Top 5 Take Aways from Tom Busby’s Book
Tom Busby’s book “Winning the Day Trading Game” offers many valuable ideas. I was able to take away the following top 5 lessons that have helped me tremendously:
1. Trading during certain times: Tom identifies the best times to trade. Of all my years reading trading books, this is the first book to truly outline the best trading times. Trading at the “right” times has improved my bottom line and kept me out of marginal trades I would of taken out of boredom. I don’t feel guilty now when I leave in the middle of the day to go workout and come back to trade. I am making fewer trades and making more profit.
2. Creating a day trading worksheet: The book talks about key pivots points and important number to write down as reference points. These ideas has helped me identified trade set-ups and placing stops. Interesting point in the book was to indentify the opening price of the market you are trading at the beginning of the year.
3. Reading the Tape: I typically trade off a 3 minute chart for my entry and manage my trade off by reading the tape. Since reading the book and taking my trade setups by reading the tape, I am making better trades with much improved entry points. This idea alone has made a dramatic shift in my trading style. It has also truly simplified my trading.
4. Trading other markets: Tom talks about trading and watching other markets. I am a S&P futures trader and while reading the book I started demo trading my strategy on the Euro Futures and now trading micro lots.
5. Love the 2-minute rule: I can’t count how many times I have been in trades that have taken time to develop and lost money. As simple as it sounds, if it’s a good trade you will know it in 2 minutes. If not get out.
Overall, “Winning the Trading Game” is a great read for new, novice, or experienced trader. There are many tools that can be applied to ones trading immediately and reap the benefits. I definitely suggest reading the book and incorporating the concepts that work with your trading style.
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