![\"\"](\"http:\/\/ws-na.amazon-adsystem.com\/widgets\/q?_encoding=UTF8&ASIN=B00E0VDEDK&Format=_SL160_&ID=AsinImage&MarketPlace=US&ServiceVersion=20070822&WS=1&tag=marcombychale-20\")
<\/a>![\"\"](\"http:\/\/ir-na.amazon-adsystem.com\/e\/ir?t=marcombychale-20&l=as2&o=1&a=B00E0VDEDK\")
<\/em><\/p>\nSo says professional trader and popular financial blogger Brian Lund<\/a> in the introduction to his new book Trading: The Best of the Best<\/a>.<\/i><\/b>\u00a0 By and large, I am inclined to agree.<\/p>\n Profitable trading and investing can be more art than science, and there is no formula or \u201chow to\u201d checklist that can be published in a book and executed by the reader with any guarantee of success.\u00a0 Far too much depends on the unique skills, intuition and temperament of the practitioner; what works for one trader will often not work for another.<\/p>\n In financial writing, there is also a problem of authenticity.\u00a0 As Lund explains, \u201cmost trading books are written by authors who don\u2019t trade, have limited trading experience, or haven\u2019t traded in many years. Most of these authors make their money by writing about trading, giving seminars about trading, or selling systems on how to trade; basically anything but actually trading itself.\u201d<\/p>\n It is as the old adage says: those who can do; those who can\u2019t teach.\u00a0 And even in cases where a writer accurately tells a story\u2014such as in a biography of a famous trader or in an account of a successful trade\u2014there is usually a lack of relatability to the average investor.\u00a0 \u00a0\u00a0It\u2019s entertaining to read about John Paulson\u2019s multi-billion-dollar score in betting against the subprime market in 2007.\u00a0 But few investors\u2014and even professional traders, for that matter\u2014have access to the credit default swaps that made Paulson\u2019s \u00a0bet possible.<\/p>\n Keeping all of this in mind, Brian Lund has produced a very different kind of investing book.\u00a0 It\u2019s not a \u201chow to\u201d book, and it is certainly not a top-down diatribe of received wisdom from a demigod trading guru.\u00a0 Instead, it is a democratic, bottom-up collection of practical trading tips crowdsourced from the blogs and StockTwits and Twitter feeds of real traders with real money on the line.<\/p>\n You won\u2019t agree with every tip in the book; I certainly don\u2019t.\u00a0 But there is a wealth of knowledge here freely shared by practitioners who\u2014like you and me\u2014learn more about trading and investing every day through their successes and failures.<\/p>\n Here are a few nuggets I particularly liked:<\/p>\n When I sit at my desk and trade it involves 80% controlling the psychological aspect of trading and 20% using discipline to stick with the trade. That makes for a trade that is a 100%, or A+, setup. No one makes money in the markets all the time. If you strive for consistent trading results you need to find the appropriate method and timeframe that matches your personality. I believe that a strong understanding of market structure and risk management should be at the core of every participants approach. In golf, it helps to look at a putt from both sides of the hole. Do the same thing when you trade. If you are bullish on a stock try and wrap your head around the bear case before you make a trade (and vice versa for a short)…you may see something you didn\u2019t notice the first time. 10 times out of 10, Traders who carry BIG losses wish they had respected their \u201cORIGINAL\u201d stop. So, respect the ORIGINAL STOP LOSS, ALWAYS! Get good at getting out quick for a small loss. This practice of losing small, and often, is what will give you confidence when trades do not go your way. Taking small loses properly is where you as a trader score. Internalize: \u2018Every small loss gets me closer to a big win. When you\u2019re trading high growth high momentum names on an intermediate to position trading time frame, it\u2019s often the story that matters much more than the underlying fundamentals. Understanding what stage in the cycle of the story you\u2019re at is extremely important to managing risk. There are no prizes awarded for trading frequency. Don\u2019t feel just because you\u2019re staring at the charts, you\u2019ve got to be in a trade – you don\u2019t Don\u2019t cry over \u201cspilled beer\u201d: If a trade does not go as planned, forget it and go on to the next one. Never play the \u201ccoulda-woulda-shoulda\u201d game…. \u00a0Don\u2019t trade just for the sake of trading: Let the good trades come to you. Do not over-trade. Do not \u201crevenge trade\u201d. Get some exercise. So many people under-estimate the positive impact working up a sweat can have \u2013 not just on your physical health which is kind of obvious, but also on your mental health. My running shoes are one of my best trading secrets. I recommend you pick up a copy of Trading: The Best of the Best<\/em> and jot down the tips you find particularly helpful. \u00a0Put them on Post-It notes and stick them to the bottom of your monitor or somewhere where you can’t help but look at them. \u00a0It will make you a better and more disciplined trader or investor. \u00a0And I also recommend you follow Brian Lund on StockTwits<\/a> or Twitter<\/a>. \u00a0Brian’s posts are usually funny, always irreverent, and generally quite insightful.<\/p>\n SUBSCRIBE\u00a0<\/b><\/a>to\u00a0Sizemore Insights<\/em>\u00a0via e-mail today.<\/p>\n\n
\n– Zachary A. Musso (@Zmoose12<\/a>)<\/p>\n
\n– Brian Shannon (@Alphatrends<\/a>)<\/p>\n
\n– Tom Morton (@TheEquitiesRoom<\/a>)<\/p>\n
\n– Trader Stewie (@traderstewie<\/a>)\u00a0[Note: So many of my own mistakes could have been avoided by following Trader Stewie’s advice…CLS]<\/p>\n
\n– David Aferiat (@TradeIdeas<\/a>)<\/p>\n
\n– Leigh Drogen (@ldrogen<\/a>)<\/p>\n
\n– Anne-Marie Baynard\u00a0(@AnneMarieTrades<\/a>)<\/p>\n
\n– Brandon Hayward (@VexTrades<\/a>)<\/p>\n
\n– Jessica Peletier (@RogueTraderette<\/a>)<\/p>\n<\/blockquote>\n