High Probability Trading

Submitted by Book Library on 5 March, 2010 - 00:09

“The Goal Is to Teach All Traders to Think with the Mindset of a Successful Trader.” While successful trading requires tremendous skill and knowledge, it begins and ends with mindset. What do exceptional traders think when they purchase a quality stock and the price immediately plummets? How do they keep one bad trade from destroying their confidence--and bankroll? What do they know that the rest of us don't?

"Some trades are not worth the risk and should never be done." High Probability Trading shows you how to trade only when the odds are in your favor. From descriptions of the software and equipment an exceptional trader needs to high probability signals that either a top or bottom has been reached, it is today's most complete guidebook to thinking like an exceptional trader every day, on every trade.

"It's not how good you are at one individual thing, but it's the culmination of every aspect of trading that makes one successful." Before he became a successful trader, Marcel Link spent years wading from one system to the next, using trial and error to figure out what worked, what didn't, and why. In High Probability Trading, Link reveals the steps he took to become a consistent, patient, and winning trader by learning what to watch for, what to watch out for, and what to do to make each trade a high probability trade. Within 6 months of beginning their careers full of promise and hope, most traders are literally out of money and out of trading. High Probability Trading reduces the likelihood that you will have to pay this "traders' tuition" by detailing a market-proven program for weathering those first few months and becoming a profitable trader from the beginning. Combining a uniquely blunt look at the realities of trading with examples, charts, and case studies detailing actual hits and misses of both short and long-term traders, this straightforward guidebook discusses:

  • The 10 consistent attributes of a successful trader, and how to make them work for you.
  • Strategies for controlling emotions in the heat of trading battle.
  • Technical analysis methods for identifying trends, breakouts, reversals, and more.
  • Market-tested signals for consistently improving the timing of entry and exit points.
  • How to "trade the news" and understand when the market has already discounted it.
  • Learning how to get out of a bad trade before it can hurt you .

The best traders enter the markets only when the odds are in their favor. High Probability Trading shows you how to know the difference between low and high probability situations, and only trade the latter. It goes far beyond simply pointing out the weaknesses and blind spots that hinder most traders to explaining how those defects can be understood, overcome, and turned to each trader's advantage.

While it is a cliché, it is also true that there are no bad traders, only bad trades. Let High Probability Trading show you how to weed the bad trades from your trading day by helping you see them before they occur. Packed with charts, trading tips, and questions traders should be asking themselves, plus real examples of traders in every market situation, this powerful book will first give you the knowledge and tools you need to tame the markets and then show you how to meld them seamlessly into a customized trading program one that will help you join the ranks of elite traders and increase your probability of success on every trade.

Positive Book Review of High Probability Trading

I've read some of the reviews (or should I say criticisms) of this book. They write that it's for beginners, there are just a couple of setups, and the obligatory discipline "cut your losses" warning chapter. I think people are missing the big picture. If you want a detailed book about technical analysis, with lots of explanations, setups etc. There's "Technical Analysis Explained" by Martin J. Pring, or you can buy something by Jack Schwager or John Murphy.

If you want a book about building and testing a trading system, there's "Trade Your Way to Financial Freedom" by Van K. Tharp. If you want a self-help book about discipline / psychology, there are a lot of those, some in the investment section, some in the psychology section. If you want a book about day trading, there are a ton of those as well.

The thing I like about this book is that everything is there in one place. At the end of each chapter, the author gives you pointers on what to do and what to avoid doing to reinforce your memory of the principles. The book is written in a very readable style. I got this book about three weeks ago, and by applying some of the principles I learned from the book, I made two profitable trades (which I would not have normally made) and avoided making a trade which I normally would have made. This trade would have been a loser. As a result of reading this book, I made and saved enough money in the last three weeks to buy ten copies of this book.

Negative Review of Book High Probability Trading

I didn't like this book at all. Clearly it is aimed at beginners and it tries to cover technical analysis, money management, trading psychology, and system testing. Just too much to be able to cover anything in depth. However, the author seems honest in his approach of trying to tell the reader a bit about everything he has learnt himself. Honesty is unfortunately not sufficient to write a good book. This book would have been better by cutting down the amount of text, especially the sections that state the obvious, for instance the 30 odd bullet points that end each chapter. Come on what was the author thinking?. I bought this book due to the high rating on amazon, but clearly the author has a fan-club that raises the book to the sky. Lot's of reviewers have only reviewed this one book.

