Daryl J. Guppy - Stocks and Forex Trading: How to Win

STOCKS and FOREX TRADING HOW TO WIN

KAREN WONG DARYL GUPPY

Published by

World Scientific Publishing Co. Pte. Ltd.

5 Toh Tuck Link, Singapore 596224

USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601

UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE

Library of Congress Cataloging-in-Publication Data

Names: Guppy, Daryl J., 1954 author. | Wong, Karen (Certified financial technician), author.

Title: Stocks and forex trading : how to win / Karen Wong, Daryl Guppy.

Description: New Jersey : World Scientific, [2021]

Identifiers: LCCN 2021023184 | ISBN 9789811236860 (hardcover) |
ISBN 9789811237645 (paperback) | ISBN 9789811236877 (ebook) |
ISBN 9789811236884 (ebook other)

Subjects: LCSH: Foreign exchange. | Stocks.

Classification: LCC HG3821 .G86 2021 | DDC 332.64/2--dc23

LC record available at https://lccn.loc.gov/2021023184

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

Copyright 2021 by World Scientific Publishing Co. Pte. Ltd.

All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the publisher.

For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher.

For any available supplementary material, please visit
https://www.worldscientific.com/worldscibooks/10.1142/12274#t=suppl

Desk Editor: Lai Ann

Typeset by Stallion Press

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Printed in Singapore

Double Happiness plus One was the title of the email starting it all. The email was to let Daryl know how happy I was. My double happiness of having one of my trading concepts presented by him at the International Federation of Technical Analysts Annual Conference and the debut of my first published article in a trading magazine. The plus one was an attempt at humour. Mentioning a dream goal, a book collaboration Karen Wong and Daryl Guppy I was half serious, but he was not. The outcome of this conversation is the book youre reading now.

Thank you to my husband Melvin, who in 2003 thought of trading as an ideal activity for me. He is my biggest supporter who encourages me to keep going even in times of my own doubt. Trading became a part-time job I could do from home while having my little boys by my side.

Little boys grow up. One little boy, who used to be my companion while trading, used his skills on a photographic shoot to produce my author photo. Daniels contribution is greatly appreciated. The other little boy, now also fully grown, continues to accompany me. Thank you to the ever-patient Justin, who always makes time to listen to my trading concepts.

Daryl Guppys first book Share Trading became the foundation of my knowledge on how to trade. Ten years after first reading it, we met at a conference and it was hard for anyone to understand my excitement. To me, meeting this walrus moustachioed person was like meeting a famous film celebrity one of the best in his field. I was starstruck. Daryl asked me, Do you trade? My answer was, embarrassingly, I trade on and off.

Starting a subscription to Daryls newsletters www.guppytraders.com my trading eventually became more on than off. In an email to the editor, I mentioned finishing well in a national sharemarket game. Thank you to Ryan Guppy who first asked, Would you like to write an article about that? From this first article, I have continued to contribute newsletter articles about my trading experiences.

I cannot thank Daryl enough for encouraging me to become a better trader by learning through my experience of trading and finding the possible answers to my own questions. Daryl is generous with his time and is a pleasure to work with. He is a work colleague and also a friend. The man who wrote the first trading book I ever bought has now written a book with me.

Thank you to all my trading friends and other fellow traders I have met at conferences along the way. Your chats have often inspired writing topics for some of my articles. I hope this book helps you trade profitably into the future.

Karen Wong
Sydney 2021

Ive always liked to play games. As a child, it was Hungry, Hungry Hippos then Cluedo and Monopoly. Ive had a go at Call of Duty and Mario Kart, though failing miserably due to my lack of coordination and skills. Today I enjoy Animal Crossing: New Horizons and Splatoon on Nintendo Switch. Games have taught me to be a better problem solver as I am constantly thinking of strategies to win or to reach my goal. Playing for hours to win, to level up and sometimes to lose. Persistence was the key to improving as was learning from my mistakes.

The financial markets are similar to how games work learn the rules, set up your strategies and play to win. For those starting out in the game of trading, a stock exchange market simulation game is an excellent place to start. Register and familiarise yourself with the workings of the market without risking a single cent.

In the past this was often sneeringly dismissed as monopoly or paper trading. Thats no longer accurate as these games, just like todays Fortnite, are vastly more sophisticated and a far cry from Hungry, Hungry Hippos.

The best of the stock market simulation games is run by the Stock Exchanges and pit you against thousands of other traders rather than just a single brokerage client group. Playing this game honed my skills and confirmed my strategies, ranking me in the top 1.8% nationally out of nearly 18,000 players.

It was essential groundwork preparation for the real task of successful trading. What I learned in these games, and in developing strategies, saved me thousands of dollars in potential losses when I entered the market with real money. Used correctly, these games can do the same for you.

This is not just a book on theoretical trading. Real trade examples are used throughout to show you the interaction between the market and me as the trader. Through my personal trades I detail the decisions and the thinking behind each decision and the methods used to attain the best outcome for now or for next time. This gives you a better idea of what works, and which mistakes to avoid. We all make mistakes, buts its the early recognition of mistakes that contributes most to successful trading.

When I first started trading, I was a young mother at home looking for income from part time work. Time was limited and the thought of trawling through pages of financial analysis was not appealing nor practical. Technical analysis was ideal for a time poor person like me. Using indicators to forecast price movements and to see the past performance of a stock laid out on charts was a shortcut way of seeing what was happening in the markets. Everything I needed to know or see was on a chart. The main indicator used in the charts of this book is the Guppy Multiple Moving Average (GMMA). A technical indicator developed by my coauthor Daryl Guppy to determine direction, behaviour and character of a trend. This indicator works well combined with price action and other popular technical analysis patterns and indicators.