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Trade the Trader: Know Your Competition and Find Your Edge for Profitable Trading
When you trade, you're not just trading companies that deliver goods or services. You're trading against other traders who care about only one taking your money. That's the #1 hard reality of trading - and most traders either don't know it, or don't act as if they do. In this book, top trader and hedge fund manager Quint Tatro shows how to win consistently in the "zero sum" game of trading, where there's a loser for every winner. You'll learn how to reflect your trading competition in every facet of trading and choosing companies to invest in, knowing when to jump in and out of the market, and mastering the psychology and gamesmanship of trading. Coverage
208 pages, Hardcover
First published October 4, 2010
115 people are currently reading
303 people want to read
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Displaying 1 - 13 of 13 reviews
October 10, 2021
This is a superb book about the mass psychology of the financial markets. More specifically, the stocks and equities markets as the author Quint Tatro is a successful fund manager. Tatro is not well knowed in the trading field however, if you go and read about his backgrounds and this book, you will discovered that he is indeed a great technical trader of charts.
"If you are following technical analysis, you are either stalking the movement of others, or your movements are being stalked. If you don’t know on which side you fall, odds are you are someone’s next meal."
"We had early success, but spent much of 2006 and 2007 fighting an uptrend, during which I learned the importance of grinding it out and about how true market success is a marathon and not a sprint."
"Successful traders, in addition to possessing a strong foundational strategy, are also keenly aware of those with whom they are trading against and among, and they will always be conscious of what the masses are doing, so as to capitalize on the movement of the herd."
"It has taken me more than ten years to develop the basis of my strategy, and still I continue to hone and adjust, learning every day from the market itself."
"To truly take advantage of the opportunity that is price action (up, down, sideways markets), you must not overlay any bias whatsoever; otherwise, you will immediately be viewing the market one way and allowing the good versus bad mentality to creep back in."
"The market is neither good nor bad; it is just a wonderful world of opportunity. Furthermore, it is not your job to determine where it should go. Instead, you want to humbly seek to profit from whatever direction it moves."
"At some point, a stock’s decline becomes so great that some people prefer to accept the entire loss rather than sell the stock to recoup the dwindled capital amount. I call these portfolio graveyards; the stocks held are dead and will never again return to life... Knowing where a mass of traders is within the emotional cycle of a trade is critical information."
"... an institution sold a significant number of shares at a key level where they knew basic stops would be placed. Once this level was breached and the stock fell swiftly, due to the large number of stop orders in place, they were able to reverse their position and buy those shares at a lower price and thus lower their total cost basis in the stock a great deal as they bought into the drop."
"Trading is all about knowing yourself. To be a truly successful trader, you need to look deep within, making a conscious decision to wrestle with those ugly qualities (emotional, pride, ego etc) you don’t want anyone to know about. If you do not do this, the market will seek out these qualities, prey on them, and use them to separate you from your capital."
"You must know that the minute you sit in front of a computer screen studying the markets, you are facing not only the smartest people in the world, but the most competitive. You are facing ex-professional athletes who already know what it takes to succeed in the athletic arena. You are facing Ivy League scholars who calculate risk as if they were ordering a pizza. Finally, you are facing institutions that have an endless supply of capital from which to move markets, move stocks, and bounce you around like a Ping-Pong ball in the wind."
"No matter how successful you become, you can always find areas to improve on. This is one of the exciting challenges presented through the world of trading stocks."
"In fact, the more chart work you do on your own, the more you will view outside opinions as nothing more than noise. It is why the greats worked in silence... "
"... once you develop and hone your personal trading style, ultimate success has more to do with
psychology than any set rule or guideline. Successful trading is the evolution from a battle between man and stocks to a battle between man and himself."
"Keeping your emotional account at highs will enable you to increase your financial account. You cannot have one without the other."
"Earnings season is a breeding ground for blowups, and I would rather avoid these if I have the choice."
This book was such a fascinating read that I devoured it within a day. There are many golden nuggets in this book. Most of which are psychology based but the author did offered some chart examples as well. Highly recommended for all technical traders of the market. Solid 4/5.
"If you are following technical analysis, you are either stalking the movement of others, or your movements are being stalked. If you don’t know on which side you fall, odds are you are someone’s next meal."
"We had early success, but spent much of 2006 and 2007 fighting an uptrend, during which I learned the importance of grinding it out and about how true market success is a marathon and not a sprint."
"Successful traders, in addition to possessing a strong foundational strategy, are also keenly aware of those with whom they are trading against and among, and they will always be conscious of what the masses are doing, so as to capitalize on the movement of the herd."
"It has taken me more than ten years to develop the basis of my strategy, and still I continue to hone and adjust, learning every day from the market itself."
