Wiley - The Wiley Trading Guide
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First published 2010 by John Wiley & Sons Australia, Ltd
42 McDougall Street, Milton Qld 4064Office also in Melbourne
Typeset in Adobe Caslon 11.5/14.2
John Wiley & Sons Australia 2010
The moral rights of the authors have been asserted
National Library of Australia Cataloguing-in-Publication data:
Title: The Wiley trading guide edited by Kristen Hammond.
ISBN: 9781742469874 (hbk.)
Notes: Includes index.
Subjects: Investment analysis. Stock exchanges. Speculation. Futures market. Money market.
Other Authors/Contributors: Hammond, Kristen.
Dewey Number: 332.6
All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All enquiries should be made to the publisher at the address above.
Cover design by Rob Cowpe
Image on p. 286 iStockphoto.com/stockcam.Image on p. 287 iStockphoto.com/bluestocking.
Screenshots in chapter 15: The DealBook 360 screen captures were used with permission from GFT. GFT and John Wiley & Sons Australia are separate and independent companies. GFTs DealBook 360 trading software is offered as a free service to GFT customers. GFT is not responsible for the information provided in this book. Forex trading presents substantial risk of loss with or without the use of GFTs DealBook 360 trading software.
Printed in China by Printplus Limited
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Disclaimer
The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the authors and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based upon the information in this publication.
About the authors
Louise Bedford
Louise Bedford is one of Australias most compelling speakers on the sharemarket, as well as being a share trader for nearly 20 years. With degrees in psychology and business, shes done the hard yards in the sharemarket. You will adore Louises warm and approachable style, whether you are a professional trader or a complete amateur.
As Australias bestselling author on the sharemarket for nearly a decade, she has been quoted in more Australian share-trading books than any other trader. Her trading books Trading Secrets, Charting Secrets, The Secret of Candlestick Charting and The Secret of Writing Options , as well as her presentations, are not about vague concepts that dont work in the real world. They are about incredibly practical, timesaving strategies that you can implement in order to become an extremely successful trader.
If youve trained with another sharemarket trainer, the chances are that theyve got a dog-eared, highlighted copy of one of Louises books in pride of place in their bookcase.
If you genuinely want to become an ultra-versatile trader and develop an incredible lifestyle, you need a trading plan. Just go to Louises website and register your details. As a gift, shell email you your very own Trading Plan Template straight away. It will help you work through all of the vital issues that need to be included in a sophisticated trading plan to give you an edge in the sharemarket.
Jim Berg
Jim Berg, author of The Share Traders Handbook, The Stock Trading Handbook (e-book) and Shares to Buy & When, is a former broker, private trader and lecturer with over 20 years experience in the investment industry. He has appeared on Sky Business TV, CNBC Asia and Market Wrap and is a regular guest speaker at such institutions as the Australian Securities Exchange (ASX), the Sydney Futures Exchange (SFE) and the Australian Technical Analysts Association (ATAA) and at Traders Expos at capital cities throughout Australia. In Brisbane in October 2007 he was billed at the ATAA Pathways to Trading Excellence Conference as one of the 10 most respected trading professionals in the world. Using his commonsense approach, Jim Berg won the Personal Investor magazines trading competition in 2002 during a severe bear market that lasted three years.
In his December 2007 Sharetradingeducation.com report Crash vs Bear Market Jim detailed his technical analysis of the warning signals weeks ahead of the January/February 2008 freefalls.
His articles have been published in the ASX newsletter Shares, Personal Investor, Your Trading Edge and Stocks and Commodities in the US.
Further information is available at .
Guy Bower
Guy Bower is the Head of Training and Development at Propex Derivatives, a proprietary trading company specialising in high-frequency futures and equity trading. He is also an active spread trader in US futures.
He has worked in Australia and overseas and has experience in futures, options, funds management and trading education.
Guy is the author of several books including Options: A Guide for Australian Investors and Traders and Hedging: Simple Strategies for Protecting Profits . He was also profiled in the book Bullseye: Top Trader Thinking by Matt and Sari Kirk.
His website is .
Kel Butcher
Kel Butcher is a financial markets trader with over 20 years experi-ence trading equities, futures, options, forex and CFDs. Kels favourite, though, is the futures market where the pure nature of a supply-and-demand-driven market, coupled with high liquidity, allows the application of well-researched mechanical trading systems. The use of electronic platforms allows many of these systems to be auto-traded, further reducing any emotional attachment to the trading process. He is a regular contributor to Your Trading Edge magazine and contributed to Give Your Trading the Edge published by Wrightbooks in partnership with Your Trading Edge magazine. Kel is also the author of the Wrightbooks titles A Step-by-Step Guide to Buying and Selling Shares Online and 20 Most Common Trading Mistakes and How You Can Avoid Them. Kel is director of KD Trading Systems , specialising in providing futures and forex trading systems that work and deliver positive returns to traders. He is also a mentor and trading coach to a number of both private and corporate investors.
Davin Clarke
Davin Clarke is a full-time professional day trader who has been trading full time for over 10 years. Davin is passionate about trading and his consistent results year after year speak for themselves. He is an active intraday trader who trades both equities and various futures markets, including the European and Asian markets. In 200507 Davins equities trading turnover averaged A$300 million per annum. Since 2008 Davin has specialised in trading on the futures markets in Asia, the US and Europe.
Davin has developed a keen understanding of how the market moves and how market psychology affects price through many, many hours watching and trading the markets live. The ability to accurately read market dynamics is invaluable to his success and he combines this skill with his own unique trading style.
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