FXCM Trading Station II review
FXCM Trading Station II is a software provided by FXCM Corporate which is a well known Forex broker to their clients in order to enable them to place orders to buy or sell the different currencies immediately or by delayed execution of their orders.
The program enables you to watch prices of many currencies live and see the price changes immediately in addition ,It has a nice feature of viewing charts and attaching different indicators that can aide in analysing the currency chart which is called (The market space).
The user can see the statistics of open trades and can close them using this software at any time.
The software has a feature where the user can know market news immediately when they are announced.
An excellent feature that makes this software ahead of its competitors (i.e. Metatrader ) is that it offers the ability to chat live with one of the FXCM representative which many users will find handy and useful another nice feature is that you can generate a report of your account including all your deals on the fly from inside the software.
Advantages of FXCM Trading Station II:
- Fast position opening.
- Instant update of market prices.
- You can analyze charts from within the trading platform.
- Multiple languages are supported.
Disadvantages of FXCM Trading Station II:
- Practice account creation is not done from within the software.
- You cannot add or create trading experts.
- The platform is said to hang upon fast market moves or during news announcements.
Stock Trading Software Programs That Make Money
Jumping into the stock market to create wealth and a revenue stream is something that many people aspire to yet very few actually achieve. The stock market can be a difficult and confusing place, however, with the help of stock trading software programs that basically do everything, more and more people have been getting into the stock market than ever before. Instead of relying on local stock trading brokers and other experts to make money, stock trading software programs are usually simple to use for the end user and allow anyone to be able to understand how to make money and profit from stock trading.
MarketClub Software
One of the very popular stock trading software programs on the market today is the MarketClub investing software that has really made it pretty simple for anyone to profit while stock trading. The MarketClub software is an investing tool that demonstrates how to make money by using such techniques as technical analysis and charting. It uses predictions about the stock market to determine which stocks should be invested in, and spots those big moves before they actually happen so investors have a chance to make money.
With the MarketClub software program, it’s been demonstrated that a 50% return in gold is possible just by using their investing software. In addition, it has been reliable in crude oil market trading and has proven itself in the foreign exchange market as well.
OmniTrader 2009
This is another program that’s similar to MarketClub. However, many people have actually reported that OmniTrader 2009 is more profitable because of their proprietary trading simulators, easy-to-use investing charts that are configurable to each end user, and because it’s fully automatic.
The fully automatic feature of the OmniTrader 2009 stock trading software is actually what many investors rely on to have their money managed right. Since the program is automatic and is able to help investors trade the moves immediately, the program also comes equipped with a money management system that takes the risk of investing out of the equation. This is a major advantage to most people as it is very easy to lose in the stock market if you don’t know what you’re doing.
Wizetrade Software
A third stock trading software that is really great for the beginning stock market investor is Wizetrade. This is a program that helps stock market traders make money through a system of red and green lights that indicate when the individual should start and stop the trade. It breaks down all the complicated information about each part of the stock market and visually shows it to the trader. In addition, many people love this stock trading software because they have a chance to interact and speak with a Wizetrade orientation trader who can help them understand how to use the software to their advantage.
All of these stock trading software programs are popular for both the beginning investor and the seasoned one. They help investors understand how the stock market works by showing which trades to make and when, and all of them are capable of generating a steady, long-term income over time.
