Short Term Trading Strategies That Work

144 Pages·2008·2.86 MB·English

by  Larry Connors

CopyrightL aureAn.Cc oen naonrCdse sAalrv arez
© 2009,
ALLR IGHRTESS ERVNEopD a.o rftt hpiusb licmaaytb iero enp rodsutcoeirdnae, d
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IIYI'OTIIETiCASLIOMRU LAT.t:::DP ERFORMANCER ESULTHSA VE CERTAINI NHERENTL IMI­
TATIONSU.N LIKEA N ACTUAlP.E RFORMANCER ECORD,S IMULATERDE SULTS00 NOTR EP­
RESENTA CTUAL TRADING AND MAY NOT BE IMPACTEDB Y BROKERAGEA ND OTIIER
SLIPPAGFEE ESA.L SO,S INCEI HETRADESHAVENAOCTT UALLYB EENE XECUTEDT,H ER E­
SULTSM AY HAVE UNDER-OR OVER-COMPENSAElD fOTRH E lMI'ACITF, ANOYF,C ERTAIN
MARKET FACTORSS,U CH AS LACK OF LIQUIIDTYS.I MULATEDT RADING PROGRAMS IN
GENERALARE ALSOSUBJECTTOTHE FACTTHATTHEYA RE DESIGNEDW ITH THE BENEFIT
OF HINDSIGHNTO. R EPRESENTATIOINSB EINGM ADE THAT ANY ACCOUNT WILLO R IS
LIKELTOY ACHIEVEP ROFITOSR LDSSESSIMILART O rHOSES HOWN.
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CONTENTS
ACKNOWLEDGMENTS IX
1
CHAPTER INTRODUCTION 1
2
CHAPTER THINKD IFFERENTLY
RULE1 -BUYP ULLBACKSN,O T BREAKOUTS 9
3
CHAPTER RULE2 - BUY THE MARKET AFTERI T'S
DROPPED;N OT AFTERI T'RSI SEN 17
4
CHAPTER RULE3 BUY STOCKSA BOVE THEIR2 00-DAY
-
MOVING AVERAGE,N OT BELOW 19
5
CHAPTER RULE4 -USET HE VIXT O YOUR ADVANTAGE. ..
BUY THE FEASRE,L LT HE GREED 27
6
CHAPTER RULE5 - STOPSH URT 31
7
CHAPTER RULE6 -ITP AYST O HOLD POSITIONS
OVERNIGHT 35
S
CHAPTER TRADINGW ITH INTRAD-AY DROPS-
MAKING EDGESE VENB IGGER 39
9
CHAPTER THE 2-PERIORDS I- THE TRADER'S
HOLY GRAILO F INDICATORS? 53
10
CHAPTER DOUBLE 7'SS TRATEGY 75
11
CHAPTER THE END OF THE MONTH STRATEGY 83
12
CHAPTER 5S TRATEGIETSO TIMET HE MARKET 91
13
CHAPTER EXITS TRATEGIES 109
14
CHAPTER THE MIND ]]7
15
CHAPTER THE FINALE 141
IX
ACKNOWLEDGEMENTS
" :., ,; " :::r . " " .. !;I r. " := 11 III 1;1II It II IIIr. :I II 11 1:1 a II a a a
A boomka yh avaena uthonra'mosen t hceo vbeurit nr ealmiotsbyto oakrse
writbtyae t ne aIm .w atnott h atnhkfe o llopweionpgl eh ewlhpmoea dkt eh ai s
true etfefaomr t.
Resea-Ars cphe lchiaaynloktu oC esAalrav retzhD,ei reocfRt eosre aorfCc ohn nors
ReseaLrLcCah,l ownigtD ha vWiedi lmuenAstmeiErth raenndrA elistcohh ay.no ku
toP auSla bfoo yro urre seiarncshie gshptesc,ii na lmtlahyre k teitm isntgra tegies.
Terrijfogibec n tlemen!
Edit-Tihnagn k DyaonuTi oltroorC easm,iB lultreNi, i echCoollalsBa rridt,Ct oannnyo rs
anTdy lLeerv infsokry m tahnesy u ggesatnicdoo nrsr ecytoiuo nmsa de along the
wayY.o uirn pwuatsi n valaunagdbr leeaa tplpyr eciated.
1
CHAPTER
Introduction
1) II V II II III II 1I II 1:1 a II iii 1;1 II II II 1:1 CI II l;I a 1:1 II II It
I
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induasnttdrr ya fdomery seflutfli lmT eh.oe n per obwliettmhh g aota\- lv as
thIak tn enwo o neel wseh oh aedv eant temtphtiNeosdr. wtehreear ney
boookrcs o urasveasi ltahsbahltoe w tehdpe a tthob ea blteod ot his.
