"Trading Day by Day" by Chick Goslin

[schoe]

Well I skimmed through some of it but have read 80% and am very impressed and it is my Bible of trading for the future with longer term positions and I will incorporporate it more into my shorter term trading.

It teaches us what most of us know but don't do and can be summed up as follows.

Don't have opinions on the markets

Trade with the trend 99% of the time and the odds are always in your favour.

Diversify as no trade is a certainty and go long the strongest and short the weakest markets.

this is easier said than done, we all know this is what we should do but not many do it this

book shows you how to learn this difficult skill and how to apply the above good habits

consistently.

Hope this helps.

 

[mik1973]

Hi Schoe,

Nice to get a clear quick review of the book. Do you mind if i ask if the author explains a way of identifying the trend over different time scales and introduces any methods for setting stops?

Cheers,

Mick

 

[schoe]

Hi Schoe,

Nice to get a clear quick review of the book. Do you mind if i ask if the author explains a way of identifying the trend over different time scales and introduces any methods for setting stops?

Cheers,

Mick

Hi Mick, The book is aimed at end of day futures trading and he uses a short term line, a medium one and a longer one to identify the trend.

That is the essence of it stops are based on different methods and you can decide which one is best for you sometimes if it is a strong trend he won't use stops at all.

Everybody will probably adapt it to their personal tolerances, but the message is that when something is trending strongly professionals will be buying into that trend while amatures will think it can't go any further and try to short it. Look at the recent dollar decline as a good example.

 

[The General]

MartinD,

Unfortunately mine has not lobbed up yet. How's that I live in Zone 1 you would think I'd have a good chance of next day delivery.....

 

[alliance]

Got mine Sat AM too

 

[The General]

Lots of good stuff in there eh lads ?

 

[arold_ite]

Book for Sale

Hi, by mistake, I ordered two of these books, so if anybody wants a brand-new copy, still sealed, make me an offer!

Arold

 

[rglenn]

I have now read the book and agree that it is one of the best books on trading.

There are indeed some very sound principles in this book and if followed correctly will certainly lead you on the road to wealth.

You will have to learn how to interpret some of the setups however, but most of them is quite clearly explained in the book.

I will certainly be using some of the techniques to keep me in the trend longer and help me to find better trading opportunities.

Happy trading everyone.

 

[chump]

I agree with the above and reiterate everything Roberto said much further back..perhaps the best book on trading that I have read ...indeed apposite to the thread started by Tony.."Which book would you throw away"...this is definitely one I would keep on my shelf !

 

[blackcab]

To those who have read it:

1. How applicable is it to daytrading index futures - no overnights?

2. How much does it rely on indicators and MAs and how much is pure price/volume?

 

[TGM]

blackcab,
the 3 lines work on anything that moves ---in any timeframe. MartinD uses them to daytrade the ER2 and he is going to be doing the Dax as well with them. Ask him. I do not daytrade like I used to. However I did, for equity index futures and fixed income, I have used them for 10 years. Works very well.

Of course, price always rules! The key to the approach is the Middle line. Most trades do not understand how to use the Middle line properly if at all.

 

[blackcab]

Thanks

 

[chump]

TGM,
First of all ,thanks for the recommended reading ,first rate content and appeals to my timeframe particularly although it is clear to see how it could be applicable in shorter timeframes.
"The key to the approach is the Middle line"...yes I can see that and without 'lifting' the content, it appears to me be unlocked by price observation coupled with anticipation...would you agree with that view ?

 

[ardhill]

It's so unusual to see such high praise for anything like this on T2W, I just had to order a copy.

It's my Christmas present to myself

The Chick Goslin fan club will be pleased to hear that I ordered it directly from his site.

Thanks to all you recommended it.

 

[ChowClown]

...likewise

 

[mik1973]

To those of you who have read the book could you please let me know if it would be possible to apply these techniques in one of the more volatile markets (such as FX).
Would it also be possible to trade one of these markets on a daily basis?
Finally there have been numerous comments about "the three lines". Are these three lines a standard MACD- or the authors variation on a theme MACD- or a totally unique three line strategy.

Cheers,

Mick

 

[chump]

Yes
Yes
No
and just to avoid confusion this is not a system....it is much more a description of price observation within a set of rules that allows for contextual discretion...which ought to get most people running for the hills ,because it will take time and the willingness to concentrate on market observation to master

 

[MartinD]

TGM can comment about FX as he trades in those markets frequently.

I second chumps comments - this is an excellent book about trading with the odds in your favour amonst other things, it is not an automatic trading system complete with backtest results.

 

[mik1973]

Thanks for your response Chump- excuse my ignorance but could you explain what the No referred to?

Thanks,
Mick

 

[chump]

No refers to your question "MACD"...these lines are simply 'averages' or 'averages of averages' used to place price action within a timeframe context.... to be frank you can make up your own lines to approximate these..it is not the lines per se that are the most valued part of the book...I would not like to go into this too much further,because I might be doing the author a disservice revealing the contents of his book...I think I have made it clear that I think it is worth buying so I'll leave it there...