Trading Systems Performance Updates
| BEST | WORST | ||||||
| 1. | Gina (ES) | 70.42% |
1. | Guru Gene (ES) | (127.75%) |
||
| 2. | CoreDuo (S) | 58.63% |
2. | Impetus (ER) | (41.92%) |
||
| 3. | Axiom Swing (NQ) | 37.34% |
3. | Early Bird II (ER) | (41.74%) |
||
| 4. | STCStemwinder2 (ES) | 27.37% |
4. | 1 Day Russell (ER) | (38.60%) |
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| 5. | Black Gold (CL) | 23.71% |
5. | AdvantageDT(ES) | (32.97%) |
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| BEST | WORST | ||||||
| 1. | Delphi II EM Swing | 109.92% |
1. | Impetus (ER) | (145.33%) |
||
| 2. | Gina (ES) | 90.62% |
2. | Delphi II (ER) | (109.81%) |
||
| 3. | Black Gold (CL) | 74.00% |
3. | Early Bird II (ES) | (95.75.%) |
||
| 4. | Axiom Swing (NQ) | 69.26% |
4. | 1 Day Russell (ER) | (95.30.%) |
||
| 5. | Maxim (ER) | 32.63% |
5. | SITA (ES) | (86.93%) |
||
| BEST | WORST | ||||||
| 1. | Charge WS (ER) | 168.64% |
1. | Crossbow (ES) | (179.74%) |
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| 2. | Charge Indices (ER) | 89.09% |
2. | SITA (ES) | (159.53%) |
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| 3. | Brigade (ES) | 74.80% |
3. | Meteor (ES) | (74.98%) |
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| 4. | Saturn (ES) | 73.99% |
4. | Turbo Ultimate (ER) | (71.19%) |
||
| 5. | Axiom Swing (NQ) | 63.11% |
5. | 1 Day Russell (ER) | (62.20%) |
||
| 1. | Compass (SP) | 401.68% |
$30,000 Acct Size | Since 01/10/2000 |
| 2. | Charge WS (ER) | 222.64% |
$10,000 Acct Size | Since 07/21/2008 |
| 3. | Brigade (ES) | 201.57% |
$7,500 Acct Size | Since 06/21/2008 |
| 4. | Crescendo (ER) | 177.03% |
$8,000 Acct Size | Since 05/02/2007 |
| 5. | Compass (ES) | 170.98% |
$5,000 Acct Size | Since 01/03/2005 |
| 1. | Katana (ES) | (151.38%) |
$5,000 Acct Size | Since 10/07/2005 |
| 2. | Meteor (ES) | (136.82%) |
$5,000 Acct Size | Since 07/09/2007 |
| 3. | Guru Gene (ES) | (127.75%) |
$3,000 Acct Size | Since 07/27/2009 |
| 4. | Axiom Swing (ER) | (122.96%) |
$8,000 Acct Size | Since 06/15/2004 |
| 5. | SITA (ES) | (91.53%) |
$5,000 Acct Size | Since 02/20/2000 |
Share Trading – Tenth Anniversary Edition
Share Trading comes from the prolific author and educator, Daryl Guppy. First published in 1996, this tenth anniversary edition was revised in 2001.
The book is divided into three parts. First, Daryl takes the reader through a solid grounding in the basics for survival. The reader learns the advantages of being a private trader and Daryl provides a much needed reality check for anyone considering active trading. This book will not fool the reader into thinking trading is a guaranteed road to riches. Trading tools (charting packages, newsletters, data vendors), benchmark returns and trading targets for various groups of shares are explained in detail before any trading techniques are even mentioned. Daryl ensures the trading landscape is clearly explained before discussing actual trading.
In part two, Daryl discusses the importance of defining the trend and how to go about it. The importance of knowing how to use trend lines and channels for identifying support and resistance levels is explained. The reader also learns of their importance in locating entry and exit points.
Part three is devoted to money management. Daryl discusses the two per cent fixed fractional approach and how it works when combined with various levels of pyramiding.
Although 10 years old, Share Trading has stood the test of time because, although shares and market participants have changed over the years, the markets and people’s reaction to them – hope, fear and greed – have not. You will not find any grandiose promises of trading riches in Share Trading, but sensible and solid ideas on how to approach the business of trading. Share Trading is a book I would recommend to new traders for a sensible insight into active trading; and to old timers to remind them to keep it simple, keep it real and keep it conservative.
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
The Little Book that Beats the Market
This is a book for all value investors. Joel Greenblatt is an experienced manager whose fund has averaged 40 per cent per year over 20 years. The book manages to distil successful value investing down to a single formula designed to beat the market.
