Trading & technical analysis
Mastering the Trade
1 min read
John F.
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John Carter shares his complete trading system for futures, stocks, and options. The book combines advanced technical analysis — especially order flow and volume indicators — with specific entry/exit strategies and a detailed risk management system. Known for the TTM Squeeze indicator and identifying low-volatility setups before major moves.
Our review
John F. Carter, a professional trader specialising in futures and options, presents in «Mastering the Trade» (2005) his complete trading system, developed over years of activity in highly liquid markets. The book stands out for its emphasis on order flow and price action as leading indicators — more reliable, Carter argues, than classic technical oscillators. He describes specific setups — including the Squeeze based on Bollinger Bands and the Keltner Channel — and integrates them into a risk management system that covers entry rules, exit rules, and position sizing. The book also includes a serious treatment of trading psychology, acknowledging that the best technical rules are useless without the discipline to execute them. The level is intermediate to advanced: familiarity with futures, options, and technical analysis is assumed. One limitation worth noting is that some of the markets and conditions described have changed since 2005, particularly with the expansion of algorithmic trading in futures markets.
Who it's for
For experienced futures or options traders seeking a complete trading system with solid technical and risk management foundations.
Key takeaways
- The Squeeze — Bollinger Bands contracting inside the Keltner Channel — signals low-volatility periods that frequently precede explosive moves.
- Order flow and price action at key levels provide earlier signals than oscillators, which are by definition lagging.
- Correct position sizing is more decisive for long-term survival than entry accuracy.
- Keeping a detailed trading journal allows traders to identify the recurring error patterns that destroy consistent profitability.
FactThe TTM Squeeze indicator, designed by John Carter and described in this book published in 2005, is available natively on platforms such as TD Ameritrade's ThinkOrSwim.
