Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading
304
Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading
304Overview
- Robert Prechter, Elliott Wave International
"This book is insanely great. The refreshing clarity this book brings to the table is brilliant. I think this is an amazing, excellent book, one that could help a whole new generation of traders."
-Jack Sparrow, MercenaryTrader.com
"This is the most honest trading book of the last decade. Peter tracks recent trials and tribulations on his path to success dating back to the 1980s. He shares numerous insights into the emotional and technical challenges of trading, right down to his track record over the years. Peter candidly documents a recent trading period. His ultimate success reflects the importance of staying true to a process while still allowing flexibility to modify rules as market conditions change. Anyone desiring longevity in the business really needs to read this book."
- Linda Raschke, trader, President of LBRGroup, Inc., and co-author of the best selling book, Street Smarts-High Probability Short Term Trading Strategies.
"Almost every book about trading for a living is either fraudulent or boring (or both). This book is neither. Not only is it a good read for anyone seriously wanting to know what trading is really like, it is also very interesting, mostly due to its real-time, diary format. As someone who has done myself what he describes, I highly recommend it."
- Robert Zellner, Independent trader, former director of Chicago Mercantile Exchange and former CEO, Citicorp Futures Corp
"Trading is not what most people think it is, as you will find out in this real life experience from Peter Brandt, a well-seasoned trader. You will learn what he looks for in trades, what tells him to hop aboard and how to get out. Well worth reading!"
- Larry Williams, author and trader, ireallytrade.com
"Anyone interested in trading---and not just commodity trading---is going to cherish this book. In a world that tends to become intoxicated with "magic formulas" Peter Brandt provides the necessary sobering balance: the "secret," if there is any such thing, is in recognizing your basic human weaknesses and strengths and working with them, in the context of some relatively simple rules that are effective if you are persistent. The light that Brandt shines on the inner monologue of trading is of incalculable value. There are many ways to extract profits from the markets, but none of them matter if you can't control yourself---for that we need self recognition and self analysis: Brandt's detailed diary is like a great novel, revealing the inner life and character of a trader, revealing the kinds of inner understanding we all need if we hope to navigate an ultimately unknowable future. Traders would do well to try to become, as individuals, more like Peter Brandt."
- Lowell Miller President & CIO Miller/Howard Investments, Inc., author of The Single Best Investment
"Mr. Brandt takes the reader far beyond mere descriptions of classical trading patterns. His book offers insights, observations and practical information gleaned from over two decades of consistently successful trading performance. A must read for anyone wishing to enter the world of risk."
--Daniel Chesler, CMT, President, Chesler Analytics LLC
"Peter provides a fascinating real-world look at commodity trading. This book is a must read for anyone who contemplates being an effective trader. His exquisite use of charting techniques is spot on. And, of course we could not agree with him more regarding the importance of charts in the trader's perspective."
- Eero Pikat, President, Barchart.com, Inc.
"A great book for advanced and beginning traders! The professional trading insights that Peter shares can help traders speed up the progress of their own trading by light years."
- Glen Larson, President, TradeNavigator.com
A top trader takes you through the markets and revels how he succeeded
In Diary of a Professional Commodity Trader, Peter Brandt provides a play-by-play diary of his 2009 trading, offering an inside look at the difficult process and what it takes to excel at such a demanding endeavor.
A long-time trader, Brandt clearly explains his thinking as he searches for the right opportunities and executes trades for 21 weeks. And by utilizing a diary format, he reveals exactly what it's like to trade, communicating the uncertainty that surrounds every trade and the discipline required to make tough decisions in the face of losing money. Along the way, Brandt touches upon his philosophy on speculation, market analysis, trade identification and selection, risk management, and much more.
- Fully discloses the methods and rules the author has used to trade so successfully for so many years
- Each trade include charts, an analysis of the trade, and a play-by-play account of how the trade unfolds
- Brandt examines all his trades and keeps a running account of his profits and losses
Unlike most trading books, which tell people how to trade, this reliable guide will reveal the reality of this discipline and provide you with a firm understanding of what it takes to make it work.
