BBTT Daily Newsletter | Index Trading

Book Correction: Expectancy Formula
The expectancy formula on page 44 is incorrect.
The expectancy formula on page 164 is correct.
My apologies.
Brent Penfold

		This is my new book and it represents what I hold to be true for all active trading - regardless of the markets, timeframe, security or technique a trader chooses to follow and trade. I've been involved in the markets since 1983 when I joined Bank America in Sydney as a trainee dealer. Consequently this book represents 27 years of accumulative practical experience you can't buy or make up. What you'll read comes from the school of hard knocks and not Wikipedia. Now I know I'm biased however I believe if you're an active trader - regardless of the market, timeframe, instrument or technique you choose to trade and regardless of whether or not you are a discretionary, mechanical or discretionary mechanical trader, this book is essential reading. Although traders can choose to trade different markets over different timeframes with different techniques and instruments, there is one common thread that ties all winning traders together. And that is the universal principles of successful trading. All consistently profitable traders adhere to them regardless of what, how or why they trade. To support my view I’ve included interviews with 15 elite traders whom I refer to as the Market Masters. Not two of them trade the same. Fifteen traders all trading differently. Yet all of them embrace the universal principles. These traders represent a diverse group. Some are the new young hot shots of trading while others are market legends who are trading today just as actively as they were 50 years ago. They’re spread across the globe - I've included elite traders from the United Kingdom, America, Singapore, Hong Kong, Italy and Australia. All of them have generously agreed to offer the reader one singularly powerful piece of advice to help them towards their trading goals. Each piece of advice emphasizes an essential element of the universal principles. These universal principles is what unites these elite traders - not their entry technique, not their markets and not their timeframes. They all trade differently, but what they won't deviate from are the universal principles. Without doubt the universal principles are essential knowledge for all traders in all markets. I believe many traders will love my book for its honesty, insight and breath. I believe many traders will hate it due to my criticisms of a number of sacred cows that many in the world of technical analysis hold in high (although ignorant) regard. And I believe many will find it hard to accept as the path to success I describe is both steep and arduous. However, regardless of what readers think, I feel they will appreciate it's down to earth and honest appraisal of how difficult it is to succeed in trading. My book is not an attempt to spin the wealth dream that many trading books do. Nor is it a technique or trading tactic book. It's more important then that. It attempts to fully explain the solid foundation stones upon which all long-term successful traders stand and it attempts to unravel the reasons why over 90% of active traders fail. This is a solid book and one I'm proud to call mine. I hope you enjoy it. Brent Penfold Sydney, Australia

		Purchase: Educated Investor Book Store

		Reviews
		This book is a "must-read" for anybody approaching the world of trading but also for skilled traders. I've read many books but this is the one I wished I had found when I was starting this adventure. Brent addresses exactly what a trader should really focus on. Andrea Unger Trader Winner of the World Cup Championship of Futures Trading® 2008 & 2009

		Unlike most trading books, The Universal Principles of Successful Trading covers the key principles of trading success. It even has a money management chapter-a topic which most books neglect. I recommend reading this book cover to cover several times. It will change your mind about what's important in trading. Van K. Tharp, Ph.D. www.vantharp.com Trader Trading Coach President, Van Tharp Institute Author of Trade Your Way to Financial Freedom and The Definitive Guide to Position Sizing

		Brent gives you the opportunity to sit down with some really great traders and learn from their good and bad experiences. This should be an invaluable experience for the reader. Larry Williams Legendary Trader Author of Long-Term Secrets to Short-Term Trading

		This is one of the best books on trading to come along in a long time and I predict it will become a classic. The book covers just about every aspect necessary to become a successful trader. His discussion and conclusions on the highly promoted Gann and Fibonacci methodologies might indeed surprise you. He made over 16,000 observations of Fibonacci ratios to derive his conclusions. This section alone is well worth the price for the "wanna-be" traders who are looking for techniques that work. In summary, read this book. You will be richly rewarded for your time and effort. John Hill Trader President, Futures Truth Co. Author of The Ultimate Trading Guide

