Secrets Of The Trading Pros

223 Pages·2007·2.07 MB·English

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Secrets of
the Trading
Pros
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Secrets of
the Trading
Pros
Techniques and Tips That Pros Use
to Beat the Market
H. JACK BOUROUDJIAN
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Copyright(cid:2)C 2007byH.JackBouroudjian.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData:
Bouroudjian,H.Jack,1961–
Secretsofthetradingpros:techniquesandtipsthatprosusetobeatthemarket/
H.JackBouroudjian.
p. cm.–(Wileytradingseries)
Includesindex.
ISBN:978-0-470-05411-6(cloth)
1.Futures–UnitedStates.2.Investments–UnitedStates. I.Title.
HG6024.9.U6B682007
332.640973–dc22
2006037553
PrintedintheUnitedStatesofAmerica.
10 9 8 7 6 5 4 3 2 1
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To my wonderful wife, Donna, and my beautiful
children, Robert and Emily. You have made me
wealthier than I could have ever imagined.
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Contents
Foreword ix
About the Author xi
Acknowledgments xiii
Introduction xv
CHAPTER 1 Trading Is an Art, Not a Science 1
CHAPTER 2 Many Are Called, Few Are Chosen 19
CHAPTER 3 Know Thy Market 35
CHAPTER 4 Managed Futures: The Holy Grail 55
CHAPTER 5 Within Every Disappointment, There
Is a Gem of Opportunity 71
CHAPTER 6 Technical Analysis 89
CHAPTER 7 Random Walk Theory 105
CHAPTER 8 The Psychology of the Marketplace 119
CHAPTER 9 Demystifying Economic Releases 137
CHAPTER 10 Information Is Gold 155
CHAPTER 11 Risk Management 171
Index 187
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Foreword
InSecrets of the Trading Pros,JackBouroudjiansharesthewisdomof
successful traders who served as his mentors, and at the same time
reveals his broad knowledge of market structure and the forces that
makemarketsmove.Heviewstradingasmoreofanartthanascienceand
explainswhyrespectingthemarketatalltimesisoneofthemostimportant
lessonsanytradercanlearn.
Bouroudjianbringswideexperiencetothewritingofthisbook.Heis
a former president of Commerzbank, where he oversaw the creation and
development of equity futures operations, and has been a member of the
ChicagoMercantileExchange(CME)since1987.HealsoservedontheCME
boardofdirectorsfrom1996to2002.
Whileprovidingthebreadthofatextbook,SecretsoftheTradingPros
iswritteninanarrativestylethatmakesreadersfeelasifBouroudjianwere
sittingacrossthetablesharingtradinganecdotesandofferinginsightsinto
marketfundamentals.Thebookdiscussesthebenefitsofknowingthemar-
ket and understanding the various players in different industries. It also
exploresthequalitiesthatmakeexceptionaltraders—fromexercisingdis-
ciplineandcouragetounderstandingriskandreward—aswellasthestrate-
giesthatmakethemsuccessful.
In addition to breaking down the thought processes of great traders,
SecretsoftheTradingProsalsodelvesintoexternalinfluencesthataffect
marketsandtrading.Theseinclude:
(cid:2)
Capitalizingonothertraders’ragingemotions
(cid:2)
Making sense of the trading methodologies that dominate today’s
marketplace
(cid:2)
Understandingthefundamentalsoftrading,especiallyfuturestrading
(cid:2)
Learninghowheadlinescanaffectamarket’sliquidity
(cid:2)
Observingtheeffectsofeconomicreleases,suchasunemploymentor
housing,onthedirectionofthemarket
(cid:2)
Turningdisappointmentintoopportunities
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