"To truly take advantage of the opportunity that is price action (up, down, sideways markets), you must not overlay any bias whatsoever; otherwise, you will immediately be viewing the market one way and allowing the good versus bad mentality to creep back in."
"The market is neither good nor bad; it is just a wonderful world of opportunity. Furthermore, it is not your job to determine where it should go. Instead, you want to humbly seek to profit from whatever direction it moves."
"At some point, a stock’s decline becomes so great that some people prefer to accept the entire loss rather than sell the stock to recoup the dwindled capital amount. I call these portfolio graveyards; the stocks held are dead and will never again return to life... Knowing where a mass of traders is within the emotional cycle of a trade is critical information."
"... an institution sold a significant number of shares at a key level where they knew basic stops would be placed. Once this level was breached and the stock fell swiftly, due to the large number of stop orders in place, they were able to reverse their position and buy those shares at a lower price and thus lower their total cost basis in the stock a great deal as they bought into the drop."
"Trading is all about knowing yourself. To be a truly successful trader, you need to look deep within, making a conscious decision to wrestle with those ugly qualities (emotional, pride, ego etc) you don’t want anyone to know about. If you do not do this, the market will seek out these qualities, prey on them, and use them to separate you from your capital."
"You must know that the minute you sit in front of a computer screen studying the markets, you are facing not only the smartest people in the world, but the most competitive. You are facing ex-professional athletes who already know what it takes to succeed in the athletic arena. You are facing Ivy League scholars who calculate risk as if they were ordering a pizza. Finally, you are facing institutions that have an endless supply of capital from which to move markets, move stocks, and bounce you around like a Ping-Pong ball in the wind."
"No matter how successful you become, you can always find areas to improve on. This is one of the exciting challenges presented through the world of trading stocks."
"In fact, the more chart work you do on your own, the more you will view outside opinions as nothing more than noise. It is why the greats worked in silence... "
"... once you develop and hone your personal trading style, ultimate success has more to do with
psychology than any set rule or guideline. Successful trading is the evolution from a battle between man and stocks to a battle between man and himself."
"Keeping your emotional account at highs will enable you to increase your financial account. You cannot have one without the other."
"Earnings season is a breeding ground for blowups, and I would rather avoid these if I have the choice."
This book was such a fascinating read that I devoured it within a day. There are many golden nuggets in this book. Most of which are psychology based but the author did offered some chart examples as well. Highly recommended for all technical traders of the market. Solid 4/5.
December 1, 2023
1. **Understanding Market Participants:** The book likely explores the various types of market participants, including retail traders, institutional traders, and algorithmic traders. Understanding the behavior and motives of different players can provide insights for developing a trading edge.
2. **Identifying Trading Styles:** Different traders employ distinct trading styles. "Trade the Trader" may discuss various approaches such as day trading, swing trading, and long-term investing. Traders are encouraged to identify a style that aligns with their goals and personality.
3. **Analyzing Market Sentiment:** The book may delve into the importance of market sentiment analysis. Traders could learn how to gauge the mood of the market, recognize sentiment shifts, and use this information to make informed trading decisions.
4. **Finding Your Niche:** Traders are likely encouraged to find their niche in the market. This involves identifying specific instruments, timeframes, or strategies that resonate with an individual trader's strengths and preferences.
5. **Risk Management Strategies:** Effective risk management is crucial for long-term success. "Trade the Trader" may provide guidance on risk management techniques, including position sizing, setting stop-loss orders, and managing overall portfolio risk.
6. **Behavioral Analysis:** The book may incorporate behavioral analysis, exploring how traders' emotions and cognitive biases impact their decision-making. Understanding these psychological aspects can help traders gain an edge.
7. **Learning from Mistakes:** Traders are likely encouraged to learn from both their own mistakes and the mistakes of others. Case studies or anecdotes may be used to illustrate common pitfalls and how traders can avoid or overcome them.
8. **Technical and Fundamental Analysis:** The book may cover a range of analysis techniques, including both technical and fundamental analysis. Traders could learn how to integrate these approaches to make more well-rounded trading decisions.
9. **Adapting to Market Conditions:** Markets are dynamic, and strategies that work in one market condition may not work in another. "Trade the Trader" may offer insights into adapting trading strategies to different market environments.
10. **Continuous Improvement:** Like many trading books, this one may stress the importance of continuous improvement. Traders are likely encouraged to stay informed, adapt to changing market dynamics, and refine their strategies over time.
"Trade the Trader" is likely to provide traders with a holistic view of the trading landscape, helping them understand their competition, develop a personalized trading approach, and ultimately find a sustainable edge in the markets.
2. **Identifying Trading Styles:** Different traders employ distinct trading styles. "Trade the Trader" may discuss various approaches such as day trading, swing trading, and long-term investing. Traders are encouraged to identify a style that aligns with their goals and personality.
