Review: Diary of a Professional Commodity Trader

I have been following Peter Brandt for about 20 years. I’ve had the opportunity of interviewing him. I’ve tracked the performance of his newsletter.

Most importantly, I’ve taken some of his ideas and made money trading them.

Peter is a classical chartist. That means that he is a “follower” of such things as head and shoulders, double tops, and so on. He is, in fact, probably the purist chartist in the futures/forex world. Most people have never read the bible of technical charting by Magee/Edwards. They pick up some stuff from new books but never really develop the deep understanding that Peter has.

Diary of a Professional Commodity Trader is a very good book if you would like to understand charting. It is a good addition for futures traders to the Magee/Edwards classic.

But more importantly, it is a book which tells the truth about being a pro trader. There is no glossing over the critical issues of risk management and the psychology of trading.

The book gives a good overview of the techniques but the heart of the book is his explanation of his approach to the market, including psychology and risk management, and then his diary of trading for 5 months of trading. This is a excellent insight into the reality of trading.

I really like the lack of hype in the book. He often says that he doesn’t know something. How refreshing!

I highly recommend this book to anyone who wishes to make money in the market particularly if they use any discretion or charting or wants to learn about charting.

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