Millionaire Traders - Market Maker or Market Taker?

it sounds like a good book.

don't worry about spam or pumping it ,,,if the book is good tell everyone about it.

another good book is technical analysis of the financial markets by john murphy it's a encylopedia of TA
 
Quote from EdgeHunter:

I appreciate the fact you asked Barron for permission to post...

I find your first paragraph in your sample chapter is interesting... with the first tip being about fundamental divergences...

<i><b>"1. If the News Is Good but the Stock Plummets, Buy the Crash...
Buying crashes is not for the faint of heart. For many traders, the experience is akin to jumping out of a plane without a parachute. Yet Dana Allen has made his living doing just that. How does he profit from other trader’s losses? By looking for tell-tale signs of divergence. Technical divergence setups where price makes a new high but momentum indicators do not is one of the bread-and butter routines of many successful traders. However, Dana Allen takes the idea one step further by trading fundamental divergence. He likes to buy stocks that sell off on good news speculating that the initial reaction is often simply due to short-term profit taking. Once the sellers are done, Dana likes to scoop in and buy value at a cheap price and then quickly resell it higher once demand reappears. By making sure that he only buys quality companies with good news, Dana has the fundamental support for his trades and more often than not is able to bank gains in the process."</i></b>

I don't follow Jim Cramer's picks but his strategy is very similar to this...


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Yea that actually a fascinating chapter. Dana tell s abut the time heard that Templeton bought every $1 stock on NYSE after WWII and then proceeded to make a fortune in the post war rally. So after the NASDAQ crash he replicated the same strategy with tech stocks and made a killing getting what he calls ten baggers.
 
Quote from EdgeHunter:

How long have these traders that you profiled been trading.... :confused:

I think that is important to know... as to assigning value to what they say or not...

thanks...


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The least amount of time is 3 years. Most have been doing at least 7-15 years and not only making money but thriving - I've seen the boats. And more importantly I've seen many of them trade live.
 
Quote from wastrading:

And gets permission let them. A book is alot of work. This one has an interesting thesis. (its not necessary to get a 2-1 risk reward if you have a high winning%).

Its one thing to spam some system, but if an author who's put alot of work into researching something wants to start a (notice I said a ) thread and gets permission more power to them.

Now I just diddle around a little on the es while I do divorces at 150 + an hour, but I like reading trading stuff and this is certainly an interesting book.
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I think you will really like - its not academic in any sense of the word. It all about the everyday challenges and joys of being a trader.
 
Quote from mephistoII:

Let me go out on a limb here - you really are infatuated with Jack the man, ya little Brokeback Mountain internet cowboy :D
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Someone is projecting :p
 
I can't understand it people, what is this thing about insisting to ruin threads?
What's it to you if he is spamming or not or what have you, simply don't read and leave it to each person decide for himself.
In other words take your crap elsewhere and let others benefit from this thread, can you?
No you cunt, I know...
 
Quote from jbt:

Everyday People are beating Wall Street at its own Game
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This is the most ludicrous line I have read on ET...
And that is saying a lot.

You win the "Pathological Whore Spammer Who Will Do ANYTHING For Money" Award...
For Tuesday, September 4, 2007.
 
Quote from QuantPlus:

This is the most ludicrous line I have read on ET...
And that is saying a lot.

You win the "Pathological Whore Spammer Who Will Do ANYTHING For Money" Award...
For Tuesday, September 4, 2007.
More...


Stop being so self-righteous....Let him speak...we want to learn more....I love learning from others who've made it big!

If you've nothing left to learn then leave this thread alone!
 
contrary to what the broker, you don't need $50,000 to daytrade.

a true daytrader can tell you $10,000 with 20X margin is more than enough for trader that can daytrade.

These brokers just want your $50,000 and most don't even bother giving you $25 trading manual. it would be like the casino teaching the customers how to beat the casino.



Quote from jbt:

OK - all great questions.

First note the language - who started with as LITTLE as $1000. Of course not everyone started with so little money. In fact many of our subjects caution about being under capitalized and even spell out exact rules as how much capital per contract they consider prudent.

That having been said - the copy you quited came off a book jacket cover and it wouldn't be a book jacket cover if it didn't have a doze of hype. After all book jacket covers are advertising and that by definition is hype.

Still the 1000 dollar story is true. It comes from this amazing guy in South Africa named Hoosain who has an incredibly hard standard for testing systems. Basically he demands that any new system triple your demo account twice before going live. How many of us have the patience and perseverance to do that?

Yet that's what it takes to win in his game.

As to the 2nd part of your question. The book is different because it focuses solely on retail traders who risk their own money, not hedgies who use OPM.
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Quote from vectors101:

contrary to what the broker, you don't need $50,000 to daytrade.

a true daytrader can tell you $10,000 with 20X margin is more than enough for trader that can daytrade.

These brokers just want your $50,000 and most don't even bother giving you $25 trading manual. it would be like the casino teaching the customers how to beat the casino.
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Well the answer is very different depending on which market you trade. In stocks you need 25K just to comply with the day trading rule unless you trade prop. In futures leverage can run as high 40;1 in FX leverage can be an insanely high 200:1.

But the consensus view that emerged from conversations with all our traders is that 10;1 leverage is MAXIMUM that you should trade and even then that's the END not the START of your position.


In other words is if you have 10K your nominal position in the market should never exceed 100K and that only if you are essentially scalping with very small loss limits.

The number one reason most traders go bankrupt is the same reason most business owners fail - undercapitalization.

Having enough money to back your positions will not guarantee success, but not having enough capital to absorb even a minor adverse price movement will assure failure.
 
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