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The Universal Principles of Successful Trading: Essential Knowledge for All Traders in All Markets
"The Universal Principles of Successful Trading" clearly and unambiguously articulates trading principles that distinguish the winners from the losers. Though trading can be performed in different markets, across different timeframes, and with different instruments based upon different techniques, there is one common thread that ties all winning traders together: the "universal principles of successful trading." All consistently profitable traders adhere to them regardless of the markets, timeframes, and techniques.In this ground-breaking book from top trader, Brent Penfold, the reader will: Learn how to develop a trading planLearn how to identify and create an effective methodologyDiscover successful money management strategiesUnderstand trader psychologyAnd many more exciting trading and strategies secrets.
Supporting the universal principles are rare interviews from a diverse group of successful traders. Some are the new young guns of trading and others are market legends who are trading just as actively today as they were over 50 years ago. They represent a diverse group of traders from the United Kingdom, America, Singapore, Hong Kong, Italy, and Australia. All of them have generously agreed to offer the reader one singularly powerful piece of advice to help them towards their trading goals. Each piece of advice emphasizes an essential element of the universal principles.
This timely and exciting book from Brent Penfold has already garnered many accolades and looks set to become a modern-day classic.
Supporting the universal principles are rare interviews from a diverse group of successful traders. Some are the new young guns of trading and others are market legends who are trading just as actively today as they were over 50 years ago. They represent a diverse group of traders from the United Kingdom, America, Singapore, Hong Kong, Italy, and Australia. All of them have generously agreed to offer the reader one singularly powerful piece of advice to help them towards their trading goals. Each piece of advice emphasizes an essential element of the universal principles.
This timely and exciting book from Brent Penfold has already garnered many accolades and looks set to become a modern-day classic.
256 pages, Kindle Edition
First published July 26, 2010
About the author
Brent Penfold
5 books2 followersBrent Penfold is a full time trader, author, educator and licensed advisor. He began his career in 1983 as an institutional dealer with Bank America and today specializes in trading forex and global indices.
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Displaying 1 - 11 of 11 reviews
January 20, 2022
This book started well, with some straight advice on how to develop good trading systems, but ended rather poorly.
Author emphasizes that the most important metric to achieve when developing a system if having a calculated 0% risk of ruin. He says also that a Holy Grail system is one which has positive expectancy and can be traded across multiple opportunities.
Author points that the core of trading is based on support and resistance levels, which I disagree. There is also a very strange way to validate your strategies, that is emailing 30 trades to a trading-partner to check expectancy, seems out of purpose.
Shows some money management techniques, like fixed risk, fixed capital, fixed ratio (which author likes, and I don't), and some others.
Author thinks it's better to wait for a confirmation of a support/resistance to not do marginal trades. I don't think this must be a universal principle, since maybe you can backtest your idea and see that it's better to act right away, instead of waiting for a confirmation. He thinks also large stops shouldn't be used due to inability to use higher position sizes. In my opinion this depends on your strategy, as most strategies with tight stops will get hit due to the volatility, and author doesn't point to concrete facts that large stops are bad for your strategy.
Brent advocates for a mechanical, purely objective trading. I'm also yet to see a subjective trader to succeed.
On the final part of the book, there is a small interview with many successful traders, that points to a single advice on how to succeed on trading. I expected much more from this part, honestly.
Not a book to learn how to develop a trading system, but has some useful stuff.
Estimated reading time: 8h30m.
Author emphasizes that the most important metric to achieve when developing a system if having a calculated 0% risk of ruin. He says also that a Holy Grail system is one which has positive expectancy and can be traded across multiple opportunities.
Author points that the core of trading is based on support and resistance levels, which I disagree. There is also a very strange way to validate your strategies, that is emailing 30 trades to a trading-partner to check expectancy, seems out of purpose.
Shows some money management techniques, like fixed risk, fixed capital, fixed ratio (which author likes, and I don't), and some others.
Author thinks it's better to wait for a confirmation of a support/resistance to not do marginal trades. I don't think this must be a universal principle, since maybe you can backtest your idea and see that it's better to act right away, instead of waiting for a confirmation. He thinks also large stops shouldn't be used due to inability to use higher position sizes. In my opinion this depends on your strategy, as most strategies with tight stops will get hit due to the volatility, and author doesn't point to concrete facts that large stops are bad for your strategy.
Brent advocates for a mechanical, purely objective trading. I'm also yet to see a subjective trader to succeed.
On the final part of the book, there is a small interview with many successful traders, that points to a single advice on how to succeed on trading. I expected much more from this part, honestly.
