The Henry report delivered at 2:30pm on May 2, 2010 has astrological cycles that warrant attention.

The current Australian Government has led the country through the global financial crisis by spending, but astrological cycles suggest that as a result we may be heading into an even more precarious situation, due the large amount of debt they have amassed.

The chart for that time (figure 1) shows many negative planets in houses.

The first house
In the first house Saturn is opposite Jupiter/Uranus in the seventh, which means it will produce much stress, discontent, loss of trade, poverty and general ill-health.

The seventh house
The seventh house governs all matters to do with foreign affairs, disputes, wars and international affairs.

Figure 1: The Henry Report Natal Chart

The fourth house
The fourth house which rules farming, mining and real-estate has Pluto, and the moon present. This is not a good place for Pluto to be and gets aspected badly on the June 26 lunar eclipse. This also triggers the downfall of Rudd’s and the countries birth chart. In my opinion it is very unlikely that the Australian Labour government will get in the next election. Should the Liberals come into power at the next election they will face a massive debt, which will take decades to pay off, see www.laborwaste.com.au.

Figure 2: The Henry Report Natal Chart with June 26 Eclipse Chart

The fruits of one man’s labor
In my opinion there is an issue when you tax one man who works and runs a successful business and give money to another who fails in business. You can’t take fruits of one man’s labor and give it to another.

The mining industry
Taxing the mining industry would mean an increase in the goods we buy. For example cars, computers and electricity as the prices of steel, coal etc go up – simply passing on the cost.

Spending
It is becoming increasing apparent that the government must stop spending. Then the increase in taxes would no longer be required.

The Emissions Trading Scheme (ETS)
If the current government were to curb their spending we would not have the situation arise as it is with the ETS outlined below by the Daily Telegraph (April 29, 2010).

“TAXPAYERS will fork out $90 million a year to keep more than 400 public servants employed within the Federal Climate Change Department – despite most of them now having nothing to do until 2013

More than 60 of these employees are classified as senior executive staff on salaries between $168,000 and $298,000 a year. Their salary bill alone will cost an estimated $12 million every year.

A further $8 million will also be paid in rent for plush offices at Canberra’s Constitution Place until 2012, where it is believed 500 new computers will be delivered this week.

It can be revealed that despite Prime Minister Kevin Rudd’s decision on Tuesday to suspend the failed Carbon Pollution Reduction Scheme until at least 2013, the department has ruled out plans to cut back staff.

A formal response by department secretary Martin Parkinson to a Senate estimates hearing on Tuesday – the same day as the scheme’s suspension – claimed the department would not offer redundancies.

The formal response, obtained by The Daily Telegraph, said there were no plans for “the immediate future” of any scaling back of staff, despite the agency losing its core function..”.

The markets have changed and are still changing. Whenever I say that, I’m asked: “How have they changed? In what ways have they changed?”

A trader today can trade in a variety of markets and nations and at numerous exchanges.

When I began trading there were only eight to ten truly tradeable futures markets. For me these were in the United States, one of the two nations that actually had futures markets. The others were in the United Kingdom, but I had no access to those markets.

There were just a few thousand traders in the futures markets, and for the most part what I did was called ‘commodity trading’. Furthermore, there were only about 20,000 traders of all kinds in the entire world, including those who ‘traded’ – as opposed to those who invested – in the stock markets.

Today there are hundreds of thousands, perhaps even millions, of traders in all markets, and the number is increasing. The changing composition of the group of traders who are trading the markets is what changes the markets themselves. After all, a market is made up entirely of its participants.

There are also a considerable number of markets from which traders can choose. Markets are no longer limited to consumable commodities. We now have financial markets of all kinds; these include bonds, notes and currencies. Currency trading has become so common that national currencies are now traded via a cyber-world that is called ‘Forex’, a market with no regulated exchange and very few rules.

In addition to financial markets, we now have stock index trading. In fact there are all manner of indexes being actively traded today. Exchange Traded Funds are increasingly popular among traders, as they allow for a trader in one country to trade the best companies in another country using a single index. There are also at least two commodity indexes that are traded: there is growing participation in the CRB and the Goldman Sachs commodity indexes as commodities begin to challenge financial markets as a venue of choice. Recently, Gold Tracks became available, traded under the symbol GLD. It is now possible to trade physical gold in the form of index shares or ‘I-Shares’.

Single Stock Futures are slowly but surely coming to the fore. They promise to replace much stock market trading by making it possible to trade an index of stocks within a certain market sector using the futures markets.

Many commodities have come into being that were not there when I began trading almost 48 years ago: gold, unleaded gas, natural gas, and fertiliser, to name a few. Many nations now have futures markets that never had them before.