Joel comes from the Benjamin Graham school of investing and takes the ease of value investing one step further. The reader learns that the existence of a single formula to select good companies at bargain prices isn’t new, as Ben Graham bought companies close to their net asset value.
Like Ben Graham, Joel believes the market, over the short term, will price shares based on emotion, while over the longer term it will price shares based on value. So the objective is to take advantage of the market’s short-term ‘emotional’ pricing to buy good companies at bargain prices. Joel defines good companies as those that provide a high return on capital. He defines bargain prices as selling at a high yield. The trick is to find companies that are the best in both categories.
Scanning 3500 companies, Joel’s ‘magic formula’ has (when choosing the best 30 companies) averaged 30.8 per cent per year over a 17-year period compared to the S&P500‘s average annual return over the same period of 12.4 per cent per year.
I thoroughly enjoyed the book, which is written in an easy style. Joel takes the reader on an enjoyable journey containing plenty of amusement, research and explanations as to why his magic formula approach to value investing works and will continue to work. I have no hesitation in recommending this book to value investors and suggesting they purchase extra copies for their children and grandchildren. It will make a gift for life.
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
Warrior Trading
Warrior Trading attempts to take the reader inside the mind of an élite trader. The book begins with why the majority of economic theories and fundamental analysis are flawed and how the Warrior Trader can take advantage of such flaws. Clifford encourages people to think independently and find real-world economists who treat their field of observation as more art than science, accepting the limitations of their theoretical models.
Clifford believes a correct combination of fundamental analysis with technical analysis will help a trader succeed. He believes all major trends are fundamental price shifts evolving within a broad band of price action, the details and following sub-movements of which can only be understood and traded profitably using technical analysis.
For technical analysis, Clifford prefers to keep it simple. He believes markets trend within Elliott’s five-wave structure. However, Clifford does not believe the market should adhere to the strict rules of the theory since Elliott Wave, like economics, is not a perfect science. The author encourages the reader to keep technical analysis simple and look to complement the analysis with continuation patterns and support and resistance levels, particularly failed levels that flip-flop into new resistance and support levels.
Looking at how investment banks create and distribute their consensus market views, Clifford builds a good case for why it pays to be a contrarian. Using previous market calls on the AUD and the Euro, Clifford demonstrates that although it can be hard at times to go initially against the majority’s view, it is rewarding to do so in the longer term.
The book finishes with a section that aims to help readers decide what type of trader they are. Clifford continues his warfare analogy, describing swing traders as “Swordsmen” and trend traders as “Archers”. He then discusses the eight battle steps a “Swordsman” or “Archer” can follow to take them to total victory.
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
The Bell Does Ring
The Bell Does Ring supports the belief that it is possible to pick market tops and bottoms. To support its claim, The Bell Does Ring describes a collection of methods that people could consider using to stay ahead of the crowd.
The book begins with a look at the power of crowd psychology, by exploring previous booms and busts. Pauline provides a good summary of previous financial mishaps with a look at Tulip Mania, the Mississippi Scheme, the South Sea Bubble and the more recent Poseidon and Asian financial crises. By learning how to watch out for and identify signs of fear and greed the alert trader is able to identify tops and bottoms and stay ahead of the crowd.
Following the look at crowd psychology, Pauline provides a review of reversal patterns that can be used to identify turning points. From head and shoulders and diamonds to double and triple tops and bottoms, the book provides clear and concise examples of how reversal patterns have developed in the past and so can be identified in the future. A look at traditional continuation trend patterns such as pennants, wedges and triangles follows. There is a brief discussion on technical indicators.
Pauline then entertains the reader with the core part of her book – an explanation of Elliott Wave. Part III, which discusses Elliott Wave, occupies 10 of the 18 chapters. In her discussion of Elliott Wave, Pauline provides a good summary of the role Fibonacci plays. With clear and concise charts, the reader is given a good introduction to Elliott Wave and how the identification of a 5th wave can signal market tops and bottoms.
The Bell Does Ring finishes with a discussion on WD Gann and how the use of his ideas can help to time reversal points. Looking at squaring the triangle and circle and Gann’s square of nine, readers are given an insight into timing trades.
