Fly Fishing the Stock Market: How to Search For, Catch, and Net the Market's Best Trades

1. Auflage 2012
ISBN: 978-1-118-33604-5
Verlag: WILEY

Buch, Englisch, 304 Seiten, + Website, Format (B × H): 161 mm x 239 mm, Gewicht: 689 g

Reihe: Wiley Trading Series

How the strategies and tactics of fly fishing can translate to improved trading performance

Much like trading, successful fly fishing requires both an understanding of "big picture" conditions and the ability to implement tactical techniques to actually catch the fish. In Fly Fishing the Stock Market, Dr. Stephen Morris compares his method for trading stocks with his favorite past time, fly fishing--providing fresh insights into his successful trading approach. Engaging and accessible, this book skillfully describes how Morris applied this approach to generate an astounding 268% growth in his account in the volatile and confusing, post-financial crisis markets.

Morris explains how he uses technical indicators to determine what he calls the "market season" and how he then zeros in on individual stock patterns to make his trades. He also reveals unique tools, such as the Market Timing Monitor and Weather Station, which give him a sense of the market's long-term condition and provides the basis for his trading and risk management strategies.
* Filled with the authenticity of a real trader figuring out how to uncover profitable trading opportunities
* A companion Website contains supplementary material that allows you to learn in a hands-on fashion long after closing the book
* Provides a compelling portrait of how a successful trader thinks about markets, develops a method, and then implements the method in real time
* The author's spectacular returns are backed by publicly documented records

Just like fly fishing, traders must adjust their approach constantly because market conditions constantly change. This book will help you achieve this elusive goal, and capture consistent profits in the process.

Autoren/Hrsg.

Morris, Stephen

Fachgebiete

• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Börse, Rohstoffe

Inhaltsverzeichnis

Introduction xiii
PART I Fly-Fishing Lessons
CHAPTER 1 Three P 's in a Pod 3
Passion 4
Patience 4
Persistence 4
CHAPTER 2 The Tackle Box 7
What Goes Into the Toolbox 8
Bar Charts and Candlesticks--Same Markets, Different Angles 9
Bullish and Bearish Engulfing Patterns 13
Trendlines 14
Tops 14
Bottoms 19
False Breakouts 20
Gaps 22
Triangles 26
Volume 26
Computerized Indicators 28
Moving Averages 30
Moving Average Convergence-Divergence 32
The Impulse System 39
Force Index 41
Conclusion 41
CHAPTER 3 Developing Your Technique 45
Analytical Tools and Steps 46
Understanding Entry Orders 49
Conclusion 51
CHAPTER 4 Expectations 53
Why Managed Funds Can Be "Dilutional" 54
Conclusion 58
PART II Expect the Unexpected
CHAPTER 5 Seeing Is Not Believing 63
Getting Trapped at the Extreme Edge 64
Conclusion 66
CHAPTER 6 The Art of Deception 69
When the Prey Is Exhausted 70
The Deceptions of V-Bottoms 71
The Deceptions of Symmetrical Triangles 73
The Deceptions of Ascending Triangles 74
The Deceptions of Head-and-Shoulders 77
The Deceptions of Breakouts 78
Conclusion 80
PART III Time to Go FISHing
CHAPTER 7 Fishing Seasons/Market Seasons 83
Market Seasons 83
The Influence of Volatility 85
Monitoring Market Season Changes 86
The Weathervane: A Market Timing Monitor 86
The Weather Station 94
Adding the Detail of Price Patterns to Strengthen the Message 96
Conclusion 99
CHAPTER 8 Matching the Hatch 101
Bottom Patterns 103
Pull-Back Patterns 115
Top Patterns 123
Pull-Up Patterns 130
The Symmetrical Triangle: An All-Around General-Purpose Pattern 136
Conclusion 150
CHAPTER 9 Terrestrials and Cut Banks 153
Fundamental Analysis 154
Using Fundamentals to Complement Technical Analysis 159
A Disconnect Between Technicals and Fundamentals 164
Fundamentals on Fire: Momentum Trading 165
Chasing the Big Ones 168
Conclusion 168
CHAPTER 10 Catch and Release 171
Setting the Hook with the Strike Indicator (Entry) 172
The Strike Indicator Entry Steps 174
Snag Management (Stop-Loss) 177
The Drag System (Trade Management/Profit Exit) 178
Examples of Drag Settings 181
Exit to Enter? 184
Conclusion 187
CHAPTER 11 A Word About Bait Fishing 189
Daily Bait-'n'-Wait 191
Weekly Bait-'n'-Wait 191
Monthly Bait-'n'-Wait 192
Conclusion 193
PART IV Fishing Journal
CHAPTER 12 The Trophy Room 197
Neckline Break . . . Up: 9/28/09 198
The January Effect: 1/5/10 199
A Gem in the Junk Pile: 1/1/10 202Greater Fool Trade: 4/17/10 204
The Perfect Storm: 2/5/10 207
Time of Possession: 8/14/10 210
W-Bottom: 9/11/10 213
Logical Entry and Exit--Long ENTR: 9/11/10 216
Conclusion 219
CHAPTER 13 The One That Got Away 221
GLF Trade 222
JTX Trade 225
RMBS Trade 227
Conclusion 229
CHAPTER 14 The Structure of Success 231
The Building Blocks Concept 232
Conclusion 246
CONCLUSION 249
APPENDIX A My Trading Journal 251
Value versus Momentum 252
Analysis 252
Group Strength 253
Trading and Position Sizing in Volatile Markets 253
Trade Management 254
Breakouts 256
Taking Profits 256
The Entry/Exit Review 256
Trading Systems 257
Trading Strategies 257
Learning and Progressing 257
APPENDIX B Table of Indicator Sets 259
References 261
About the Author 263
About the Website 265
Index 267

Über Autor(innen)

Morris, Stephen
STEPHEN MORRIS is one of the top performing traders of Alexander Elder's SpikeTrade Group, generating a gain of 264% in his SpikeTrade equity during the turbulent and confusing markets of 2008–2010. He has been a guest instructor at an Elder-sponsored trading camp and operates a blog, Fly Fishing the Stock Market, which contains his Weathervane (Market Timing Monitor), weekly and daily market forecasts, along with commentary on long- and short-term buy signals and specific market patterns. Dr. Morris has been trading since 1998.

STEPHEN MORRIS is one of the top performing traders of Alexander Elder s SpikeTrade Group, generating a gain of 264% in his SpikeTrade equity during the turbulent and confusing markets of 2008 2010. He has been a guest instructor at an Elder-sponsored trading camp and operates a blog, Fly Fishing the Stock Market, which contains his Weathervane (Market Timing Monitor), weekly and daily market forecasts, along with commentary on long- and short-term buy signals and specific market patterns. Dr. Morris has been trading since 1998.