To go along with changes in those who participate in markets we have seen changes in the way markets move. Such changes have been caused by:
• traders who use computers and trading models;
• fully-electronic trading platforms;
• day traders.

Computerised trading models
For the most part, the people trading large pools of money are the people who use mechanical trading systems, also known as computer-driven trading models. Trading pools of money using computerised models can cause the markets to explode or melt down rather than to trend. Models are either trend following or value-oriented. There is not much else they can be. Let’s first look at trend-following models.

The problem is that there are only a few variables that can be included in a mechanised mathematical system. How many ways can you combine or evaluate the Open, the High, the Low, and the Close? Will it make a huge difference whether you use simple or complex moving averages of these four variables? Will it matter significantly whether or not you add volume into the equation? Just how many ways are there to determine the trend? Virtually every method for trend finding is based on some sort of moving average of prices, is it not?

All moving averages, when de-trended and presented as oscillators, are an attempt at measuring momentum. Is the market trending up or down? Then which direction best represents the pressure in the market? Is there more buying than selling? If so, prices should be rising. If there is more selling, then prices should be falling.

The net result of all these models attempting to discover trend is that they are all going to find the same trend at approximately the same time, literally within moments of each other. The models are, in fact, correlated.

What takes place when all of the models suddenly discover that prices are trending upward? They all give buy signals. What happens when all the models suddenly discover that prices are trending downward? They all give sell signals. What happens in the market when people who have huge pools of money suddenly decide they need to take action with regard to the current trend? The market begins to trend more steeply. It may even explode upward or melt down, depending on the newly discovered trend.

There is only one factor that can mitigate the absolute dynamics of an explosion or a meltdown. That factor is size.

The trading pools have so much money that they cannot afford to put on their entire position at once. If they do so they will shoot themselves in the foot.

If people in a pool buy too much all at once, they will drive prices substantially higher, thus having to put on their position at an increasingly higher price. They may even cause prices to explode upward. Their buying activity will appear to be real demand, but in fact the demand in the market is partly real and partly false. The false demand is caused because the pool’s computer is indicating that the market is trending and therefore they should buy. But the computer-generated demand is artificial, and may have nothing whatsoever to do with real fundamental demand for the underlying.

The same principles apply to selling. If people in the pools try to sell too much all at once they will drive prices substantially lower, and have to sell at a lower price than they want to. Their selling may even cause a price collapse. Their selling looks like there is too much supply of the underlying, but much of the downtrend will be due to pseudo oversupply, that is, the pool’s computer-generated selling causes the market to go down more steeply and possibly more quickly than would natural market forces.

So, we find the large pools having to ease their position into the market. The result is an enhancement of the trend, but the trend will tend not to last nearly as long as if the pools were not involved. What is really happening is that the real trend, caused by real demand or real oversupply, is now being accentuated by the buying and selling of the trading pools, simply because their computers have told them that the market is trending.

Pools dominate the futures markets
Before there were such things as commodity pools (they should be called futures pools), commercial traders dominated the markets. The commercials knew how to keep a trend going, and milk it for all it was worth. But today the commercials face a serious challenge from the commodity pools as to who will dominate the futures markets. The pools do not have a clue as to how to maintain a trend. They all rush into a perceived trend when their computerised models tell them that there is a trend.

The trading actions of the pools actually kill the trend.

There is another way in which trading pools destroy the trend, with the result that markets trend a lot less and for a shorter period of time than they ever did before.

Many pools use valuation models for trading the markets. The models compare today’s price with what the computer determines is a relatively overvalued or undervalued price. The computer looks back historically over several months or years and comes up with what the price should be. Therefore, when a trend really gets going, and prices are much higher or much lower than the computer thinks they should be, the commodity pool receives a buy or sell signal.

Let’s say that the commercials are very nicely moving prices up. They are in no hurry. All of a sudden the pool computers decide that prices are too high compared with the past. The pool computers issue a sell signal. Being correlated with one another, the pools all begin selling. Prices start to fall, or they stop going up and enter into a trading range top. The reverse is also true when prices are deemed by the computer to be too low. The computer issues a buy signal and a lot of pool buying comes into the market. At that point you will see a 1-2-3 low and possibly a ‘v’ bottom. Usually, there will be a 1-2-3 low and then a trading range.

In either case, the valuation models have killed what was previously a trend. Unless there is either massive buying or selling coming in from the public that might cause the trend to continue, the trend will end.

Day trading history
So far I’ve shown how trend-following models and value models affect the markets. Now let’s take a look at day traders.

Day trading began to be fairly common in about 1980. Most day traders traded the full S&P 500, the currencies, or the bonds. The only decent day trading took place in those three markets, with ‘Swissie’ being called the ‘day trader’s market’, though there were a few who attempted other markets.