		Brent has compiled all the ingredients in this book. He has experience, intelligence, and knowledge that he has tapped from traders all over the world. It is so refreshing to read a book written by a "true trader" such as Brent. *Mark D. Cook* Market Wizard Creator of the Cook Cumulative Tick Indicator

		Brent Penfold has successfully provided readers with a blueprint for trading success. Not only does he cover such vital topics as trader psychology and effective money management, he also presents interviews with many successful traders and market researchers and his probing questions and their answers offer insights into their specific trading styles and psyches…a "how-to" book from start to finish. *Tom DeMark* Trader Institutional Adviser Founder, Market Studies, LLC Special Adviser to SAC Capital

		This book cries out to be placed in any trader's library. Brent does a superb job of outlining, exploring and evaluating the current state of position sizing algorithms. As successful traders know, money management is one of the three pillars of trading success. A great book! *Ray Barros* Trader Fund Manager Author of The Nature of Trends

		Crawling in the right direction beats running in the wrong direction every time and The Universal Principles of Successful Trading will definitely get you heading in the right direction. Straight forward language, simple concepts and emphasis given where emphasis is needed. I wish this book was around when I started out because to master the markets now all you have to do is master this book. Alan Hull Trader Fund Manager Author of Active Investing

		Normally when asked to review a book, I will skim through it and make a few comments. With this book, I just kept reading-I couldn't stop! Brent has an amazing ability to tell it like it is. His "Just One Piece of Advice" section is brilliant, and worth the price of the book many times over. If you have a genuine deep desire to be a consistently profitable trader and want to learn what traders really need to know as opposed to what most think they need to know, do yourself a favour and read this-please! Stuart McPhee Trader Trading Coach Author of Trading in a Nut Shell

		In my opinion trading education is delivered in two styles: quantitative and qualitative. The vast majority of information in the trading universe is quantitative-"hard-coded" information that can be replicated by the majority. However, successful trading only comes about by an understanding of qualitative learning-how you can readily teach someone to learn to lose when it goes against everything we're brought up to believe. Brent's "Just One Piece of Advice" section is one of the best attempts to get this qualitative message across. Take it. Read it. Then read it again and again. Nick Radge Trader Adviser AFSL 288200 Author of Adaptive Analysis

		Concise, to the point, and relevant for gaining the trading skills and strategies needed to manoeuvre in today's marketplace, Brent provides a clear road map on how to emulate the elite traders who consistently win over the long-term. Forget the hype you hear about trading and get this book. Read it, read it and read it again. And then study it until your eyeballs drop out. Brent keeps it real and if you can too then you may just find yourself in the exclusive 10 percent winner's circle! This book is destined to become a trading classic. *Steve Mater* CFD Business Development MF Global

		In my 25 years in the market I have read and seen just about every trading book there is. Very few get to the crux of trading like Brent has. Get it. Read it. This is not your typical trading book, this is a comprehensive book written by a real trader for traders, everyday people who are serious about becoming successful traders. John (JR) Robertson Director I-Deal Financial Group

		In his first book Brent hits the nail on the head with a down to earth, no nonsense explanation of what you need to be a successful active trader. I haven't seen a more practical guidebook for traders in over 20 years in the financial markets. If you want to stop being in the 90 percent of traders who lose and join the elite 10 percent who win, then I suggest you throw out all your other textbooks and read this book from cover to cover. This is a book written for traders by a trader and is the obvious starting point for a successful trading career. Tony Makowiak Head of Dealing Aliom

		When Brent asked me to review his new book The Universal Principles of Successful Trading I was both excited and curious. Having read his first book and recommended it to many of my clients I knew to expect something big. Brent is one of the very few authors who actually puts into practice the strategies he espouses, which lends great credibility to his words. He provides the most comprehensive approach to the various strategies of money management I've ever seen. A must read for anyone serious about trading. *David Montuoro* Futures Broker Director Bellmont Securities

		Purchase: Educated Investor Book Store