faro0485 said:
G'day there all,
I'm practically a novice when it comes to trading, or at least I'm not yet consistantly profitable to be called a beginner.
I started off trading with a demo account back in November of 2005. Around mid Feb I opened a small $200 forex account, and only limited to $200 per month injection come rain or sunshine. I know this is practically too small to trade with, but I just do it so that I can get a little experience trading in a live account. Perhaps a little greed was with me in the beginning.
All I can say is... do any of you have something to say? Maybe a link to a thread or post or page that you really like that you think might be a good read.
I like this one:
Part1:
http://video.google.com/videoplay?docid=-1218050265897360511&q=money+masters
Part2:
http://video.google.com/videoplay?docid=3731971780119435155&q=money+masters
Thanks for your time.
Faro0485,
This will probably be the longest post ever on T2W
I've coppied all the links and interesting bits and pieces as I go along and here they're. Sorry I don't have to time to sort them out yet.
Good luck!
Hung
Analysis and info selling
http://uk.finance.yahoo.com/ news
http://sc.dainty.biz/ta/predictiongroups.aspx?evolutionid=2 FTSE daily prediction - just for reference
http://www.buyitbuyitsellitsellit.com/ seems to be good, from a day trader using point and figure along with candlesticks
http://www.andurilonline.com/default.asp
http://www.via-trader.com/via/index.htm Via Trader
http://www.futuresmag.com/ Futures Mag
http://www.traders.com/Documentation/FEEDbk_docs/Archive/102005/Websites/Websites.html Traders mag
http://www.townsendanalytics.com/ Realticks
http://www.gorillatrades.com/ reccomendation on elitetrader.com
http://channelingstocks.com/ 10 us a month - cheap
http://www.tradingmarkets.com/site/blog/ traders' blogs - real world trading.com
http://www.trade2win.com/knowledge/articles/general_articles/flag-pattern-trades/?r flag pattern
http://www.trade-ideas.com/StockInfo/GOOG/GOOGLE_INC_CL_A.html
http://www.quotetracker.com/
http://www.nber.org/papers/w7613 TA foundations...
http://www.londonstockexchange.com/...orcentre/annualreport/annualreportservice.htm Free 1300 annual reports
http://www.stockmarketstore.com/page/page/747534.htm
http://www.stockfetcher.com/stockdb/fetcher?adwords=bbang have to pay 9 us a month to screen stocks using tech indicators
http://www.agribiz.com/merchdiz/cointoss/cointoss.html coit toss efficient market hypothesis
Blogs
http://googletrader.blogspot.com/
http://short-termtrading.blogspot.com/
Books
Harry Dent - The Roaring 2000s Investor. In his latest book, The Next Great Bubble Boom, Mr. Dent offers a comprehensive forecast for the next two decades.
Frank Cappiello is one of the country's leading financial analysts.He is the author of four books including Finding the Next Superstock.
John Dessauer has lived the global markets for more than 30 years and has made his analysis and recommendations available to the public for the past 20 years through John Dessauer's Investor's World, a leading global-oriented investment advisory service. He is the author of two books on global investing: International Strategies for American Investors and Passport to Profits. In addition to investment research and his newsletter, Mr. Dessauer manages portfolios for private clients.
Ned Davis, president and senior investment strategist, founded Ned Davis Research (NDR) in 1980. Mr. Davis is the author of Being Right or Making Money and The Triumph of Contrarian Investing. He has been the subject of numerous featured interviews in Barron's, and has frequently been a feature guest on Louis Rukeyser's Wall Street Week.
Free ebooks
http://www.loombo.com/dl/5236 - Technical Analysis of the Financial Markets.part1
http://www.loombo.com/dl/5237 - Technical Analysis of the Financial Markets.part2
http://www.loombo.com/dl/5238 - Technical Analysis of the Financial Markets.part3
http://www.loombo.com/dl/5239 - Technical Analysis of the Financial Markets.part4
http://www.loombo.com/dl/5240 - Technical Analysis of the Financial Markets.part5
http://www.loombo.com/dl/5241 - Technical Analysis of the Financial Markets.part6
http://www.loombo.com/dl/5242 - Technical Analysis of the Financial Markets.part7
http://www.loombo.com/dl/5243 - Technical Analysis of the Financial Markets.part8
http://www.loombo.com/dl/5244 - Trading and Investment - Applied Quantitative Methods
http://www.loombo.com/dl/5245 - Trading for a Living.part1
http://www.loombo.com/dl/5246 - Trading for a Living.part2
http://www.loombo.com/dl/5247 - Trading for a Living.part3
http://www.loombo.com/dl/5248 - Trading for a Living.part4
http://www.loombo.com/dl/5232 - Day Trading - Cardinal rules
http://www.loombo.com/dl/5233 - Fibonacci Trading Strategies and Applications part1
http://www.loombo.com/dl/5234 - Fibonacci Trading Strategies and Applications part2
http://www.loombo.com/dl/5235 - Forex trading - Avoiding mistakes
http://www.stock-markets-exposed.com/the-canadian-period.html - How I made 2,000,000
http://www.elitetrader.com/vb/showthread.php?threadid=22109&perpage=6&pagenumber=1 Forum disco on How I made...
http://www.trade2win.com/boards/showthread.php?t=6690&page=1&pp=10 ...
http://www.easy-trader.ch/ software based on box theory
http://www.darvas-investor.de/
http://www.stressfreetrading.com/darvas.htm
http://www.download.com/ZIP-Reader/...tml?tag=lst-0-4 free trading video
Forex
http://www.createphpbb.com/phpbb/?mforum=fxreview
Brokerage
http://www.share.co.uk/
http://www.usewho.com/online-share-dealing.htm
http://www.sharecrazy.com/
http://www.blueindex.co.uk CFD
Data
http://www.advfn.com
http://www.sharecrazy.com/
http://wwww.marketcenter.com
http://www.digitallook.com
http://finance.yahoo.com/lookup symbol look up
http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?ticker=RDC institutional buying/selling data
http://www.yourika.com/news/ Level 2, 10 us for a replay
Dictionary
http://www.investorwords.com/
http://www.investopedia.com/dictionary/
Directory
http://www.thebigproject.co.uk/ UK everything including finance
http://www.thebigproject.co.uk/money/ UK quite good
http://www.2006-deals.com/directory.php?cat=finance&sub=investing
http://www.investorlinks.com/ US
http://www.77finance.co.uk/ UK
http://www.vfinance.com/ Venture capital
http://www.seniority.co.uk/directory/?catID=78
http://dir.yahoo.com/Business_and_Economy/Finance_and_Investment/ Yahoo Finance and Investment directory
http://www.moneywebsearch.com/ Money Web Search
http://www.find.co.uk/?partner=go8finance_directory1&gclid=CPWo7v-exYICFQReEgodJQtUsw Find, quite good
http://www.businesschambers.com/sh.cfm?sq=Financial_Directory&topic=finance Business Chamers not very good
http://www.moneyzoo.co.uk/ Moneyzoo.co.uk
http://www.businessfinance.com/ Loans, .... US
http://www.moneycafe.com/business/ Money Cafe US
http://www.businesslist.co.uk/ Business List UK
http://www.money-links.net/ UK Credit Card offers
http://www.zagury.com/ Financial jobs/links
http://www.afsd.com.au/ Australian Financial Services Directory
Disco
http://www.talkstox.com/ Talkstox
http://www.stockarena.com/ Stock Arena
http://www.stockset.com/
http://www.thelion.com/bin/forumlist.cgi
http://www.thelion.com/
http://www.marketwatch.com/tvradio/default.asp?siteid=mktw&dist=ltvrtab
http://www.trade2win.com/boards/showthread.php?t=5186&highlight=Vince+Stanzione VS
http://www.trade2win.com/boards/showthread.php?t=15820 swing trades
DOW
http://www.signalwatch.com/markets/markets-dow.asp
Educational material
http://www.bbc.co.uk/worldservice/sci_tech/features/figure_it_out/money.shtml - Figure it out BBC WS about stock market
http://www.bbc.co.uk/radio4/history/longview_20020326.shtml Radio 4 The Long View
http://www.global-investment-institute.com/
http://www.findforex.com/?gclid=CPD6w7_oxYICFS28EAodmCGJqA
http://www.traders.com
http://www.daytradingcoach.com/
http://www.tradingacademy.com/7pillars_g.shtm
http://www.sharecrazy.com/
http://www.trade2win.com/knowledge/articles/general_articles/why-buy-bonds/ Why bonds?
