Aiki Trading E-Book

Jeffery Tie

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Trading Series
• Sprache: Englisch

Seitenzahl: 185

Veröffentlichungsjahr: 2010

Beschreibung

A great reference for all beginner traders. Aiki Trading will look at a robust method to understand what the market is doing in a specified timeframe. Essentially, markets are either trending up, trending down, or is in sideways or range bound congestion. Chapters are devoted to each of these three conditions, and the concepts are explained in depth. In addition, specific trading strategies will be explored for the different market conditions. These strategies are what I define as high probability, low risk trading strategies that have higher probability of success because it conforms to the nature of how markets behave. With more than 25 years of experience in financial markets, Jeffery's stock market career began in 1977 with JM Sassoon and continued with Kim Eng Securities. During his time in Stock-broking, Jeffery witnessed many cycles of boom and bust, including the 1987 meltdown in worldwide equity markets. In 1997, Jeffery joined Refco Singapore. During this time he developed new expertise in International Futures Markets and FX. Jeffery joined CMC in April 2007. He was responsible for the content and presentation of CMC's educational programmes. And he is currently the Resident Trainer with SGX Academy, and is based in Singapore.

Leseprobe

Table of Contents

Title Page

Copyright Page

Foreword

Preface

Acknowledgments

Introduction

THE PHILOSOPHY OF AIKI TRADING

CHAPTER 1 - Aikido

HISTORY

THE PRINCIPLES AND TECHNIQUES OF AIKIDO

CHAPTER 2 - Candlestick Charting

FEUDAL JAPAN’S ETHOS, AND ITS IMPACT ON THE DEVELOPMENT OF JAPANESE CANDLESTICK CHARTING

THE METHODS OF AIKI TRADING

CHAPTER 3 - The Expanded Sideways Range Pattern

BULLS, BEARS, AND TURTLES

CODIFYING THE TRADING RULES FOR THE EXPANDED SIDEWAYS RANGE PATTERN

QUALIFYING THE TRADE

CHAPTER 4 - The Directional Trending Pattern

IDENTIFYING AND TRADING A TYPE 1 TREND PATTERN

PLANNING THE STOP LOSS EXIT

THE STRUCTURAL RISK

TIMEFRAME, AND THE SELECTION OF ITS RELEVANT MOVING AVERAGE VALUE

CHAPTER 5 - The Successful Breakout

MANAGING THE TRADE

CHAPTER 6 - Using Oscillators

RELATIVE STRENGTH INDEX

THE RSI DIVERGENCE SIGNAL (OR RSI CAMOUFLAGE SIGNAL)

THE SLOW STOCHASTIC OSCILLATOR

CHAPTER 7 - Applying Fibonacci Numbers and Ratios in Trade Analysis

ASSESSING THE FIBONACCI PROFIT TARGET

CHAPTER 8 - Trade Volume and its Interpretation

CHAPTER 9 - Risk, Money, and Trade Management

THE LEARNING PHASE

TRADING FOR PROFITS

THE PRESERVATION OF CAPITAL

MONEY MANAGEMENT THE PRESERVATION OF OUR CAPITAL

RISK MANAGEMENT COMBINED WITH THE 2 PERCENT MONEY MANAGEMENT RULE

POSITION SIZING

WINNING TRADE MANAGEMENT AND THE RULE OF 3

CHAPTER 10 - On Trading Psychology

SUMMARY

Index

Copyright © 2010 John Wiley & Sons (Asia) Pte. Ltd. Published in 2010 by John Wiley & Sons (Asia) Pte. Ltd. 2 Clementi Loop, #02-01, Singapore 129809

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Library of Congress Cataloging-in-Publication Data

ISBN 978-0-470-82581-5

Typeset in 11/14pt Century-Book by Thomson Digital, India

Ltd.

Foreword

Jeff Tie has done me the honor of writing a preface to this book.

Let me state upfront that Jeff is my first friend in Singapore. But as Jeff will tell you, I take pride that I strive to write without fear or favor and this preface is no exception.

