1. Money

Review of Short Term Trading Strategies That Work

About.com Rating 4 Star Rating
User Rating 4 Star Rating (1 Review)


Short Term Trading Strategies That Work
Image © Trading Markets


Short Term Trading Strategies That Work is the most recent book from Larry Connors. As the title suggests, the book is a collection of trading systems that are designed for short term trading (specifically swing trading). Short Term Trading Strategies That Work covers a variety of topics, including some general trading information, several trading systems, and some trading psychology. Statistics are an underlying theme of the book, and statistics are used as a basis for much of the information that is presented.

Short Term Trading Strategies That Work primarily uses the S&P 500 stock index and some US stock markets in its statistics and examples, but the trading information (e.g. the trading strategies) that is presented can easily be applied to other markets (which the book rightfully suggests).

Short Term Trading Strategies That Work was written by Larry Connors, and is published by Trading Markets. The book is one of several books that Larry has written on the subject of financial trading.

About The Author

Larry (Laurence) Connors is a professional trader and obviously an author of trading books. Larry is a technical trader and a system trader. This means that he uses technical analysis (rather than fundamental analysis), and that once he has created a trading system (usually using statistics), he follows those systems exactly (as opposed to a discretionary trader). Further information about Larry Connors is available at the Trading Markets web site.

Part One - Introduction and Market Behavior

The first section of Short Term Trading Strategies That Work provides an introduction, and a discussion of market behavior (i.e. why the markets move as they do).

The first section starts with a one chapter introduction, which introduces Larry himself, his trading style, and explains why he is such a strong believer in statistical analysis. The first section continues with six chapters which provide a set of six rules for thinking about market behavior. The rules are presented with various charts and statistics to explain why the rules exist.

Some of the rules are designed to make traders think about the markets in different ways (such as whether to enter long trades when the market is moving up or down), while some are more statistical in nature (such as whether holding trades overnight will increase or decrease their profitability).

Part Two - Trading Strategies

The second section of Short Term Trading Strategies That Work provides several trading systems that are designed for swing trading on various markets.

The second section includes six chapters which provide six trading systems. Each trading system is presented in detail, including its entries and exits, and an explanation of why the trading system works. Various statistics are provided to show the results of each trading system over the past ten years. Some of the strategies are based upon the same principle (such as entering during pullbacks in a longer term trend), and some of the strategies are completely unrelated (such as entering on specifics days of the month). As they are presented in the book, the strategies are designed for system trading, but they can all be adapted for discretionary trading. The trading systems are primarily based upon statistical analysis, with a few references to some concepts of supply and demand.

I have not actually tested any of the trading systems myself, so I cannot say whether they are profitable or not. If you decide to trade any of the trading systems that are included in the book, I recommend that you perform your own testing before you make any live trades (as I would recommend with any trading system).

  1. About.com
  2. Money
  3. Day Trading
  4. Day Trading Basics
  5. Learning Day Trading
  6. "Short Term Trading Strategies That Work" - Book Review

©2014 About.com. All rights reserved.