[Soultrader]

Originally Posted by Visionary »

Great book by the way. It was recommended by a trading friend also.

Have you read Extraordinary Popular Delusions and The Madness of Crowds by Charles Mackay?

Great book reflecting historical events of greed. One popular story is the tulip mania in Holland where people would trade their house for a couple tulips. Booms and Busts.... this cycle will always exist. It is in our nature.



Extraordinary Popular Delusions and The Madness of Crowds

[Robert]

Originally Posted by luke24.5 »

Indicators tell you what has been happening. They ahve nothing to do with what is about to happen. The ONLY thing that moves the market is supply & demand, or what some call support and resistance.

Indicators don't matter.
News doesn't matter.

When the market reaches a point of resistance (supply) it will retrace or sell off until it reaches an area of demand or support.

I know of people who trade nothing but price.

I know of traders who trade market profile based patterns and use only volume to determine wuply and demand. But they're essentially looking for the same thing. Who enters the market when price reaches a previous point where supply or demand rests.

Check out The Scientific Investor website and download their free primer.

Hello Luke,

I am interested in learning more about trading with price action. How long does one take to fully understand the movements of the markets with price only?

The reason I say this is because I just recently started learning to trade on a short term basis. I have read several books that teach trading with indicators. But reading through some of the posts in this forum, I noticed that many traders disregard indicators as part of their trading methods.

I would like to start learning on the right track. Any advise would be appreciated. Thank you

[ant]

Robert,

Here are my suggestions... Study Wyckoff. A lot of what you read today about technical analysis is based on Wyckoff's work in the 1920's or so. Another great book on swing trading is "New Blueprints for Gains in Stocks & Grains & One Way Formula for Trading in Stocks & Commodities" by William Dunnigan written in the 1940's.

Amazon.com: New Blueprints for Gains in Stocks and Grains: Books: William Dunnigan

I also recommend reading some free newsletters from Robert Krausz (one of Schwager's Market Wizards) available at the link below. Specifically the stuff on swings and determining the main trend.

Fibonacci Trader - The first Multiple Time Frame Software for Traders

Over the years, I've read many books on TA published over the past couple of decades, and except for Market Profile, there is very little out there that is original. My suggestion is to go to the source.

Hope this helps.

[Robert]

Thank you very much ant. I have heard alot of great things about Wycoff and I totally agree with you on sticking with the source. The stock operators of the early the 1920's were the original thinkers of trading philosophy.

I will take a look at William Dunnigan's book, a little pricey but will give it a shot. Can you also recommend any market profile books? I did a quick search on amazon but only found two different versions; one by Steidlmayer and one by Dalton. Should I pick up both? Thank you

[ant]

Robert, I would only pick up Mind over Markets by Dalton. It's the best book out there on Market Profile - it's excellent, well-written, and inexpensive. I'm looking forward to Dalton's next book coming out Feb. 2007.

Buy from Warehouse SUPER Sale and get the $10 coupon.

[Robert]

Thank you ant. I will start studying Market Profile. I checked with the CBOT website and found some good online recordings on Market Profile. At first glance it seems fairly complicated. It may take some time to fully understand the concept used in market profile.

[uncle_vito]

I am a newbie on traderslaboratory but have been trading for about 15 years. I keep experimenting with new trading ideas.


I have been thinking about a straddle on the S&P 500 index (SPX). Any advice. Seems like bid/ask spreads could greatly limit profitability of trades.

Any advice on S&P Straddles?

Thanks

Vito

[Soultrader]

Originally Posted by uncle_vito »

I am a newbie on traderslaboratory but have been trading for about 15 years. I keep experimenting with new trading ideas.


I have been thinking about a straddle on the S&P 500 index (SPX). Any advice. Seems like bid/ask spreads could greatly limit profitability of trades.

Any advice on S&P Straddles?

Thanks

Vito

I have always been interested in this strategy as well. Just not familiar enough with options. Anyone know?