The ART of Trading: Combining the Science of Technical Analysis with the Art of Reality-Based Trading

I bought the book with the intent to learn more about the software. The book covered the software very well in addition to covering other trading ideas such as money management, psychology and the “true realities of the market” which are price and volume. The concepts are clear and defined. After reading the book, I bought the software and couldn’t be more satisfied.

What sets this book apart from many others in the trading arena is the fact that it covers all aspects of trading. The book talks about setups but managing the trades, the exits as well as stalking the entry and determining the amount you should invest in the trade are covered. The book is targeted to the trading system that the author developed (as well as software ). Regardless, the book could be taken as a good model for the elements that need to be included in written trading plan before committing capital to the trades. For that reason alone, it is worth its price.

McDowell’s coaching style is tuned for new traders desiring a profitable trading style built on sound principals and discipline. His approach focuses on achieving a winning percentage and a solid payoff ratio. His system doesn’t use multiple technical indicators such as MACD or stochastics – although he does explain how to use Average True Range and trend line channels to adjust your style within his system for changes in volatility.

The first third of the book reviews McDowell’s keys to successful trading. Foremost among them is a Zen-like approach to trading that encourages you to emotionally disconnect from the market and your investments. Instead, he urges you to “listen to the market” – react to the reality of the market instead of trying to predict where you or some technical indicators lead you to believe the market is going. He focuses on price and volume as the essential elements to understanding the market.

The remainder of the text and the accompanying software are applicable across markets and timeframes using the proprietary ART System. At the default level of trading using his approach, McDowell emphasizes calculating the proper trade size and is adamant about using trailing stops intelligently placed to control your risk. He carefully explains the rationale behind setting stops and incorporates their use in every example. You start out looking for opportunities to enter a trade once a trend has begun – not anticipating movements – you wait for the system to confirm that a trend is underway before you trade. Will you give up some potential profit by waiting? Sure, but you’ll also reduce the chances of getting whipsawed and realizing unnecessary losses in the process.

By the end of the book you’ve learned how to fine tune the sensitivity of the ART software to price volatility, how to scale in or out of trends, how to use price corrections and 1 or 2 bar reversals to protect your profits, etc. For more aggressive and experienced traders he shows how to use ART to scalp trade and to apply the tool to tick and minute time frame charts.

If you are looking for a business-like approach to trading explained in conversational way, then this is a good book for you. If the 30 day trial convinces you of the merit of the ART System, then you will realize even more value from McDowell’s book.

very good reading to get your arms around a plan to understand the markets, and what makes a good trading plan.

also insite into how the ART trading software can help in identifying entries and exits on any market you may be interested in trading. I highly recommmend this book to be on your shelf.

Most helpful to those who use the ART software, but even without that, the book lays out a very sound approach to trading. The method focuses on breakouts and reversals as the bread and butter of trading. The methods can be tailored to individual preferences of time frames and markets. Lays out a basic approach and once that is mastered, gives some advanced techniques to enhance your trading. Definitely worth a read.

I have bought many trading books; this is, by far, one of the best I have come upon. Whether you are an advanced trader or a beginner, the tools offered in this book provide you a trading system you can work with at your current skill level and whether you are a short-term trader or long-term trader. I highly recommend this text to all traders!

In “The ART of Trading” Bennett McDowell begins by defining the realities involved in successful trading and investing which can be divided into four major areas: Risk Capital, Trading and Investing System, Psychology and Money Management. While there is a lot of useful information contained in the ART sections, the parts of the book that resonated most with me were the Psychology and Money Management sections. He covers the types of risks, trade size, the types of stops and the need to set them. Then Mr. McDowell delves into setting up your trading business, your business plan, business and office considerations, broker information and data feeds. He gives you information necessary to select a financial market and time frame in which to trade. However the most enlightening part of the book for me was the exploration into your psychological makeup and how to get from where you are to the master trader’s mind set or “Holy Grail”. The exercises and suggestions to reach this goal were extremely helpful. This book is well organized and illustrated. I was disappointed that the majority of the book is devoted to explaining Mr. Bennett’s “Applied Reality Trading” system that requires an additional purchase. This book is for those traders interested in learning and applying the ART system.

