Comments on: Trading Methods – What Works and What Doesn’t http://tuckerreport.com Technical Analysis of the financial markets, and other thoughts on trading Tue, 10 Aug 2010 09:40:55 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Gary http://tuckerreport.com/articles/trading-methods-what-works-and-what-doesnt/comment-page-1/#comment-10247 Gary Sun, 24 Jan 2010 19:52:43 +0000 http://tuckerreport.com/?page_id=1287#comment-10247 Thanks for the article; you made a very good point; you reminded me again what I really need to focus on. And I decided to put my money where my mouth is - bought you a cup of coffee ! Camas, WA Thanks for the article; you made a very good point; you reminded me again what I really need to focus on. And I decided to put my money where my mouth is – bought you a cup of coffee ! Camas, WA

]]> By: Doug Tucker http://tuckerreport.com/articles/trading-methods-what-works-and-what-doesnt/comment-page-1/#comment-10071 Doug Tucker Sun, 17 Jan 2010 20:34:33 +0000 http://tuckerreport.com/?page_id=1287#comment-10071 Jimmy, I haven't read the latest crop of books on money management. I would say I picked up bits and pieces from several sources, but mostly analyzing past losing trades. I would read anything that Ed Seykota has to say. You might google him and find his web site, as well as some articles he's written. Of course there would be money management discussed in various books by Mark Douglas, Van Tharp, Steenbarger, and Alexander Elder. Sounds like you may have already gone through these books. Regarding newer books, I read a good review of a book by Bennett McDowell called "A Trader's Money Management System." I have not read the book so don't know if it is worthwhile. I have a link on my Tucker Report Store, on the upper right side of blog under the search box. If you go to the trading psychology books, it is the 5th book on that page and links to Amazon, which has many reviews on it. Sorry I can't point to one book that is definitive and complete. And of course one style of money management can't be applied to all trading styles. I think it is good to read about as many traders as possible to find out how they handle the issue and combine what makes sense with real time experience. Jimmy, I haven’t read the latest crop of books on money management. I would say I picked up bits and pieces from several sources, but mostly analyzing past losing trades. I would read anything that Ed Seykota has to say. You might google him and find his web site, as well as some articles he’s written. Of course there would be money management discussed in various books by Mark Douglas, Van Tharp, Steenbarger, and Alexander Elder. Sounds like you may have already gone through these books. Regarding newer books, I read a good review of a book by Bennett McDowell called “A Trader’s Money Management System.” I have not read the book so don’t know if it is worthwhile. I have a link on my Tucker Report Store, on the upper right side of blog under the search box. If you go to the trading psychology books, it is the 5th book on that page and links to Amazon, which has many reviews on it. Sorry I can’t point to one book that is definitive and complete. And of course one style of money management can’t be applied to all trading styles. I think it is good to read about as many traders as possible to find out how they handle the issue and combine what makes sense with real time experience.

]]> By: Jimmy http://tuckerreport.com/articles/trading-methods-what-works-and-what-doesnt/comment-page-1/#comment-10069 Jimmy Sun, 17 Jan 2010 19:28:06 +0000 http://tuckerreport.com/?page_id=1287#comment-10069 You mention that there are several books on money management. I've been looking and haven't found one that I can honestly say is worthwhile. The information I've found is very surface level or simply chapters that seemed to be written just to bolster the page count. I know from past experience that money management is a problem area for my trading. I would love to find a good text to help me understand my problem and lead me toward an effective way to begin toward a solution. Do you have any recommendations? You mention that there are several books on money management. I’ve been looking and haven’t found one that I can honestly say is worthwhile. The information I’ve found is very surface level or simply chapters that seemed to be written just to bolster the page count.

I know from past experience that money management is a problem area for my trading. I would love to find a good text to help me understand my problem and lead me toward an effective way to begin toward a solution. Do you have any recommendations?

