How to Beat the Market Makers at Their Own Game: Uncovering the Mysteries of Day Trading (Wiley Trading)
Format: PDF / Kindle (mobi) / ePub
The basic skills for becoming a successful trader from a master of the game
Written by Fausto Pugliese (founder and CEO of Cyber Trading University) this must-have resource offers a hands-on guide to learning the ins and outs of active trading. How to Beat the Market Makers at Their Own Game gives professionals, as well as those relatively new to investing, a behind-the-scenes look at the inner workings of the marketplace and a comprehensive overview of basic trading techniques. The book explains how to apply the trading strategies of acclaimed trader Fausto Pugliese. Step by step the author covers the most common market maker setups, shows how to identify market maker traps, and most importantly, reveals how to follow the direction of the lead market maker in an individual stock.
Throughout the book, Pugliese puts the spotlight on Level II quotes to help investors understand how market makers drive prices and manipulate the market. This handy resource is filled with the tools needed to interpret market maker activity so traders can truly understand the market and trade accordingly.
- Offers an accessible guide for developing the investing skills to trade with confidence
- Filled with the real-world trading experiences and techniques of Fausto Pugliese
- Covers simple technical patterns that are important in day trading
- Includes a website with exercises to help master the book's techniques
How to Beat the Market Makers at their Own Game will become your well-thumbed resource for learning what it takes to succeed in short-term stock trading.
enough market makers on the bid and ask sides. As for the spread, it falls nicely within the $0.06 to $0.12 range. Given the tier depth, it should be possible to purchase the stock at $7.75. On the other hand, it should be possible to sell the shares at $7.74 at the least. With a maximum likely spread of $0.01, this stock certainly follows the spread rule. Is this stock tradable or not tradable? (See Figure 6.6.) PICKING TRADABLE STOCKS, PART II 44 FIGURE 6.7 Not Tradable ■ Example 8:
determination is more an art than a science. It is a judgment call, something that you’ll get more comfortable doing over time. With just a little bit of practice, you will be able to look at a Level II window and instantly recognize the ax or axes. Ideally, you are looking for the market maker(s) who completely dominate(s) trading in the stock. The trading activity of the ax will be the most important element of that particular stock for you; after all, you want to follow the true market
the shortest time possible, you need to study the stock chart, look at the market maker, and create a game plan. A day trader has to focus on the major support and resistance levels and act accordingly. Now you have to start learning the building method concept for day trading. The two most important concepts of reading stock charts are support and resistance levels. The support level is the level on the stock chart that indicates where a stock hits the lowest price before it begins to move up. A
children, my parents, and my close friends. And certainly, the same is true for you. There are some things that money can’t buy in your life. If that’s true, then you certainly don’t want to sell your actual life for money. You don’t want to spend the vast majority of your waking hours doing something that you don’t love just for the money. As I see it, when it quits being fun, you should quit. Now, of course, even if you absolutely love day trading, you run the risk of burning out from time to
Never buy or sell stocks at prices that end in 5 or 0. • Review your trades at the end of the day. • Look for refreshing on the bid and offer. Time and sales will help you with spotting refreshing. • Imbalance in the Level II chart will help indicate traps. • Never lose more than you are looking to make for the day. HOW TO BE A SUCCESSFUL TRADER 118 • You need to do a minimum of five trades a day to learn. • If you cannot make money on paper trading, then you will not make money on live