Oliver L. Velez - Power Trading: Winning Guerrilla, Micro, and Core Tactics

Table of Contents

Copyright 2008 by Oliver L. Velez

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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How to Read This Book

This guidebook brings together three trading approaches that have been used by tens of thousands of traders who have participated in educational sessions presented by Oliver Velez and the Pristine team. The whole, in this case, is truly much greater than the sum of the parts.

The DVD in the back of this book brings you right into those sessions that have helped many traders access this powerful information. By using the DVD, you can watch the instructions again and again to absorb every concept, without ever having to leave home.

To access the streaming video that comes with this book, please register at www.wiley.com/go/wileytradingvideo .

The material in the next 300+ pages puts all of the information together into a visual roadmap that shows you how to apply the tactics and strategies that are covered in this multimedia learning experience.

To realize the full potential of the information you have before you, we strongly encourage you to watch the DVD, read the book, and then go online and take the self tests. This guidebook was designed to help you easily identify the plays that will work best with your trading style, your personality, and your current portfolio.

Highly respected as one of the most eloquent trading educators in the business, Oliver engages you and walks you through the plays in each of these approaches in simple, accessible language. The guidebook format ensures that you will have detailed and instant access to Olivers full library of information. You will now be able to reach over and flip directly to the play that will apply to todays market and use the highly developed approach that will best accomplish your trading goals.

Preface

You have known one truth since your first trade, or perhaps even before you ever hit the buy button. And, you are reminded of this unquestionable truth every day you are in or near the markets. It is simply: Markets are constantly changing. The very moment you are lulled into complacency, you will be harshly reminded of the tidal force that one small change in the markets can bring to bear on your trading mentality, profitability, and goals.

Yet, in spite of this evolving target, success is always within reach. A down day should not break a trader. By accepting the certainty of change, winning traders will see a down day as the voice of the market speaking to them. It is saying that the path to success has moved and if that they want to find success, they must change with the market. The winning patterns that materialized on the charts just yesterday are still there, but like a chameleon, they have mastered the art of camouflage and are challenging you to find them.

The analogies for having a collection of trading strategies to reach for when the markets shift are endless. Craftsmen have a wide variety of tools; fishermen have a selection of different baits or lures in their tackle box; artists begin with pallets of various colorsall of them must be ready for any changes that will come between them and their goals. To be masters of their skills, they know that they cant just bring every tool, lure, or color with them every day. They have to understand the value of every resource they bring along.

And as is true in any arena, the rookies are easy to spot. They are the ones at the dock whose boats are about to sink from overloading, or the hikers with packs so heavy they cant walk. On the other hand, the master will have a modest, yet very carefully selected collection of tools. There will be a very distinct and logical reason for each resource he or she has chosen. It will be proven, or meet some need he has identified in a past experience. The master will have seen it work and will know when and just how to optimally use the tool.

In trading, it is a matter of collecting the tactics that are proven and that provide the flexibility to adapt to changing market conditions. Master traders spend years honing their collection of tactics. Their tools may be certain pattern set-ups or different technical indicators, but no matter what, master traders build them into their trading styles because they work consistently for them. To gain access to a masters tools and why he has chosen each one is an unparalleled opportunity.

For the new trader, it can save immense amounts of time and money. The risks of missing an opportunity by not having the right strategy or by using the wrong one are very real and, to a certain extent, unavoidable. To be able to minimize that risk and accelerate the learning curve means a shorter distance to the income and freedom that attracts most people to trading.

For the experienced trader, even another master, it can offer a chance to augment an already powerful arsenal. Any new tactic should be held to the highest level of critique. Advanced traders have a clear idea of what they expect and they also know exactly what they need a new tool to accomplish. Their broader awareness of the market will have taught them that they need to constantly be looking out for and evaluating new ways to remain successful. With very specific and critical expectations, finding new tactics that are even worth testing can be tedious.