http://www.trade2win.com/knowledge/articles/general_articles/simple-swing-trading/ Swing trading
http://www.trade2win.com/knowledge/trading-careers/articles/general_articles/trading-arcades/ Trading arcades
http://www.trade2win.com/knowledge/trading-careers/ Trading careers index
http://www.trade2win.com/knowledge/articles/general_articles/a-career-in-the-city/page1 Working in the city - perfect
http://www.manfutures.com/edu/cme.cfm
http://www.trade2win.com/knowledge/articles/interviews/roger-middleton-interview/ good interview on trading
http://www.elitetrader.com/ch/transcripts/robin_dayne.cfm what it needs to succeed
http://www.themarketvushow.com/ivtech/pub/article_338.asp
Forex
http://www.forexlearner.com/content/blogcategory/20/61/ guide to forex trading
Internet - what is it for?
http://www.internetworld.co.uk/
Googles
http://moneycentral.msn.com/investor/invsub/insider/trans.asp?view=All&Symbol=goog
Hardware
http://www.xkeys.com/ keyboard configuration
http://cgi.ebay.co.uk/Dell-Inspiron...Z8782619592QQcategoryZ177QQrdZ1QQcmdZViewItem dell laptop at ebay
http://www.dealtime.co.uk/xPP-PC_Laptops
Humor
http://www.humorhour.com/flash/flash/londonunderground.swf
Indicators
http://www.incrediblecharts.com/technical/indicators.htm
Jobs in finance
http://www.financedirector.com/ UK and international
http://www.fss.co.uk/finance/
Loans
http://www.onlyloans.co.uk/finance/finance_directory/?wcw=google&?id=google&kw=finance+directory UK
News - Sharecenter
http://money.cnn.com/data/hotstocks/ what stocks move the market
http://www.moneyam.com/
http://www.stockmarketstore.com/page/page/747534.htm
http://www.investorcalendar.com/IC/index.asp Investor Calendar
http://www.fmlx.com/
http://www.myfinances.co.uk/investments.htm
http://uk.finance.yahoo.com/ biz news
http://www.computerwire.com/companies/ data companies profile
Psychology
http://www.trade2win.com/knowledge/articles/general_articles/self-help-crash-course/
http://www.trade2win.com/knowledge/articles/general_articles/the-top-10-mistakes-traders-make/ 10 common mistakes
Ratings
http://www.newratings.com/
Software
http://www.sharescope.co.uk/index.php Sharescope
http://www.sharescope.co.uk/alpeshpatel.php 199p
http://www.tradethenews.com
http://www.worden.com/XMLPage.aspx?xmlpage=mainpage&sc=GO13
http://www.esignal.com/ads/esignal/0605_esignal.asp?CPID=KNC-O6O174466501
http://www.paritech.com.au/AU/products/multimedia/ Australia
http://www.marketwise.com/
http://www.investorease.com/home.php free cd offer
http://www.collective2.com/cgi-perl/session.mpl?session=44485502585966483751322667214858621&sawred=1 trading system comparedd
Spread betting
http://www.tradindex.com/ Trader Index -
http://www.spread-trading.com/
http://www.easy2spreadbet.com/ trading name of finspreads
Symbol look up
http://finance.yahoo.com/lookup symbol look up
http://www.digitallook.com/cgi-bin/digital/company_performance.cgi?username=hungvir&ac=208401 FTSE100 com names
Trading arcarde
http://www.traderdaily.com/news/item/1085.html
Trade show
http://www.worldmoneyshow.com/twms/orlando/main.asp?scode=005204 World Money Show
http://www.newyorktradersexpo.com/tradersexpo/newyork/?scode=005259 New York Trader Expo
Venture capital
http://www.alwayson-network.com/comments.php?id=4121_0_1_0_C
http://www.vfinance.com/ Venture capital
---------------------------------------------------------------------
An open mind is always better than an open mouth...
BOOKS
wWW.GLOBAL-INVESTOR.COM
http://books.global-investor.com/pa...&Search=Jenkins with a good glossary A-Z terms
http://www.traderspress.org
Career
http://www.efinancialcareers.com/
http://www.harrisoncareers.com/investment_banking.htm
would go for a highly reputed prop firm or a hedge fund. 2 i'd recommend are Optiver and GLG respectively. With Optiver - you're thrown into a trading posn (no 1-year clerking BS!) but with a great back up from very talented traders
Charts ===========================
http://www.quotetracker.com/ FREE'
http://www.stock-anal.com/ FREE charting software
http://www.moneyam.com UK stocks
http://www.money.net
http://www.quotetracker.com/qsources.shtml
http://custom.marketwatch.com/custom/ft-com/interactivecharting.asp
http://www.quote.com
http://stockcharts.com/indexgoogle.html
http://www.marketscreen.com/ 14 day free trial
http://www.stockscores.com/
http://www.traids.com/ Worden Brothers' add on software
http://financialcharting.blogspot.com/ FX trader blog stood still since 2004
http://www.financialcharting.com/
jxntntrader
Junior Member
Join Date: Apr 2005
Location: tennessee
Posts: 28 Yes there is. --> go to
www.futuresource.com. Go to charts. When you want to see a spread chart just type in the spread in the "Contract" box. For example for the wn6/wh6 wheat spread, you would type in "wn6-wh6". Go down and change the period to daily, keep scrolling down and you can add both bollinger bands and rsi. And it's free - if you register you can save the spread charts to "workspaces" where you don't have to type in the spreads each time you want to look at them. Check it out and welcome to the board.
AIQ (
www.aiq.com) will give you a 1 month free trial. Nowhere near long enough, but it will at least give you an idea as to what it can do. Really only worth having for EOD analysis. For intraday, it has to be sierra charts. (
www.sierrachart.com)
There are quite a few freebie facilities, but they do have some serious drawbacks IMO.
Paid-for end-of-day software such as Sharescope
www.ionic.co.uk allows you to draw trendlines, and personalise your indicators. So when you are looking at the FTSE100 stocks day after day you can see how your trendlines or indicators are working out. You can also flick through your stocks automatically or by a single mouse click.
However, the freebie stuff doesn't allow you to do this, and you have to redraw every chart each time, and personalise your indicators.
The freebie ones I know of are:
www.bigcharts.com
www.advfn.co.uk
www.inverline.com
Your mavs etc are saved for next time. I find it a very good site
There are a few things that you can do for free or very cheap. Sign up with ADVFN - this will give you access to real time quotes, graphs etc. Check out
www.quotetracker.com - free software that allows you to take a real time feed from ADVFN.
Also, check out
www.spacejock.com - great shareware charting package - will download EOD data from yahoo. Plus the support is amazing considering free (or v cheap shareware if you register)
Chris
Chat ==================================
Trade2win -
http://www.trade2win.com/boards/ UK
http://www.elitetrader.com/ US
Directory ====================================
http://www.trade2win.com/knowledge/directory/ not good
Fibonacci ===========================
http://www.fibonaccisolution.com/ pay site
www.spreadbettingtowin.com
http://goldennumber.net/fibonser.htm
am digesting Robert Fischers "The New Fibonacci Trader", and his Time-Goal-Days idea is interesting, in that in "forecasts" the DAY a trend change will take place.
If this can be merged with Fib-levels, you have a Price and Time targets !!
Fischer makes references to Elliot Waves, and uses Fibs to verify 3 and 5 waves and all that, which put me off a bit.
