Average Reviews:
(More customer reviews)Trend identification is such a difficult art. Some think a simple moving average is enough, others use complex formulas, some just eye ball the charts. Barros instead uses his own system, based on disregarding irrelevant price info (such as a false new low), and instead looking for signs of an aging trend that is start to have new force pushed behind it. His objective isn't to pick the exact bottom, instead its to wait and see how a trend develops according to his wave system, then make a high probability entry point at a solid junction where he can manage his risk v reward. This type of thinking for trend changes and identification is far superior to the standard MA crossover type systems that exist, because it takes into account pressure that both the sellers and buyer are applying to the price movements.
His ideas and formulas do take some time to process on any trend, so don't think its a book written for those who want a simplistic solution. The great part about this book is you can truly build a workable system with its ideas alone. A lot of other books leave out key information, letting the reader seek out the missing pieces. Barros does no such thing, he gives you everything you need (so long as you can understand it) to build a solid long/intermediate term trading system.
One disappointment for me was the lack of info on day trading or very short term trades. I'm sure this was not by accident, Barros seems to know a lot about the day time frame and I'm sure he'll release another book with the day time frame perspective. It would have been nice to have a chapter on day time frame trends, but oh well.
If you're a technical trader and can't seem to find those good entry points, this is a good book for you. If your entries are fine, but you'd like a good exit strategy for long term positions, this is a good book for you. If you have just read some beginning TA books, and wish to move to the next level, this is an excellent book for you. If you want someone to explain market theories in relation to market fundamentals, probably look elsewhere. This book is more about a method you take on faith as working.
Click Here to see more reviews about: The Nature of Trends: Strategies and Concepts for Successful Investing and Trading (Wiley Trading)
Today's market participants have a myriad of tools at their disposal. Yet the success rate is that of old - 80% to 90% of traders fail to achieve their financial goals. This book shows traders how to get their investment act together. It covers in detail the three requirements needed for success: Winning psychology, effective money management and a written trading plan with an edge.* The Nature of Trends also provides unique tools (for example the MIDAS tool) that provide low risk trade entry by telling the trader the level at which an entry may be safely effected* Finally, the book provides the "Rule of 3" to manage a trade. These rules allow the trader to take profits and hold on for long-term profits without increasing risk
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