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The Art and Science of Trading

by Adam Grimes (2017)

Quick summary -- an in-depth PhD-level extended summary (10-30 pages) for this book is coming soon.

The Art and Science of Trading

By Adam Grimes

Quick Summary

Adam Grimes' companion workbook and course supplement to "The Art and Science of Technical Analysis" provides exercises, historical chart studies, collected blog posts, and quantitative whitepapers designed to develop practical trading skills. The book includes chart-reading exercises progressing from individual bar analysis to large-scale market moves, a complete history of the Dow Jones Industrial Average in chart format, exercises for developing trading and business plans, and statistical research supporting the trading methodology presented in Grimes' first book.

Executive Summary

"The Art and Science of Trading" functions as a practical workbook and supplement to Grimes' earlier theoretical work. The book is organized around four types of content: exercises and homework for the MarketLife.com trading course, collected blog posts relevant to each topic, quantitative whitepapers providing statistical foundations, and a reading plan for the companion book. The exercises cover chart reading, trend analysis, pullback identification, support and resistance, trading plan development, psychology management, and statistical analysis. The historical DJIA charts provide context for understanding major market moves across decades.

Core Thesis

Developing trading skill requires deliberate practice through structured exercises, not merely reading about techniques. The book provides the practice materials needed to develop the chart-reading, analytical, and psychological skills that separate consistently profitable traders from the majority who fail.

Key Concepts and Terminology

  • Deliberate Practice: Structured, purposeful practice aimed at developing specific skills
  • Chart Reading Exercises: Progressive exercises moving from individual bars to multi-week patterns
  • Quantitative Validation: Statistical evidence supporting or refuting common technical analysis beliefs
  • Trading Plan Development: Structured exercises for creating comprehensive trading and business plans

Practical Applications

  1. Work through chart-reading exercises to develop pattern recognition skills
  2. Study historical DJIA charts to build context for market behavior across different eras
  3. Use the quantitative whitepapers to understand the statistical basis for technical trading strategies
  4. Develop a comprehensive trading plan using the provided frameworks
  5. Apply the psychology exercises to build self-awareness and emotional regulation skills

Critical Assessment

The workbook format fills an important gap in trading education. Most trading books provide theory without the structured practice needed to develop genuine skill. However, the book works best as a companion to Grimes' first book and online course; used independently, it may feel fragmented. The inclusion of blog posts, while providing useful content, creates some unevenness in quality and depth.

Conclusion

"The Art and Science of Trading" provides the practice materials and exercises needed to translate technical analysis theory into practical trading skill. It is most effective when used in conjunction with Grimes' companion texts and course.