I first met Jeff in my first presentation in Singapore and then he attended the first seminar I gave here. Jeff tells me that he had initially dismissed the ideas I presented because what I said went against what he believed then. Jeff took heed of some of my comments—he was open to new ideas even though they went against ingrained habits. That’s not to say he adopted the ideas immediately—change that comes easily is seldom worthwhile. In time, he took some of my ideas and made them his own. The result can be seen in this work. I have seen Jeff grow well beyond the seeds that I help planted. He has become a first-class teacher having recently signed a contract to lecture at the Singapore Exchange (SGX) Academy.

The book you are reading presents and reflects Jeff’s experience as a trader and teacher. Having read Jeff’s book, I believe it deserves a place on your bookshelf and if you are a novice trader, it deserves to be thoroughly studied.

Why should this book be any different from the other hundred or so books on trading success?

Most books focus on one aspect of trading—usually the trading plan. But 30 years in the markets have shown me that trading success comes from the consistent application of a trading plan that has an edge and a risk management plan that controls and manages a trader’s risk.

Jeff has done an excellent job on the trading plan and risk-management plan; he has done a competent job on suggesting ways a trader can attain consistent execution. What I like about the book is the way Jeff has taken complex subjects and made them easy to understand. This is no easy task. While I have not tested the plan, I know from experience that it contains all the elements of a robust trading plan with an edge.

On the risk management side, if you take nothing else from the book, take a deep understanding of the risk-expectancy formula. Most newbies crash and burn because they fail to appreciate the importance of this aspect of trading. Jeff did a great job to make a complex subject simple and you should take advantage of the gift on offer.

Ray BarrosHedge Fund Manager Author, The Nature of Trendswww.tradingsuccess.com/blogApril 2010

Preface

Eastern philosophy extols the cultured individual as one who has a well-rounded education complemented by wide and varied experience. In ancient times this concept, the epitome of the cultured man, was exemplified by the idea that the ideal person would be equally skilled in both the martial arts as well as the literary classics. A more prosaic way of saying this is that the ideal combines both brawn and brain!

This ethos has resonated with me since I first learned about it.

I found “brawn” through the practice of martial arts, and in both aikido and shinkendo I have found a very high expression of Japanese martial techniques and philosophy. In Japanese, these martial traditions are known as budo, meaning the “martial way.”

I explored the literary aspect initially through the study of the classical guitar, chess, and eventually in the pursuit of trading competence.

After many years of practice, I have realized that the underlying principles of success in all human endeavors remain constant, be it in either the brawn or the brain category. There is always the requirement to know and understand the technical aspects of our chosen activity, and this can only be achieved through daily, consistent practice. There must also be an innate and burning desire to achieve our vision. This will spark, spur, and drive us onward, especially in the face of difficulty and setback.

I have also come to the realization that there is no end to the learning process. The more we know, the more we realize how little we know. Some may balk at the energy and effort that success requires. However, those who will succeed will need to start somewhere. After all, as Lao-tzu, the father of Taoism once wrote, the journey of a thousand miles begins with a single step.

It is my hope that this book will assist you in your search, in your journey and in your quest, for trading competency and eventually trading mastery. I have learned from painful loss, and it is a very humbling experience. I will be very happy if the principles and methods in this book can help you to safely navigate the dangers that abound in the trading arena. Remember, pathfinders know where dangerous quicksand and rocky shoals await the unsuspecting traveler. I will be happy if you treat me as your guide, as your pathfinder in your path and journey to trading competency and trading excellence.

Acknowledgments

In both martial arts and in trading, I have had the privilege of learning from many different instructors, each of whom have taught me different methods and exposed me to different perspectives.

I specifically wish to acknowledge two special and unique individuals who were, and still are, instrumental in my progress and development.

Lonnie W. Oakes was my martial arts instructor, or sensei, who introduced shinkendo (Japanese swordsmanship) to me. Lonnie sensei taught me the techniques of shinkendo, but more importantly, by his own example, he also shared and taught me the martial arts philosophy that I now recognize as essential to success in any life activity. One specific lesson is worth mentioning here. Both Lonnie sensei and I were early for class. Lonnie sensei started off with a series of basic (but difficult) stretches. Instead of following him, I started a set of sword drills. Lonnie sensei stopped me, and pointed out that I was not in the correct body condition to do the sword drills well. I needed to work on improving suppleness and flexibility, which was what Lonnie sensei was doing in his basic stretching exercises. He correctly pointed out that I avoided doing what I found to be uncomfortable.