The Universal Principles of Successful Trading:
 Essential Knowledge for All Traders in All Markets. 

by Brent Penfold


Penfold, a successful full-time trader, author and educator, provides
 a blueprint on how to become a consistently profitable trader.  He 
notes that fewer than 10 percent of active traders are consistently 
profitable over the long run. Interestingly, he points out that many 
elite traders use simple trading systems.  He holds very strong views on
 trading and he is not shy about expressing them and explaining them at 
length.  This is an in-depth book that requires hours of study.  I read 
it twice and obtained a great deal of useful knowledge. 

According to the author, the universal principles of successful 
trading apply to traders using all time frames from day traders to long 
term traders, as well as apply to every trading vehicle such as forex, 
equities, commodities, options, futures and interest rates. Every 
consistently profitable trader must learn, understand, embrace, and 
implement universal principles. He/she needs to adopt and embrace a good
 trading process. 

He devotes one chapter to each of his six principles of trading: 
Preparation, enlightenment, trading style, markets, three pillars and 
trading. Penfold delineates the pillars of successful trading as:

methodology – analysis and trading plan behind buy and sell criteriamoney management – amount of money you can commit to a tradepsychology – discipline to follow your trading plan
He says: “I have huge experience in losing money. I have more cuts, 
bruises and bumps than any other trader, so I claim to be an expert in 
them.….I’ve also managed to survive and navigate my way through the 
confusing world of  technical analysis.”  This experience certainly 
shines through in this thorough review of the world of trading. Not 
surprisingly, he trades off daily charts and is a mechanical trader.

The author firmly believes that “… most of what is written about 
trading or incorporated into trading programs does not work.”  
Therefore, he learned to validate ideas first, before accepting the 
belief has value.

Furthermore, he points out that ignorance, gullibility and laziness 
are the main reasons 90% of traders lose.  He believes that averaging 
down makes a trader a ‘worst loser’.  Moreover, failure to use stops and
 a trading plan are big trader mistakes. Successful long-term trading 
will require a trader to be a good loser. Many investors believe that 
technical analysis is all they need to make money, ignoring money 
management and psychology.  They are wrong, according to the author.

再见，留园网的朋友们。