Books

Merlin's recommendation:

Thomas Bulkowski: Encyclopedia of Chart Patterns. It also contains statistical data.


Eva Diaz: Real Traders, Real Lives, Real Money

Jack Schwager: Market Wizard books.

Keith Nielsen: Follow the Smart Money.

Jeff Cooper: Hit and Run Trading: The Short-Term Traders' Bible.

John Murphy: ??? (a classic work on Technical Analysis)

John Hill: Building Winning Systems with Trade Station, The Ultimate Trading Guide, Scientific Interpretation of Bar Charts.

Dan Zanger's recommendations :

First two is the top:

William J. O'Neil: How to Make Money in Stocks.

Thomas N. Bulkowski: Ecnyclopedia of Chart Patterns.

Edwin LeFevre: Reminiscenses of a Stock Operator

Nicholas Darvas: How I Made $2,000,000 in Stock Market.

Steve Nison: Janapese Candlestick Charting Techniques

Prechter Jr, Robert R: Elliott Wave Principle: Key to Market Behaviour

Thomas N. Buklowski: Trading Classic Chart Patterns

Alexander Elder: Trading for a Living: Psychology, Trading Tactics, Money Management

Jack Schwage: Technical Analysis

Bruce M. Karmich: How Technical Analysis Works

Oliver Velez & Greg Capra recommendations (not on Dan's list already):

William J. O'Neill, McGraw-Hill: How to Make Money in Stocks

Mark Douglas: The Discpilined Trader

William Gallacher: Winner Take it All

Marc Freidfertig, George West: The Electronic Day Trader

David Nassar: How to Get Started in Electronic Day Trading

Fernando Gonzales: Strategies for the On-line Day Trader

By Tony Turner (that are not on the above lists):

Stan Weisntein: Secrets for Profiting in Bull and Bear Markets

Barry Rudd: Stock Patterns for Day Trading

Fernando Gonzalez, William Rhee: Strategies for Online Day Trader, Adcanced Trading Techniques for Online Profits


Other books (not on recommended lists):

Henrich Weber, Kermit Zieg: The Complete Guide to Point-and-Figure Charting
Jeremy Du Plessis: The Definitive Guide to Point and Figure

Noble DraKoln: Forex for Small Speculators <- He has good option strategies, a must read. Larry Williams: The Right Stock at the Right Time. Note: Larry turned 10.000 into 1.100.000 in 12 months on futures market. The above book is more to investors than to traders. Better to check if he has other books. Michael Harris: Stock Trading Techniques based on Price Patterns and Short-term Trading with Price Patterns. F.H. "Chick" Goslin: Trading Day by Day, Winning the Zero Sum Game of Futures. Larry McMillan: Options as a Strategic Investment, McMillan on Options.

Keith Schap: The Complete Guide to Spread Trading.

Stephen Aikin: Trading STIR Futures. A book about short-term interest rate futures and various strategies relating to them.





A booklist here: www.invest-store.com/janarps/firesale.html

Dominic Connolly: The UK Trader's Bible.

Tibor's pics:

Richard Hexton: Technical Analysis in the Options Market: The Effective Use of Computerized Trading Systems

Ethel R.K. Goldman: Computerized Trading Strategies: How to Programme for the Stock and Futures Markets

Mark Jurik: Computerized Trading: Maximizing Day Trading and Overnight Profits
Posted by at No comments:
Labels:

Event Sponsors

The following companies are likely to sponsor events:


Trading Arcades, maybe?

  • Schnedier Trading Associates
  • InvestIn Securities
  • Candlestick Trading Company (they charge 500 per month for a trading station).
  • Refco Trading Services, REFCO Group Ltd, E.g. Candlestick might offer capital and profit split to traders as a deal. The minimum contract is one year in this case. There are also two year contracts with coaching etc. They cost start at 1500 pounds but it might worth.
Posted by at No comments:
Labels:

Fundamental Basics 101

Many people disregard fundamental analyses as it is "difficult to learn" so they start using technical analyses.

The question really is: what is your trading edge over others? Everybody can use technical analyses these days. All you need is a click of a button and you have a technical study drawn for you. You don't even need to understand how to calculate it these days, it is so easy to use.

So are you sure that technical analyises is enough for a trading edge?

The basics

Fundamentals simply mean that underlying foundation on which other things built (for example the price of the share).

