Share Trading – Tenth Anniversary Edition
Share Trading comes from the prolific author and educator, Daryl Guppy. First published in 1996, this tenth anniversary edition was revised in 2001.
The book is divided into three parts. First, Daryl takes the reader through a solid grounding in the basics for survival. The reader learns the advantages of being a private trader and Daryl provides a much needed reality check for anyone considering active trading. This book will not fool the reader into thinking trading is a guaranteed road to riches. Trading tools (charting packages, newsletters, data vendors), benchmark returns and trading targets for various groups of shares are explained in detail before any trading techniques are even mentioned. Daryl ensures the trading landscape is clearly explained before discussing actual trading.
In part two, Daryl discusses the importance of defining the trend and how to go about it. The importance of knowing how to use trend lines and channels for identifying support and resistance levels is explained. The reader also learns of their importance in locating entry and exit points.
Part three is devoted to money management. Daryl discusses the two per cent fixed fractional approach and how it works when combined with various levels of pyramiding.
Although 10 years old, Share Trading has stood the test of time because, although shares and market participants have changed over the years, the markets and people’s reaction to them – hope, fear and greed – have not. You will not find any grandiose promises of trading riches in Share Trading, but sensible and solid ideas on how to approach the business of trading. Share Trading is a book I would recommend to new traders for a sensible insight into active trading; and to old timers to remind them to keep it simple, keep it real and keep it conservative.
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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