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Be quick... as despite its less than perfect view in Kindle, $0 is a very good price. Will complement my hardcopy nicely. On freebie promotion for who knows how long:
"The Fountain Head" and "Atlas Shrugged". Not about trading but the ideas explored can inspire the bloody minded determination needed to stick with your plans come what may.
I'm planning to study 'fear' and wondered if anyone has any recommendations. I am am not necessarily just after those titles dealing with fear/greed in trading & investing, but throwing the net wider.
I've been playing around with forex on a daily chart over the last couple of months. Was wondering if there are any good books about trading on a daily timeframe. (price action, technical analysis, candlestick charting, etc.)
I've read through this whole thread and some other book threads and couldn't find anything that stood out specifically for daily chart analysis.
Any help would be appreciated. The daily chart looks foreign to me compaired to the intraday stuff I'm used to looking at.
You mentioned this book in another thread. Have you read this book yet? How much detail does it go into about diversification and correlation of products?
Not too much. I mean, he lays out his trading plan as trading a basket of 50+ futures contracts and currency pairs. Diversification and correlation avoidance is via asset types. He doesn't say you really need to watch the correlations across asset types, but in panics they will all merge towards 1.0, in which case, you can still make a lot of money (2008 was his best year). The rules are based on a simple Turtle Trader style trend-following system.
He recently wrote an article in the August edition of Active Trader where he reversed engineered the returns of major trend-following hedge funds and showed they all pretty much used the same system (Donchian(50), with EMA trend filters and an ATR-based trailing stop) but their differences are just the amount of leverage they use and how they are weighted (interest rate-weighted, commodities-weighted, equities-weighted, or some sort of mix, etc). Just more proof that entries and exits don't matter as much as position sizing, diversification, and the power of small losses and large runners.
Thanks Scott. Echo's my own findings as well using baskets of stocks. I may still pick the book up since his findings are so close to my own.
I laughed a bit on the reverse engineering segment because I have found a simple moving average and oscillator to be all that is needed for this type of trading. My systems hold for days or weeks using this method.
The author would say just trading stocks is too correlated, even if you are using commodity ETFs (which don't track underlying commodities well over time), indexes, trying to diversify across sectors, but maybe your experience proves otherwise. He would want you exposed to bonds, treasuries, currencies, ags, softs, metals, energy, etc.
