The Market Is Always Right: 10 Principles of Trading Any Market
$15.03
| Author(s) | |
|---|---|
| Pages |
249 |
| Format |
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| Published Date |
2003 |
The Market Is Always Right: 10 Principles of Trading Any Market is for traders new to the markets, with the aspiration of getting them off to a sound start. If you follow these guidelines, you can avoid many of the pitfalls experienced by those who have gone before.
Introduction:
The key to enjoying a successful and rewarding life is living in such a way that our conscience does not plague us with regrets. Following the laws of God, as we perceive the concept, or the natural law is one way to achieve this goal in our personal lives. We can sleep at night knowing that we have not transgressed our beliefs of what governs the universe. And we would not feel responsible for the misery of others due to the commission of any cardinal sins. Living a moral life is its own reward.
Traders must deal with human nature as they trade, both their own and their counterparts’, as they collectively react to the markets they trade. The purpose of this book is to give you an insight into what hundreds of other traders have found that works when it comes to harnessing and directing human nature most productively.
This book will help those who have been trading for a while without experiencing the level of success desired; you may well find the help you need within this text. This is the type of bookthat the professional or semiprofessional trader should peruse periodically. Read it to refresh your mind and reinforce your trading discipline regarding what has worked in the past and will work again—or to find and repair bad habits that you have acquired since you last gave serious thought to your trading.
Contents:
- The Market Is Always Right
- It’s All in Your Head
- You Can’t Prepare Enough
- Supply and Demand Rule the Markets
- Commit Your Thoughts to Paper
- Developing and Perfecting Your Trading Shtick
- Enhancing Your Shtick
- Dealing with One of the Toughest Parts of the Game: Discipline
- Staying the Course
- On Becoming the Ideal Trader
The Market Is Always Right: 10 Principles of Trading Any Market By Thomas McCafferty pdf
4 reviews for The Market Is Always Right: 10 Principles of Trading Any Market
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Savannah Daugherty (verified owner) –
I have read other books by Mr. McCafferty and have found this one to be the most valuable, not to mention entertaining. It seems as though most of the newer books out there are just a rehashing of commonly known techniques and offer little valuable insight into how the market actually operates, that is not the case with this fine book. Mr McCafferty seems to understand the way the markets operate and the players in the trading community. He mentions several successful traders and their methods and explains them very well, probably better than those traders could themselves, which is a true testament to his ability as a writer. I learned specific strategies that have changed the way I trade and have been surprised by how well the simple things Tom mentions (and many of us overlook) have worked for me. I can say that I am a more profitable trader because of what I read in this book and for the [$$] it cost me, that is an unbelievable deal. Thank you for unselfishly sharing your trading experiences with us Tom, my life has been enriched because or your words.
Jamie Gutierrez (verified owner) –
This is a 100% trading psychology book. No FA, no TA, but ten chapters or the author’s so called principles on trading psychology, which are
1. The market is always right.
2. It’s all in your head.
3. You cant prepare enough.
4. Supply and demand rule the markets
5. Commit your thoughts to paper
6. Developing and perfecting your trading shtick
7. Enhancing your shtick
8. Discipline
9. Staying the course
10. On becoming the ideal trader
Though the above can be commonly found in most trading books, the author had done it relatively well by drawing many uncommon analogies, stories, idiomatic phrases that put life into the book. In particular I like his description of successful traders as captains in the oceans, mice in the laboratories and actuaries in insurance companies.
In short, if you wanna read a good trading psychology book, this is it. If you want TA or FA knowledge, look somewhere else.
p.s. The seven cardinal sins of trading in the last chaper is a favorite of mine. They are:-
1. Pride, which challenges the first rule of trading: The market is always right.
2. Greed, holding onto trades hoping for more and more profits while all TA signals are telling you the party is over.
3. Envy, drains positive energy from their psyche, leaving them mean spirited and weak.
4. Anger, that when Greek gods decided to destroy a human, they got him angry and let him destroy himself.
5. Lust, equates to ignoring key defensive rules or self control. The unbridled gambler is the epitome of lust, doubling up after every loss.
6. Gluttony, a lack of focus. Trading becomes obsession They eat and sleep trading.
7. Sloth, that a lazy successful trader is an oxymoron. He or she just doesnt exist.
Bjorn Eaton (verified owner) –
not so useful
Malaya McKee (verified owner) –
People contrary to the bad reviews this book recieved I will beg to differ. I have read both of his books.. The market is always right and All about options. In the market is always right the author discusses “principles” for dealing with the market, your own behavior and the behavior of the stock, option or future you are trading. This isn’t a book about the fundamentals of stocks, options or futures. Just based on the way the author writes he assumes you already understand the fundamentals. He addresses the problem that most traders face. Why are you not making money or why are winning trades end up becoming loosers. Regardless of what you buy :stocks, options, futures, bonds and ect at the end of the day you are trying to make money. You either make money or loose money. The author does a very good job of explaining the “principles” of what will help you make money in any market. People I have been on both sides of the fence and know first hand that anytime you try to “impose your will on the market you court disasters”…that’s a quote from the book. Chapter 1 and 5 alone are worth “gold”. In chapter one he stresses the first principle and to me the most important one. The market is always right. From my experience in trading there are to many factors that affect the market that you are thousands of individuals have no control over. For example News, foreign markets, economic data, political turmoil, earnings, breaking news, technicals, sector analysis and ect all can contribute to the rise and fall of a stock, option, future or commodity you are trading and I have seen instances in my own trading where it was one factor…technicals that affected the market and cases in which is was a combination of factors like earnings, technicals, economic data and ect. The author stresses the importance of trading with your eyes and not with your heart.. basically take emotions out the game. He stresses taking your cue from the market and the market only.. Regardless of what is going on around you what is the market doing. He stresses a trading plan and writing your commitments down on paper b/c there are so many things that you have to think about and trying to do all that in your head is lying to yourself. Also writing stimulates thought and helps you see what the blind man never saw at all. If you are looking for a book to teach you the fundamentals or advanced trading strategies you will be disappointed, but if you are looking for a system that will teach you specific rules for making money (rules you don’t violate), making wise trades, knowing when and how to get in and out of a trade, psychological barries that you and other traders encounter and how to deal with them I highly recommend you read this book. Even in his other book called All about options.. he touches on the basics of options and some strategies on how to make money but the author’s primary goal is to teach you principles that will help you make money and cut your losses short. Like I said before and I will say again. On my trading plan the last line says this “my primary objective is to make a 5, 10 or 20 % profit off each trade. Did I accomplish my main “objective”? Remember an objective can easily be phrased as a question and answered with yes or no. At the end of the day people you are either making money or loosing it. The more you can look at your trading or investing in terms of black and white the less likely you will decieve yourself.