Entries & Exits: Visits to 16 Trading Rooms

A few weeks ago, I was provided with the opportunity to review a stock trading book called "Entries & Exits: Visits to 16 Trading Rooms," by Dr. Alexander Elder.

The book is a must read for stock traders who are just starting out. In the book, the author profiles the stock trading systems of 16 different professional traders. Each of these traders has a different style of trading, and it is important for novice traders to understand that they must find a trading style that best suits their personality and risk management. Although I've already found a trading system that matches my risk profile, it was nice to read about other people's trading style because it gave me some new ideas and techniques on how to improve on my trading system. Novice traders who read the book will be able to pick out a trading system that they feel comfortable with, and start out from there.

This is how "Entries & Exits" is structured. First, the author introduces you to the trader with basic background info. Then, he provides you with two chart setups. Some of the traders do stocks while others do futures, but regardless, technical analysis works on any kind of chart. The trader then explains to the reader the buy/sell signals that s/he sees on the chart, and outlines the strategy on how to approach and manage the trade. These discussions are the best part of the book. They give you insight on the exact decision making processes of a professional trader. On the next page are the result of the trades. One trade is successful and the other trade is a loser. The book then discusses what went right and what went wrong.

I give the author credit for presenting losing trades. A lot of books out there focus only on successful trades. However, in reality, all successful traders must be aware that there WILL be losers out there, and that it is important to understand how to deal with losing trades.

Also, the quality of the book is outstanding. It is hardcover with great looking colorful charts. They definitely didn't cut any corners on this one. It is a great addition to a trader's library.