In summary, The Bell Does Ring provides an introduction to reversal patterns, Elliott Wave and an element of Gann’s work. The book is well written and easy to follow with plenty of chart examples to support the narration. My only note of caution is that, although appealing, looking to identify tops and bottoms is usually fraught with danger and littered with more tears than smiles.
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
Trader's Story
Phillip McGregor lives with his wife Susan in North West Sydney. They have five children and grandchildren, who are a very important part of their lives. Most of Phillip’s working life has been spent in senior management in industrial distribution and manufacturing. Susan often worked with Phillip, allowing them to travel and spend a lot of time together. For the past seven years Phillip has worked as a consultant/accountant. They mainly trade Australian equities with a medium-term time frame.
How and when did you first become interested in the markets?
Around 1991 my wife and I realised we needed to start planning for our financial future and we began considering our options. In May 1992 we decided on direct investment – mainly because we could have greater control over the investments and use negative gearing (a lot of negative gearing, since savings, if any, were earmarked for the mortgage).
And then what happened?
Our initial strategy was long-term buy and hold based on companies that we knew and whose products and services we used. Our exit criteria were when we no longer used the products or services – we didn’t ‘like’ the business. Our original investments were made in Commonwealth Bank, Woolworths Limited and Westfield Trust. All performed exceedingly well, which gave us confidence that direct investment was a workable strategy. After several years we realised there was more to stock selection than ‘liking the company’. Several other shares on our shopping list had not performed so well – although they continued to be well regarded by analysts and had very sound fundamentals.
How have you been able to learn and to educate yourself about the markets?
I started with fundamental analysis, a logical choice given my business background. However, we had already determined that too many of the well run, fundamentally sound companies, which were almost always a ‘buy’ recommendation, did not show consistent growth in share price.
In 1998 I tried to apply technical analysis to fundamentally sound shares. I say “tried” because it all seemed obvious only after the pattern had completed. I felt much more comfortable with indicators than with chart patterns and trend lines.
Did you make mistakes when first starting out?
One of the first books I read was by Daryl Guppy. Daryl thoughtfully provided a list of common errors that new traders make. I was forewarned – so could avoid such obvious errors. I soon discovered it was more a checklist of things that I ended up doing! Thankfully Daryl did not update and extend the list in his later books.
Would you define yourself as a discretionary trader, a mechanical trader or a combination of both?
I use a combination of both methods of trading. There is always an element of discretion. When you first enter the markets is discretionary (and many people start closer to a market top when it all seems exciting). Second, you always have to choose between various potential trades. It’s rare that you have only one entry signal when you are looking to fill a position. And third, the elements of your trading system are discretionary. You have to select the elements and parameters you are going to apply. So even if someone claims to be a purely mechanical trader, they are really a combination of the two.
However, the execution of your system needs to be mechanical – especially the exits.
Who have been some of your mentors and role models? What impact have these people made on you personally as well as on your trading style?
The pivotal point in my learning came when I read Alan Hull’s ‘Active Investing’ and attended several different weekend workshops run by Alan. During 2002 and 2003 I quickly saw how Alan looked at fundamentally sound companies and identified those with a high probability of gaining value. I also learned I was managing a portfolio, not just buying and selling shares. The individual trade was less important than the portfolio value over time.
This was quickly followed by a rediscovery of Daryl Guppy through his excellent newsletter, Tutorials in Applied Technical Analysis, which exposed me to a wide range of trading styles and trade-management techniques. It helped me discover what appealed to me and where I ‘fit’ in the spectrum of available trading styles.
This introduced me to Jim Berg’s methods. By the time I had finished reading a short article Jim had included in one of Daryl’s newsletters I knew this was where I wanted to be in trading style. I ordered Jim’s book (pre-release) that afternoon. Jim’s original Metastock Training Course taught me as much about how to get the most out of Metastock as it did about his trading strategy.
