I just finished “The Little Book of Trading” and like “Trend Following” it is an extremely important work if someone has reached that point in their trading to accept there is indeed a better way, a correct way, a peaceful way if you will, to ride the “flow”.
I have bought Trend Following” at least a half dozen times and “The Complete Turtle Trader” the same (I hope you get royalties off used book sites) because I read, underline, highlight make notes etc. to the point where it’s difficult to go back and re-read them. I also have thrown them out on occasion when I convinced myself Trend Following wasn’t for me because I was “sold” on the idea of day-trading. I was a stock broker for 25 years and due to the fact that that industry was changing before my eyes via the internet, I decided that rather than fight it I would embrace it and thus I decided to go to New York and attend a day trading class and learn to trade on-line.
Seven years and a lot of frustration latter I have had my Aha moment, that moment came when I took the advice of Ed Seykota and Larry Hite (Market Wizards interviews) and looked at the BIG PICTURE, as Ed said “look at the chart from the other side of the room”. Instead of the 2, 5 and 15 minute charts people are trained to use for intra-day trading, I put up a long term chart on TradeStation and saw all my entries for thousands of trades and was amazed at how clearly I could see I was going against the trend on the losers and maybe more importantly how many correct entries should never have been closed out because the trend was STILL INTACT! Everything you discuss in your books was right in front of my eyes, there IS something called a trend and it CAN be followed or as I like to say “obeyed”. Perhaps, I could publish a book of charts showing my trades and how wrong they were and how right they could have been simply by looking at the charts from across the room. I have bought hundreds of books on the market and can’t recall one that was a complete manual on what not to do.
I also bought your movie and noticed the scene under the Whitehurst freeway where you went into an Ebay store (that store was right near the famous River Club of Georgetown which may have been before your time). I live in D.C. (without a car) and wanted to offer to buy you a cup of coffee if you’re ever back in Georgetown and have some time to meet a fan.
p.s. Have you ever read “How I made $2,000,000 in the Stock Market” by Nicholas Darvas? That book was written in 1960 and in my opinion is one of the best books ever written on operating in the stock market. Livermore’s “How to trade in stocks” 1940 is good but I’ve noticed some inconsistencies in the book such as when he says something to the effect that speculating is nothing more than “anticipating” moves…one shouldn’t anticipate, one should follow.
Thanks for the great feedback!
Happy 4th of July!