Freebies and others ===============================================
http://quotetracker.com
You can get data if you do the free registration here:-
http://www.scottrade.com/
www.sierrachart.com
www.mytrack.com - click
www.thefinancialtrader.co.uk
Gann =======================================================================
http://www.gann.co.uk/
Glossary ====================================================================
http://www.investorwords.com/5260/Volume_Weighted_Average_Price.html
Joke ====================================================================
http://www.trade2win.com/boards/showthread.php?t=6856
Knowledge ========================================================================
http://www.investopedia.com/university/advanced.asp
http://invest-faq.com/
Charting Your Future free audio guide -
http://www.chartingyourfutures.com/workshop.htm
Finn. guide -
http://www.fool.co.uk/
confuse.com
http://www.investopedia.com/university/technical/default.asp TA education
Links
http://www.stock-anal.com/money/stkweblinks.htm
News ===================================================================================
http://www.investorschronicle.co.uk/system/promo/EVERY1.jsp
http://www.businessmonitor.com/bmo/index.html require subscription
Hoover -
http://www.hoovers.com/freeuk/
Search =============================================================
www -
http://www.trade2win.com/boards/search.php?searchid=209677
.co.uk -
http://www.trade2win.com/boards/search.php?searchid=209726
http://
free chart
http://www.trade2win.com/boards/showthread.php?t=4934&page=2&pp=15&highlight=.co.uk
Software/Systems ========================================================
http://www.stock-anal.com/ FREE
http://www.esignal.com/ads/esignal/default.asp?CPID=KNC-O6O174466501
http://www.mytradingroom.com/
Tradestation software is excellent.
I have moved my trading applications to
http://www.tradersoftware.biz
I use Linnsoft and Mytrack
www.linnsoft .com
I was using sharescope EOD and found it great, but the real-time was far too expense and the charting features are very limited
For UK I use
www.sierrachart.com with a
www.mytrack.com feed.
It's about £35 a month I think for mytrack and £30 for six months of sierrachart.
I personnally think this is the best and cheapest combination possible.
Strategy ====================================
At 00:00 EST or 07:00 EST or 17:00 EST Sun-Fri (NB! No trading between Fri 15:00 EST to Sun 21:00 EST)
1- Close out any open positions.
2- Cancel any unexecuted orders.
3- Set an Entry Buy limit order 18 pips above market price with 35 pips Stop Loss and 10 pips Take Profit.
4- Set an Entry Sell limit order 18 pip below market price with 35 pips Stop Loss and 10 pips Take Profit.
5- Set another Entry Buy limit order with the Take Profit value + 7 pips from step 3 with 35 pips Stop Loss and 10 pips Take Profit.
6- Set another Entry Sell limit order with the Take Profit value + 7 pips from step 4 with 35 pips Stop Loss and 10 pips Take Profit.
7- Set another Entry Buy limit order with the Take Profit value + 7 pips from step 5 with 35 pips Stop Loss and No Take Profit.
8- Set another Entry Sell limit order with the Take Profit value + 7 pips from step 6 with 35 pips Stop Loss and No Take Profit.
9- Let the pips roll and make money.
I am not using H and L... but using a breakout with +/-18 pips from the market price with SL 35 and TP 10... and two more limit orders to capture more pips... i.e.: 6 orders per currency pairs...
00:00 EST - 06:00 EST session trading GBP/USD and USD/CHF
07:00 EST - 16:00 EST session trading GBP/USD and EUR/USD
17:00 EST - 23:00 EST session trading GBP/USD and EUR/JPY
------------------
Linuxtroll:that's an interesting strategy,I use something similar myself but on a less formalised basis.
The plan I'm about to describe goes against many of the trading rules people talk about,for example I will never use a tight stop.However,it does have a high success rate(> 80 %).
1.I trade the major currency pairs using quarterley futures and spreadbets..
2.I look for areas of congestion at the end of a minor trend,needs only to be a 2 or 3 day trend.
3.I buy at obvious support or sell at obvious resistance,the s/r points are easily derived from the daily charts.
4.I will usually,but not always,trade with the major trend.
5.I ALWAYS set a limit to take profit at about 20% of the ATR(14).
6.My stop is way out,at least 10 x ATR(14).
7.If the trade goes wrong I am content to let it ride until it changes direction again.I will then consider adding to the position in size to close the position out.You read it right,I will add to a losing position!!!
8.Good entry is crucial:requires some patience.
At times,I have had to wait several weeks for a trade to come back.
Believe it or not,I have used this system since April and it has been consistently profitable,but of course as where the entry is positioned is absolutely critical to its success it may not be suitable for a novice.
Tips =============================================================
unwanted calls -
http://www.tpsonline.org.uk/tps/
Open office to read document
http://www.openoffice.org/
Choose the direction; and buy or sell on a reverse bar. Less risk/more profit.
"The trend is your friend"
Dont trade on hope.Trade with a plan.
KISS (Keep It Simple Stupid).
Failure leads to Analysis.
Analysis leads to Knowledge.
Knowledge leads to Success!!
__________________
or
failure can lead to over analysis
over analysis leads to paralysis
paralysis leads to failure
.......which is why most traders do not succeed being trappped in a self imposed vicious circle
The difference between dreams and accomplishments is DESIRE..
Money is better than poverty, if only for financial reasons.
e
I have seen the enemy - and it is me!
"He who thinks he knows, doesn't know. He who knows that he doesn't know, knows. Lao Tse"
"Wait until the market speaks to you" (which took me soooo long to implement properly)
The difference between dreams and accomplishments is DESIRE..
Opportunity is missed by most people because it is dressed in overalls and looks like work.
- A. Dude -
Don't hope or pray just execute the rules
You've got to have a dream....if you don't have a dream....How you gonna make a dream come true?
1) Volume dictates price.
2) Volume + urgency= Momentum
3) Momentum is a fuel
4) The best technical setup is worthless in the absence of momentum
“Those who don’t understand and respect history are doomed to repeat it and provide liquidity for those of us that do.”
"$100 INVESTED AT 7% INTEREST FOR ONE HUNDRED
YEARS WILL BECOME $100,000 AT WHICH TIME
IT WILL BE ABSOLUTELY WORTHLESS "
" Don't take my word for it. Prove it for yourself''
Understand that Winning or losing - its all a state of mind
However there are many people from those days who are still consistently profitable and trade for a living.
They have several things in common.
They are humble and constantly learn.
They adapt to changing circumstances.
They are cautious and always minimise risk.
Continuous learning and reflection to improve performance is only surpassed by further reflection and learning
Youv'e got to remember that we're imperfect people in
an imperfect world and consequently we have to compromise
ALL the time.
"There are no secrets to success. It is the result of
preparation, hard work, and learning from failure."
Colin Powell
Live as if you were to die tomorrow
Learn as if you were to live forever
"$100 INVESTED AT 7% INTEREST FOR ONE HUNDRED
YEARS WILL BECOME $100,000 AT WHICH TIME
IT WILL BE ABSOLUTELY WORTHLESS "
One of my main problems with SO many numbers, is that, something, somewhere will be perceived to be right at sometime !!
Thats why I wanted to take just a few numbers / concepts, and see if they worked, in a basic fashion.
If they worked more often than chance, then to invest more time in them, in the subtleties.
I am wary of finding something that hits the numbers, and ignoring all the times it has failed, and thus fooling myself into believing something that is not there.
Misc.
- 100 %
What Makes 100%? What does it mean to give MORE than 100%? Ever wonder about those people who say they are giving more than 100%? We have all been to those meetings where someone wants you to give over 100%. How about achieving 103%? What makes up 100% in life?
Here's a little mathematical formula that might help you answer these
questions:
If:
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z is represented as:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26.
Then:
H-A-R-D-W-O-R-K
8+1+18+4+23+15+18+11 = 98%
and
K-N-O-W-L-E-D-G-E
11+14+15+23+12+5+4+7+5 = 96%
But,
A-T-T-I-T-U-D-E
1+20+20+9+20+21+4+5 = 100%
And,
B-U-L-L-S-H-I-T
2+21+12+12+19+8+9+20 = 103%
AND, look how far ass kissing will take you.
A-S-S-K-I-S-S-I-N-G
1+19+19+11+9+19+19+9+14+7 = 118%
- A trading story
Making $150,000/ month trading US stocks.
--------------------------------------------------------------------------------
This is what a young lady trading in New York, who appeared in Active trader magazine March 2001 edition was making.It was given to me by one of her bosses to give an indication of what his proprietry traders were doing.
Lets see how she trades in the article.
Firstly she trades US Nasdaq stocks.She does about 250 trades a day using NASDAQ LEVEL 2 direct access.Trading between 500-6,000 shares at a time.She makes $150,000/month and has made as much as $250,000/month.She has netted $50,000 on her biggest day and lost $19,000 on her worst.She is allowed to keep 70% of her profits.All her conversation is entirely about her reading of her level 2 screen and trades are naturaly direct access into that screen.