In 2005 I read ‘Adaptive Analysis’ by Nick Radge, which has an excellent chapter on having making money from trading as your objective, as opposed to being ‘right’. If you’re interested in charting or Elliott Wave, then you should check his site at www.thechartist.com.au. I have found it a useful learning tool.
The final pieces fell into place when I came across Jim Berg’s and John Atkinson’s newsletter at www.sharetradingeducation.com. Aside from the various articles there is a section showing examples of trades. For me, the newsletter is an ongoing mentoring program. Week after week the same trading processes are applied to various lists of stocks – some trades produce small losses, some produce gains. A worthwhile rate of return is generated on the portfolio.
When you do it right, trading is boring. Many newer traders, or those that do not trade at all, think it is exciting. If you are not doing it right it can be exciting, because you are trading on emotion. The flip side is depression. I have been through the excited and depressed phase. It is not the way to trade.
Once you reach the ‘mechanical execution’ phase you tend to want to find ways to keep it interesting. This promotes the urge to ‘fiddle’, especially during the extremes – when the market is ‘hot’, or when the number of consecutive losing trades is climbing – and your plan starts to unravel. I have been known to fiddle in my time.
Using www.sharetradingeducation.com helps keep me focused on what really matters – sticking to my plan. Great strategies or plans should be simple: the simpler, the better. It takes someone with a keen intellect to understand that simple strategies have a much greater chance of still remaining valid as the market changes over time. Jim Berg uses sound logic and applies ‘been-around-for-a-long-time’ indicators to capture a visual representation of that logic.
After finally getting around to reading Van Tharp’s ‘Trade Your Way to Financial Freedom’, I understood the importance of John Atkinson to the Berg-Atkinson partnership. John is all about risk. I started using the Atkinson Portfolio Planner to monitor my portfolio’s performance, especially portfolio valuation. I realised that a portfolio valued at today’s close is incorrect. I am not a seller at today’s price unless today’s price is below my stop loss. Valuing my portfolio using my stop loss (actually five per cent below the stop loss) produces a more realistic equity curve without the volatility generated using current closing prices. Those awful equity curve drawdowns are bringing the price closer to the ‘real’ exit value.
My learning is continually supplemented by reading YTE magazine.
Can you give us a brief overview of your trading style?
I aim to be a minimalist. I have been through the “you are not really a trader unless you do lots of analysis” phase. With the help of Jim Berg, John Atkinson and Alan Hull, I now understand that more analysis is not necessarily better analysis. Keep it simple and keep it focused. Execute as per your plan. Then take your wife out for lunch. I have a much better time taking my wife to lunch, or visiting our family and friends, than trying to second-guess what the market might or might not do.
Is there any one trade (win or loss ) that sticks in your mind that had a profound effect on your development as a trader ? If so, what did you learn from this trade?
It was shortly after modifying my trading plan to incorporate management of on-going position risk (individual shares, sector risk and total portfolio risk).
I was holding a position in FMG, which had performed well – around 100 per cent gain. Around May and June it began to become exceedingly volatile, with closing prices exhibiting movements of 20 per cent or more over a few weeks. Several times during these fluctuations the risk profile exceeded my maximum for any one position, requiring a partial sale. After three weeks I had sold off 50 per cent of my position. At a time of high market volatility with a downside risk increasing, I found I had to hold more cash. It now seems the logical thing to do, but before then I would not have recognised the potential for loss and that one of the star performers had now become the single largest potential risk to the portfolio. Until this change I was not one to hold much in cash. I always reasoned you could not make money unless you were close to fully invested. Of course, the market goes down as well as up, so sometimes holding more in cash is better.
FMG may well continue its spectacular growth – or it may have a deeper retracement. However, my portfolio’s risk profile is kept within my parameters and is still showing acceptable growth. And I am far more relaxed, and sleep much better.
Can you tell us about your best and worst trades?
The ‘worst trades’’ list goes on for so long it would double the size of this magazine! What would probably seem unusual is that many of these trades were profitable. Some were very profitable. What puts them in my worst trades’ list is that I did not exit according to my trading plan. Had I stuck to my plan, some may have been more profitable, some less. More importantly though, had I followed my plan, I would have ended up in much the same position – but with much less stress! And considerably fewer trades.