]]> By: Doug Tucker http://tuckerreport.com/articles/trading-methods-what-works-and-what-doesnt/comment-page-1/#comment-9280 Doug Tucker Thu, 24 Dec 2009 23:09:30 +0000 http://tuckerreport.com/?page_id=1287#comment-9280 Weazer, Thanks for posting your comment on my blog. I did spend most of the article discussing what I thought didn't work in trading. In reality most of the stuff out there doesn't work. I spent the last couple a paragraphs saying money management was key, as well as being able to understand market generated information. Most traders ignore money management as it is not that interesting to study, and most traders try to predict where the market is going via indicators. Using market generated information is letting the market signal its intention rather than to make a prediction and hope the market does what an indicator suggests it should do. It may seem like a fine distinction, but I think it is important. I didn't want the article to sound like an advertisement for Market Profile. The profile is just one way of viewing market generated information. Some people can understand it just from price action from spending a lot of time in the pit or in front of a screen. The concept of the market profile is difficult to learn so most traders won't take that path. And it is a fact that most traders lose. I wrote an introductory article on Market Profile on my blog you might look at. There are many books on money management. I admit the money management books make boring reading, but it is essential for survival in the markets. Another area that I think is a workable trading technique is generating income from option spreads. That's an area that I am working on with Dan Sheridan. It is low stress and many of the strategies have a high probability of a profitable outcome without the need to call market direction. Check out his educational webcasts in the learning center on the CBOE website. There are over 40 of them and are about one hour each. They are excellent. I'm in his mentoring program, but the webcasts give a good introduction to the various techniques. Thanks, Doug Weazer,
Thanks for posting your comment on my blog. I did spend most of the article discussing what I thought didn’t work in trading. In reality most of the stuff out there doesn’t work. I spent the last couple a paragraphs saying money management was key, as well as being able to understand market generated information. Most traders ignore money management as it is not that interesting to study, and most traders try to predict where the market is going via indicators. Using market generated information is letting the market signal its intention rather than to make a prediction and hope the market does what an indicator suggests it should do. It may seem like a fine distinction, but I think it is important. I didn’t want the article to sound like an advertisement for Market Profile. The profile is just one way of viewing market generated information. Some people can understand it just from price action from spending a lot of time in the pit or in front of a screen. The concept of the market profile is difficult to learn so most traders won’t take that path. And it is a fact that most traders lose. I wrote an introductory article on Market Profile on my blog you might look at. There are many books on money management. I admit the money management books make boring reading, but it is essential for survival in the markets. Another area that I think is a workable trading technique is generating income from option spreads. That’s an area that I am working on with Dan Sheridan. It is low stress and many of the strategies have a high probability of a profitable outcome without the need to call market direction. Check out his educational webcasts in the learning center on the CBOE website. There are over 40 of them and are about one hour each. They are excellent. I’m in his mentoring program, but the webcasts give a good introduction to the various techniques.
Thanks,
Doug

]]> By: weazer http://tuckerreport.com/articles/trading-methods-what-works-and-what-doesnt/comment-page-1/#comment-9276 weazer Thu, 24 Dec 2009 20:26:30 +0000 http://tuckerreport.com/?page_id=1287#comment-9276 Nice article, and I can agree to the most of it. What I miss however, as it goes on explaining what doesn't work, is what possible approach would work. Nice article, and I can agree to the most of it. What I miss however, as it goes on explaining what doesn’t work, is what possible approach would work.

]]> By: Trader Mom http://tuckerreport.com/articles/trading-methods-what-works-and-what-doesnt/comment-page-1/#comment-8285 Trader Mom Mon, 23 Nov 2009 04:08:39 +0000 http://tuckerreport.com/?page_id=1287#comment-8285 Great write-up. A lot of traders use many indicators at the same time , which conflict with each other and thus cause confusion. They jump from on strategy to another because they are looking for the Holy Grail. Great write-up. A lot of traders use many indicators at the same time , which conflict with each other and thus cause confusion. They jump from on strategy to another because they are looking for the Holy Grail.

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