When day trading became available to traders who had live data and a computer, the exchanges, along with the brokers, began heavy marketing of the availability of rapid trading, claiming traders could make big money in a matter of minutes. Commission rates dropped dramatically. Word got out and the number of traders attempting to day trade increased rapidly.

Discount brokers sprang up. Discount brokerage firms took out huge ads in The Wall Street Journal and Investor’s Business Daily. They also advertised in a variety of trading magazines. These magazines were full of ads promoting mechanical trading systems, low commission brokerages, day trading software and various data feeds.

As the number of day traders increased, so did the noise in the markets. Short-term trading was all the rage. Intra-day prices chopped up and down as day traders bought and sold for only a few ticks. Markets went mostly sideways until either real supply or demand, or someone with enough clout to move the market came along. What at one time were beautiful intra-day trends gradually became chopping intra-day trading ranges.

During the 1990s currencies lost their attraction for thousands of day traders. At the point that banks were trading over $1.4 trillion daily there were not enough currency traders in the pits to handle the huge currency trades that were needed. For a while the price for a seat at the Chicago Mercantile Exchange (CME) increased geometrically. Entities that needed to hedge in the currency markets were hiring ex-football and basketball players to stand in the pits to trade. Their physical size gave them an advantage in the push and shove of the trading pits. Anyone under 6’ 3” tall was at a disadvantage. Their bids and offers simply could not be seen because of the behemoth-sized ex-athletes standing in front of them. Nevertheless, there were not enough locals and floor brokers in the pit to take the other side of the mega-million currency trades that needed to be made.

Those entities needing to buy or sell huge amounts of currency could not find satisfaction in currency futures. Banks began to call each other and do off-exchange trades. These trades among banks are called ‘currency swaps’. And the environment in which they are made is called ‘Interbank’. Those who didn’t want to bother with making deals directly with other banks chose instead to use Forex brokers to handle their currency trades. In Forex there were no commissions and no fees to be paid. Forex brokers made their money on the spread between the bid and the offer. The result was that there were fewer traders in the currency pits. The volume plunged like a rock. Formerly liquid markets gradually became illiquid. The price of a seat on the Chicago Mercantile Exchange dropped to a quarter of what it had been. Did the drying up of the currency markets affect day traders? It sure did. It sent them scurrying for the bond pits and the S&P.

What happened in the S&P is a story in itself.
To be continued in the Sep/Oct 05 issue of YTE.

This article was originally published in the Jul/Aug 05 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Over the next few weeks I would like to focus the steps and processes involved in designing a trading system. Whilst by no means an exhaustive list, it will provide an insight into the process for those interested in designing their own trading system and for those who are weighing up either developing their own system or purchasing an existing mechanical system with a positive edge over the market.

I will provide a practicable insight into designing, developing and building a trading system or more correctly, a trading methodology. This is a general overview rather than an exhaustive coverage of the subject but should be sufficient for a potential system designer to get a good idea of the processes involved. I trust it will assist you in either embarking on the journey or accepting that it is one that you would rather not make. For those of you who already know that designing a system is not for you then this chapter will give you a greater understanding of how to evaluate any system when you are considering a purchase. My goal is that regardless of whether you choose to pursue the development of your own trading system or purchase a proven methodology from a reputable system vendor you will be more knowledgeable about avenues for profitable trading by grasping the content of the blog over the next few weeks.

Generally the purpose of developing an edge is to trade the edge in order to make money with it. Whilst this statement may seem obvious, the majority of people who embark on the system development journey don’t complete the journey and hence don’t achieve the purpose.

The system design paradox

Before getting into any detail I must uncover a paradox that is one of the main reasons why most who start the journey of system design do not complete it.

Most people generally wish to avoid the pain associated with losing. Unfortunately this paradigm (avoiding loss) will, by default, be used to evaluate the edge the individual is attempting to design.  This is a Catch 22 situation as the system designer needs to have learned to think in probabilities with a market paradigm in order to evaluate and hence complete the design of a system. I covered many of these topics in last year’s weekly blogs. You may wish to refer back to them to refresh your knowledge or to read them for the first time if you are unsure of some of these terms.

The operative word in system design is ‘complete’.  If some degree of a consistent mindset has not been achieved, then the designer will not know when to stop researching and start trading. Typically the results of the research will continue to be evaluated from the paradigm of trying through analysis and further research to eliminate losing. This means that the individual will be thinking like an analyst rather than a trader.

The analyst’s mindset attempts to analyse away losing. Even though the analyst will admit (using the logical left brain) that analysing away these situations is impossible, his/her subconscious, having been trained by society to avoid these situations, will rule the roost and lead the analyst to continue research, attempting to analyse losing, being wrong, missing out and leaving profits in the trade out of the system.