Being able to stand up and admit: “My name is Phillip McGregor – and I do not always follow my trading plan,” was a major turning point. I could seek help. In my case it was Jim Berg and John Atkinson. There are many excellent educators – the list of contributors to YTE is a great start. For example, Tom Scollon’s book ‘Fair Share’ not only offers some sound advice, it’s also a good read. However, the real change has to come from within.
Would you classify yourself as a short-term or a long-term trader? What advice would you offer to people getting started as traders on the relative merits or otherwise of each?
I trade several portfolios. In my superannuation fund I take a medium- to long-term view, using a combination of Alan Hull’s and Jim Berg’s trading strategies.
The shorter-term portfolios use strategies modelled on Jim Berg’s short-term methods plus one using a strategy modelled on Nick Radge’s methods.
These are all long strategies – although with different time horizons and entry/exit criteria. I plan on adding additional strategies that offer a much lower correlation in outcomes, such as short selling.
Medium- and long-term investing suits me because it takes very little time. Usually a few hours a week, and that’s a busy week. Short-term trading at least gives me something to do – even though most days this seems to be mainly downloading data and seeing everything is going to plan. The important task is selecting the watch list. That takes the real time – at least one hour a month. Actually, it’s more like one every three or four months.
What markets do you trade and which do you prefer? Do you have a favourite, and why?
I trade ASX equities, both direct shares and CFDs. I have considered other markets, for example US and UK markets, but this adds complexity – currency movement – into the trading result. The ASX may only be two per cent of the world market, but it’s still relatively enormous against my portfolio valuation.
What makes your trading style different from others? What sets you apart from other traders?
It is how my experiences and training cause me to react. We all see the same key pieces of data – price (open, high, low, close) and volume. We add indicators and time frames; we put in trend and resistance lines. Then we draw our conclusions, and take action based on our expectations of what those conclusions mean. The difference between all traders is how we interpret the data and how disciplined we are in our execution.
Do you have a favourite trading rule?
Stick to your trading plan. There is no other trading rule.
Ed Seykota says, “Everybody gets what they want from the markets.” What does Phillip McGregor ‘get’ from the markets?
I have learned a lot about myself. How I react when things go well, and when things do not go so well. To be successful you have to learn ways to focus and to manage what you can control – your reaction, and your exposure to risk. If you treat the process as one of self-development, you can become a better person in the process. Learning to trade is not just about learning indicators, chart patterns and fundamental criteria. The answer lies within us. We are the key to our own trading success, and our life success.
How has trading affected your lifestyle?
It has greatly improved our financial security, and we have certainly been able to achieve a better lifestyle, including travel, spending more time with our children and grandchildren, and so on, than we could have expected otherwise.
What books, seminars and courses have you read or attended and which would you recommend?
• Alan Hull: ‘Active Investing’ and ‘Active Retirement’. If ‘active investment’ appeals to you, then definitely attend the workshop.
• Nick Radge: ‘Adaptive Analysis’. The Chartist (www.thechartist.com.au) newsletter is also a great learning tool if you are interested in understanding chart patterns and Elliott Wave.
• Stan Weinstein: ‘Secrets for Profiting in Bull and Bear Markets’. Written in 1988, but only the dates on the examples show its age. Still a great book.
• Jim Berg: ‘The Stock Trading Handbook – Fundamental & Technical Analysis Combined’ (available only as an E-Book from www.sharetradingeducation.com). Jim also runs a weekend seminar/workshop (Boot Camp Seminar) that is very worthwhile. ShareTradingEducation.com newsletter provides ongoing support.
• Van Tharp: ‘Trade Your Way to Financial Freedom’. If you do not understand that the real key to trading success does not lie with your entry and exit criteria after reading Van Tharp, then you should probably stop trading and seek help.
