Trading Full Circle by Jea Yu - Book Review

Trading Full Circle: The Complete Underground Trader System For Timing and Profiting in All Financial Markets by Jea Yu begins with a few chapters on the philosophy of trading that are some of the best I have ever read. The remainder of the book covers Yu’s trading system and there are also three other chapters from other traders who outline their trading techniques as well.

I didn’t know much about Jea Yu before I read his book, but he apparently has quite a following with online traders. His focus is geared toward stocks and day trading, but much of the material is also applicable to commodities. Jea Yu began trading during the Internet Bubble and made a name for himself with the trading website UnderGroundTrader.com. He also claims to be the one who brought knowledge of the Level II stock trading to day traders.

I highly recommend not skipping over the first four chapters of the book, as many readers often jump right to the section on trading systems when they read trading books. Once you do get into the trading system, new traders might find it a little complicated. It actually isn’t complicated, but it is not a cut-and-dry system either. Have trading experience will certainly help in understanding the author’s techniques. The section on the trading system was not as lengthy as I anticipated. As a commodity and futures trader, I just skimmed through much of the material devoted solely to stocks, so it may have seemed shorter.

The system basically relies on following the trend with moving averages and using Stochastics(a common momentum indicator) to jump back in the market for a quick move. Yu looks for certain setups, which are beyond the common stochastic crossovers that most traders utilize. There are also several other trading strategies explained in the book. Some of them only relate to stocks, so commodity and futures traders won’t get as much out of the material.

Overall, I felt there is a wealth of knowledge in Trading Full Circle by Jea Yu. The basic principles of his trading system are what make up many successful trading systems. These consist of trading with the trend and entering on a resumption of the trend. Through his experience, he has found some niche trading strategies that he relies upon. Only someone who has spent countless hours trading and researching would notice many of the little market nuances that he describes in the book.

I felt that Jea Yu is one of the more polished authors that I have read when it comes to trading books. His intellect and philosophical approach to trading makes you feel like he diligently studies the markets without the biases and baggage that many struggle traders posses. His trading strategies are certainly worth studying and possibly implementing if a trader is comfortable with them. Regardless, there is enough beneficial information in this book, where any trader should benefit.