fm JWBT016-Busby October 10, 2008 21:17 Printer: Yet to come
xiv PREFACEThis book is divided into three parts. Part One explains the fundamen-
tal elements of my trading approach. It deals with the significance and use
of time, key numbers, and market indicators. It also explains how these el-
ements of trading work together to properly read the tape and understand
the language of the markets. Part Two details specific trading strategies.
You will find strategies for trading stocks, options, futures, and other fi-
nancial products. If you have ever traded, you know the importance of
risk management, money management, and emotions in successful trad-
ing. Without them, the best strategy will fail. Furthermore, Part Three
offers guidance and strategies for putting all of the elements of trading to-
gether to enable you to approach the financial markets with more wisdom
and more strength. It is my hope that Chapter 18 will be especially help-
ful to you. It deals with real-world psychology to assist you in having the
discipline to succeed.
Trading to win is a mind-set. Those who succeed in the financial mar-
ketplace are the ones that expect to do so. They do not win by accident.
They learn about the markets. They work at their craft. As markets and
technologies change, they change with them. There are two ways to gain
lessons from Wall Street: let the market beat you up and teach you, or
learn from someone who has taken the licks and teaches from experience.
Through these pages readers have the opportunity to learn vicariously from
a person who made his first losing trade in the late 1970s but was not turned
off by Wall Street—a person who is a professional trader, daily doing battle
with the bulls and the bears of the financial markets.
Throughout the text are 31 Pearls of Wisdom. They are numbered and
scattered in text boxes as applicable throughout the book. Take note of
these as they will aid you in your quest for success. I hope you find the
information in these pages helpful and that it will assist you in improving
your consistency and your profits.
THOMASL. BUSBY