Don't buy this book. For the beginner I would recommend Miner's High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock Markets (Wiley Trading). That book doesn't tire the intelligent beginner with loads of different things. That books is also very valuable for non-beginners. When it comes to psychology read this book The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist (Wiley Trading). I have written several short reviews on trading books. The best way is to compare the score on the books I've read. Many reviews on amazon.com are just glorious 5 star reviews. I use all five categories; sorry but everything isn't "great". Books rated 5 are very good. Books rated 4 are good solid books well worth reading. Books rated 3 can be bought by some people who read a lot or have very specific needs. Books rated 1 or 2 I would not recommend buying or reading. Naturally all in my humble opinion.

Author Biography

Marcel Link has been trading professionally since 1991. He is the founder of linkfutures.com and is a TradeStation consultant. Linkfutures.com serves the trading community with daily commentary on the markets, along with insights into technical analysis, training, marketing, and other information that can be vital to traders. Link can be reached for questions or comments at marcel@linkfutures.com.

Table of Contents

  1. PART I High Probability Trading Strategies for Any Market and Any Time Frame.
    • CHAPTER 1 High Probability Trade Strategies for Any Market and Any Time Frame.
      • Any Market, Any Time Frame.
      • Conditions with a High Probability Outcome.
      • Leading and Lagging Indicators.
      • What You Will Learn in This Book and CD.
      • Let’s Get Started.
    • CHAPTER 2 Multiple Time Frame Momentum Strategy.
      • Multiple Time Frame Momentum Strategies.
      • The Basic Dual Time Frame Momentum Strategy.
      • Momentum Reversals.
      • Most Price Indicators Represent Rate-of-Change.
      • Momentum and Price Trends Often Diverge.
      • How Dual Time Frame Momentum Strategies Work.
      • Which Indicators to Use for Multiple Time Frame Momentum Strategies.
      • Dual Time Frame Momentum Strategy Rules.
      • Dual Time Frame Momentum Strategy Trade Filter.
    • CHAPTER 3 Practical Pattern Recognition for Trends and Corrections.
      • Simple Pattern Recognition Based On Elliott Wave.
      • Trend or Correction: The Overlap Guideline.
      • ABC and Away We Go.
      • Complex Corrections.
      • Overlap Is the Key to Identify a Correction.
      • Trends and Five-Wave Patterns.
      • Greater in Time and Price.
      • Fifth Waves Are the Key.
      • Momentum and Pattern Position.
      • Momentum and Pattern Not Enough.
    • CHAPTER 4 Beyond Fib Retracements.
      • Internal Retracements and Corrections.
      • Alternate Price Projections Qualify Internal Retracements.
      • More Alternate Price Projections.
      • External Retracements Help Identify the FinalSection of a Trend or Correction.
      • Pattern Price Targets.
      • Price, Pattern, and Momentum.
    • CHAPTER 5 Beyond Traditional Cycles.
      • Time Retracements and Corrections.
      • Alternate Time Projections Narrow the Time Retracement Range.
      • More Time Factors.
      • The Time Target Zone.
      • More Time Factors.
    • CHAPTER 6 Entry Strategies and Position Size.
      • Entry Strategy 1: Trailing One-Bar Entry and Stop.
      • Entry Strategy 2: Swing Entry and Stop.
    • CHAPTER 7 Exit Strategies and Trade Management.
      • Multiple-Unit Trading.
      • Risk/Reward Ratios.
      • Exit Strategies.
      • Trade Management.
      • Trade Only the High Probability, Optimum Setups.
  2. PART TWO Trading the Plan.
    • CHAPTER 8 Real Traders, Real Time.
      • Adam Sowinski.
      • Jagir Singh.
      • Cees Van Hasselt.
      • Kerry Szymanski.
      • Derrik Hobbs.
      • Carolyn Boroden .
      • Jaime Johnson.
    • CHAPTER 9 The Business of Trading and Other Matters.
      • Routines and Trading Records.
      • Why Traders Win or Lose.
      • Technology, Trading Time Frames, Markets to Trade, and Leverage.
      • Trade for Points, Not for Ticks.
      • You Can’t Buy Success.
      • You CAN Be a Successful Trader.

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