The three skills of top trading PDF

The three skills of top trading PDF

The three skills of top trading PDF- Behavioral Systems Building, Pattern Recognition, and Mental State Management aims to equip the trader with a balanced set of skills for capturing the “packages of time” that make for big gain opportunities in the market. It will also help the trader sidestep the timing pitfalls stemming from superficial data analysis and erroneous interpretations of market indicators.

Category: Trading Psychology

Author: Hank Pruden 

Language: English

Free Download link: At the end of the post


The three skills of top trading PDF gives the trader, the investor, and the analyst a true competitive advantage in the challenging markets of the twenty-first century. Today, there are powerful agitations in the United States and globally to shift responsibility for investing onto the shoulders of the individual. But, just as responsibility moves away from corporations and the government, the individual faces conflicting advice as to how to manage financial investments. The efficient market hypothesis is riddled with false assumptions that lead to wrong results. Equally mistaken are brokers who advise their clients to buy and hold. The real behavior of markets, what the data show in numerous markets over many time frames, is that “Market ‘timing’ matters greatly. Big gains and losses concentrate into small packages of time.” (Benoit B. Mandelbrot)

Some of the most successful traders are the ones who got their market timing right. Take, for example, George Soros, who during two months in 1992 profited about $2 billion by betting against the British pound sterling. Although few traders are in the same league as George Soros, most can profit from market moves concentrated in time.

This book aims to equip the trader with a balanced set of skills for capturing the “packages of time” that make for big gain opportunities in the market. It will also help the trader sidestep the timing pitfalls stemming from superficial data analysis and erroneous interpretations of market indicators.

To compete successfully the trader must become a Complete Trader. As you can see in the Three-in-One Trader Model (Figure P.1), three mutually reinforcing elements form the Complete Trader. This book will help you develop skill within each of the elements of systems building, pattern recognition, and mental state discipline, giving you solid footing well along the path to becoming a Complete Trader.

This book brings together the three skills of top trading: behavioral models for systems building, pattern recognition, and mental state discipline.

These three key skill areas work together to move the art and science of technical analysis and trading to the level of sophistication required in the twenty-first century. This book integrates elements of trading that are often treated separately into a mutually reinforcing analytical package that makes intuitive sense.

Table of contents- The three skills of top trading PDF

PART ONE Systems Building and Behavioral Finance 1
CHAPTER 1 Systems Building for the Three Skills of Top Trading 3
CHAPTER 2 Behavioral Finance 33
CHAPTER 3 The Life Cycle Model of Crowd Behavior 55

PART TWO Pattern Recognition and Discretionary Trading 87
CHAPTER 4 Wyckoff: The Man, the Method, the Mystique 89
CHAPTER 5 The Basic Elements of Charting for the Wyckoff Method 99
CHAPTER 6 The Wyckoff Method of Technical Analysis and Speculation 131
CHAPTER 7 Anatomy of a Trade 161

PART THREE Mental State Management 173
CHAPTER 8 Trader Psychology and Mental Discipline 175
CHAPTER 9 The Composite Man 201
CHAPTER 10 Putting It All Together: Ten Principles for a Trader to Live By 235
Notes 265
Recommended Reading 269
Bibliography 273
Index 277


“Professor Pruden’s new book, The Three Skills of Top Trading, is unquestionably the best book on a specific trading method and the necessary attributes for trading that I have read. His logic, understanding of human foibles, and use of the Wyckoff method of trading are broadly referenced, readable, understandable, and entertaining.”
– Charles D. Kirkpatrick, II, CMT, coauthor of

Technical Analysis: The Complete Resource for Financial Market Technicians, Editor of the Journal of Technical Analysis, and board member of the Market Technicians Association

“At long last, someone has taken the time and effort to bring the work and insight of Wyckoff to wider public attention-and Hank Pruden has done so masterfully, with great clarity and eloquence. Hank has taken the best of Wyckoff’s work, combining it with the essential aspects of trader discipline and psychology, to provide a highly readable and particularly useful guide to trading. MUST READING!”
– Jacob Bernstein,

“Hank Pruden puts all of the elements needed for successful trading into one volume. This book not only belongs on every trader’s shelf but should be close enough for continuous reference.”
– Martin J. Pring, President,

“Dr. Pruden has brought together his lifetime of work in developing a modern approach to analyzing and trading the markets built upon classic market analysis from the early part of the twentieth century and topped off with modern-day tenets of behavioral finance and mental state management.”
– Thom Hartle, Director of Marketing for CQG, Inc. (

“I usually consider a book to be well worth reading if it gives me one paradigm shift. I believe that this book will give the average investor a lot more than just one.”
Van K. Tharp, PhD, President, Van Tharp Institute

About the author

Hank Pruden, Ph.D., is the author of dozens of articles on behavioral finance, trader psychology, and technical analysis. A full-time trader for his own account for two decades, he is currently a Professor of Business Administration and Executive Director of the Institute for Technical Market Analysis at Golden Gate University in San Francisco, California. He earned his Ph.D. (with honors) in Marketing at the University of Oregon in 1968, his M.B.A. from the University of California, Berkeley, in 1965, and his B.S. from California State University, Chico,

in 1961. Formerly, he was a professor in the College of Business at the University of Texas at Austin and a visiting professor at Northwestern University’s Graduate School of Management. Hank is the president of the Technical Securities Analysts Association of San Francisco (TSAASF) and vice president, Americas, for the International Federation of Technical Analysts (IFTA), and previously served as editor of the Market Technicians Association Journal for 11 years. He gives seminars to individuals and businesses worldwide and in the past decade has been a speaker on every continent but Antarctica. Highlights of his international speaking include serving as IFTA’s educational ambassador to Europe in 2004 and 2005 and circling the globe speaking on the Wyckoff method for Dow Jones Telerate in 1997.

Dr. Pruden received awards for teaching excellence at both the University of Oregon and the University of Texas at Austin, and for research and scholarship at Golden Gate University. He has been honored for excellence in education by the Market Technicians Association and for Outstanding International Achievements in Behavioral Finance and Technical Analysis Education by P.I. Graduate Studies of Kuala Lumpur, Malaysia. In 2006, his research was highly commended by the Emerald Literati Network Awards for Excellence.

Hank lives with his wife, Sarah, near San Francisco. His website is

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