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A DVD Review – "Money Making Trading Systems" by Steve Palmquist

Steve Palmquist has put together a nice 6 DVD series on trading based on several seminaries he held across US for private investors (this one is focused on Las Vegas). There he shows his most perfected trading systems. As one of the old and active theoreticians on the technical analysis, this is quite a treat.
 
The DVD’s focus primarily on trading the shares in various markets and with various applicable 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 :).
 
 
What is the DVD set about?
 
The set focuses on 5 main topics which every trader is most likely to meet:
 
  1. Trading systems
  2. Market analysis tools
  3. Money management
  4. Selecting among multiple trading candidates
  5. 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.
 
Usually Steve Palmquist comes on board with interesting adagios. For example: “traders need to use a trading system which does not have any adjectives”. In other words, if a trading system is describable in one set of words or another, it already incorporates some biased opinions which will influence the direction of the trade. In this respect, Steve Palmquist is against al those analysts who use big words to rationalize all the big market movement after those happened. And he is probably right, since any trader is anyway a bit late when the news are already incorporated into the prices...
 
 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...
 
 
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...

This DVD set available from Market Place Books. Enjoy!