Product Details
| ISBN-13: | 9780470947265 |
|---|---|
| Publisher: | Wiley |
| Publication date: | 01/14/2011 |
| Sold by: | JOHN WILEY & SONS |
| Format: | eBook |
| Pages: | 304 |
| Sales rank: | 1,038,856 |
| File size: | 9 MB |
About the Author
The author can be reached at plb.factor@gmail.com
Read an Excerpt
Table of Contents
Acknowledgments xiiiPart I Foundations of Successful Trading 1
Introduction 3
The Invention of a Commodity Trader 3
Why I Wrote This Book 7
This Book’s Audience 9
The Book’s Road Map 14
Chapter 1 The History and Theory of Classical Charting Principles 19
My Perspective of the Principles 20
Three Limitations of the Principles 21
Summary 22
Part II Characteristics of a Successful Trading Plan 23
Chapter 2 Building a Trading Plan 25
Trader Personality and Temperament 25
Adequate Capitalization 29
Overall Risk Management 30
Points to Remember 32
Chapter 3 Identifying the Trades and the Trading Vocabulary 33
Trade Identification 35
Vocabulary of the Factor Trading Plan 35
Points to Remember 54
Chapter 4 Ideal Chart Patterns 55
Reversal H&S Pattern in Copper 56
Reversal Rising Wedge in AUD/USD 56
Continuation Wedge and Reversal Failure Top in Soybean Oil 57
Reversal Triangle Bottom in Sugar 58
Continuation and Pyramid Patterns in USD/CAD 58
Reversal Top in Silver 59
Continuation H&S Pattern in the Russell 1000 Index 60
Continuation Rectangle in Kansas City Wheat 61
Continuation Rectangle and Pyramid Triangle in Crude Oil 61
Continuation H&S Top in the Dow Utilities 63
Continuation Triangle, Reversal M Top, and Flag in the EUR/USD 63
H&S Reversal Top and Three Continuation Patterns in the GBP/JPY 65
A Reversal Symmetrical Triangle in the AUD/JPY 66
Two Continuation Patterns in GBP/CHF 67
A Triangle and Running Wedge in Sugar 67
An H&S Bottom in Apple Computer 68
A Major Continuation H&S and Symmetrical Triangle in Gold 68
A Series of Bullish Patterns in Copper 70
A Failed Ascending Triangle in the USD/CAD Crossrate 71
A 12-Week Rectangle in the Dow Jones Transport Index 72
A Rare Horn in Brent Sea Oil 72
An H&S Bottom Launches the 2009 Bull Market in the S&Ps 73
Summary 74
Points to Remember 74
Chapter 5 How the Factor Trading Plan Works 75
Trade Identification 75
Trade Entry 84
Trade Risk Management 85
Trade Order Management 86
Points to Remember 89
Chapter 6 Three Case Studies Using the Factor Trading Plan 91
A Remarkable Technical Event in the Dow Jones 92
A Year Trading Gold 94
A Year Trading Sugar 104
Points to Remember 113
Chapter 7 Characteristics of a Successful Trader 115
Intimate Knowledge of Trading Signals 116
Discipline and Patience 117
Analysis of Self and of the Trading Plan 117
It Takes a Leap of Faith 120
Points to Remember 121
Part III A Five-Month Trading Diary: Let The Journey Begin 123
Chapter 8 Month One: December 2009 127
Trading Record 129
Summary 143
Chapter 9 Month Two: January 2010 145
Identifying Trading Opportunities 146
Amending the Plan 151
Trading Record 152
Summary 170
Chapter 10 Month Three: February 2010 171
Sticking to the Plan in Choppy Markets 171
Trading Record 173
Summary 187
Chapter 11 Month Four: March 2010 189
Trading Record 190
Summary 201
Chapter 12 Month Five: April 2010 203
Relying on Classical Charting Principles 204
Trading Record 205
Outlook for the Future 210
Summary 214
Part IV The Wrap-Up 215
Chapter 13 Analysis of Trading Performance 217
How the Trading Plan Performed 221
How the Plan (and the Trader) Evolved 227
Summary: Best Practices Going Forward 228
Chapter 14 The Best Dressed List 231
A Seven-Month Double Bottom in AUD/USD 231
A 14-Month Coil and Nine-Month Descending Triangle in EUR/CHF 233
A Six-Month Wedge in EUR/USD 234
A 16-Week Horn in GBP/USD 235
A Four-Month H&S in Bottom NZD/USD 236
A Six-Month Ascending Triangle Failure in USD/CAD 237
An Eight-Month H&S Bottom in the S&Ps 238
A 14-Month Symmetrical Triangle in Sugar 239
A Seven-Month Triangle in Gold 240
A Series of Continuation Patterns in Copper 242
An H&S Bottom in Crude Oil 243
Summary 243
Postscript 245
Appendix A Factor Trading Plan Signals 249
Appendix B Quick Reference to Charts 257
Appendix C Recommended Resources 269
Author’s Note 271
Index 275