Book Review > Trading Plans made simple

This short, concise book is easy and enjoyable to read. It is a tool to develop skills for the beginner or more experienced trader.  Research shows financial advice makes a world of difference to those who seek it, and consequently they are better off than those who do not.

The book explains how to define goals, how trading works, the psychology of trading, measuring success, trading strategies and money management. Each chapter enables the reader to assess their strength and weakness in the various attributes needed for successful trading.

The author examines the need for discipline in developing a plan and discusses reviewing goals. Then to achieve their goals an effective trader will need resources:  time, financial, physical assets and personal attributes. Checklists will guide the trader in choosing a broker, software and a training provider.

Of particular value is the explanation of derivatives, risks and stop losses.

After trading begins success is measured by keeping accurate records and employing money management skills.  By this stage in the book the reader will have confidently developed strategies to trade successfully in tune with their own personal lifestyle.  With further skill and experience these strategies can be moulded to suit changing conditions.  In fact the author assumes that the reader could conduct their trading as a profitable business.

With this book in hand readers will gain confidence in themselves and their ability to trade shares. They could dip into reading tips, activities and summaries for advice without having to read the book from cover to cover. Weak and strong points may be addressed by completing the activities.  These all enable the reader to accurately assess just where there is room for improvement.

However to attain the full benefits of this book it is worth the study. The author does tend to emphasis day trading to which the average reader will probably not aspire.  The examples of creating trading strategies may be too technical for many readers.

Overall the information in “Trading Plans made simple” is excellent value for the price. As the author claims:  “If you fail to plan, you plan to fail”.

Patricia Clifton is a member of the AIA.