If a company keeps growing, the price will grow above every limit no matter what a graph shows. If a company keeps making greater and greater losses and shrinking, no level in price is low enough to "support" it.

Long-term

Fundamental analysts tend to invest on the long-term because on the short term greed and fear changes the price. That is supply and demand changes the price. But it is fundamentals (the basics) are need to support a price.
Posted by at No comments:
Labels:

Option Selling Strategy

The following if a simple zero risk strategy of investment.

  • You buy 1.000 shares.
  • You sell a 2-month option (let say a call)
  • You buy a 1-month option (let say a put)

The time factor of the option impacts price of the option. So the one month difference between the two option prices above is your profit with no risk.

What if somebody "calls" your shares? Nothing, you still pay as much money for it as you have purchased it. You can use various exit strategies one the 1-month option start expiring. You can decide to exercise it, sell the 2-month option, etc. maximizing your profits or future adantages.

There are variations of this strategy. Like doing it without purchasing shares or both of the options. However, these entail a hire level of risk.

Here is a possible various on this strategy. You buy a one-year put option and keep selling 1-month call options till you make profit.

This strategy is most profitable in a non-trending share.

[TODO: Examples]

Posted by at No comments:
Labels: ,

Realistic Daily Share Price Change

A well-managed business grows over time. Let's say 20% each year.

What does it mean for daily chart? A share price move over 0.055% is out of alignment with the growth of the business - so out of alignment with the fundamental data. This out of alignment makes intra-day changes unreliable for fundamental analyses.
Posted by at No comments:

On Astrology

Seems like there is even a company http://http://www.mmacycles.com/ that uses "Financial Astrology".

Actually, there are some "cosmic" events that are already statistical proven to impact stock market. Here are some example:

  • Different months of the year
  • Full moon
  • Each day: the opening hour, the noon boredom, the afternoon, etc. cycles :-). The point of this one that everyone who is trading uses this information in trading, maybe we just did not thought about that this is astrology after all.

Posted by at No comments:

Correlations

If you download historical data into Excel. It is possible to calculate "correlation". A mathemtacal figure that tells how much one item "zig or zag" in the graph is reflected in the other graphs "zig or zag". 1 means they are equals. -1 means they are opposites. 0 would be "no correlation".

Correlation value change over time so the values provide here are only valid in the mid of 2006. A good example of this is Canadian dollar that sometimes correlates with gold, sometimes with oil, etc.

Use any correlation value that is above .5 or below -.5 as it gives a trading edge.

(Each correlation is only listed ones. I don't mention non-correlating items)

Australian Dollar: Understandable correlates to Gold (0.84) since Australia is an important gold exporter.

Corn: Eurodollar (CME traded index) (0.81). Five-year notes (Chicago Board of Trade) (0.77). Thirty Year Treasy Bonds (Chicago Board of Trade): 0.77. Weat (0.93).

Euro Dollar: Five-year Notes (0.96). Japanese Yen (Chickage Merchantile Exchange) (0.68), Thrity Year Treasy Bonds 0.91. Weat (0.71)

Five-Year Notes: Japanese Yen (0.74), Thiry-Year Treasy Bonds (0.97), Weat (0.75).

Gold: Japanes Yen (0.74), S&P 500 (0.62), Wheat (0.62)

Yapanese Yen: Thirty Year T-Bonds (0.71).

Weat: 30 year T-bonds (0.8).

Stock Prices

Here are some examples how S&P correlates with DEL (0.82), and DOW Industrial (0.978).

EUR, USD anD YEN:

In my Forex trading I often use EUR, USD and YEN due to the excellent leverage I can get with my money on Yen.

For trading Euro, it is good to watch: Five-year Notes (0.96), Yen (0.68), Thirty-year t-bonds (0.91).

For trading Yen, it is good to watch: the Euro (0.68), Five-year Notes (0.74), Gold (0.74), Thirty-year T-bond (0.71).

Correlation Between Currencies

EUR: CHF (0.96), GBP (0,80), JPY (0.63), Aud (0.67)
JPY: EUR (0.63), CHF (0.65), Aud (0.75), Nzd (0.5)

Unfortunatly, the hour corrleation between even highly correlated currecnies like EUR, CHF can vary greatyl. However, EUR & CHF correlations are very high on the long term.

Here again with currencies, it is good to calculate correlations using Excel from time to time.
Posted by at No comments:
Labels:
Subscribe to: Posts (Atom)