Description
This book discusses a unique approach to the markets that focuses on the underlying reasons that really cause market prices to move; it is applicable to trading stocks, stock options, futures, and forex. In reality, markets don’t move because they want to, they move because they have to. Margin calls, stop runs, and psychological capitulation all force a series of rapid-fire market orders in a very short period of time. These generate sharp intraday moves lasting from a few minutes to a few hours, and, on a bigger scale, swing moves that last for a few days to a few weeks. These moves inflict pain on a lot of traders who do not understand how this process works. Yet, there is always a group of traders who profit from these moves.
This book discusses specific ways to get positioned “on the other side of the trade” in order to take advantage of these moves, relying on a unique interpretation of many classical technical analyses and chart patterns.
More specifically, in discussing strategies, the book gives exact entry, exit, and stop loss levels for the intraday trading of stocks, options, ETFs, various futures and commodity markets, and the forex currency markets. Strategies focus on daytrading, swing-trading, and position-trading various markets and asset classes.
It is my hope that traders at all levels of experience will welcome this book’s broad market overview and specific trading strategies. Beginners will be treated to a nohype reality check on how the markets really work, will be introduced to clear concepts and trade setups, and will come to understand why newer traders are destined to lose money until they grasp the basic market mechanics that are constantly happening behind the scenes. They will also understand how they are repeatedly taken advantage of.
It is my goal that intermediate traders will appreciate the knowledge included in this book, which is designed to take them to the next level of trading. In addition, I hope that professional traders and other market insiders will find that this book is able to clarify some of the truths that they have instinctively found to be true, in addition to providing fresh ideas to improve their bottom line. Stock traders who have never traded E-mini futures or forex will learn how these markets work and how to get enough information to decide whether the addition of these markets would be appropriate for their own trading. They will learn how the futures markets affect specific stocks and will thus be able to better position themselves to profit from their stock trading.
Day traders will learn why relying on indicators alone is a losing game, discover specific strategies for getting into a trade early, and learn the differences that will let them know when to bail and when to hang on for the ride. Swing traders and pure stock pickers will learn how to read the ebbs and flows of the market, and know whether they should be focusing on the long or the short side. Investors who are overseeing their retirement accounts will discover specific ideas for timing their investments on a monthly and quarterly basis in order to improve their returns. While this book is aimed at full-time traders, there are special sections throughout the book that focus on individuals who are working full time and are able to trade only part time. This does have advantages if it is done correctly. While I feel that this work will be a welcome addition for anyone who is interested in the financial markets, it is important to realize that it assumes a working knowledge of the basics. There won’t be a chapter discussing the nuances of support and resistance, or a chapter with 25 examples explaining the differences between an uptrend and a downtrend.
While I’m going to spend a chapter on option plays and I dig into some basic option strategies, it’s not my intention to cover all the different ways in which options can be utilized. In other words, if it has already been written about, or if it can be Googled, then it won’t be rehashed here. This book focuses on new concepts that have not been written about before. That said, the work does provide an introductory chapter on futures and forex trading and the types of markets that are focused on in this book. If you’re not sure what a bond tick is worth, or what 10 euro pips mean to your P&L, then this section is for you. I will also discuss websites and other books that are great for getting up to speed.
In addition to specific trading setups, the book discusses practical aspects of trading, such as the type of hardware and software to use, money management allocation, and developing a game plan that fits the trader’s personality. Finally, there is a strong focus on specific information that can be used during the next trading day.