Steve Palmquist has put together a DVD series on trading where he shows his systems. As one of the oldest active theoreticians on the technical analysis, this is quite a treat. In fact it is quite rare that you have the occasion to watch a series of such interesting live seminaries, in the pace of your home.
The DVD are mostly focused on trading the shares in various environments and with various techniques. When I started the DVD watching, I was surprised by one thing – Steve has quite a nice and soft way of presenting things. He starts slowly and he builds certain awareness on the markets, then he explains his system and demonstrates it into practice. You might be or might not be in agreement with those techniques, but the presentation method is very friendly and it is worth watching. So a god DVD course for a … trainer, indeed :).
Interestingly enough, Palmquist starts with a disclaimer – trading is like betting on the Vegas strip – you might gain on the short term, but on the long term you loose. In a similar approach, the author mentions that the market is like a sea – waves are coming up and down and you find yourself back in situation where good trades’ results are reversed several months later.
So far, nothing new. Wow, one might say, Steve Palmquist is an adept of the perfect markets theory. So what? Well, his warning is just that – a warning. And after all, as all the theoreticians (and practitioners) of the technical analysis, he knows and shows that the market is not perfect – it is just big enough to behave in terms of several patterns which are exploited by skilled technicians.
Another interesting approach regards the trader’s opinions. In this respect, Palmquist steps over the territory of the trading discipline. One important adagio from the “Money Making Trading Systems” is that “as soon as you say ‘I think’, you’re lost, because the market does not care what you think, it just acts according to some overriding principles”. So yes, you might know these, yet I think these discipline tactics are worth reminding. This is valid especially in the today’s markets, when getting into a trade has become so easy, that even a child can do it. And it actually asks the question of “when” do you actually need to go out of the respective trade…
What is the DVD set about?
The set focuses on 5 main topics which every trader is most likely to meet:
- Trading systems
- Market analysis tools
- Money management
- Selecting among multiple trading candidates
- Back testing techniques
In a sense, all these 5 topics are used back and forth in every trade. And whilst the techniques of Steve Palmquist seem sometimes arguable, they are the backbone of the arsenal of most traders. In this respect, “Money Making Trading Systems” does a great job in drilling through those details that every trader needs in order to be successful – he or she must choose one or more systems, must analyze the market, create a portfolio, choose the specific parts of the portfolio and then test the techniques before launching them into the market. And with a bit of luck, one should be successful enough to earn a superior return on the investments.
From this perspective, the “Money Making Trading Systems” is a fantastic comprehensive tool for the beginners. It does not actually matter in what national market you are in, the techniques described there are applicable all over the world. And if you are a beginner with some clues of what trading is about (but just a few of the important clues), then the DVD is quite valuable, since it shows the action and the background of the techniques in the same time. The DVD set might not work well for those who want to sit back and think about it – those people might want some books. But as a video practice of trading, it is quite interesting, especially due to the well-balanced manners of the author –presenter.
As most of the traders use quite sophisticated analysis tools to reveal the patters, I found the presentation of the Bollinger bands quite easy-going and in agreement with my previous finance experience. I will not say more here just not to disclose the whole DVD set content :), but I invite you to have a look at the interesting applications developed there by Steve Palmquist.
Well, after all, this DVD set was a nice educational experience. And I have learned a couple of things from it. We’ll see how well these stand into practice…
As you can see, I tried to do this review impartially (not as a commercial). Should you like to read the book, please try this Amazon link – you will pay the same price whilst a small refferal fee will help sustain this investment blog. Thank you for your choice!: