Bill and Justine are made me aware of what is driving the markets. Before I met them I was caught in a circle of winning and losing money in trading. The first edition opened my eyes, new trading dimensions got me out of the dream. The home study course showed me that It is possible to trade consistently, The personal workshop with Bill taught me more than enough of the inside of the markets to grasp the why and how. Eventually workshops by Justine in the middle of Chicago made me implement it all.
This new edition of Trading Chaos is refreshing. It's not about "the magic system", it's not about how to design the perfect system. No it's about real life and how the markets fit in. The perfection in the chaos, the perfect repetition of the small in to the bigger picture.
Don't buy this book if you want to know which market to trade and make money. Don't buy this book if you are looking for the magical tip.
Do buy the book if you want to learn what the market is driving and how you can profit.
Do buy this book if you are clueless (like I was) about your trading mistakes.
If you are serious go for the book, think of the implications and contact Bill and Justine to do a follow up. I did it 10 years ago and never had a moment of regret.
I am a BIG believer in Bill Williams and his body of work.
I have personally met with Bill, taken his home study course and even attended a private tutorial. Bill is the real deal. He is a *highly* profitable trader and Bill trades EXACTLY like he describes in his books (simplified over time, so Trading Chaos, 2nd Ed. is the LATEST and most refined method).
If you just want to trade with no other background information, Buy Trading Chaos, 2nd Edition (not this book) and start with chapter seven. When you get to the end of the book, you'll say, "That's it?!?! Than can't be it!" That's what I said. I then went on to take his home study course (13 weeks) and then went to a private tutorial. 95% of the methodology is IN THE BOOK! The more advanced stuff is for those who are scaling into positions and want more aggressive money management techniques.
Who am I to say this works? I started trading Bill's techniques from scratch. In LESS than 6 months I was up 95% in a medium sized account. I found some like-minded investors and we started our own Hedge Fund (more specifically, a commodity pool). I called Bill personally and he spoke with me at length about how I should flow into and out of my positions, etc. He went far above and beyond the call of duty. I cannot speak to how well my Pool is doing (not legal to disclose - considered solicitation of investors), so I cannot give figures of returns for the Pool.
Buy Trading Chaos 2nd Edition and then buy "New Trading Dim mentions" (his second book) and read chapters 9 - 11. Those chapters will give you more ideas of the SCOPE of just what is possible when you simplify your trading and align it with natural market tendencies (chaos principles).
The actual trading methodology is not really of interest to me. As a matter of fact, it's ironic that in the first half of the book statements such as "there is no magic system" and "all mechanical systems will fail" are made, then in the second half of the book a rather mechanical trading system that is referred to as "automagic" is described.
I suppose for a beginning trader looking for some kind of method to employ it's not a bad one to pursue. Allow me to suggest that the second half of the book should be given perhaps 10% of your consideration while the first half should be given 90%.
The first half of the book is revolutionary, and makes it a classic. It should be removed and marketed separately. In fact, I like your chances of success better if you only read the first half and then develop your own trading method based on what you notice happening in the market. Concentrate on developing a winning mindset and getting in tune with the market you trade. The first half of this book should be kept and reread regularly.
Once again Bill Williams and now his daugther, Justine, too, have contributed another advance in the field of trading stocks and futures. Dr. Williams' insights and advanced chaos theory techniques move traders to work in sync with the changing nature of the markets. Going with the flow and surfing the waves of the markets is now easier than ever. It's interesting to note that in this new book, the chaos-derived indicators (alligator, AO, and fractals) are not changed, but the way to interpret their information is adapted to take advantage of the choppier 21st century markets, compared to the go-go '90's markets. This new interpretation seeks to capture profits from short-term swings in the market, entering the market much closer to the turning points of each wave (fractals) and aggressively scooping up profits before the short-term swing runs its course. This method also reduces risk to the span of a single bar. Also included with even more emphasis than in previous books, are methods to adapt the mind of the trader to the ebbs and flows of the market, rather than the emotional fear-based reactions that most of us are prone to in our trading. I've had the privlege of attending one of Profitunity's intimate trading workshops (with 4-8 others) and witnessing Bill's trading first-hand. It was immediately obvious to me that here was a genius at work. I highly recommend this book to any trader who wants to "make winning the path of least resistance." My only criticisms are that this book should have a different title, since it is not a new edition of the first "Trading Chaos" book, and would not replace that seminal work. The new book has entirely different info and deserves its own place in the series. Perhaps "Trading Chaos in the 21st Century" or something like that. I would also like to see more guidance on how to integrate the techniques from the first two volumes with the new approach taken in this book. Clearly they are all compatible, yet forging an integrated system will take some effort on my part. Then again, maybe that's for the best. I know that if I didn't contribute to my own trading system in some way by adding to what Bill has pioneered, then I would feel incomplete. I suspect that many other traders would feel the same way.
