How I Trade for a Living

A recent debate in one of the Internet trading forums this weekend on the efficacy of the strategies in this book since the bursting of the stock market bubble prompted this review. How I Trade for a Living is divided into 5 main parts. These include the author's 18 year search for trading success, the indicators he uses to trade, a blow-by-blow description of his trading for a year and a half period with an emphasis on various momentum patterns, and how he trades mutual funds and stock index futures. I most enjoyed the parts describing the trials and tribulations of Mr. Smith's 18 year search to become a consistently successful trader and how he overlays sentiment with momentum in his actual trading. Since I don't trade mutual funds I didn't find that section very informative except where he details how to dateline the international markets. This book is best used as a timing tool for the Dow, Nasdaq, S & P, and small cap Russell 2000 indexes. It will not help you in trading individual stocks other than knowing which direction to trade form - long or short. The author is very harsh towards stock market bears. I suspect if the book was written today he would be equally harsh towards stock market bulls as the author is a big believer in simply following the message of the market. While many of the momentum patterns discussed are best used in bull markets, some work just as well in the bear phases such as the divergence patterns. To be perfectly honest, the primary reason I gave this book a five star rating was because it enabled me to completely escape the carnage of the past year. At least so far, the innovative ways Mr. Smith uses sentiment have worked just as well in the present bear market as it did in the past bull. Perhaps I should write a follow up review to say how effective or ineffective the book is in getting me back in the long side at the beginning of the next bull market.

I purchased this book partly out of curiosity from its reviews. It either received a 5-star rating or a 1-star rating. Much to my surprise, I found this book was dynamite and loaded with innovative trading strategies not found elsewhere. One strategy detailed in How I Trade for a Living - the Friday-to-Monday momentum break pattern - netted me over $20,000 the week of January 31. A warning though. If you are looking for the usual, staid, conventional trading advice, look elsewhere. The author never found charts, volume, and oscillators of any value in his quest for trading success.

One of the more enjoyable and enlightening trading books I've read. This book is part biographical and part nuts-and-bolts trading strategy. Many will identify with the author's early struggles as a trader. It was an inspiration to me how Mr. Smith never gave up on his dream to trade for a living. He is now cranking out $10,000 plus monthly returns and all from an original bankroll of only $2000. Very impressive! Although Mr. Smith only trades stock index futures and mutual funds, his strategies work just as well for stocks and stock options. That's because his techniques are geared towards detecting momentum and divergence tops, bottoms, and continuation trends in the stock market. A must read book for both on-line and off-line traders alike and at a most reasonable price.

It seems that every once in a while a real trader comes along and writes a book that gives true insight into the difficult world of profitable trading. With this new book, Gary Smith has written a classic that is an absolute must read by all serious students of the markets. The author specifically describes all of his own trading methods. These methods are completely revealed; nothing is held back for future purchases or future seminars. Mr. Smith is not just another vendor trying to separate you from your capital, but rather a profitable trader who has attempted to assist other traders in mastering this profession. In addition to revealing his own style of trading, Mr. Smith's observations on filters, technical indicators, and seasonal trading are easily adaptable to any style of trading. While I have never traded junk bonds or mutual funds on a short term basis, his methods on these topics is so compelling that I am certainly looking into these topics now. The bottom line is that this rare book is ideal for both the experienced trader and the novice looking for just the right edge. All traders will profit from studying this manual. It is just pure gold!

I've traded stocks and futures for over ten years, and have spent thousands of dollars on books, courses and software on trading. Most of it is junk written by vendors who couldn't trade their way out of a paper bag. HOW I TRADE FOR A LIVING is one of the few books written by an actual trader who trades for a living.Gary's story is like that of many traders (including myself:) Years of struggle and frustration in a seemingly futile attempt at beating the markets. Gary recounts his failures and his spectacular success: Since 1985 his account has grown from a paltry $2200 into over $650,000 (this amount does not include withdrawals for living expensese, so profits are even greater.)Gary also tells us how he trades, what indicators he uses, and details exactly how he trades. In perhaps the best and must useful chapter "The Nitty-Gritty of Trading," Gary takes the reader through actual trades, which explain his methodology in great detail, which can be applied to stocks, mutual funds and stock index futures.Though this book has my highest recommendation, I should warn the reader that this book is written for the serious trader. There are no magic formulas, just wisdom from a great trader. I plan on reading it many times.