I'm a momentum -based trader she says."When a stock is moving i'll buy it when it slows i'll sell it.I take each buy differently from each sell,which is important.I take what i can out of a stock.sometimes i dont take as much as i can;other times i'll push a little to far.Typicaly i'll be in the quater,three eights or half a point profit range.I'll sometimes shoot for a point in some wider spread stocks,but i'll be taking more risk in those cases.(A point is a dollar run in a stock)
I look for higher volatility and volume so i can get in and out with size.But basicaly i'll trade any stock thats moving.
Another thing i like to do is play off support and resistance.When youre in a stock every day ,making hundreds of trades a day,you can see who the main buyers and sellers are,and when they're buying and selling.Thats how i identify support and resistance--I dont use charts for that.
First of all the only way you can realy tell who the main buyers and sellers are and what the market makers are realy trying to do ,is to be in the stock.You can see the prints going off either on the bid or ask.Ultimately the only way to actualy know who is doing that is when you preference them(direct a trade to them.ie a select net preference order)and either they trade with you or they dont.
Say i see Morgan Stanley buying all the morning,consistently on the inside bid,and then he flips sides and goes to the offer.Then i preference his offer because i think the stock is going up,and he dosnt trade with me.since i know he was a buyer earlier ,i know he's just trying to fake someone out.Basicaly you want to see aggressive buying or selling ,not just the posting of bids and offers.
You want to use this past trading information to provide a little extra insight to whats going on right now-not necessarily an absolute indicator of what will happen in the future.
The same kinds of signs ,but on the opposite side of the market.For example,if i've seen Morgan constantly going high bid,when i see he's not going high bid any more,and when people on the sell side -say other market makers like Herzog or Goldman Sachs -are actively selling and are not raising their offers to much or to quickly,that tells me the stock is slowing down and i should sell it."
She uses a S&P futures chart and a chart of the stock,but she uses them only to see if she's not trading late in the move.She gets her stocks from seeing them run on her Nasdaq movers list.
So there you are we can all go out and earn $150k /month now.
PS. By the way she was in her early twenties.One major thing is, that she certainly knows the answer to support,resistance and momentum is the correct reading of her level 2 screen.
---------------
This is a follow-up interview with the young lady whose first discussion Naz had posted. I have anonymised names of people and firms since I do not represent them.
Mr. Interviewer: By way of background, you're currently an active proprietary trader at XXX Trading in New York. Could you tell us how you got into trading, and who taught you?
Ms. Trader: Well, I studied computer science at Cornell University. And the seven years of computer science made me know that I didn’t want to do programming. I wanted to try something else with a little bit more excitement. My brother ABC is a partner at XXX. I went in to visit him at the office one day, and it was a great environment -- very interesting and exciting and guys who were very excited about trading. It seemed like something that I wanted to do. So I tried it.
Interviewer: Do you think your degree helps you in your trading?
Trader: Not at all. The only thing it helps is I’m very familiar with the keyboard. So that’s probably the only thing. I’m a very good typist now. And I think that’s important in trading.
Interviewer: Can you tell us what the training program is like at XXX Trading?
Trader: Well, the first three weeks you’re learning about the general market, what a Level II screen looks like, what all the indicators are, as well as going over what stocks are within your realm of trading. And basically you get an overview of what momentum-based trading is in every aspect, from getting comfortable with the keyboard and all of the indicators on the screen to some basic principles about momentum. After those three weeks, you start live on the computer, and you have a manager who sits next to you. Mine – his name was XYZ. He was my manager. They sit next to you for a few months and you start trading 100-share lots and watching and learning about the market.
And as you go on and you’re learning in trading, you will get bumped up in share size as well as in where you are going to sit. So after a few months, you don’t have to sit next to your manager anymore. You’re put in a group of people all about the same skill level. But even after the training program is over, meetings held every day after work starting at 4:30 and end about 5:30. And all the trainees have to come in at 8:30 in the morning so that they can sit and look up a few things on Briefing or discuss what happened at the end of the day. It’s very hands on; you’re talking constantly throughout the day with other traders about trading about different things you see, different stocks you’re playing. It’s a very team effort, so it’s very nice trading at XXX.
Interviewer: And you quickly ramped up to trading as many as how many shares when you were trading at your largest size?
Trader: Oh, I got up to 6,000-7,000 shares of stock if I wanted.
Interviewer: At a time?
Trader: If I wanted to.
Interviewer: And the gross number of shares traded per day was in the realm of how many shares per day?
Trader: At my max?
Interviewer: Yes.
Trader: Over 500,000 shares a day.
Interviewer: How was you performance at your peak, or max, trading size?
Trader: Well, at my peak I was – it was in the midst of the bull market the end of last year, last March.
Interviewer: March of 2000?
Trader: March and April of 2000. I was just very aggressive. I was very confident in what I was watching. I was playing the momentum game. I wasn’t watching just three, four or five stocks. I was playing whatever was moving at that particular moment, buying and selling into the run based on a snapshot of the stock that I took in the 30 seconds when I typed it up. So that was a very exciting way of trading because it was getting into the real momentum of buying well and selling higher because the runs would last longer and the runs were just more frequent and much stronger than they are now.
Interviewer: Some of those runs had massive momentum. How was your performance catching it on top of that momentum crest?
Trader: I was always net positive, gross positive, and I was at a $50 ticket average. That’s good to say.
Interviewer: What’s that mean – a $50 ticket average?
Trader: Ticket average is the average profit (or loss) per ticket of 1,000 shares. So if I was writing 500,000 shares a day, a $50 ticket average would be $25,000.
Interviewer: $25,000 a day is what you made at your peak?
Trader: That is if I was trading 500,000. I mean that was at the max. Trading between 250,000 and 400,000 shares is probably my average.
Interviewer: Somewhere in the realm of $10,000 to $15,000 a day.
Trader: It was just a great trading environment. Everyone was very pumped, and you weren’t as cautious as you have to be now.
Interviewer: You’ve seen the biggest bull market in the history of the Nasdaq from March 2000 to April 2001, the period you’re talking about, to the biggest bear market in the history of the Nasdaq from then through now (April 2001). Has seeing these extremes made you a more flexible trader, better able to trade both from the long and the short side?
Trader: Well, actually I’m still not very comfortable with shorting stock. And even though it was obviously a bear market, I wasn’t playing it as a bear market. I was still playing the long side. So that is probably something that I should have been working on, my shorting game during that time instead of constantly just trying to play long. So I didn’t actually adapt as well as I would have liked to the different markets. I’m only just in the last two months really getting back up to speed in this type of market.
Interviewer: In shorting stocks?
Trader: Well, no. I’m still not shorting stocks very often. I’m just more versatile and more careful.
Interviewer: You mentioned you trade based on momentum principles. How do you define and identify momentum?
Trader: Major market makers, such as the big banks like Morgan Stanley and Merrill Lynch, aggressively buying stock. A run up would be the market maker or even an ECN buying enough stocks at all the levels, on the offer, lifting and stock prices going up. And the people who are going high bid and putting up offers, they keep increasing their bid.
Interviewer: Something you said to me in an earlier conversations still resonates because it’s so different from the approach that most of us at YYY use. You said this: “I don’t believe in technical analysis.” Why not?
Trader: I wouldn’t say I don’t believe in technical analysis. I just wouldn’t put my money on it, because I think that the stock market can’t be analyzed into any little formula. I think that what the stock market is really doing is analyzing buyers and sellers of certain stocks at a particular moment. So despite all the technical analysis in the world -- someone may have an opinion that a stock is going to go down -- if someone comes in and wants to buy 100,000 shares, it’s going to go up. So that is where I’m putting my doubt on technical analysis -- I don’t think the stock market is that easy to define.
Interviewer: As easy to define as in chart analysis?
Trader: Yes.
Interviewer: Interesting. Well, you define momentum differently than momentum-based traders like John Smith who defines momentum through recent price persistency in charts and in other ways. Your method, as you were starting to say, appears to be forecasting where buying or selling is going to occur based on an accurate reading of the ax, or the most active player, or the market makers in the stocks. How do you define who that major player is?
