Saturday, August 11, 2007

Help Dr. Brett Write His Next Book!

Dear Readers,

It's about that time when I devote time to writing another book. This one will be my fifth--I have two psychology texts and two trading ones--and it will be my most unique.

My first two trading books were trader-centric, focusing on the psychology and performance of the trader, respectively. This one will emphasize the psychology of the markets themselves, highlighting trading strategies that are grounded in trader/investor sentiment and behavior patterns.

I say the book will be unique, because it will be an electronic product as well as a print text. That means that it will incorporate annotated color graphics, links to online resources, audio presentations, and trading videos in a single package.

Most e-books are simply electronic versions of print texts with a few HTML links tossed in. In the future, books will be multimedia publications that integrate text, graphics, audio, and video in a single package. The text will explain a concept, the graphics will illustrate it, and the audio/video will explain and show how to utilize it.

That means that readers will learn more effectively, seeing, hearing, and reading information, processing the material through multiple sensory/learning modalities.

Static text is great for conveying factual information, not so good for illustrating and demonstrating skills. The books of the future will be anything but static.

My next book will also be unique in that I will make an effort to incorporate the ideas of many different writers from the trading literature. One of the surest signs that trading is a non-scientific field is that it lacks a literature that is cumulative. Books rarely make a conscious effort to survey existing knowledge in the field and add to the corpus. Instead, writers tread old ground and fail to advance the solid understandings from the past.

So, to the best of my ability, I will review a range of trading literature. My aim is to give credit to those who have lent their shoulders and provided me with a broader view than I could ever have achieved on my own.

Finally, I'm hoping that the book will be unique in that its content will be influenced by its future readers. I'm asking interested traders to either comment on this blog or email me (at the address at the bottom of the "About Me" section of the blog home page) and suggest topics they would like to see covered in a book that addresses trading strategies that draw upon the psychology of markets themselves.

What would most help you in *your* trading? Pass along your questions and topics of interest, and I'll do my best to incorporate them in the new book.

Or maybe you have strategies you'd like to share with others: ones that have worked for you and draw upon an understanding of trader psychology. I'm also open to incorporating those in the book and citing you as the source.

As an electronic text, some of the book will reside on the Web. That means the book can always be updated, always be elaborated. No need for second and third editions: as markets change, ideas will be added to the book and chapters will be revised. The book, if done right, will evolve with our own understandings. And it will never go out of print.

For those who engage in the commerce of ideas, these are exciting times indeed. The technology is there to create books like those in the Harry Potter movies: you open the cover and the material literally comes to life.

I invite you to be my co-author and suggest topics for the book to address and ideas to share.

As always, I greatly appreciate your interest and support. The many fine people I've met through the blog have been one of the true joys and rewards of my life.

Brett

10 comments:

TTmarun said...

Brett again breaking new ground, i just wanted to send encouragement and support your way.

now that you've give-in my imagination a wake up call.. I'm off to think of topics that would guide my thinking in this game called trading..

your concepts on themes is my current challenge.

congrats on this thought process your riding, run with it...

thx for including all of us on this new endeavor of yours.. jt

John - MarketPilot said...

Hi Dr. Brett,

Your next book sounds just awesome. Being more of a kinesthetic learner, I look forward to the multimedia style you are planning for this book and feel this aspect alone will be a huge benefit to my learning style.

I'm always on the lookout for entries, exits, and trade management ideas that will complement my current trading strategies. I'm very interested in multimedia presentations that would go along with a lot of your blog posts. Specifically I'd love to see:

1. Mean Reversion Trades - Friday had a great set-up example from my perspective. At 9:54 CT the NYSE Tick broke higher out of the morning range and made a new Tick high for the day. Buying the next higher low three minutes later made for a great trade entry.

2. Detailed examples of what you look for when "Buying" Tick pull backs that make Higher Lows or "Selling" Tick bounces that make Lower Highs. I'm interested in understanding not only when you would consider taking these trades, but also if these are scalp trades or an attempt to build a position by adding to an initial small position that you continue to hold or build as long as the market continues to support your initial trade decision.

It could be a lot of work to pull together examples with text descriptions, charts, narrative videos, and links to additional related resources. In my mind, you would want to show not just successful trade examples, but also failures and fake outs. Then the next step is to compare all the examples in the set for the same trade set-up to discuss what contributed to the trades success or failure and point out any "Tells" that may have kept the trader in the trade or had them bail on the position.

Hope this helps,
John

mel said...

Yup, just a another little project Dr Brett is going to do in his spare time. :-) You are amazing!

Please include a section on backtesting. As evidenced by your other recent posts, you are either a master back-tester or have an excellent program to do it with.

I have learned that back-testing is essential (others may need convincing). However, I have never come across good advice on back-testing for the NOVICE trader and/or someone who isn't a computer programmer. Current info on the best backtesting programs, and the pros/cons of each would be extremely helpful.

For example, TradingBlox is easy to use, but is geared toward long-term trend traders, and $2999 is a large investment for a beginning trader.

Another example is TradeStation's EasyLanguage. While they have great classes for non-programmers (reasonable priced), you must use a TradeStation account and TS has a notoriously terrible datafeed and lousy customer service.

Current info on the latest/best/well-priced/easy-to-learn backtesting software would be a great service. Experienced traders/backtesters already have it. Novice traders need it most.

Krasimir said...

Brett,

You are starting a revolutionary project. I embrace the idea you have decided to consider your blog readers' ideas into that project. Definitely, it would ba a challenging task, but this is all we love - challenges.

I'll think of some ideas that I would like to see in your new book and I'll send you an e-mail.

Brett Steenbarger, Ph.D. said...

Thanks, JT; I appreciate the support and interest!

Brett

Brett Steenbarger, Ph.D. said...

Hey John,

That's *very* useful feedback; thanks. I agree: videos that show how to can be much more powerful than static text. I like your idea of showing fakeouts as well as successful setups. Great ideas!

Brett

Brett Steenbarger, Ph.D. said...

Hi Mel,

Yes, yes, and yes: I will offer videos that show exactly how I identify historical patterns using real time data feeds and Excel. Thanks for the interest!!

Brett

Brett Steenbarger, Ph.D. said...

Hey Krasimir,

As always, I value your input; thanks so much for the interest--

Brett

AnaTrader said...

Brett

How innovative you can be.

Will write to you privately as to what I have in mind to contribute.

Bonne chance

Chris Perruna said...

This is a GREAT IDEA! Fits perfect with a quote I added to my site a couple days back:

“I hear and I forget. I see and I remember. I do and I understand” Confucius

This idea will incorporate all (see, hear and do)...