"Trading Day by Day" by Chick Goslin

og5,
Don’t forget the "margin-of-error"!
As HB mentioned “paper trade” & be honest about it. After all it’s your money your lose, your time you waste & your fault if it doesn’t work! If your not certain read the book again & if your still not confident read it again & again.
Don’t worry if you think your going to miss the next move or the one after that, the markets will still be there next year (that kind of contradicts the first law, but I’m pretty certain we will still have markets a year from now!).
 
Thanks for the helpful posts guys. I got to the business law so that cleared up a lot of questions. I think the 50 point move on Nov. 7 is blocking the dot that shows the trend moving up so maybe that is what threw me off.
 
Having been recommended the book by someone who's judgement I have come to trust, I would like to ask:

Have any of the newsommers to the book (i.e. those who bought it over the christmas season) found reading it to add to their overall profitability, hand on heart?

Sorry if it sounds a bit shallow, but it is what it is all about, at the end of the day. No disrespect meant.

All the best...
 
Jyde,

After reading the book (well, most of it!), I took a test trade on the 6th of April on the FTSE, going long. Closed the next day near the high of the day for a gain of 24 points.

The entry was based purely on what I had understood from the book.

It's not too often that you come across a book on trading that is written honestly. The methods Chick Goslin speaks about are actually very simple and they make a lot of sense. Too many of us believe that a good, profitable system HAS to be complex. I think this book demonstrates it does not have to be that way.

Good luck.

Jyde said:
Having been recommended the book by someone who's judgement I have come to trust, I would like to ask:

Have any of the newsommers to the book (i.e. those who bought it over the christmas season) found reading it to add to their overall profitability, hand on heart?

Sorry if it sounds a bit shallow, but it is what it is all about, at the end of the day. No disrespect meant.

All the best...
Click to expand...
 
Without doubt. I read the book very quickly two weeks ago & I have just started it again. I find if I am still interested after a quick glance (which I managed to pick up a few tips to improve my own method, [short DJ since Monday]) it’s worth dedicating more time to.
One of the worst things is the waste of time & effort you spend on reading material by some so called trading expert that is completely hopeless. Chick’s got so much covered. Even if his style is not for you, you can still learn something & you will not be wasting your time.
 
I've read half of the book and maybe it's due to the foreign language but i find it's hard to understand.
even though i've read many english books i have some difficulties with this one.
it's a lot between the lines to understand so in my opinion it's not obvious what you read.
i'm missing some clear rules maybe it will take some time for me to understand and i'm afraid that i've to read it again.

you will find a compllete concept in this book. why to take a trade, how to manage the trade and how to exit.
but so far i was not able to get a profit from the book in the markets.
every time chick starts with a new example, i have problems to understand him why he look at this in that way and why he has this bias.
so i think you need experience to get the same results like he is doing.

there are a lot of informations in this book but i would assume this book is not for everyone.
best
karla
 
Taken from Intelligent Futures Trading;
“There isn't a universal best way to trade futures, but there is a best way for YOU to trade futures. Your job, as a student of the game, is to pick and choose from all you encounter in your studies and then construct your personal trading techniques, style and method.”

Chick mentions these points & more in “Know Yourself” page 119. I’m sure most people can gain something from Chick’s methods (especially EOD).

Take the turtles example. All the traders were given the same system to trade, but they did not all end up with the same results. Its about your attitude towards trading & your style.
 
If anyone is subscribed to Chick's newsletter and would like to split the cost please PM me

Thanks
 
Last edited:
Where do you guys place your initial stop? Chick decides to exits purely on the basis of the line patterns. If the lines turn against him, he gets out. The problem is you then don't know how much you are risking before you enter the trade, which makes me uncomfortable. I was thinking of placing a stop 2 or 3ATR away. But the problem is the price might trigger that stop off, without the line patterns going against you. So you should have stayed put, but you are out.

Hmmm....tricky tricky...
 
I have only had the book for 6 months, so haven't had a lot of time to observe the best place to put stops but for the Dow, a 150 point stop from the initial entry point seems to be working well at the moment. I did check a few years back and it works OK as long as the volatility is not too high. I missed the last sell signal, as I thought there might be a bit of a pull-back and I could get a better entry. That didn't happen and there has been a 600 point move down with no buy signals. One of these days I will get it right :)

The attached chart shows some recent entry points and the red lines are roughly at the 150 points stop level.
 

Attachments

  • dj.gif
    dj.gif
    53.4 KB · Views: 646
BB,

do you know what i have to do that i can view your attached charts?
i don't see anything and i looked at my personal settings but can't find anything special to click at to be able to view your charts.

any ideas?
thanks karla
 
pratbh said:
Where do you guys place your initial stop? Chick decides to exits purely on the basis of the line patterns. If the lines turn against him, he gets out. The problem is you then don't know how much you are risking before you enter the trade, which makes me uncomfortable. I was thinking of placing a stop 2 or 3ATR away. But the problem is the price might trigger that stop off, without the line patterns going against you. So you should have stayed put, but you are out.

Hmmm....tricky tricky...
Click to expand...

Actually, he seems to favour a SL distance based on Margin Requirements. He also mentions in the parts about management that you can work out what you can afford from yourequity percent, something that I personally would not consider, as it is not based on price cation.
Overall, I get the feeling that he is not too concerned about stops as long as the status is bullish,only later when status shift.
My personal choice wil be (I haven't had the book for long enough to properly try out the methods) to place the initial SL by my 'usual' technical reading, ie. EW, SARs, etc... at least until the trade has shown itself to be working.
 
bb,
yes if i click on the link a window with your chart opens.
but there was no link below your first message. just " chart attached"..strange

thanks karla
 
sorry -oo0, what should i try?

i just see that there is "attached thumbnails" but nothing to click on.
 
I think you need to modify your thread display options. Click on "Community-->User Control Panel" and from there "Edit Options." Under "Thread Display options" see if "Show Images" has been checked.

KarlaF said:
microsoft ie 5.5...this is the only board where i can't see any charts...
Click to expand...
 
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