Trader: I like to call it the major market maker, not the player. The one who is either buying or selling enough stock to actually make a difference. And the way I determine who is the player at that particular moment is who is actually selling stock. If I preference them, are they going to sell me stock? If I preference them are they going to buy stock from me? So if I see a market maker who has sold me stock before and now is no longer selling and maybe he’s buying, that might be a little sign for me. Or if he’s selling and actually now takes a lot of stock and then goes lower and is not lifting off the offer, just selling stock, that would be a sign for me that he is going down.
But really, you can’t necessarily say that this is the real player, that this is the market maker who is really buying because a market maker can be as fickle as a teenage girl. He could stop wanting to buy just because he has to go to the bathroom. I mean there’s any number of reasons that a market maker might not give you a print. You always have to take that as a possibility. But you try to look for trends and who has been buying more, who’s been on the offer, who’s been actually selling, who’s actually giving prints and where they are giving prints. Each trader has to figure that out on their own.
Interviewer: Well, of all of the stocks that you could choose to trade in any given day, what makes you select one particular stock over another? Do you have software that scans the entire market to meet your momentum criteria? How do you locate them?
Trader: Well, in the good old days -- if I can say the good old days last year – in the good old days, the market sorter, which is a Thermograph, would analyze the number of ticks, positive and negative, the positive being high bid, drop offer, yada, yada, yada.
Interviewer: What is the Thermograph? I’m sorry. I’m not aware of that.
Trader: It’s a tool that XXX has that is called the market sorter, and it will analyze the number of ticks in a stock as the market maker is ticking around and the number of positive ticks versus the number of negative ticks. It displays in a green-and-red visual aid; green being positive ticks, red being negative ticks. If something is moving up, there is going to be a lot of positive ticks, people going high bid, people leaving the offer, stocks going up. So, it will pop up on the Thermograph as being green and you’ll see that the stock has been going up. In the good old days when a stock started to go up, it would continue to go up, and you could get into the run that way. But nowadays since stocks aren't running two to three points anymore -- it’s not running the same way it used to -- you can’t necessarily pull it from the market sorter. If it’s already full of green ticks, how many more green ticks do you think there are really going to be? So nowadays you have to more have an idea of which stocks you like to play and I’m a lot more specific about which stocks I follow and a lot more refined in my trading.
Interviewer: So does XXX's software scan the entire market?
Trader: Yes.
Interviewer: And do other trading houses near you have similar market-sorting software?
Trader: I’ve gone to the different online expos and I know for a fact that a lot of them have similar Thermographs or market sorters.
Interviewer: And does your Thermograph or market sorter scan the entire market or does it just do it stock by stock, whichever stock you happen to click on?
Trader: Well, the program that I am using, which is the professional product, it scans all the stocks in the Nasdaq. But there is an online product which will be stock specific.
Interviewer: So it will look at all of the stocks in the market and will indicate that one stock will have the most momentum based on the number of upticks vs. downticks?
Trader: Yes.
Interviewer: What kind of trading goals do you set for yourself on a daily or a weekly basis, if any?
Trader: I used to set goals for myself. And that was great when it was a great market and I was hitting those goals every day. But then when the market changed, I didn’t refine my goals as I should have refined my trading as well. So I wasn’t meeting my goals last summer. I was getting very down and I was getting into a slump and my mindset was just off because of these goals that I set for myself. So nowadays I don’t have a goal. My goal is to enjoy the day and to trade as best I can and not miss any opportunities. I mean, a day can be great if I make five grand on 100 tickets or it could be great if I make one grand on 300 tickets, depending on the way I was trading and my mental attitude and what actually happened. So I don’t like to have goals anymore.
Interviewer: Do you mostly trade the same stocks every day?
Trader: I do now. Lately, I have been trading the same stocks every day. I have gotten into a groove with two or three different stocks, so I’m very comfortable trading them. But it doesn’t mean that I’m definitely going to trade those two or three stocks every day. I’ll look at them in the morning and if I don’t feel the same thing about them, I’ll quickly switch to a different stock.
Interviewer: Have you developed some basic rules that you look for time and again to base your trading decisions on in these stocks?
Trader: Well, lately I’ve just been trying to take on a no-risk situation, looking at the market, trying to buy a lot on the bid, trying to refine – I’ve just gotten it a lot sharper. So, I’m trading less. But I guess I really don’t know how to answer that question very clearly.
Interviewer: Maybe you could answer it this way: How do you take on no risk?
Trader: Well, buying on the bid when I know someone who will buy stock form me is there. Say if I know that Merrill Lynch has been there. Every time I preference him, he’s sold me stock. Say I see him go high bid, I might go a teeny above him or join the bid with him. If I get hit and get the print, then it’s no risk since I know that Morgan Stanley will give me the print if I preference him. However, again, a market maker can change his mind on the flip of a coin. So it’s not necessarily no risk. It’s just less risk than preferencing the offer or picking random stocks.
Interviewer: And it’s very much like trading the inside bid and ask, isn’t it?
Trader: No. I don’t try to trade the inside ask. I like getting hit. My favorite play is a stock just came off, it’s gathering some sort of strength, a tiny bit on the bid. I put up a bid, get taken, other things go on and then it will go up. But it’s not as much of a momentum game anymore. Well, it is still a momentum game because the momentum of the market has to be changing as well.
Interviewer: And you’ll gauge whether the market is changing with the Spooz, the S&Ps or the Nasdaq futures?
Trader: Well, a lot of tools. The Thermograph is a great tool to use for what’s going on in the market. If I see all red, I know the market is going down. If I see all green, I know the market is going up. But I always have a graph of the Nasdaq futures and the Nasdaq itself as well as hearing people around the room. I mean everyone is yelling “going down,” “going up.” It’s a very vocal room.
Interviewer: How many traders are you in the room with?
Trader: Well, I think the room upstairs now has over 70.
Interviewer: Seventy traders. And are they all or mostly proprietary traders like you?
Trader: No. It’s about half and half.
Interviewer: And the other ones, what are they if not proprietary?
Trader: Customer traders. They trade their own money.
Interviewer: You said before that you like to trade stocks with a quarter and at most a half-point spread. Is that still the case? And if so, why?
Trader: I don’t think I ever said that.
Interviewer: It was in your interview with ZZZ Magazine.
Trader: Really? The stocks I’m trading now have a little bit more of a spread than that. But I mean, there are two different games that you could play. You could play one with the wider spread and less size or you can play more size and a smaller spread. Each way you have the same amount of profit-to-risk ratio. So I’ve taken on the first of the two which is wider spread, less volume. So, the spreads I trade now, they’re probably between the quarter-, half-point range, but can get up to three-quarter-of-a-point, even a point. But that’s not very often.
Interviewer: I guess I think I know the answer to this question now. But I’ll let you answer it. If you don’t use or believe in charts or technical analysis, how do you identify support and resistance?
Trader: By where I’m actually physically seeing the market makers buying and selling on the Level II. So, let's say I see a stock that gets down to 30, an even number, and market makers start coming in and there’s Instinet and support underneath and the market maker that I know was buying earlier is not budging, that’s a sign of a support level. I mean, they’ll actually come out and you’ll see the level on the Level II screen become very thick. That’s how you can tell whether or not it’s a support or resistance level.
Interviewer: Do you want to mention the three stocks that you trade and say why you’ve chosen those three?
Trader: Not especially, but I change them all the time. So the stocks I’m trading right now are not the same three stocks I traded last week. One of the stocks I like to trade now is NVIDIA (NVDA). It just moves with nice volume, but not overly. It also has full runs but not as many ECNs play a stock like Ciena (CIEN) or Veritas (VRTS).
Interviewer: And having fewer ECN players makes the stock easier to "read" because there are fewer hidden orders in the routing, is that right?
Trader: Uh-huh.
Interviewer: Could you talk about your routing strategies, how you route your orders?
Trader: Well, most of the time the ideal momentum trade is you buy on the offer, sell on the offer. So I would preference market makers in the momentum, hopefully. Let’s say the stock was 30 by 30 1/4, and I see InstiNet and Merrill Lynch and a few other market makers going in at 30 1/8, so now the spread is 30 1/8 by 30 1/4. I’ll preference the 30 1/4 and hopefully get my sell at 30 1/2. Since the different stocks have different players, I can’t really say which way I would sell it. XXX does have access to all of the ECNs. So I would put it up on the ECN that I found to be most liquid of the day such as today in NVDA. I found Redi to get my prints off much faster than on Island. So I was using Redi to sell it at the half.