3. **Analyzing Market Sentiment:** The book may delve into the importance of market sentiment analysis. Traders could learn how to gauge the mood of the market, recognize sentiment shifts, and use this information to make informed trading decisions.
4. **Finding Your Niche:** Traders are likely encouraged to find their niche in the market. This involves identifying specific instruments, timeframes, or strategies that resonate with an individual trader's strengths and preferences.
5. **Risk Management Strategies:** Effective risk management is crucial for long-term success. "Trade the Trader" may provide guidance on risk management techniques, including position sizing, setting stop-loss orders, and managing overall portfolio risk.
6. **Behavioral Analysis:** The book may incorporate behavioral analysis, exploring how traders' emotions and cognitive biases impact their decision-making. Understanding these psychological aspects can help traders gain an edge.
7. **Learning from Mistakes:** Traders are likely encouraged to learn from both their own mistakes and the mistakes of others. Case studies or anecdotes may be used to illustrate common pitfalls and how traders can avoid or overcome them.
8. **Technical and Fundamental Analysis:** The book may cover a range of analysis techniques, including both technical and fundamental analysis. Traders could learn how to integrate these approaches to make more well-rounded trading decisions.
9. **Adapting to Market Conditions:** Markets are dynamic, and strategies that work in one market condition may not work in another. "Trade the Trader" may offer insights into adapting trading strategies to different market environments.
10. **Continuous Improvement:** Like many trading books, this one may stress the importance of continuous improvement. Traders are likely encouraged to stay informed, adapt to changing market dynamics, and refine their strategies over time.
"Trade the Trader" is likely to provide traders with a holistic view of the trading landscape, helping them understand their competition, develop a personalized trading approach, and ultimately find a sustainable edge in the markets.
November 17, 2017
Just notes for me and others.
- The nature of the market is fractal in design, so a day trader will experience about the same wins/loss as a swing trader.
- The importance of a properly structured journal to reflect on and track when things go off course. The market usually gives hints of it's moves but our hopes create blindspots.
- Key is learning to trade your own style is a journey of discovery. And until you discover the style that plays to your strengths, where there's no discord with oneself, you'll stay mediocre for longer than you had planned.
- You have to have a definition of the basics of your edge, so when the losses come, you have something to retreat to, so u can build up the emotional capital to trade confidently again.
- Trade the live risk as it is now, not the initial risk. Consider the scenario of losing the live risk altogether - then rebalance risk to cash or other positions.
- The nature of the market is fractal in design, so a day trader will experience about the same wins/loss as a swing trader.
- The importance of a properly structured journal to reflect on and track when things go off course. The market usually gives hints of it's moves but our hopes create blindspots.
- Key is learning to trade your own style is a journey of discovery. And until you discover the style that plays to your strengths, where there's no discord with oneself, you'll stay mediocre for longer than you had planned.
- You have to have a definition of the basics of your edge, so when the losses come, you have something to retreat to, so u can build up the emotional capital to trade confidently again.
- Trade the live risk as it is now, not the initial risk. Consider the scenario of losing the live risk altogether - then rebalance risk to cash or other positions.
June 17, 2024
I definitely found value in this book. Where failed moves come fast moves! I like his comment on how to deal with blow ups and scaling out of winning trades. A lot of it seems rudimentary information, but there are plenty of nuggets to take away from this book.
September 24, 2020
Great Read...
Really enjoyed this book. Definitely a book I will reference for years to come. The material is solid and straight to the point.
Really enjoyed this book. Definitely a book I will reference for years to come. The material is solid and straight to the point.
November 20, 2020
Great read
All good in the hood. Mad tradez be had, its gonna becrad, before it gets bad. Price action impaction smashing Jackson.
All good in the hood. Mad tradez be had, its gonna becrad, before it gets bad. Price action impaction smashing Jackson.
January 22, 2021
Recommend for both entry level traders who want to start creating a trading plan, or traders who want to explore ideas for more profitable trading system. "Plan the trade and trade the plan."
April 2, 2021
Must read book
Something every trader should read this book. It's very helpful in defining your strategies in stock market and reach you very important concepts
Something every trader should read this book. It's very helpful in defining your strategies in stock market and reach you very important concepts
January 15, 2024
good for beginners that can learn how to start.
February 19, 2024
A must read for any trader!
October 28, 2024
Must read for anyone beginning to learn how to trade in the stock market. It helped me become more self-aware as a trader and more knowledgeable about what mental traits one needs to develop to thrive as a trader.
Currently reading
February 14, 2011Only a few chapters in. Recommended by my Dad. I have a fascination with the stock market and hopefully this book will give me some of the insight I'm looking for.
Displaying 1 - 13 of 13 reviews