Excellent. It is interesting to note, but I found that different traders take home different messages from the books. With Market Wizards, as my trading progressed, I would suddenly find completely new and different insights in there.
Remember, of all the Market Wizards, Minervini has the best risk-adjusted returns. However, by only using quarterly numbers the extent of the drawdowns is hidden. Nevertheless, he returned 220% p.a. from 1995 to 1999 and his drawdowns were tiny (<1% on quarterly numbers). His best year during that period was 1995 were he made 500%, so he did not benefit as much from 1999 as some other traders did during that period.
Darvas and O'Neil both provide solid trading plans that require a little bit of judgement on the taking of profits. Everything else is pretty well documented and should make following their strategies easier. If I recall correctly, Minervini did not provide such a detailed trading plan, but his book should also be recommended reading. He provides lots of other insights that in combination with O'Neil can be extremely useful.
Ultimately, even with the above, there is still room for interpretation (profit taking, position sizing, scaling in / scaling out) and you would need to develop your own method. It is crucial however that you don't alter your methods when you get frustrated. For instance, if you decide to hold for long term gains, and get a lot of trades that reverse and stop you out at break-even, it might be tempting to take profits at 15%-25%. Should you then change your method, you will become frustrated by all the big movers that you sold too soon. Either adopting a single approach and sticking with it, or scaling out of winners may work. You need to decide which suits you best.
Oh, just to mention this again. Trade as infrequently as you can. Give trades time to either get stopped out or make decent profits. It is incredibly frustrating watching the only stock in your portfolio do nothing (or go down) while the market moves up, but if you give in to that frustration, then your results will suffer. The account will churn itself to death and there will be too few winners to make up for that churn.
If I can advice you, DO NOT TRANSACT WITH FXCM or you might end up losing hope coz they can terminate your account at will.
I have been with them and scalping like hell making 35 trades per day all doing manual trades then suddenly they terminate my account for no reasons at all.
Just like that, all your efforts, hopes and dreams was gone. worst! I dont even know if they will even refund my money.
After what they've done with me recently, I see them as CROOKS!
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Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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