Interviewer: And you just found that out by having an order print?
Trader: Yes
Interviewer: Are there any other recent stories about how you approach routing an order, the difficulties, and how that can improve your trading?
Trader: Well, I find the XXX software to be faster than a speeding bullet. I wind up not having any problem getting in and out of stock because I guess I say I’m an expert in (determining) which of the market makers are going to give out prints in specific stocks. So I couldn’t give a very clear example in certain cases. Say JP Morgan was selling stock all day and I get short with him. I’ll preference him over Morgan Stanley or Merrill Lynch since I knew he was giving prints. It’s very specific to the situation because I do have the ability to put up an offer on any of the different ECNs as well as preferencing or SOESing. So I’ll try to get stock any way I can. I’ll put up bids, clear offers. I’ll be able to get stock.
Interviewer: And what does XXX call their proprietary-trading direct-access platform?
Trader:
Interviewer: Have you compared it to any others?
Trader: I actually do have friends in other trading facilities. And I have found that XXX's gets your fills much faster. So I’ll know whether or not I have my stock in a second, whereas other people might have wait three seconds. Although it’s only a two-second wait, it’s that important, if I want to get that right print, the good print.
Interviewer: I didn’t quite understand a term that was used in the Active Trader interview about "first-level buying opportunity." Can you describe what that is and how you find momentum stocks before they exceed their first-level buy opportunity?
Trader: When you’re watching a stock and you see a stock coming off and market makers as well as ECNs are filling in the offer because the stock is going down, but you see on the bid that Merrill Lynch is now absorbing stock so he is buying a lot. Say Merrill Lynch is at 30 1/8 and 30 is a very thick level. And the market makers and ECNs have gone down to 30 3/8, then 30 1/4, 30 and 3/16, and you start to see support on the bid growing and you see Merrill Lynch buying an enormous amount of stock and not budging. Then you’ll see someone join him on the bid, if not, going high bid. If not, then someone paying the offer. So you’ll start to see prints going off at the price at the offer. That would be the first level. You’d buy that -- the quarter level -- and that would be the first level in that situation because that’s the first-level buying opportunity after the stocks have been going down.
Interviewer: The first-level buying opportunity then is when you see Merrill holding and prints going off at the offer where a Merrill is holding.
Trader: Or in another case, the first level would be if the stock is going up and you miss the original buy -- the first level there. And it goes up and then it pauses and pulls off maybe a little. It could pull off an 1/8 or a 1/4, but it’s not pulling off all the way; it’s not pulling off as much as it went up. So then it’s collecting a little more strength and not going down, then you preference the offer at that level, and that would be considered the new first level.
Interviewer: Very interesting. How do you deal with the stress of trading?
Trader: Well, nowadays I try not to think of it as money. I don’t put a dollar sign to it. I think of it as points -- how many points am I making in the stock. That’s helped get the stress down a lot. And just taking it day by day and not trying to force the market to be like it was. That was a horrible thing when the market changed and I didn’t change with it, that was very stressful. But now that I’ve changed along with it, things are going well again.
Interviewer: So what types of activities do you do outside of trading hours?
Trader: For trading or for my personal life?
Interviewer: How about trading and then personal life.
Trader: Trading – actually I’m writing an article right now for ZZZ magazine and I am thinking about writing a book on trading, but I’m not sure. I talk with traders very often. That’s probably the extent of what I do outside of work.
Interviewer: No chart scanning, obviously.
Trader: No. I have an identical twin sister. She is who I hang out with and we do things like classes and different activities together. She is a teacher, not a trader.
Interviewer: What kind of activities?
Trader: Well, we have been taking sculpting and a cooking class since I don’t cook. Actually since she’s a teacher, we’re going to go to space camp.
Interviewer: Space camp. Like NASA space camp?
Trader: (Laughing) NASA space camp for teachers. So that’s basically it. And I love to travel. I go to Europe all the time. Traveling is my favorite.
Interviewer: Where’s your next trip to?
Trader: It’s to Greece and the Netherlands.
Interviewer: Beautiful. I've sailed through Greece. Is there anything you’d like to say in concluding?
Trader: Trading is a great job if you can deal with it, if you can handle the stress. It’s a true meritocracy. So any of my successes are my own. That’s a great feeling when I know at the end of the day that I did well, and it’s solely based on my own work.
- List of books
There are two classic books that deal with the interpretation of price & volume:
"Tape Reading & Market tactics" Humphrey B. Neill
"Studies In Tape Reading" Rollo Tape (AKA Richard D. Wykoff)
I read the first book five times in one week when I first got it.
Good luck.
I did his full course -5 books- 3 years ago. I also attended a seminar he led.Took 6 months to get through the lot.. Thought it was out of date and I found out later he took alot of info from MBA courses and undergrad psych courses. Very overpriced for what it is. I recently read Financial Risk Taking by Elvin who I met after his presentation in Chicago at the traders' expo. There is a workbook in the final chapter and I found it really helpful . It is 90% cheaper than Tharpe's workbooks and mind opening!! Also did Elder's workbooks and Borsellinno's workbook. All much better value and relevant than the Peak performance course.
I,m sure Bob Debenham from AIQ won't mind me passing his list on to you.
I have book 12 (Steven B Achelis and think it is good value and readable.
Regards
Joe
Bob Debnam
I have a number of popular trading books in stock that are available at
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PART ONE. BASIC CONCEPTS
CHAPTER ONE. BASIC PRINCIPLES
Some Ground Rules 3
What Is Technical Analysis? 4
Methods of Plotting Charts 6
Bar Chart 6
Line Chart 7
Point-and-Figure Chart 8
Candlestick Chart 9
Methods of Scaling Charts 11
CHAPTER TWO. THE MARKET CYCLE MODEL AND BASIC TREND IDENTIFICATION
Different Types of Trends 15
The Market Cycle Model 18
Peak-and-Trough Analysis 19
How Significant Is the Reversal? 22
CHAPTER THREE. SUPPORT AND RESISTANCE
Definition 29
General Rules 32
Examples 36
PART TWO. TREND INDICATORS
CHAPTER FOUR. PRICE PATTERNS
Rectangles 44
Four Basic Principles of Pattern Interpretation 48
Pattern Significance 48
Measuring Implications 50
Confirmation of a Valid Breakout 56
Volume 57
Head-and-Shoulders Formations 63
Head-and-Shoulders Tops 63
Reverse Head-and-Shoulders 65
Continuation Head-and-Shoulders 67
Head-and-Shoulders Failures 69
Examples 72
Double Tops and Bottoms 76
Broadening Formations 80
Triangles 88
CHAPTER FIVE. THE UPS AND DOWNS OF TREND LINES
Extended Trendlines 101
Significance of Trendlines 103
Trend Channels 106
Corrective Fan Principle 112
Logarithmic Versus Arithmetic Scale 114
CHAPTER SIX. PRICE PATTERNS FOR TRADERS
Flags 117
Pennants 118
Wedges 119
Saucers and Rounding Tops 120
Key Reversal Days 121
2-Day Reversals 123
Outside Days 125
Inside Days 126
Gaps 127
Breakaway Gap 130
Runaway Gap 130
Exhaustion Gap 131
Island Reversals 132
CHAPTER SEVEN. MOVING AVERAGES
The Concept 137
Simple Moving Averages 137
Rules of Interpretation 142
Front-Loaded Averages 154
Envelopes and Bollinger Bands 155
PART THREE. ADVANCED TECHNIQUES
CHAPTER EIGHT. PRINCIPLES OF MOMENTUM
Overbought and Oversold 165
A Useful Tip 168
The Importance of Time Frames 169
Divergence 170
How to Tell the Significance of a Divergence 173
Divergences Must Be Confirmed by Price 175
Trend-Line Violations 176
Price Pattern Completion 178
Moving Averages and Momentum Indicators 180
CHAPTER NINE. KEY MOMENTUM INDICATORS
Rate of Change 183
Overbought and Oversold Levels 184
Trendline Construction 185
Price Patterns 189
The RSI 195
Interpreting the RSI 197
Moving-Average Convergence Divergence (MACD) 206
Stochastics 211
Interpretation 214
CHAPTER TEN. HOW TO MAKE VOLUME WORK FOR YOU
Introduction 223
Principles of Volume interpretation 224
CHAPTER ELEVEN. INTRODUCTION TO CANDLESTICK CHARTING
Basics of Candle Construction 237
Reversal Patterns 242
Hammers and Hanging Men 242
Dark Cloud Cover and the Piercing Line 243
Engulfing Patterns 244
Stars 246
More on Dojis 248
Upside Gap Two Crows 250
Continuation Patterns 250
Upside and Downside Gaps 250
Rising-Three and Falling-Three Methods 251
CHAPTER TWELVE. SOME QUICK TIPS ON PRACTICAL TRADING TACTICS
Good Places to Enter Positions 257
Good Places to Take Profits or Cut Losses 266
How to Deal with False Breakouts 274
---------------------------------------------------------------------------
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**** BOOK 2 - The New Science of Technical Analysis Tom DeMark -
Hardback - 247 pages ****
Tom DeMark has been a valued advisor to such financial barons as Leon
Cooperman, George Soros and Laurence Tisch. He and his models have shaped
the investment strategies of some of the largest and most successful
trading operations in the world. Now, at last, Thomas DeMark has decided to
go public and share with traders and investors everywhere the proven
techniques that make him one of the most potent behind-the-scenes forces in
the financial world. In this long awaited first book, DeMark describes his
revolutionary methods. Here are the most successful technical strategies
developed in the last twenty years. Learn new oscillators, scientific wave
theory, price projection methods and more. Tom has even revealed the
secret method that he developed working for those billion dollar investors
- the Sequential method of zeroing in on market tops and bottoms.