I am not affiliated with the Bill Williams, he doesn't know me, I don't know him and I don't get compensated to speak on his behalf. I read his works and in my view this book is a good one. Written in layman terms for everyday traders, it describes a method that is profitable without resorting to complicated mathematical formulas with which others attempt to elucidate the mysteries of the "chaos theory". (What the heck is chaos anyway?) That it cannot be backtested, it absolutely doesn't matter. There are many other trading theories that cannot be backtested and are just great. On the other hand, I have seen many traders who use well tested methods and who either lose money or make so little profits that they would be better off going back to their former professions.
That there are a few incongruences in Bill's book, they are a test for the reader to discover them and to use his understanding of the ideas in the book to solve them. Let's not forget that a single book cannot cover everything for everybody. Such book does not exist. Why blame the inaccuracies when the whole concept can be praised?
"Trading chaos" is an invitation to study Bill's style and practice it.
On another note, in MetaStock, the Profitunity method is the most detailed Expert Advisor from among the several that come standard with the software package. It can be traded without the need for other bells and whistles. "Trading chaos" and the MetaStock Expert Advisor can and does make a trader a few dollars. Period.
Having read this book recently,and being familiar with Bill Williams' work,I would like to state my opinion here,which I am afraid is totally different than that of the previous reviewer.
First of all,let me explain that I have no personal connection or mutual interest with Mr. Williams and unfortunately for me I haven't taken his course or participated in his private seminars.Furthermore,I have also found his methology unprofitable a couple of years ago.....
This book made me reread his past books and reevaluate his methology.And I realized something very special : the reason I have failed in the past to profit from this methology and the reason the last reviewer makes such a critism,is that both of us haven't understood that Mr Williams doesn't simply teach a system.He teaches a completely alternative approach to the markets and life in general.And I believe that the main reason he devotes such a big part of the book for the psychological part of trading,is because he knows that it's extremely difficult for anybody to change his perceptions.
I can parallel the way most of the other systems work,with someone who tries many shoe sizes in order to find the one that fits his foot.All of us approach trading as a probabilities,or gambling game,trying to find out if a system,tested in past data,fits the present data of the market.If we are wise enough,we cut our losses short and we go on for our next try.That's the reason,almost 97% of the traders (mechanical systems included) fail to produce consistent profits.
Mr. Williams proposes another approach.Let the market tell you each time which system you must implement to have profits.Let the shoe determine which "foot" you must use to walk properly.And if you think that this example is not appropriate,let me state it otherwise.Which parameter determines what clothes you are going to wear to get out? the weather,of course.If it changes you must change your clothes also,to feel comfortable.You can't change the weather....
Now,if Mr.Williams techniques can guide you to be in tune with the markets,it's another story and I am working on it.It seems that his daughter brought fresh and original ideas to the whole approach.Surely,the book is only the starting point to understand this mans' logic and the way he trades the markets.But I really consider the money I have spent in buying this book as the best spent money in my whole trading career.And I certainly look forward to buy his course,when my financial ability permits it.
Product Details :
Hardcover: 228 pages
Publisher: John Wiley & Sons, Publishers; 2 edition (February 2004)
Language: English
ISBN-10: 0471463086
ISBN-13: 978-0471463085
Product Dimensions: 14.2 x 1 x 9.4 inches
More Details about Trading Chaos: Maximize Profits with Proven Technical Techniques 2nd edition
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