This week I finished reading "MOMO Trader" by Brady Dahl. To be honest, I didn't expect much from it based on how it was derived, but I found myself thoroughly enjoying the content and the narrative format.
Brady sent me a promotional copy with no strings attached, but I think its worth sharing this book since it hits on more than what you find in many trading books that seem to focus on "how-to" or technical analysis.
MOMO Traders follows more of a interview approach similar to something like The Big Short where the author chronicles stories from multiple people in the industry to allow the reader to draw their own conclusions.
What I liked and found useful were not only the few tricks these traders uncovered, but also the recognition of how their biases and bad habits had gotten the best of them - to better illustrate how I have to also face them to improve.
Day trading is a lonely journey where you learn more about yourself than nearly any other ambition. I think MOMO Traders helps bring this to light and add perspective.
One of the biggest takeaways that I agree with was that you will not become a successful trader until you become "numb" to the wins and losses. Many of the interviewed traders mention this and I couldn't agree more. I believe this only can be accomplished when you are free from having to pay monthly bills based on your profits and your success isn't dictated based on a day, week or even a month's worth of trades.
The book did have some curious omissions, while it tried to cover a variety of different traders and styles, it seemed peculiar that options were not mentioned a single time. While I've personally moved away from options by and large, a good number of the traders interviewed where short-biased and mentioned how it was difficult to locate shares to short. In these cases, given huge conviction on a trade it would seem to make sense to buy puts in lieu of finding shares to short. And while you may or may not be long-biased, I think it is highly advantageous to understand the mind of someone who likes to play short.
There was also no mention of crypto or futures if that is your thing. I don't think this detracts from the purpose of the book, I just felt it was worth mentioning if you require reading about traders in your markets.
MOMO Traders is fairly steep at $41 shipped, but I think its worth the price of admission given that its a very niche topic and offers some inner perspectives which readers will be able to reflect upon to improve their day trading.
Want to try MOMO? Go to Mometic.com and pick the platform that works for you.
//Profit from Momentum