Trade Like a Casino

Informationen zum Autor RICHARD L. WEISSMAN is a trader, trading system developer, and educator on trading and risk management. As senior associate with the Energy Management Institute, he holds seminars and webinars for professionals on trading and risk management. Weissman is a former member and trader at the New York Futures Exchange. He has written articles on trading and technical analysis for a variety of industry publications and provides independent consulting services to traders and risk managers on technical analysis, derivatives, and trading system development. Weissman is also the author of the Wiley title Mechanical Trading Systems. Klappentext A detailed look at the common characteristics found in most successful tradersWhile there are a variety of approaches to trading in the financial markets, profitable traders tend to share similar underlying characteristics. Most have a methodology that they believe will prove profitable over the long run and are willing to endure short-term setbacks. If you're looking to make the most of your time in today's markets, you need to understand what separates the best from the rest. And with Trade Like a Casino, you'll gain the knowledge needed to excel at this challenging endeavor.Engaging and informative, this reliable guide identifies and explains the key techniques and mental processes characteristic of successful traders. It reveals that successful traders operate very much like a casino in that they develop a method that gives them "positive expectancy" and they unflappably implement the method in the face of changing, and oftentimes volatile, market conditions. Page by page, the book explores the intricacies of methodology, mental control, and flexibility that allow traders to develop and maintain the casino-like edge. Reveals how many successful traders tend to follow the same general principles, even if their approach to trading may differ Explores how to account for the risk of being wrong and the market moving against you* Discusses how to develop an approach that combines trade selection with sound risk management, avoids emotional attachment to positions, exploits volatility cycles, and focuses on market actionRegardless of how you approach markets, the insights found here will help improve the way you trade by putting you in a better position to distinguish the differences between successful and unsuccessful traders. Zusammenfassung A detailed look at the common characteristics found in most successful traders While there are a variety of approaches to trading in the financial markets, profitable traders tend to share similar underlying characteristics. Inhaltsverzeichnis Preface xi Acknowledgments xvii Part I The Casino Paradigm 1 Chapter 1 Developing Positive Expectancy Models 3 Why Technical Analysis Helps 3 The Inefficient Market 6 If It Feels Good, Don't Do It 10 "Just Make the Money" 15 Final Thoughts 21 Chapter 2 Price Risk Management Methodologies 23 One Sure Thing 23 Base of Pyramid 26 Middle of Pyramid 37 Apex of Pyramid 47 Pros and Cons of the Risk Management Pyramid 49 Putting It All Together: A Case Study 49 Final Thoughts 51 Chapter 3 Maintaining Unwavering Discipline 53 Defining Discipline 53 Discipline and the Positive Expectancy Model 55 Types of Traders 61 Discipline and Price Risk Management 64 Patience and Discipline 67 Final Thoughts 70 Part II Trading Tools and Techniques 71 Chapter 4 Capitalizing on the Cyclical Nature of Volatility 73 The Only Constant 73 Defining Volatility with Technical Indicators 76 Building Positive Expectancy Models with Volatility Indicators 89 Final Thoughts 94 Chapter 5 Trading the Markets and ...

Auteur

RICHARD L. WEISSMAN is a trader, trading system developer, and educator on trading and risk management. As senior associate with the Energy Management Institute, he holds seminars and webinars for professionals on trading and risk management. Weissman is a former member and trader at the New York Futures Exchange. He has written articles on trading and technical analysis for a variety of industry publications and provides independent consulting services to traders and risk managers on technical analysis, derivatives, and trading system development. Weissman is also the author of the Wiley title Mechanical Trading Systems.

Texte du rabat

A detailed look at the common characteristics found in most successful traders While there are a variety of approaches to trading in the financial markets, profitable traders tend to share similar underlying characteristics. Most have a methodology that they believe will prove profitable over the long run and are willing to endure short-term setbacks. If you're looking to make the most of your time in today's markets, you need to understand what separates the best from the rest. And with Trade Like a Casino, you'll gain the knowledge needed to excel at this challenging endeavor. Engaging and informative, this reliable guide identifies and explains the key techniques and mental processes characteristic of successful traders. It reveals that successful traders operate very much like a casino in that they develop a method that gives them "positive expectancy" and they unflappably implement the method in the face of changing, and oftentimes volatile, market conditions. Page by page, the book explores the intricacies of methodology, mental control, and flexibility that allow traders to develop and maintain the casino-like edge. Reveals how many successful traders tend to follow the same general principles, even if their approach to trading may differ Explores how to account for the risk of being wrong and the market moving against you * Discusses how to develop an approach that combines trade selection with sound risk management, avoids emotional attachment to positions, exploits volatility cycles, and focuses on market action Regardless of how you approach markets, the insights found here will help improve the way you trade by putting you in a better position to distinguish the differences between successful and unsuccessful traders.

Contenu

Preface xi Acknowledgments xvii

Part I The Casino Paradigm 1

Chapter 1 Developing Positive Expectancy Models 3

Why Technical Analysis Helps 3

The Inefficient Market 6

If It Feels Good, Don't Do It 10

"Just Make the Money" 15

Final Thoughts 21

Chapter 2 Price Risk Management Methodologies 23

One Sure Thing 23

Base of Pyramid 26

Middle of Pyramid 37

Apex of Pyramid 47

Pros and Cons of the Risk Management Pyramid 49

Putting It All Together: A Case Study 49

Final Thoughts 51

Chapter 3 Maintaining Unwavering Discipline 53

Defining Discipline 53

Discipline and the Positive Expectancy Model 55

Types of Traders 61

Discipline and Price Risk Management 64

Patience and Discipline 67

Final Thoughts 70

Part II Trading Tools and Techniques 71

Chapter 4 Capitalizing on the Cyclical Nature of Volatility 73

The Only Constant 73

Defining Volatility with Technical Indicators 76

Building Positive Expectancy Models with Volatility Indicators 89

Final Thoughts 94

Chapter 5 Trading the Markets and Not the Money 95

Ten Thousand Dollars is a Lot of Money! 95

"Baby Needs a New Pair of Shoes" 99

Trading with "Scared Money" 100

Time is Money 101

Final Thoughts 104

Chapter 6 Minimizing Trader Regret 105

The Softer Side of Discipline 105

Issues for Trend-Followers 106

Issues for Mean Reversion Traders 113

Final Thoughts 123

Chapter 7 Timeframe Analysis 125

Traditional Timeframe Analysis 125

Timeframe Confirmation Trading 131

Timeframe Divergence Trading 131

Final Thoughts 142

Chapter 8 How to Use Trading Models 143

Mechanical Trading Systems 143

Nonmechanical Models 162

Equity Trading Models 170

Final Thoughts 175

Chapter 9 Anticipating the Signal 177 …