Tony's the best trader out there who writes, with an easy-to-understand practical style that can help people actually become better traders. Unlike the other theory fluff books that abound out there, both of Tony's books are practical and well-written. This book is well worth 2-3 times the cover price and I have no hesitation in recommending it strongly to all our traders at ... as a "must read" resource.
Thanks, Tony for contributing another useful, practical resource to the trading community. He put a lot of hard work into the book, and it shows. He documents "real trading in action" with risk/money management stops and profitable trades.
Best of all, his book documents a genuine "look over the shoulder of a real trader in action" for a full month's worth of trades. Tony made a 56% return in 4 weeks, turning 50K into 78K (in a bear market month!). It's all here. Read it. He's a good trader.
Tony was to start from scratch as if he was a beginner. He would research and select the right broker. Open an account with $50,000 and follow all the money management and risk rules outlined in his first book. He was to trade for a period of 4 weeks, starting on a date selected in advance. All trades would be recorded both winners and losers. The goal was for a reader to spend four weeks with him and learn how he trades stocks for a living.
Due to the fact that many traders don't have access to an extensive short list or are trading accounts that are restricted from short selling, Tony was not allowed to trade stocks shorts during the 4 week period. This proved to be quite a restriction on his trading as the 4 week period he choose happened to coincide with nearly a 31% decline in the Nasdaq, and this was the market he was trading from the long side all this period.
Over the 4 week period he made a return of 30.78%, and on the final day of the challenge he took out a swing trade on QQQ which was not counted in his final returns as it went into the 5th week. If he had included the 5th week returns then his results would have been 52.26%. He did not compound any of his returns, every Friday he asked his broker to send him a check for any profits he had made that week.
He does not use indicators but relies upon classical support/resistance levels on various time period charts, and also uses the level 2 montage and time and sales data.
The book covers some of the psychological problems that traders face, and also the technical difficulties that can hinder them. His internet system crashed while he was in the middle of one trade.
This book didn't really capture my attention as I was first reading it. But an interesting thing began to happen nearing the end as I actually started to feel Tony's "rhythm" of trading. I suddenly felt that the books value went up tremendously at that moment.
Tony Oz focuses on the typical elements you face when trading: entry price tactics, stop losses, classical charting techniques, exit tactics, and psychology. While these topics are fairly widely covered topics in different books, the best thing about this book is that it simply allows you to get a feel for how a real trader USES those elements and distills them down to what's absolutely necessary and what's just textbook filler.
Daytrading books haven't really been published at all within the last few years due to the obvious fact that many traders were wiped out when the internet bubble popped. While many older books on daytrading have now become outdated, this book shows the common denominator in all successful trading, whether it be a bubble or a recession.