When a book begins
“Caution! Alone, this manual will not adequately teach you my intra-day trading and swing methodology. Your mastery of my system will only come about through formal hands-on training. … This book is your introduction. It’s meant to reveal why my training program lasts for one full year. … Do not attempt to trade with this system without formal training from me.”
my first instinct is to cast it aside. I don’t use this site to promote training programs.Gates Capital Returns 32.7% Tries To Do “Fewer Things Better”
Gates Capital Management's Excess Cash Flow (ECF) Value Funds have returned 14.5% net over the past 25 years, and in 2021, the fund manager continued to outperform. Due to an "absence of large mistakes" during the year, coupled with an "attractive environment for corporate events," the group's flagship ECF Value Fund, L.P returned 32.7% last Read More
But in this case my curiosity got the better of me. Was there anything in Josh DiPietro’s Day Trading Stocks the Wall Street Way: A Proprietary Method for Intra-Day and Swing Trading (Wiley, 2015) worth sharing? The author himself would say no, since he stresses that the book must be read sequentially, no skipping around allowed. So if I write about something from p. 100, I will have violated his reading rules. And he is a man of many rules—primarily trading rules, of course—that are not meant to be broken.
I therefore gave up. I’ll say only that he advocates a fusion of day and swing trading, a countertrend system that endorses averaging down based on “real price levels.” One of its basic tenets is that “You need to get comfortable with being in the red.” (p. 147)