Diary of a Professional Commodity Trader. Peter L. Brant (I)

I've been the reader of his blog and now I'm reading his last book (he wrote another in 1990 with Bruce Babcock called Commodity Futures with Classical Chart Patterns).

He explains the principles where his called Factor Trading Plan is based and the characteristics of this.

Moreover he shows five months of his trading. Very good wrote, clearly, without fantasies and magical formulas.

The best sentence of the book: "when meditate about introducing an order you have to think that will be a loser" (in order to control the risk…)

He bases his trading in charts patterns mainly because:

-         They are an indication of market direction.

-         Give him the timing and the point of trade entry.

-         Help him to point a stop-loss order and a target for taking profits.

-         So they give you estimation about the risk/reward.

Here there is a diagram about the main factors in his Factor Trading Plan.