"DeMark's emphasis on the 'new science' of technical analysis helps push
the technical frontier another step forward. With the unprecedented
attention now being paid to technical analysis, this new book couldn't have
come at a better time." - John Murphy, CNBC
"This book is filled with innovative, creative, and clever new ideas on
technical analysis. Tom DeMark has done a wonderful job of turning
subjective techniques into objective strategies and tactics." - Courtney
Smith, Pinnacle Inc.
"Those who know him and his work call him the consummate technician - a
trading system developer without peer." - Futures Magazine
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**** BOOK 3 - Schwager on Futures - Fundamental Analysis J. Schwager
- Hardback - 640 pages ****
Fundamental Analysis, is the most comprehensive, in-depth book ever written
on the use of fundamental analysis for futures trading.
· Learn how to apply the techniques of technical analysis to fundamental
data - information not found elsewhere.
· Shows how regression analysis works and tells you how to use it as a tool
for price forecasting.
· Includes step-by-step instruction on how to build a forecast model.
· 13-chapter section illustrates applications of fundamental techniques to
individual markets and market groups.
· Outlines how to analyze seasonal fluctuations, including seasonal price
charts of 27 active markets.
Numerous charts, tables and examples illustrate all key concepts, and the
text itself is written in the clear, non-technical style that has made Jack
Schwager one of today's most widely read and highly regarded investment
writers.
"Futures guru Jack Schwager has created the definitive source on using
fundamental analysis for price forecasting that no trader can afford to be
without." - Tom Baldwin, Chairman: Baldwin Group.
"Jack Schwager always provides clear and compelling material on the often
opaque subject of futures trading."
- Richard Dennis, President: Dennis Trading Group
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**** BOOK 4 - Benjamin Graham on Value Investing J. Lowe - Hardback
- 246 pages ****
Lessons from the Dean of Wall Street Celebrating the 100-year anniversary
of the birth of Benjamin Graham, the father of value investing; this is the
first book to introduce Graham's theories in the context of both his life
and work.
"One of the luckiest events in my life was when I met Ben Graham. Now
Janet Lowe gives her readers a similar opportunity. Janet's portrait is
right on the mark, and anyone with an interest in investments will relish
this book."
Warren E. Buffet, Chairman: Berkshire Hathaway Inc.
"Graham's teachings gave me a lifetime investment philosophy at an early
age when I had no philosophy. This is a great book!" - Charles Brandes,
Managing Director: Brandes Investment Partners Inc.
"Every serious investor should read Janet Lowe's book to understand the
genius who literally created the framework for investment analysis that
leads to successful investing. Like that other genius Edison, Graham
created light where there was none." - Bill Ruane, Sequoia Fund
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**** BOOK 5 - Elliott Wave Principle Robert Prechter -
Hardback - 300 pages ****
"This is a definitive, excellent book on Elliott, and I recommend it to all
who have an interest in the Wave Principle."
- Richard Russell, Dow Theory
"A top drawer reference for serious technical analysts...all the nuts and
bolts necessary to do their own Elliott Wave assembly."
- Futures Magazine.
"Chapter three is the best description of Fibonacci numbers we've seen in
print and that alone is worth the price of the book."
- The Dines Letter
"In a third of a lifetime in this business, this was the first time I
really understood Elliott, and this is certainly the first book on Elliott
that I could recommend. All of the methods that Prechter has used so
successfully are fully described in this book."
- The Professional Investor.
"Elliott Wave Principle is such an important, fascinating, even
mind-bending work, we are convinced that it should be read by ANY and EVERY
serious student of the market, be they fundamentalists or technicians,
dealing in stocks, bonds or commodities."
- Market Decision $
"Even allowing for minor stumbles, that 1978 prediction must go down as the
most remarkable stock market prediction of all time."
- Money Review.
Recipient of the Technical Analysis Association's Award of Excellence.
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**** BOOK 6 - R.N. Elliott's Masterworks Robert Prechter. -
Hardback - 311 pages ****
After being out of print for decades, R.N. Elliott's original works are now
available in this one complete volume. Includes:
The Story of R.N. Elliott The Wave Principle (1938) The
Financial World Articles (1939)
Selected Essays - (1940-1942) Nature's Law - The Secret of the Universe
(1946)
"An impressive volume from cover to cover. Prechter's knowledge of the
subject shows clearly." - Futures Magazine
"Believe it or not, this is the first time anyone has assembled all of Mr.
Elliott's works in one book. That alone makes the book worthwhile for your
financial library." - James Dines, The Dines Letter
"Mr. Prechter has performed an outstanding service to the investment
community in bringing together, in a single volume, the major writings of
R.N. Elliott." - Donald J. Hoppe's Analysis
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**** BOOK 7 - The Option Advisor Bernie Schaeffer -
Hardback - pages ****
In The Option Advisor: Wealth Building Techniques Using Equity and Index
Options, Schaeffer offers his own carefully tested, prudent, and profitable
strategies for trading options. He begins by dispelling outdated folklore
and beliefs about the options world, and reveals instead how options can be
used as an inexpensive, leveraged vehicle for profiting from the movement
in an equity. With clarity and logic, he explains the basic principles of
options trading, emphasizing, in particular, why options cannot be traded
like stocks - a potentially very costly mistake.
Schaeffer delves into the psychology of options trading, demonstrating how
to distinguish between "high" and "low' expectation stocks, how to measure
sentiment, and how to master the valued Contrary Opinion Theory for
successful trading. He shares his wealth building techniques for selecting
the right stocks, assessing risk, managing your options portfolio, and,
most important, for reading market timing indicators. What The Option
Advisor boils down to is expert guidance on managing your money, while
avoiding the most common errors of options trading.
From the novice to the experienced investor, The Option Advisor offers a
gold mine of information on how to achieve success in options trading.
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**** BOOK 8 - The Warren Buffet Way Robert Hagstrom -
Hardback - 274 pages ****
Investment strategies of the world's greatest investor. Peter Lynch,
best-selling author of One Up on Wall Street, says he's "the Greatest
Investor of them all." Forbes dubbed him "The richest person in America
and an investment genius on a scale that the world rarely sees." What is
the secret of Warren Buffett's spectacular success? How has he managed to
so consistently beat all the major indices and so regularly come up a
market winner? Is his track record really nothing more than a rare
statistical aberration - or is it the result of an identifiable approach
that other investors can learn and master? The Warren Buffett Way offers
investors their first in-depth look at the innovative investment and
business strategies behind Warren E. Buffett. Tracing Buffett's career
from the beginning, Hagstrom, tells us exactly how, starting with an
initial investment of only $100, Buffett built a business empire worth
$19.4 billion.
