Book Categories

Description of The Four Cardinal Principles of Trading

Professional traders utilize a wide variety of approaches to attack the markets. Regardless of the approach, virtually every top trader abides by four key principles:

1. Trade with the Trend
2. Cut Losses Short
3. Let Profits Run
4. Manage Risk

In The Four Principles of Trading, trading expert Bruce Babcock fully explains each principle and shows readers many alternatives for implementing the principles in their own trading. Consisting primarily of interviews with top traders, the book demonstrates that while there are many ways to trade, nearly all successful methods incorporate these axioms in some way. Featuring interviews with trading stars such as Larry Williams, Jack Schwager, and Jake Bernstein, the book is filled with dozens of important insights.

People who bought this book also bought

Title Information

ISBN:

9780786310104

Pages:

224 pages

Format:

Hardback

Product Code:

3424

Publisher:

Advanced Trading Seminars, Inc

Published:

01/01/1970

Write a review of this book

Customer Reviews from Amazon

Contents of The Four Cardinal Principles of Trading

1. Introduction 1

2. Trade with the Trend

• Risk-Selected Time Frame
  
• Long-Term Traders
  
• Intermediate-Term Traders
  
• Short-Term Traders
  
• Trend Change Anticipators
  
• Unique Trend-Finding Mechanisms
  
• Trend Unimportant
  
• Concluding Thoughts
  
  3. Cut Losses Short
  
• Chart-Based Stops
  
• Indicator Stops
  
• Entry Method Stops
  
• Volatility Stops
  
• Money Management Stops
  
• Account Equity Stops
  
• Margin-Based Stops
  
• Eclectic Methods
  
  4. Let Profits Run
  
• Trailing Stops Using Indicators
  
• Trailing Stops
  
• Trailing Stops Based on Volatility
  
• Trailing Stops Based on Chart Patterns
  
• Trailing Stops Using Dollar Amounts
  
• Profit Targets
  
• Multiple Methods
  
• Letting Profits Run Not Important
  
  5. Manage Risk
  
  6.Psychology
  
  7.Summary and Conclusion