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MerrLiylnlc h whetnh Deo ww as 8a0t0F .i vyee alrasta enrtd h e
in- 1982
marketh ighIhe artd;h e good feoarrtnuainbneog u ttto i mbees
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more thaenv enreyeaolrnwslehey o I h agdo nteoc ollege awf iewt h just
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1987,
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In1 994,
ret(tiMefe rrillw amLsyy u nncdhe rgrsacdhuoDaoLtlwJe,a msy g raduate
2 ChapJ ter
schoolM)o.n daMya,r ch got autop ' clio.tcnhmk eo rning
On 4,19914 5
and loouootkve etdrh P ea cOicfeiacn MfarloiCmba ul ifIoh rabndei gaWl.
myf idrasoytfp rofestsriaodnjanlg .
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knohwesi sb eth oa ngi{na.'f do rh1tii gctho ncenhtimrsia nt\deA sl Onder­
fulTlhyas.ta" y iwannsge vmeorr ter tuheaf nom re Havibnege n
in1 994.
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radainoyd o cua pnr emtutcygh u aratnhtaaentey stthoamctok'v si ng
willilk beeml eyn tioned.
Anotphaerortf t hgeo oidst h aed vanacbeidtl oiq tuya nsttirfayt egies.
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advantaigsge o ne.
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timeK.e epa lisotfg oods tocks, espReEcIiTawsli ltyhr isidnigv idends,
andw aifto ra retatirla detord ump somco ft heihro ldingTsh.es pecialist
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stojpu sutn dert heb idT.I lgiasm eu sedt od rivteh eb iggeprl ayecrrsa zy.
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nota lwayrse levatnowt h atw orkst odaIy.nt hibso okI,' gmo intgos how
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isn og uarantoeffe u turpee rformantcheeh, o pei st hatth ewyi lclo ntinue
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typoeft radsikniigtls ml p aralAlneoltMheaedrr.k Weitz ards,o maen­d
one wahc ol ofisrsei eipnsr do,f esospitoinoanlsT otnSryaa ldTieobrna y.
and theiaasmrs eo moef thes umcocreoesp stfiuoln si ntth rweao drelrds.
Manoyp titornasds eurcscf eoaerf d e ywe rasTo.n ya nd theiasm have suc­
ceedfeoodrv etrh irty.
The tohnietn hgep seeo phlaevi enc ommoints h tahte y 'wkhnaoitwt 's
litkoter adfer oamp ositoifso tnr en.Eg tahch thhiaens s titauntdi onal
floeoxrp ertioef nuclueln yd erstthaianntd orcdoenrs itsomt aeknet ly
money fmraormk ttehhtee,y wbauniytn ttthosoe e lalnidn gs etlhle into
buyiTnhgse.t atainsdt istcthsre a tYeOgwliilfel islni dn thifsu rbtohoekr,
confirm this.
f'avlesh oat dh geo ofdo rtoufln eea rfnrionmmga noyt her successful
traders.m ybT ohorakonsuod gu hTr ar dingMawrekbseIit'tsgve oe,t ten
thoep porttuown iittnyme asnsty r adtearkoseu r re seaarpcpthlh,ye ir
ownt miqtuoeu cahnemdsa ,k ee viebtne tMtaenroy.ft hetsrea dhearvse
gonoent os tarto wtnth reaidarin mndog n ey manfaigneTnmIself.neo tyl ­
lowtehded irre aanmhd a vbee cosmuec cebsescfaouuflts heeb irra ins and
most imptohrettiearnn atcliyt y.