This book will look at a robust method to understand what the market is doingin a specified timeframe. Essentially, markets are either trending up, trending down, or is in sideways or range bound congestion. Chapters are devoted to each of these three conditions, and the concepts are explained in depth. In addition, specific trading strategies will be explored for the different market conditions. These strategies are what I define as high probability, low risk trading strategies that have higher probability of success because it conforms to the nature of how markets behave. The beginner trader is encouraged to huntfor, and execute these strategies using very small trades. This is because beginner traders are expected to make errors in the analysis and or in the execution of the trade. Typically, such mistakes are more likely to result in loss,and it will be disastrous if the trade size is large. The beginner trader is not yet in a position to fight with the adept, and should therefore practice realistic trading with micro sized contracts. In other words, practice and master the white belt methods and strategies in a white belt arena, before progressing to higher level strategies and techniques with the more advanced traders.In addition to the chapters on the 3 modes of market behavior, there will also be chapters on the specific tools that I use to enhance my understanding of whether the existing market mode is likely to continue or likely to change. This is actually a very important part of the method, because the answer to thisquestion of continuation or change WILL set my choice of trading strategies. There will also be a chapter that looks at a method to extrapolate potential target zones for profitable trade exit.
- ISBN: 978-0-470-82581-5
- Editorial: John Wiley & Sons
- Encuadernacion: Cartoné
- Páginas: 256
- Fecha Publicación: 23/07/2010
- Nº Volúmenes: 1
- Idioma: Inglés