Summary of John Carter's Mastering the Trade

By IRB Media

Get the Summary of John Carter's Mastering the Trade in 20 minutes. Please note: This is a summary & not the original book. Original book introduction: One of today’s most successful traders, John F. Carter has made his popular guide more relevant and effective than ever. This new audio edition of Mastering the Trade includes the essential content that has made it a bestselling classic, and includes critical new information for making the best trading decisions in every situation.

• Language: English
• Publisher: IRB Media
• Release date: Dec 3, 2021
• ISBN: 9781669340829

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

Book preview

Insights on John Carter's Mastering the Trade 3rd Edition

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 1

#1

The freedom that comes with being a trader is what attracts many people to the profession.

#2

There are many reasons why people become traders, and not all of them are related to the financial aspect. Some do it to escape the responsibilities of running a large corporate division or an individual business, while others do it to get away from the corporate world altogether.

#3

The good thing about trading is that you get to choose your own hours, working from your home, from your favorite coffee shop, or on the beach if that’s where you’re most comfortable. You get to choose what you trade and when you trade it, and you can make a lot of money doing so.

#4

The most dangerous aspect of trading is that it allows you to make money, which makes it very tempting to continue trading. The problem is, the markets can never protect you from yourself.

#5

Anyone who is attracted to trading has the same characteristics as a psychopath. The inherent freedom of trading is what attracts people to it in the first place, but it’s also what destroys them. After all, we spent our first 18 years of life learning that it’s better to follow the rules and do what we’re told.

#6

The problem with the Slowlane is that when a trade doesn’t work out, traders feel obligated to act consistent with their earlier decision, which usually ends up making things worse.

#7

The Landmark Forum is a workshop that helps individuals understand how their past affects their present and future. It teaches individuals how to cut off old, negative habits and beliefs and replace them with new, positive ones.

#8

Emotions-based trading is the best type of trading because it is the most volatile. It is also the most difficult to control because it is based on feelings rather than logic.

#9

The pressure to be consistent with your original choice drives traders to make poor decisions, which in turn causes more blowups. However, on the other side of disaster is opportunity.

#10

Consider the following example, which demonstrates how over- and undervaluing a stock can lead to large losses or gains. On December 29, 2004, a stock with an OV of $30 made a new 52-week high at $33. 45 the next trading day. However, it failed to reach the highs it made in November, and instead pulled back to support at $27. 62.

#11

The chart in Figure 1. 2 is a classic case of an inflection point at which a group of traders have to make a decision: to buy or to sell.

#12

The author was analyzing a stock he had bought, and had planned to sell after a certain price point. However, the stock started to fall the next day, and continued to fall. He didn’t panic, and decided to wait for the stock to fall further before selling it.

#13

A trader was planning on selling a stock, but due to the markets gapping down, he decides to hang on for a day. On Tuesday, the stock gaps down another 3 points, opening at $17. 01. Despite knowing it's his fault, a part of him feels relieved.

#14

A trader named Joe was down by $27,560 on a single trade. He was about to go crazy, but he knew he needed to stay calm and figure out how to get out of the trade without losing too much money.

#15

The author was a successful investor who made his fortune by following the technical analysis of the stock market. One day, while watching his chart, he notices that the stock he had previously bought was starting to rally. He goes short, confident that the rally will soon end.

#16

The right answer for when a stop gapes below your stop is to get out immediately. If you don’t, you’ll end up losing more money than necessary.

#17

It is important to be sensitive to the journey of a beginner trader, and provide them with the support they need while they learn.

#18

It is important to have discussions with your trading partner to see if their goals and values align with yours. If they do, you can pursue this venture with confidence.

#19

A trading plan is what keeps traders on the straight and narrow. It outlines the rules of the game, the objectives, and the methods for reaching them.

#20

Remember to be patient with your loved ones, as they may not share your enthusiasm for the markets. While they may not be as excited about it, they still care.

#21

Building a relationship with your trading partner that is built on trust and transparency will help you weather the bad trades and keep you from rashly taking trades to recover your losses.

#22

Certain times of day are more crucial than others for traders. The most crucial are open and close. During these hours, do not disturb a trader, unless it’s an emergency.

#23

Before getting married, make sure you know your partner’s values and that the lifestyle you’re planning