Not a book to learn how to develop a trading system, but has some useful stuff.
Estimated reading time: 8h30m.
October 26, 2017
This was a really great book full of lots of trading wisdom for both new and experienced traders. It also included interviews with a range of successful private traders who each impart their own "one piece of advice". I really enjoyed this book although the author was fairly brutal in his assessment of trading - we all know it is incredibly tough but if it is that tortuous then why do it?
April 29, 2021
Good book focusing on three major points of Money management, Methodology and physiology. While similar topic is coverd by other books however this book has unique approach to keep it simple and go deep.
It covers extensive comparison of various risk management startegy and computation of risk of ruin.
Author has unique viewpoint on Methodology and explains the same. It covers physiology and wisdom of popular traders at end as cherry on top.
It covers extensive comparison of various risk management startegy and computation of risk of ruin.
Author has unique viewpoint on Methodology and explains the same. It covers physiology and wisdom of popular traders at end as cherry on top.
November 2, 2018
Chock full of useful knowledge based on his years of experience. Reduces trading to something more mathematical (expectancy etc) than the other fluff you get from other books. Backs up important points with interviews with some the Trading Greats at the end of his book (not all of them are great though imo)
May 30, 2026
I just finished The Universal Principles of Successful Trading by Brent Penfold, and it’s one of the most practical, no-nonsense trading books I’ve read in years. This isn’t another get-rich-quick scheme filled with flashy indicators or secret patterns. Instead, Penfold delivers a clear, timeless framework that cuts through the noise and focuses on what actually separates consistent winners from the majority who eventually blow up their accounts.
What stood out most to me was how packed the book is with real insight into what it truly takes to be a successful trader. Penfold covers everything from developing a solid trading plan and methodology to mastering money management and, crucially, understanding the psychological and statistical realities of the game. One of the biggest takeaways—and something most new traders completely underestimate—is that you will spend a large portion of your trading life in drawdown. That’s just the nature of the beast when you’re playing a positive expectancy game.
Penfold hammers home the essential truth: survival and long-term success come down to taking small losses and letting your winners run. It sounds simple, but executing it consistently is where most traders fail. His emphasis on risk management, emotional discipline, and treating trading like a probability business rather than a gambling thrill ride is refreshing and genuinely helpful.
Whether you’re trading stocks, futures, forex, or any other market, the principles in this book are truly universal. It’s the kind of resource you’ll keep coming back to as a reference. If you’re serious about becoming a better trader and want a reality check on what the journey actually looks like, this book is a must-read. Highly recommended!
What stood out most to me was how packed the book is with real insight into what it truly takes to be a successful trader. Penfold covers everything from developing a solid trading plan and methodology to mastering money management and, crucially, understanding the psychological and statistical realities of the game. One of the biggest takeaways—and something most new traders completely underestimate—is that you will spend a large portion of your trading life in drawdown. That’s just the nature of the beast when you’re playing a positive expectancy game.
Penfold hammers home the essential truth: survival and long-term success come down to taking small losses and letting your winners run. It sounds simple, but executing it consistently is where most traders fail. His emphasis on risk management, emotional discipline, and treating trading like a probability business rather than a gambling thrill ride is refreshing and genuinely helpful.
Whether you’re trading stocks, futures, forex, or any other market, the principles in this book are truly universal. It’s the kind of resource you’ll keep coming back to as a reference. If you’re serious about becoming a better trader and want a reality check on what the journey actually looks like, this book is a must-read. Highly recommended!
August 2, 2021
Must read
Excellent account of what it's actually going to take to make it long term in trading, you won't like it.
Excellent account of what it's actually going to take to make it long term in trading, you won't like it.
July 11, 2022
Awesome. A reference
August 25, 2022
Excellent, a foundational book for building trading systems.
July 28, 2019
If you combine a sensible money management strategy with a simple, objective, and independent positive-expectancy methodology that has been validated using the TEST procedure, you will commence trading with a 0 percent risk of ruin.
Good tests done on money management tactics.
Good tests done on money management tactics.
This entire review has been hidden because of spoilers.
October 14, 2013
This book is awesome because it explains the fundamental principles of successful trading. There are statistical ground that supports the mathematical nature of trading/investment. Regardless of methodology used, the statistics that maximize your profits and minimize your loss will need to prevail before you can be a successful trader/investor.
February 21, 2016
Not for the absolute beginner but contains pearls of wisdom that would help many traders in becoming successful in their trade.
Displaying 1 - 11 of 11 reviews