The Three Skills of Top Trading: Behavioral Systems Building, Pattern Recognition, and Mental State Management

I bought this book because I wanted to learn at the Wyckoff technique. I got disappointed, because it did not give me the practical knowledge I was looking for. I kept it aside, wondering why I wasted my money. But I liked the big picture from the first few chapters I read. Then I later figured out that you will have to learn how to not only depend on price but on other primary market date such as volume, sentiment and time. Then I remembered I had read a section on Hank's book dealing with this. When I came back to read this book with a different perspective, I realized its value. If you are looking for a practical trading methodology or tactics, then you will likely be disappointed. However, if you take the book for what it was meant to be, framing your mindset in general to give you a big-picture approach to the market, then this book is a MUST READ. Align your objectives with Hank's objectives in writing the book and you will not be disappointed. I think I am now happy I bought this book, and I keep reading sections of it again and again. Thank you Hank for sharing your extensive knowledge of the market with us!

What can I say? This is, without a doubt, one the very best books on trading I've ever read. It is certainly the first trading book I've read that has given me a peak behind the curtain and into how the game is really played. Forget things like earnings, P/E ratio, the Fed, Obama, the talking heads on CNBC or anything else. And if you're a technician like I am, you can likewise forget about using mechanical systems, divining geometric patterns, oscillators and the myriad indicators available. Instead, as Deep Throat apparently said to Bob Woodward, "Follow the money." Or in this case, follow the volume and the order flow, which will lead you to the money.Pruden does a wonderful job explaining how the markets are truly guided by the large, savvy operators, who do exactly the opposite of what the public does. In doing so, he sheds light on why the public is always wrong and how to follow the true insiders. But the book is far more than theory. Using some revolutionary models of crowd behavior, Pruden then shows us precisely how to use the tried and true methods of Richard Wyckoff to understand how this behavior manifests itself in the markets and, most importantly, how to trade it.The result is a systematic way of trading that allows each trader to combine his natural, discretionary instincts with the structure necessary to support his decision making. An added bonus is his section on personal psychology - co-written with the noted trading coach and psychologist, Van Tharp - which will give you tremendous insight into your own mental states, and how to control them for maximum effectiveness.Whether you subscribe to Wyckoff's method or not, this book will change the way you see the markets and your own participation in them. Truly, it is a must-read for any trader who is serious about succeeding on his own merits, talents and intelligence. The great traders understand how the markets work, have a method to exploit this understanding and possess incredible self-awareness while they trade. Want to be one them? Buy this book.

I really wanted to give a bit higher rating but in review and after I read my notes I can't justify that one should be spending this kind of time and money on a book that is, on the margins, worth the effort. There are some very good tips but there is a lot of info that simply is not too useful or worthwhile. I liked the big picture view of trading but there isn't enough takeaways to make me feel I am going to be that much of a better trader. Try other books that have more consistent and useful content.

This book is written about how three mutually reinforcing links make a complete trader.1). Pattern Recognition and Discretionary Trading.Using the Wyckoff method you will see chart representations of how hot stocks are accumulated in bases for long periods of time, have pull backs then break out to new highs. You will also see how they eventually have exhaustion tops that fail to rally and they behind to break down in distribution. The author encourages discretionary trading through experience by being able to identify market action through the past models. I agree completely.2). Behavioral finance and systems building. You must be flexible in your trading. You are merely a ship on a sea of opinion. Follow the prevailing sentiment during the middle of the the trend, and go contrary to it at the extreme tops and bottoms. Hope, fear, and greed are the dangers in the market and move the markets in many ways. The action of the stock market is nothing more than a manifestation of mass crowd psychology in action. The Pruden model shows a chart of how accumulation, mark-up, distribution, and markdown works in the market tied to price, volume, sentiment, and time. It truly explains how the market in growth stocks works.3). The ten tasks of top trading:Daily self analysisDaily mental rehearsalDeveloping a low risk ideaStalkingActionMonitoringTake profits or abortPeriodic reviewDaily briefingOutThe book covers all the aspects of trading psychology in depth, I found this information to revolutionize my trading and I have read over 100 trading books. It is worth the price of the book alone.The book also discusses the principle of the "Composite Man", it is much like Benjamin Graham's "Mr. Market". It explains that you must think of the market as one person you are trading against and your job is to understand how he is trading to adjust your trading accordingly.This book is geared toward traders who rely on patterns and psychology, and will appeal to traders interested in these styles. This book is a key book for all traders who truly want to be successful.

good book for technical traders

Great book

This book covers everyting a trader needs to understand about the market and how to trade it. This is not a get quick rich book with a few hand-picked examples but a thorugh ook at trading Highly recommended

The knife made a great gift, it will be put good use for years to come. Thanks again for great service.

Thanks

I'll have to agree with the other 1 star reviewer. This book is very superficial. The book feels like a thrown together group of articles. There is no flow to it. Come to find out that is basically what it is. The author has written a number of articles concerning wyckoff and seems to have put them together into this book. Just download his articles online if interested. All the setups are subjective in nature and are of no use to someone looking for an objective style calling of the markets.The book is filled with psychobabble dealing more with the psychological shortcomings of traders than anything else. Consider the good in this book as a thin piece of meat between two huge loaves of bread. If that's the meal which satisfies you then enjoy yourself. Otherwise this book fills no niche or genre that is meaningful and in my opinion had no right to be published. The true value of this book is in the $10 range.

Seriously Hank?? it's a kind of gathering of articles, some we already have freely at our disposal on the web... The papers published by Hank are so attractive and interesting I felt I had to buy his book, however it's not filling my expectations, far from it! I've been so disappointed by this book... Just read his articles, don't buy the book, really...