Topics Covered:

* Seven Step Approach To Succesful Trend Trading

* Finding Trading Opportunities

* Selecting the Best Trade

* New Count Back Line Tactics

* Advanced Guppy Multiple Moving Average Analysis

* Modern Darvas Trading

* Setting Stop Loss Points that will be used

* Using Better Trend Lines

Review

This is one of Daryl's most recent books and I have to say I have never seen a book that is so well suited to the market conditions in which it was released. I am sure this is no accident as Daryl seems to have a good ability at choosing strategies compatible with market conditions.

The books title say it provides a "Seven Step Approach to Success" and I would thoroughly agree with this however I may make one clarification - it is a seven step approach to succesful trend trading. One of the methods I used to test the information in this book was to paper trade an account using the principles. In the first 8 weeks of using the techniques as discussed the account was up by more than 14% and it seemed so easy (in terms of choosing and managing the trade) it was scary. I am not saying this type of return is guaranteed if you use the approach - but gee it should improve your chances and understanding of trends.

Again Daryl discusses the balance of proabability in this book but does so in terms of trend trading and makes it easy to understand. I would be the last person to argue with Daryl Guppy and he suggests that price has a 70% chance of continuing in it's current direction. My research and experience differs a little here from Daryl in terms of I do not actually agree with the figure of 70%. None the less I AGREE with the conclusions that are drawn from the use of the figure in that price is most likely to continue in it's current direction.

The book covers some simple ideas and then moves in to the seven step approach to trend trading. I will not cover the seven steps in too much depth here, but I will say that there use allows a trader to quickly shorlist the number of stocks they look at and then weeds out the least likely candidates one easy step at a time. At the end of the process it is easy to pick a share to purchase and manage effectively.

Basically the seven steps starts by demonstrating methods of shortlisting the stocks which are likely to have the biggest following in terms of the market watching and possibly buying them. The rest of the steps then form a test for this shortlist of stocks and eliminates those that are not suitable and then those that are hard to manage. Lastly the risk level and position size is assessed on those that have made it this far providing high probability opportunities with suitable risk reward strategies. If this is understood and followed it is very powerful.

Trading with Darvas methods are also covered in the book as these are again gaining popularity as a trend trading method, and Daryl shows how they can be used in the modern stock markets.

Another GREAT book from Daryl Guppy. The information is easy to follow and easy to apply. If you are having trouble trading and in particular trend trading this book is for you! Even if you are not it shows a very simple but EFFECTIVE method of trading with the balance of probability in high risk reward situations. This is one of my five MUST reads for any of my friends that I introduce to trading.

Rating