The book is detailed yet very easy to understand. Helps to identify the trend in any timeframe and stay in it for as long as possible. Very much helped me to scalp within the trend instead of against it in choppy markets. Highly recommended for any day trader

I have been trading with the ART system now since February and am very happy. This book goes into complete detail what makes up a good trading system. Yes, it does go hand in hand with the ART software system, but many principles can be learned from those who trade other systems. Bennett stresses money management, which is why he has a separate book on that (and a good one at that). He also states that no system is perfect and anyone searching for the holy grail is wasting their time, because it doesn’t exist. His honesty is refreshing. The book is very well written and when you are finished you will want to give the ART system a try. Bennett is one of the most risk averse traders I’ve ever known and that’s what I like about him. He stresses the importance of position sizing, risk capital, how much to allocate to your trading account, and psychology, while also reminding us that the actual trading system represents only 25% of the equation. I like that the focus is on price/volume which really are the only 2 truths in the market. Everything else is just a derivative. The reader is not bombarded with hundreds of indicators and wondering how to apply them in a practical manner. There is a chapter on some of the more common indicators that Bennett recommends as confirmations to trading a reality based system such as the ART methodology. One is given a small arsenal of useful indicators which can actually be used. Also, he reminds us that it is dangerous to form opinions about where the market is going. The writing comes across as sincere, honest, and fluid. Bennett shares many of his own personal disasters as a trader. I also respect that Larry McMillan wrote the forward as he is someone who I trust immensely. I recommend this book for all traders, but it is mandatory if you have any interest in learning the ART system.

I’ve been trading (mostly options)/investing for 10 years and in a world of scam artists, Bennett McDowell and his company are 100% honest. They tell it like it is. I consider myself an intermediate trader, but any failing I have is my own fault and not the fault of my educators or trading systems. The ART system is NOT a black box system. Give it to 1000 different traders and everyone will trade it differently. Some will do well, and others wont. But the tools are there.

I am taken aback by all the gross negativity posted against this book. When i first read the book after reading a great review in Commodities and Stocks magazine, i found myself staying up all night to complete reading it. I am not a novice trader nor do i fancy myself as the internet police to verify every program or book out there for its ‘backtesting’ ability. If you want to back test, just change the time frame on the ART program and you can see very clearly how many times it was right versus wrong. It is not a perfect system. Does Goldman Sacks share their computer programs to ‘allow us to back test them’? Of course not – this is still america and entrepreneurs have the right to intellectual property. Do i have to build my own vannos valved engine in my garage to understand that BMW is the ultimate driving machine? However if you have been in the market as long as you say and know as much as you claim and have the skills to do what you say, the book and the examples given are perfectly clear as to the methodology used. If you have traded IBD, or any other ‘system’ out there you then know that 60% of the time they ALL give wrong signals. This book educates you on money management from trade size and risk of ruin and so forth. if you are looking for a 100% accurate system – good luck and call me when you find it or better yet – write your own but publish it here so we all benefit for free from your efforts. A perfect system does not exist or everyone would be using it and it very quickly would be rendered worthless as a tool. This book is a glimpse into the world of ART that is reality trading. Trading on the realities of the price action in real time – not a derivative of it. It cannot be emphasized the role of money management in your trading accounts and as you read books from Jessie Livermore to Jim Cramer they all mention somewhere in there about money management. ART lives by it. It is a system that allows you to change the parameters as you desire to give you opportunities that match your personal risk level. Why is the guy doing seminars and selling books and adjunct programs? Why does George Soros still invest?? For me, it works it is not for everyone but no system is. $2k is 1/5 of most of the better programs out there that i know work equally well. so for me it is a bargain and better yet, it teaches me to find my own opportunities and not rely on the ‘expert ju jour’ on TV or the internet. Trading is hard work, this book outlines a system that takes a ton of the stress out of the trades and more importantly tells you before you buy what you sell point is. Honestly – i have 50 different trading books in my library. This is the only one keep going back to time and again. BTW I am not affiliated with ART in any way other then a perfectly happy client.

This book was extremely easy to follow and helped answer many questions I have about investing in todays market. A great addition to my refference library

Every serious especially new (but as well intermediate or even advanced trader) should have the book. A must to get the necessary knowledge and understanding of how any stock market works (stocks, ETFs, commodities, FOREX etc.), to find good prospects, then to set up entries and exits, to use techniques for minimizing risk and to make money in that environment which is a zero-sum game where market pros are waiting to catch the amateurs without merci. Yes money can be made but this business is not a casino or you are borne to fail. First, one must have the technical education Bennett A. McDowell is giving in his book and like a musician to become a star, one must practice and practice to constantly improve his or her skills based on that education.

After decades of lousy returns in my investments through professional stock brokers I decided to manage myself my own portfolio. My research led me 6 months ago to McDowell’s book The ART of Trading on which his proprietary ART software is built. I only regret not to have found it before. But better late than never. I see now the light at the end of the tunnel of stock market investing: after losses or virtually no returns for years, I made 15% return in those past 6 months thanks to the technical knowledge acquired and to the ART software. And I feel less stressed than before in my every day trading because I know what I am doing instead of guessing and hoping for the best in my investment decisions.

I would highly recommend the serious investor to buy the ART of Trading book.There is no risk and it opens your door to a wealth of indispensable technical knowledge of stock market investing.

This book is VERY helpful

Sure, there is some helpful information, but you probably already know it if you’re reading this book.