Trend Trading for a Living: Learn the Skills and Gain the Confidence to Trade for a Living

I really like this book. For some time I've been an active trader, holding my own. I have almost every serious trading book around. This book is unusual in two respects. First, and very important, it sets forth very specific concrete approaches to selecting stocks and timing entries and exits. Dr. Carr does not stop with generalities. He sets forth a number of specific setups with clear and complete instructions on how to use them, but he also gives the general principles underlying them. So, you know why what you're doing makes sense. Even better, the methods embody the KISS principle, avoiding the unnecessary and unproductive complexities found in many approaches. Second, this book is surprisingly complete considering its moderate length. It productively covers and summarizes the psychological and discipline factors necessary for successful trading. It clearly describes in detail techniques to use in bull and bear markets, with separate discussion of both stocks and options. Dr. Carr gives specific online sources of free information. In short, everything you need to use his method is in the book except for the computer and internet connection. My only criticism relates to the computer and internet requirement. Dr. Carr talks at some length about the type of computer and connection you should use. I think this is overkill since almost everyone who would read the book already has an adequate computer and internet setup. But, the information doesn't hurt, although it will probably be dated quickly. Finally, Dr. Carr's unusual background might account for the excellent writing style. His degrees are from Oxford and Princeton, in philosophy and theology! He is a professor of religious studies. A much more interesting background than had by most investment writers. Dr. Alexander Elder, M.D., author of Trading for a Living, appears to have significantly affected Dr. Carr's approach to, and philosophy of, trading. On balance, this might not be the "last book" on trading stocks, but it definitely belongs - well read - on your shelf.

I am honored that Dr. Elder would take the time to respond to my recently published book, "Trend Trading for a Living". For the record, the title was chosen by the publisher for reasons not disclosed to me (my own title suggestion was rejected). With all due respect to one whose work I respect a great deal, I'd like to correct his primary assertion: my book has a lot to do with his, for it was his classic text, "Trading for a Living", that got me started on the road toward building techical trading systems. As I state in my acknowledgements, "...I am indebted to Alexander Elder, master teacher and market psychologist. Dr. Elder first revealed to me the elegance and logic of technical analysis as applied to price charts. Many of the of the key concepts embedded in the systems explained in this text come from his seminal work...now considered a classic in trading literature" (p. xv). Later in the book, in the introductory chapter, I devote two paragraphs to explaining what I learned from reading Elder's work (p. 17). The principle of "divergence", so central to several of my systems, I learned from him. Of course, our books differ markedly. I offer 10 complete trading systems (5 long, 5 short) whereas his book offers 3 systems (triple screen, parabolic, channel). Elder is primarily a futures trader, and his examples are from futures markets, whereas I am exclusively a stock trader. One-fifth of my book is devoted to trend trading stock options but his only mentions options (on futures contracts) in passing. And Elder's book offers a catalog (very helpful) of over 20 technical indicators and sentiment readings while I've tried to simplify things by discussing only those indicators I've found to be most reliable for trend trading (trendlines, RSI, MACD, OBV, CCI, Stochastics, Moving Averages, and candlesticks). Regardless, I hope that Dr. Elder would read my book and learn there just how much his work has meant to me. I owe him a great deal of thanks and hope to meet him one day soon to express that.

This book is in the tradition of Alexander Elder and Nicolas Darvas, some of the authors trading inspirations.(Mine also). It is a book that shows how to trade volatile high beta stocks using the trend as a guide. It is full of technical trading systems, with no fundamentals here you can ignore news reports, economic and business forecasts, P/E ratios, and book value. What you look for is chart set ups for both long and short positions.Great examples are given and how to find them. The book reinforces the "Price is reality" school of thought where price reflects the companies prospects, if the market likes your company's prospects the price goes up, if it does not it goes down. I agree it really is that simply. The book uses four sources of input for its systems: Price patterns. Moving averages.(I find these highly valuable). 20 and 50 day SMA Technical Oscillators MACD, stochastics, RSI, CCI, and OBV. Japanese Candlesticks (My favorite charts) The book also covers the 10 habits of highly successful traders that are crucial for success. I really got a lot out of his examples of charts and showing the bullish and bearish trends based on the 20 and 50 day moving averages. He covers option trading in three chapters and shows how to trade bullish and bearish trends along with using straddles during option season. Price and volume-that is all you need to know to trade well. Always go with the chart.All that is needed to be hugely profitable in the trading game is to be right more often than wrong. I have traded stocks for over 5 years very successfully and would strongly recommend this book all who wish to trade for profit or live the dream of trading for a living. He wraps the book up nicely explaining how the market can build your character by making you more patient and humble. His best advice is that the market will do what it will do, just go with the flow and befriend the trend.

I've read a lot of the "how to" trading books aimed at the novice to intermediate level trader, including Elder's books (good but outdated), Toni Turner's books (ok but too pedantic at places), and Alan Farley's "Master Swing Trader" (the most sophisticated but overly complicated) and this book by Carr is by far the best. "Trend Trading for a Living" gave me exactly what I was looking for: a simple system to determine general market direction, and 10 complete, easy-to-follow, fully explained and illustrated systems for trading stocks both long and short. Does it work? Well, let's just say that his market direction system would have told me to sell my longs in early December and start shorting the market. I wish this book had come out about 2 months ago! EDIT (03/16/10): UPDATE ON THE 10 T.T.F.A.L. SYSTEMS IN THE BOOK...AFTER 13 MONTHS OF TRADING Let me add here that TC is very helpful for newbies trying to put his systems into practice. I've emailed him several times with questions and he always gets back with helpful answers. [Yes there are periods of losses when the markets get choppy, as they are now. Any trading system's real test is how it performs over a variety of market conditions] **Total trade taken: 152 **Total Winners: 91 **Total Losers: 61 **Total Gain on Account: +71.1% Yes, I highly recommend this book (and his "Trend Trade Letter", excellent if you don't have the time to find the stocks yourself).