We stand on the shoulders of giants, the people that were doing this before us. Below are some of the people and resources that have helped us on our journey. If you’re not on the list, sorry, you probably took our money and gave us not so much.

People

Some of the people who have helped us along our journey, who have made us think, some of whom who are still alive and kicking, and some of whom aren’t, are below. Thank you all. We are forever in your debt:

• Al Brooks
• Dr Howard Bandy
• Chris Shea
• Michael Martin
• Benoit Mandelbrot
• Nassim Taleb
• Akram Najjar

Brooks Trading Course

We don’t like indicators, or automated traded systems based on them. That’s not to say that they won’t work for you. But its not our gig. And whatever you use, it needs to fit you personally. It needs to fit your psychology and personality, both, together. The only thing we’ve found that works for us and our twisted psyche, on any time frame and on any instrument is Al Brooks’ version of Price Action Trading, which Al takes you through in minute detail on his video training course.

In our opinion, the best value for learning how to trade is to do Al’s “Brooks Trading Course” on Price Action Trading which is presented via an online video format. Click here for the details. If a course or website or spruiker wants to charge more than what Al charges for the extensive video library that he provides, then I suggest you run a mile.

However before you purchase Al’s course, understand that there’s over 100 hours of videos and 52 modules to get your head around. And it’s not easy. It’s not for the feint hearted and definately not for those who want to be a trading millionaire by tomorrow morning. If that’s your poison find another venue.

Books

Modelling Trading System Performance

Our bible, that we refer to regularly, is Howard Bandy’s book “Modelling Trading System Performance”. Click here for the goodreads reference to the book. We use Howard’s excel based monte carlo simulator almost every day for our ongoing research into risk management systems.

Everything else by Howard is worth a look and a poke - especially if you are at all interested in systems trading design and optimisation and/or using AmiBroker.

Practical Monte Carlo Simulation with Excel

“Practical Monte Carlo Simulation with Excel” by Akram Najjar. We used both books, Parts 1 and 2. Part 1 covers “Basics and Standard Procedures”, and and Part 2 covers “Applications and Distributions”. We used both of these in creating our modelling spreadsheet for modelling trading risk management systems. The worked examples and provided spreadhseets are bonus value (which we used as our template). Click here for the authors website. See the tab “where to buy” for where to buy!

Price Action Trading - Book Series

Al Brooks also wrote extensively on Price Action Trading. Like his video course (above), Al’s books take a large time commitment to read and understand. They are excellent value - but only for the serious Price Action trader. If you want easy try elsewhere.

Which is what we want to reiterate. Trading is not easy. And if you want to be good at it, it’s not meant to be. Like everything else in life, being good at something takes a lot of work.

Al’s books are:

• “Trading Price Action Trends: Technical Analysis of Price Charts Bar by Bar for the Serious Trader”. Click here for the goodreads reference for the book.

• “Trading Price Action Reversals: Technical Analysis of Price Charts Bar by Bar for the Serious Trader”. Click here for the goodreads reference for the book.

• “Trading Price Action Trading Ranges: Technical Analysis of Price Charts Bar by Bar for the Serious Trader”. Click here for the goodreads reference for the book.

• “Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader”. Click here for the goodreads reference for the book. This was Al’s first book. We recommend you read it last as a revision exercise to compare and contrast Al’s concepts from where he started out to where he would up. The concepts are pretty much still all there, though some were renamed over time.

The (Mis)Behavior of Markets (Fractals!!)

“The (Mis)Behavior of Markets” by Benoit Mandelbrot. Click here for the goodreads reference to the book.

We believe in the fractal behaviour of markets. In addition to Benoit, you may want to also check out Taleb, Sornette and Newman amongst others for more on fractals and market behaviour.

You need to be on the right side of the market when they go a bit “fractal” - or “parabolic” as Michael Martin often terms it (see below).

Licensed to Profit

“Licensed to Profit: By Trading in Financial Markets” by Chris Shea. Click here for the goodreads reference to the book. Chris Shea was an Australian trader, educator & trading coach. His book is well worth a read.

Of interest:

• Commentary on trading life using the analogy of getting your driver’s license / driving your car
• Overcoming hurdles, sometimes with the use of affirmations,
• The example trading system “simulation” using probability and expected gain per trade, and a crude distribution of outcomes,
• Key metrics to use to monitor performance,
• What some of his trading clients were able to achieve in terms of these metrics,
• His recommendation to only trade a maximum of 7 to 11 instruments at any one time (this seemed to gel with our personal experience too - we use 10),
• His loading up philosophy also explained in the context of his range of outcomes from his pot of sample trades, probabilities and expected gain per trade.

We believe Chris has retired now, but check out his book nevertheless.

Nassim Taleb

“Fooled by Randomness” and “The Black Swan”, both by Nassim Nicholas Taleb. You should read both. Nassim also wrote other books, which we intend to read. They are on the pile to be read soon….

Other Books - Honourable Mentions

• “Technical Analysis of Stock Trends” by Edwards and Magee
• “Trading in the Zone” by Mark Douglas
• “Unholy Grails” by Nick Radge
• “Secrets for profiting in bull and bear markets” by Stan Weinstein
• “Fast Money” by Edna Carew
• “Market Wizard” books by Jack Schwager. There are a number of these.
• “Diary of a Professional Commodity Trader” by Peter Brandt.

We have read many more trading books than the above over the years, and still read some from time to time. However most trading books, along with the courses, websites, YouTube videos etc, don’t translate into a positive expectancy trading system that fits us. They may work for others, and we encourage you to try any trading resource out there if you have the time and finances, but most don’t make the cut for us.

There are many trading authors out there to choose from, and many we have read ourselves including Hull; Pollard; Radge; Van Tharp; Pardo; Hill, Pruitt and Hill; Chande; Katz & McCormick; Kaufman; Labeau; Brandt; Bernstein; Elder; Arnold; Penfold; Weissman; Rotella; Lefevre; Darvas; Sperandeo; O’Neil; Minervini; Covel; Temby; Jones… and the beat goes on….

To find the real-life ridgy didge “system” that works for you, you need to keep turning over rocks until you find something that sticks and is totally compatible with your personality and personal psychology. It needs to fit like a hand in a glove…. All we suggest is keep turning over rocks…..

Podcasts

Trader Mindset

Michael Martin, the presenter of “Trader Mindset” podcast has been a futures trader for a long time (over 30 years we believe). Click here for Michael’s podcast on spotify.

Michael’s podcast is worth a listen. There are some real nuggets of wisdom amongst his episodes. We have embraced some of Michael’s ideas wholeheartedly and these have changed our approach to trading in significant ways. Michael’s podcasting seems to have been quiet lately, but there is real benefit to listening to even his earliest work. Sometimes we think that some of his early stuff was his best work. Unlike many trading podcasters, Michael rarely interviews other traders, Vic Sperandeo being the exception (and Vic only appears very occasionally).

Michael also runs a website and coaching business, which we have not road tested. Michael also wrote a book called the Inner Voice of Trading. We believe the audio version was once available for free on Michael’s website here. Google DuckDuck search for more if interested.

And remember, always:

⚠️ Trade small to survive.