Introduction To The Logical Trader: Applying A
Method To The Madness
By Mark B. Fisher
Published by John Wiley & Sons, Inc.
When you go in for your annual physical, the doctor takes your
blood pressure, listens to your heart and lungs, draws some blood,
etc. Based on all these indicators, the doctor makes a
determination about how healthy you are. Now, assume that the
patient drops dead right there on the examination table. He has no
pulse! Then it doesn't matter what his cholesterol level was,
right? No pulse … no life.
I use this analogy to explain the ACD methodology. In trading,
you'll be looking at a variety of factors, including pivots,
moving averages, and so forth. But there will always be one
underlying factor - like the patient's pulse - without which
everything else becomes meaningless. That "pulse" is the
ACD factor. It doesn't matter whether 64 out of 65 indicators are
a "go" for a trade. If the ACD is the one missing
indicator, then there is no trade.
So what is this ACD and what's it all about? ACD is the name I've
given to my trading methodology, which can be applied to virtually
any commodity, stock or currency as long as there is sufficient
volatility and liquidity. The basic premise of ACD is to plot
particular price points, which we'll discuss in depth, in relation
to the opening range.
I’ve traded using ACD for nearly 20 years and I still use it
today. I've taught it to thousands of other people over the past
15 years, who in turn have adapted it to suit their own trading
styles and parameters. My point is that ACD has a proven track
record, not only for me, but also for numerous other professional
traders. Therefore, it can be incorporated into your trading
system to help you plot out and execute your trading strategy.
But before we go any further, I must state that trading is an
inherently risky endeavor and therefore not suitable for everyone.
Any investment in derivatives or stocks may put you at risk of
losing an amount even greater than your original investment. (See
the full Disclaimer in the Appendix of this book.)
My purpose in this book is not to "sell" you on trading,
but to show you the methodology that I, as well as others whom I
have trained, have used. As you go through this book, keep a pen
and a pad of paper handy so you can follow along with the trading
examples. Whether you're a novice trader or you've been at this
for a while, I believe you'll find that the ACD system has
something for you and your style of trading.
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see full disclaimers