• Daryl Guppy: Take your pick, they’re all good. ‘Trend Trading’ is one I re-read periodically. The Tutorials in Technical Analysis newsletter (www.guppytraders.com) provides a good cross section of trading styles and management techniques. I have also attended Daryl’s ‘Trend Trading’ seminar.
What does the future hold for Phillip McGregor?
Probably more of the same – travel, spending time with my family and friends, taking my wife to lunch (very high on the agenda). And ensuring I do not slip into old bad trading habits. Just like any other ‘abuse’ issue, it takes only one panic attack deviation from your trading plan to send you back to ‘no plan’ trading.
Kel Butcher is a full-time futures, equities and derivatives trader. He also acts as a mentor and coach to other traders. He can be contacted by email at kel@tradingwisdom.com.au
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
Trading Secrets – 2nd Edition
This is the second edition of Louise Bedford’s book, originally published in 2001. Readers of the original text should not dismiss this edition as a re-badged version. Although Louise has kept the short tutorial summaries throughout the book, it has also been updated with the latest tools to assist traders (such as CFDs), and has been totally restructured to reflect the way Louise believes traders should approach the markets to succeed.
The book begins with how people should approach trading as a business and be prepared to invest in good data, charting software and education. Part Two provides encouragement to anyone who is considering trading; pointing out that the market does not distinguish between traders and treats everyone equally. Regardless of who, what or where you are, the markets have never been so accessible. Sound advice about such things as why men and women are different and how that can have an impact on your trading is scattered throughout Part Two. And, by the way, you’ll learn that women, statistically, are three per cent smarter than men are! Part Two finishes with a practical examination of the psychological hurdles traders will need to manage if they are to succeed.
Part Three is devoted to trading tools. The reader is given an introduction to the visual display of market price, beginning with charts, particularly candlesticks. Following the candlestick discussion, Louise takes the reader through the generally accepted indicators for measuring trend, momentum and divergence.
Part Four takes the reader into the nuts and bolts of trading, where everyone gets their hands dirty. Skip Part Four and you’ll be taking a shortcut to the poor house. Here the reader is introduced to various stop techniques, both initial and trailing. Part Five discusses bear markets and how traders can take advantage of CFDs and options, not only to survive but also to prosper. The book finishes with some final words of wisdom that help bring everything together.
Louise’s book is not only well written but also entertaining, as Louise’s engaging personality shines through. It is a book I would recommend to those new to trading and those veterans who need to be reminded to keep it simple.
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
The Next Great Bubble Boom
The Next Great Bubble Boom is principally a book about cycles. This is not Harry Dent’s first book. He has published others, with reasonable accuracy. One, in the late 1980s – when everyone else was buying – forecast the decline of the Japanese economy, and hence its share and real estate markets. Time has proven him correct. He uses the same type of demographic technique to support his view that North America is about to experience conditions similar to the roaring twenties. Harry is no shrinking violet with his forecasts, predicting the Dow Jones Industrial Index will reach 40,000 by 2009!
Regardless of whether or not you agree with Harry’s bullish forecast, his book is still worth a read for its revelations about observable cycles in the share market, and how demographics plays its part. A central theme is that share markets follow predictable economic cycles every 80 years. Long-term economic booms and busts follow generational spending waves about every 40 years and these can be projected.
In a nutshell, demographics suggests that people experience a peak in their spending between the ages of 46 and 50. The trick is to see how each year’s ‘46ers’ are doing, whether they are increasing in number or declining. In Japan’s case, the late 1980s did not see a baby boom as the United States did following World War II.
Harry also delves into the various cycles contained within the share market. Beginning with the annual cycle, where the majority of gains are made between November and April each year, Harry discusses the four-year presidential and ten-year decennial cycles. He demonstrates how a few simple models that take advantage of these cycles can greatly improve portfolio returns.
Harry includes a discussion of real estate, and explores the implications of what will happen in North America when the baby boomers begin to downsize.
I enjoyed Harry’s simple use of demographics as an explanation for share market movements and, although I found his Dow prediction a little wild, I liked the case he built to support it.
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.