
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Priscilla Walter (verified owner) –
I wonder if that person actually read the book: chapter four, Mr. Diamond states “I use a 21/55/89 period moving average”. Having said that, this is a book to avoid. Granted, there is the usual compilation of “old school” trend + oscillators roughly explained but… we are in the 21st century and this kind of book is simply no longer acceptable. Why? There is not a single test that these approaches actually work. It is ALL subjective technical analysis. The author trades SP minis on 2 min charts and it is not buy on dips in uptrend or sell on rallies in a downtrend. You buy overbought in uptrend and that’s your 80/20. The charts used to describe the strategies are not 2 min charts. Colinerarity is high here for the same kind of oscillators are described: stochastic and Williams R, MACD and RMOs. You have to be in front of the screen all the time to grab this very s/t patterns. Another annoying inconsistency: Diamond advocates the use of 21/55/89 average but then in the charts only 21/55 combo is used! And the use of 2 or 3 average is, you guessed it, subjective. After you read books from Mebane Faber, Nick Radge, Andreas Clenow, Gary Antonacci where rules are clearly expressed, coded and tested in a rigorous way… well, you can really understand their thinking and agree or disagree. But here… absolutely nothing. On the Metastock issue: well most of these indicators are pretty much simple and with a bit of work you can recreate these templates but, indeed, from an educational point of view, this is not right in my view. On the issue of stops: “use stops” and that’s it. No mention of position sizing, risk management. Nothing. So if you buy this book and want to trade these “patterns”, you have to code them and test them adding the exit on stop and exit on profit how YOU imagine because, again, here is all discretionary and subjective. If there is a merit is the emphasis put on psychological part of trading however the lack of consistency in the patterns/examples will do nothing for the new trader looking here for his “quiet confidence”. Not good enough. In the end you will be better served by the wonderful “A Diary of a Professional Commodity Trade” by Peter Brandt.
Callen Trevino (verified owner) –
very good
Ahmad Miller (verified owner) –
Waste of money, this book talks about a few templates that comes with Metastock software. Stay away from this book. Poorly written premier. How do publishers publish this kind of crap from authors?
Halo Porter (verified owner) –
This book consist of few templates that comes with Metastock software, it teach you how to setup. However, the book does not explain the methods and rules clearly. I also doubt if there is any evidence that can show the author beat the market for 40 years
Esteban Clay (verified owner) –
This book does not have enough detail to really implement Dicks ideas. He does not really say where he puts his stops or where he gets out. He just says that he gets out before the move is over. I thought there should be more explanation for the cost of the book
Isabella Mack (verified owner) –
Excellent book!!
Abby McClure (verified owner) –
Read this if you really want to make money.
Promise Norton (verified owner) –
If you are trying to figure out a strategy to trade this book can put you on the right track for success, This book was written years ago but the basics still applies to trading today
Jayleen Combs (verified owner) –
This book is for serious traders, emotional discipline, method and money management. Mr Diamond, keeps it simple like trading should be, focusing on key elements to successful trading and DOES NOT waffle on like other trading books, which shows the quality and experience of the trader.
Alonso Mahoney (verified owner) –
It is sad that the legendary Dick Diamond has passed. Unfortunately, this book does not even live up to its own name, let alone his. While it does include the obligatory you-must-have-discipline-and-control-your-emotions message, there is not enough information in here to learn how to trade as a business. It should be titled, “Four Metastock Entry Templates That I Use” (and for that purpose, and on that platform, the entry methods are easy to follow). As others have written, he trades S&P e-minis on a 2 minute scale and his stop/risk management method consists of setting initial stop 2 points from the entry point and an exit strategy of: “As you gain experience in the market, you’ll get a better sense of market action and the right time to get out.” Not kidding. In other words, you’re on your own developing a risk management system tailored to someone else’s entry method(s). Providing half the equation does not a complete book make. I get the impression that this book is (was) an advertisement/teaser for his very expensive–but probably worth it–seminar. Either that or it is just poorly written. I wish I would have avoided it.
Reese Drake (verified owner) –
Like another review stated, he doesn’t say where to place stops. Also Chapter 8 shows charts of some of his setups and one of the indicators he uses 2 moving averages that cross but he never gives the parameters of the 2 moving averages. I looked everywhere in the book but he didn’t give it. He also states early in the book that he sometimes uses options in a certain way and that he will talk about that in a future chapter. Options are never again mentioned in that book. I noticed the book ends at page 141 and there are about 12 pages that are blank at the end. (For notes) Or is this where the options were supposed to go. Maybe another reviewer can comment on this. Having said all that, I find the book helpful as it does illustrate a good time to get in a trade using his indicators. The good part about this book is that he does show several indicators that he uses and its easy to follow. Some of the indicators you can only get on Meta-stock but there are other indicators that are available on just about every trading platform if you don’t have meta-stock. Buy/Sell Indicators are easy to read and it appears that after time you would be able to recognize what he calls an 80/20 trade.
Aliana David (verified owner) –
Easy read, yet very technical.
I trade futures, and this book was suggested to me from a fellow futures trader.
Unfortunately, the author passed away from cancer, but he left a book all about how he traded for a living.
A very nice read for someone who has at least some advanced knowledge of trading futures.
if you are an absolute beginner, you would need to obtain some knowledge before reading Dick’s book.
Lochlan McCarty (verified owner) –
Dick Diamond lays out his trading methods in clear, easily understood terms. He also explains the pitfalls everyone who determines to trade will experience. A great book.