The trader’s mindset, achieved through reprogramming the subconscious, is to trade an edge and totally accept the losses an edge generates. Therefore, if you have an analyst’s mindset when trying to design an edge, the probability of completing the development, let alone trading it successfully, is very low. In fact, an analyst will have a difficult time trading any edge, let alone one they have developed themselves.

The successful researcher must have a degree of successful trader in him/her, and must know what a practicably profitable system looks like to know when he/she has completed the research journey and can begin the trading journey.

By definition, an edge will make money over a large sample of trades.

I know that my comments on this paradox may be contentious amongst readers but successful system designers and system traders who have completed the journey or part thereof will agree with me. In next week’s blog I will take a look at the tools and resources required to begin the journey of designing your own trading system.

Gary Stone founded ShareFinder in 1995 and is responsible for the ongoing research of existing methodologies and new trading edges.

Investors worldwide would do well to be wary of the stock market rise since March 2009. One only has to look at the continuing virtual zero rate on 3-month US Treasury Bills to realise that substantial institutional investor cash remains firmly parked in the risk-free asset.

The “China effect” was in evidence this week, as both the Shanghai Composite Index and equity markets around the world fell in reaction to the Chinese government’s directive to its banks to reign in lending. Plainly the administration there is concerned about a growing asset price bubble and, given that cheap money is a prime driver of such bubbles, this makes sense. A slowdown in the Chinese economy would have knock-on effects around the world; it has become apparent that the linkage to Western economies is an influential one. We disagree with those who think that there is no asset bubble risk in the Chinese economy, the huge government fiscal stimulus in the wake of the global recession has done its job, but then pushed on and risks creating trouble of its own.

Will a reduction in liquidity caused by a slowdown in domestic lending have a negative impact on Western economies’ revival? The answer is most probably yes. But one can understand the administration there being concerned about the impact of too much cheap credit. Looking at the problem more analytically, we recommend that if the government is worried about overheating, an interest rate rise and an appreciation of the Renminbi would help just about everyone, but with these measures there’s politics involved…however an interest rate rise soon is not to be ruled out, although we don’t expect it this quarter. China is one more reason we expect a market correction…if there’s a slowdown there, it will be felt here make no mistake.

Lets discuss two issues of relevance for investors.

USD weakness…and strength
Recently the USD has become the “carry-trade” currency of choice, due to the virtually zero interest rate policy applied by the Federal Reserve. Right now the USD is the preferred funding currency for the carry trade, whereby it is borrowed and then sold against other higher yielding currencies with rising interest rates, such as the AUD. Falling dollar value against those currencies enhances the profitability of such trades as well.

However, at some point USD rates will rise. And at that point, the USD will start to appreciate.  We need to remember that the dollar remains the world’s reserve currency and safe haven, and will remain so for the foreseeable future, regardless of any geo-political commentary from the Russian and Chinese governments. That does not mean that foreign investors will not switch part of their reserve holdings into other currencies, such as the euro. But we will not see the USD replaced as the unofficial reserve currency, for the simple reason that there is no alternative.

In 2010 the euro will start to show some weakness, against both USD and GBP, as the continuing problems in its peripheral member countries start to bite harder. We noted Greece and its public sector debt problem last week. In addition to Greece, euro-zone members Portugal, Italy, Spain and Ireland also have significant debt concerns. None of them can follow an independent monetary policy, and their fiscal stimuli and government borrowing are in danger of becoming unsustainable. Ireland and Spain have already suffered sovereign debt rating downgrades, which increase their borrowing costs, and more are likely. All this will only heighten speculation about a sovereign default or possible withdrawal from the euro-zone. While this is very unlikely, mere talk of it will depress the euro against the dollar.

Equities…be careful
The irresistible bull run in equities since March took some by surprise, but also led to some excess profits being generated by investment banks. Right now indices on both sides of the Atlantic are trading at very high P/E ratios, and this despite that corporate earnings, with the exception of certain sectors such as mining and commodities, have still not been restored to pre-recession health. What does this suggest? We believe that allied with a potential slow-down in China, it serves warning that a correction is due, perhaps in Q2 this year.

Bank stocks also look vulnerable. With certain notable exceptions such as Australian and Canadian banks, they are still repairing their balance sheets and this process is by no means complete. Add to that the higher cost of new regulations on liquidity and capital, and it implied that investors must be prepared for a changed bank business model. Restrictive bank regulation is replacing the laissez faire model. Higher capital requirements and other limits on risk-taking can be expected to curb bank profitability. So either way, as an investment sector banks are only a medium- or long-term play.

Moorad Choudhry is Head of Treasury at Europe Arab Bank plc in London, and author of Bank Asset and Liability Management, published by John Wiley & Sons (Asia) Pte Ltd.

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.

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.

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.

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 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.