The Logical Trader by Mark Fisher

An in-depth look at the trading system that anyone can use The Logical Trader presents a highly effective, yet simple trading methodology that any trader anywhere can use to trade almost anything. The "ACD Method" developed and refined by Mark Fisher after many years of successful trading, provides price points at which to buy and sell as determined by the opening range of virtually any stock or commodity. This comprehensive guide details a widely used system that is profitably implemented by many computer and floor traders at major New York exchanges. The author's highly accessible teaching style provides readers of The Logical Trader with a full examination of the theory behind the ACD Method and the examples and real-world trading stories involving it. Mark B. Fisher (New York, NY), an independent trader, is founder of MBF Clearing Corp., the largest clearing firm on the NYMEX. Founded in 1988, MBF Clearing has grown from handling under one percent of the volume on the NYMEX to nearly twenty percent of the trades today.

Traders need the wisdom of industry veterans and the vision of innovators in today's volatile financial marketplace. The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prospered-some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.

The Logical Trader: Applying a Method to the Madness is packed full of very useful trading tips and a sound trading system. Most traders use this system for day trading, but it can be used on longer term trading. This book, or system, is more of a way of trading than an absolute cut-and-dry trading plan. A few of Fisher’s traders have their testimonials in the book on how they trade the ACD Method. Surprisingly, they all use just a small variety of the methods to suit their trading style.

New traders may be a bit lost when reading the book and it might take several reads and studying to fully comprehend what Fisher is saying. He does not give a good summary of the whole plan, but he spreads it throughout the book. Therefore, I suggest taking notes and writing your own summary of the trading methods. From there, take the pieces that best suit your trading style.

The most important aspect of this book is that you need to trade with a disciplined approach. The ACD Method gives you trade entries, rigid places for to put your stop losses and you trade with the trends. That alone greatly increases you chances for success.

A 1982 summa cum laude graduate from the Wharton School of Business, University of Pennsylvania, Fisher also received his master's degree in finance and accounting from Wharton. New technology and the advent of around the clock trading have opened the floodgates to both foreign and domestic markets.

Fisher does stress that you need to be consistent when using the system. Trade the same timeframes, cut your losses short, don’t risk too much on any trade and over time, you’ll be successful. You also have to use some judgment when trading the system. It was meant for volatile markets that are trending. If you get caught in a market that gets stuck in a range, you can reverse the system. Instead of following the breakout levels, you can fade them.

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