"Robert Hagstrom presents an in-depth examination of Warren Buffett's
strategies, and the 'how and why' behind his selection of each of the major
equity securities that have contributed to his remarkable record of
success." - John C. Bogle, The Vanguard Group
" It's first rate. Here is the low-down on every major stock he ever
bought and why he bought it. Fascinating. You could even try this at
home." - John Rothchild, Financial columnist, Time magazine
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**** BOOK 9 - MacMillan on Options Lawrence McMillan -
Hardback - 570 pages ****
No one knows more about options than world famous trader and best-selling
author, Lawrence McMillan. And once again, he's receiving universal
acclaim. This time for McMillan on Options - sure to become the new Bible
of options trading. This latest work reveals, for the very first time, the
author's personal strategies and techniques that he has perfected in over
20 years of phenomenal trading.
McMillan's first book, Options as a strategic Investment, has sold over
130,000 copies making it the top selling options book of all time.
McMillan on Options is destined to be an even bigger hit.
In his new book, McMillan shares his closely guarded secrets of success.
You can learn these strategies in this 570 page volume, covering
everything you ever wanted to know about how to win with options.
"countless professional techniques, tips and short cuts are fully revealed
by McMillan. This book's over 570 pages will surpass his first book in
content specifically designed to help investors increase their bottom
line."
- Chris Myers. President, Trader's Library
"Without a doubt, the best options book currently available. McMillan on
Options is a must-read for anyone professionally or individually interested
in options."
- Thomas J. Dorsey. President, Dorsey Wright & Associates
"In Options as a Strategic Investment, Lawrence G. McMillan demonstrated
that he is without peer as an options strategist and educator. McMillan on
Options is an outstanding sequel whose value for the reader goes beyond
education to include a number of practical option trading approaches and
techniques."
- B. G. Schaeffer. President, Investment Research Institute
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**** BOOK 10 - Trading Chaos Bill Williams - Hardback - pages
****
Applying Expert Techniques to Maximize Your Profits
Trading Chaos: Applying Expert Techniques to Maximize Your Profits
This unique book will teach how to spot huge trading opportunities from
seemingly random market events.
In this breakthrough work, author Bill Williams gives you the benefit-of
his unique qualifications: 35 years of successful trading and a PhD in
psychology. The instructional techniques used in Trading Chaos have been
tested and refined in the workshops, seminars, and private tutoring
sessions Dr. Williams has conducted in 12 different countries.
Designed for all traders-from beginner to experienced professional-Trading
Chaos introduces you to the financial applications of chaos in five
graduated stages, starting with a clear, nontechnical introduction (Level
One: The Novice Trader) all the way to chart analysis, fractals, Elliott
Wave, and advanced nonlinear dynamics (Level Five: The Expert Trader).
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**** BOOK 11 - Martin Pring on Market Momentum Martin
Pring - Hardback - 245 pages ****
Amazon. com reader's give to Martin Pring's Martin Pring on Market
Momentum
This 245-page hard cover book provides Martin's personal interpretation
and usage for 33 distinct indicators. Begins with a primer on the basic
principles which apply to all momentum indicators - overbought/oversold
conditions, how to interpret them and where to draw the lines are covered
in detail, as well as divergences (both elementary and complex), advance
breakdowns and breakouts.
Also covered are the Herrick Payoff, Commodity Channel Index, Trix, the
Ultimate Oscillator and Accumulation Swing. Other chapters cover Volume
Oscillators and Breadth Momentum including Arms and McCellan. Throughout
all twelve chapters, Martin gives his own unique interpretation along with
each indicator's strengths and weaknesses.
All twelve chapters are bursting with in-depth figures, charts, graphs and
formulas providing solid insight as to how each works.
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**** BOOK 12 - Technical Analysis from A to Z Steve Achelis -
Hardback - 331 pages ****
Provides a sound introduction to technical analysis and reference material
for over 100 technical indicators. Offers a concise explanation of how to
use the vast array of complex technical indicators commonly found in
technical analysis software programs.
Written by Steven B. Achelis, president and founder of EQUIS, Technical
Analysis from A to Z is the most up-to-date, clear and concise guide to
technical analysis ever published. Eminently practical, the first part of
the book explains the basic concepts and terminology of technical analysis
in ana easy-to-follow manner. The second half describes in detail virtually
every technical indicator in use today.
All told, the book covers over 100 indicators, ranging from classic
indicators like moving averages, to more complex tools like parabolics and
fourier transforms. Each indicator is defined and analyzed and includes an
example, and in many cases, a step-by-step explanation of the relevant
calculations is given.
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**** BOOK 13 - Reminiscences of a Stock Operator
Lefevre - Softback - pages ****
Reminiscences of a Stock Operator
Profiled in Worth Magazine as one of the four investment classics of all
time, this fictionalized biography is among the most compelling books ever
written on trading in the markets. Penned in 1923, the text remains
timeless because it captures a trader's mind so accurately* the
recollections of mistakes, lessons learned and insights gained. Packed with
observational gems about the markets and trading.
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Volume
Q. From Dr Iraj: “When buying volume increases the price increases. Very often there is a price increase while volume decreases. Why is this? Also, would you buy a stock, which exhibits the second scenario?
ANSWER FROM Traderx:
Generally speaking decreasing volume on an up day (NO DEMAND) is Bearish Volume.
If the volume is low and the price moves up (in nearly all cases) this has to be a false picture. The low volume is caused by the professional money refusing to participate in the up move, usually because the market is weak. The price is moving up, but it does not have the support of those traders that matter. This is a feature of a bear market – UP MOVES ON LOW VOLUME.
The reason for the non-participation of traders is because they have seen weakness in the background action. THEY KNOW THE MARKET IS WEAK.
If this price / volume action is seen with a trading range to the left it is a very strong sell signal. In most cases the mark up is quite deliberate.
It usually starts with a wide spread up but not too early so as NOT to cut you out of the market. This is often a deception to draw in as many ‘retail’ buyers as possible. Buyers are then ‘locked in’ by the inevitable sharp down move.
EXCEPTION TO THE LOW VOLUME RULE
If there is a low volume (UP DAY) on the very first day of a break-out from a genuine accumulation area, the result is often a rapid one day UP MOVE on low volume.
This is NOT a sign of weakness. The wide spread up and out, on the first day from a genuine accumulation area, on low volume is caused by SHORTAGE OF STOCK.
Most of the supply has been removed by the professional buying at these levels. This LOW VOLUME UP MOVE out of an accumulation area is therefore an indication of STRENGTH.
Most up moves on low volume are a sign of weakness. Genuine NO DEMAND or low volume up-days always have market weakness in the background which the professional money has seen. During a bear market the volume is generally lower as prices fall, because there are fewer people trading. The professional money is not buying in sufficient amounts to make the volume even average, because they are bearish.
A MM or Professional Operator will NEVER fight the market. He will take advantage, if possible but will never fight it. If he does he will go bankrupt. If any up move occurs and he is still bearish, he simply withdraws from the activity. This is the cause of the low volume on the up move, (in other words he is not interested).
So, coming back to answer your quiz, the bottom line is this:
There are two primary causes of upward price on low volume.
1. = WEAKNESS and refusal of the smart money to participate. FALSE PICTURE
2. = Start of an UP MOVE after accumulation and lack of supply (SHORTAGE OF STOCK) after supply has been discretely removed at lower prices.
Finally, in answer to your last question, “would you buy stock which exhibits upward price on low volume”?
That is a judgment call. There are obvious (INCREASED RISKS) this is a critical time and it is easy thing to get it wrong as we have all experienced. The problem we face is deciding if genuine accumulation has taken place (START OF AN UP MOVE) or is it a no demand up move (BULL TRAP).
This research is based upon the book ‘The Undeclared Secrets that Drive the Stock Market’ by Tom Williams, 1993, Genie Software Limited. I still consider this book to be more advanced than any other publication on trading. The author Tom Williams is an old city trader who really knows about Volume/Price and Volume/Spread analysis, sometimes difficult to master his techniques, but a very potent text.
*******************************************
Tx
Please bear in mind the following statement, “VOLUME IS THE MOST IMPORTANT FACTOR IN TRADING” (Dr Iraj)
