Trading Software and Books Reviews

The Next Step to Share Trading Success

This is Leon Wilson’s follow-up to The Business of Share Trading.

At 468 pages The Next Step is not only a substantial book but also a very detailed and thorough one. Leon begins where he left off in The Business of Share Trading building the case for why private traders should look after their own investments rather than invest in managed funds. Before moving into trading, Leon looks at managing risk and how to select appropriate set-ups according to his trade validation ratio.

The Next Step is full of ideas for trading assistance. From parabolic trend trading to identifying reversal set-ups, there are plenty of suggestions. Whether they are custom indicators, traditional chart patterns or measuring strength Leon gives a thorough explanation and an example of how each can be used. Following his discussion on individual tools Leon provides an excellent chapter describing Nicholas Darvas’s trading technique (Darvas was a famous ballroom dancer who made over $US2.0m trading shares in the 1950s). Beginning with an explanation of how Darvas developed his method, Leon shares his and Daryl Guppy’s refinements to adapt the technique to today’s markets. For traders interested in mechanical trading Leon shares a number of models and discusses not only their strengths and weaknesses but also the various pros and cons of systematic trading. Leon then involves the reader in a serious discussion concerning position sizing and its impact on long-term survival. The book finishes, in what may possibly turn out to be perfect timing, with a whole chapter on bear market trading with CFDs.

I found The Next Step to be well written and structured, with detailed and comprehensively annotated charts. I liked Leon’s discussion on the minimum closing price and I think the book is worth purchasing for the Darvas chapter alone. I liked Leon’s open and frank assessment of CFDs and their hidden traps. With The Next Step Leon shares a wealth of knowledge. I believe his new book deserves serious consideration by all active share and CFD traders.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

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