October 5th, 2009Price Headley Trading Rules – Big Trends In Trading
Despite all the newly released investing and trading books available. some of the older ones still remain on the top of the “must have” list. Price Headley’s Big Trends in Trading is one of those.
The book is divided into three major sections.
- Getting the Market Right First – info on put/call ratios, Bix, mutual fund flows, volume and other indicators, and survey systems.
- Stock selection techniques – ket technical indicators such as classic trend indicators, acceleration bands, momentum divergences, relative strength and more.
- Options – a mixture of stock options strategies, trading psychology and money management.
The Price Headley trading rules are one small section of part 3. Price’s well defined trading system is detailed out and is a model for anyone to use as a guide to developing their own system. It’s a well known fact that all successful traders have one thing in commmon – a written plan to guide them in their quest to master the markets.
Excerpts from Price’s plan follow.
PRICE’s PRUPOSE: To continuously learn and grow to become the best trader I can be, by simplifying and focusing my energy to achieve a balanced, centered state that controls the emotions of fear and greed, allowing me to take action when my analysis says the time is now.
PRICE’S PHILOSOPHY: Big Trends – via Accelerations, Divergences and Relative Strength – to define the best opportunities.
Price also provides more specific trading suggestions that can be used in your own plan, such as:
- focusing on a small number of trades
- take big profits and small losses (sounds simple, but I have read or hear many top notch traders quote the same concept).
- Adjusting stops with the market
- Pre-planned entry and exit points – BEFORE placing the trades
The appendices cover a stock picking checklist, types of orders (contingency order, market and limit orders, not held order, once cancels the other, all or none, fill or kill), favorite web sites, and last but not least the favorite quotes.
“There is only one side of the market and it is not the bull side or the bear side, but the right side.” – Edwin Lefevre, Reminiscences of a Stock Operator
Big Trends in Trading: Strategies to Master Major Market Moves (A Marketplace Book) by Price Headley