Book Reviews
A Long-term View

All about getting you back to the basics and some fundamental core truths of successful trading

An eye-opener that helped me to understand why I usually ended up taking profits too early which meant smaller profits than I deserved. This was due to lack of proper methodology in my trading. There is no panacea for successful trading. The book will reinforce the point that trading will require more work than ever thought imaginable. The heartening news is that the basic principles are applicable to every trader, in any market and in any timeframe. Even though Brent is humble enough to call himself 'not (an) expert', the teaching gems have come from over 25 years of hardcore trading experience. The book is not for someone looking for new entry/stop exit techniques. The shift in my approach was that Brent is a mechanical trader who does not spend time watching markets tick by tick, but rather spends most of his time on researching and thinking up new ideas.

Most of the people will think the USP of the book is Brent's "Just one piece of advice" section that has rare interviews from a diverse group of 15 successful traders from across the world who have generously agreed to offer the reader one powerful piece of advice to help him towards his trading goals. For me, the USP of the book was the 70 plus pages of "Methodology". The caveat here is that Brent wants every reader to do his own independent validation. In his words, be a sponge and soak up all the ideas you can on trading, but as you do so, please remember to remain a sceptic and be prepared to do your own work to validate the idea independently. What doesn't work for you is as important as knowing what does! At the end of the day, you have to find what works for you to identify potential support and resistance level consistently. A good support level will not only exist in an uptrend; it should also confirm the uptrend. A good resistance level will not only exist in a downtrend; it should also confirm the downtrend. Brent puts high importance to both entries and exits. He totally disagrees with anyone favouring importance of exits over entries. His analysis of the highly-promoted Gann & Fibonacci methodologies may surprise those who use or support it.

The book details six universal principles of successful trading that outline the process of trading: Preparation, Enlightenment, Trading style, Markets, Trading and the three pillars of Money Management, Methodology, and Psychology. Brent does spend good amount of emphasis on Money Management that he considers even more important than Methodology. Psychology is important once you commence trading and it is the glue that holds Money Management and Methodology together.

Today is both the best and worst of times for traders. They never had it so good with no barriers to entry, multiple discount brokers, electronic trading platforms, automatic trading programs, inexpensive live real-time data, charting programs, indicators, fundamental & technical trading theories, trading coaches, newsletters, etc. Yet, more than 90% of active traders continue to lose. Hard choices are needed over studying, learning, and implementing the ideas in the book. The only real secret of trading is: the best loser is the long-term winner.


Price stability key to recovery for India, other G-20 nations

India’s overall inflation touched 10.16% in May, while food inflation is above 16%. Added to that, last week's decision to raise fuel prices is likely to stoke inflation by 0.9 percentage points

Amid concerns over sustaining the recovery through domestic consumption, the world's most influential leaders have asked their grouping, Group of Twenty (G-20), to work for price stability—a key challenge for India grappling with double digit inflation, reports PTI.

"Monetary policy will continue to be appropriate to achieve price stability and thereby contribute to the recovery," the declaration by G-20 leaders said on Sunday after their two-day summit in Toronto, Canada.

India is battling high overall inflation which touched 10.16% in May, while food inflation is above 16%. The government's chief economic adviser himself estimated that last week's decision to raise fuel prices would stoke inflation by 0.9 percentage points.

The Reserve Bank of India (RBI) is scheduled to review monetary policy on 27th July amid expectations of rise in key policy interest rates.

Though India, as prime minister Manmohan Singh said, is on the way to returning to 9% economic growth, sustaining it with strong demand would require a fine balancing act.

"The path of adjustment must be carefully calibrated to sustain the recovery in private demand," the declaration said.

Sustaining private demand amid stress on government finances in several European countries remains a major challenge for the global economy.


Fuel price de-control: What does it mean for the customer?

Don’t expect any price wars, but it is time to start searching for more fuel-efficient vehicles

So what does the freeing of the fuel price mechanism really mean for us in India, on the street and at home, and where does this go next?

By all reckoning, it goes only one way, and that is straight up. A cynical way of looking at things would be that the cost of the cleanup of the Deepwater Horizon/BP oil spill in the US, and the resulting reduction in oil production as well as increased cost of future offshore drilling especially in the US, will cause a spike in crude oil prices worldwide-which will further notch up prices for fuel at the retail outlet in India. That's certainly the larger picture, and winter crude price predictions are touching three figures in dollar terms per barrel, again. Add to that all the predictions for inflation, worldwide, staring us in the face.

At the time of writing this article, the oil companies had not provided their dealers with any indications on what this would really mean in the future, barring the notified hike on the night of Friday, 25th June. Prices of petrol, diesel and kerosene at the retail outlet, as well as LPG and CNG, would continue to be "administered" by the parent company-chances of any price-wars at this level are totally ruled out. And the buzz with dealers is that public sector oil companies, who have an almost 100% presence and dominance in urban locations, are likely to form a "consultative committee" once again to "set" prices at their outlets.

The few private oil company outlets that exist in India are largely on the outskirts of cities or on highways, and it is not expected that they will go into any price-war or any sort of loss-making method to gain market share, as was done in telecom. They are expected to willy-nilly follow the larger public sector oil company pricing policies, and will hope to make better margins out of efficiency, as well as allied usage of retail outlets.

What may also increase is advertising spend and perception management. Beyond that, time to start looking at more fuel-efficient motor vehicles again, and on that, luckily, we seem to be moving towards a vast choice in all segments.



datar ashok

7 years ago

right oil prices - i.e. higher prices should encourage users to be very efficient in its use. it will also give a chance to alternative sources of clean energy to develop. hence we must welcome the higher price.
there should be a cess of one rupee per litre on all oil products to prepare for a contingency fund for any calamity.

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