Here is a reviw of an excellent book I have read recently.
The book name is "Trade your way to Financial Freedom" by Van Tharp.
From the book's title, it sounds like a typical get - rick - quick "How to make millions in a month" type book
Actually, the book is quite informative and interesting and is meant for serious investors.
The main focus of this book is on developing your own trading system, discipline and risk control.
May investors are looking for the Holy Grail....that secret entry technique ..that exact point at which the market will turn in their direction. They neglect other parts of a trading system as setting risk management, setting stop losses, deciding when to exit and how many shares to buy or sell.
He shows with examples, that it does not matter what system you use, - fundamental analysis, swing trading, scalping, following news letters, but as long as you have proper risk control, you can have positive returns in the market.
This book is filled with sound trading ideas.
In short: I recommend that you buy it, study it and implement the ideas given in this book.
Read the ideas about position sizing: that is, you vary the amount of shares to but or sell depending on the risk.
In DreamTai, we employ position sizing to keep risk less than 2 percent of the capital.
