The Online Trading Cookbook

257 Pages·2012·17.62 MB·English

by  Patel

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The Online Trading Cookbook
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ForothertitlesintheWileyTradingSeries
please see www.wiley.com/finance
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THE ONLINE TRADING
COOKBOOK
Alpesh B. Patel
Paresh H. Kiri
A John Wiley & Sons, Ltd., Publication
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This edition first published in 2012
Copyright © 2012 John Wiley & Sons, Ltd
Registered office
John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom
For details of our global editorial offices, for customer services and for information about how to apply for permission to
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The right of the authors to be identified as the authors of this work has been asserted in accordance with the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any
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Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.
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LibraryofCongressCataloging-in-PublicationData
Patel,AlpeshB.
Theonlinetradingcookbook/AlpeshPatel,PareshKiri.
p.cm.–(Wileytradingseries)
Includesbibliographicalreferencesandindex.
ISBN978-0-470-68445-0(cloth)
1.Electronictradingofsecurities. 2.Investments–Computernetworkresources. I.Kiri,Paresh. II.Title.
HG4515.95.P277 2012
332.640285(cid:2)4678–dc23
2012004086
AcataloguerecordforthisbookisavailablefromtheBritishLibrary.
ISBN978-0-470-68445-0(hardback)ISBN978-0-470-66246-5(ebk)
ISBN978-0-470-66182-6(ebk) ISBN978-0-470-66171-0(ebk)
Setin10/12ptTimesbyAptaraInc.,NewDelhi,India.
PrintedandboundinGreatBritainbyTJInternationalLtd,Padstow,Cornwall,UK
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AlpeshPatelDedication
InmemoryofSushilabhenR.Patel
Stillyourmindinme,stillyourselfinme,andwithoutadoubtyoushall
beunitedwithme,LordofLove,dwellinginyourheart
(BhagavadGita)
PareshKiriDedication
Whobettertodedicatemyfirstbookthanthemostimportantpeopleinmylife?The
saying‘behindeverygreatmanisagreatwoman’shouldmayberead,‘Behindevery
greatmanisanevengreaterwoman’.
TothetwogreaterthanIwomeninmylife–nowandforever–mywife–RajeeKiri,
andH.H.ShriMatajiNirmalaDevi,simplyknowntousasMOTHER.
Notforgettingthechildren,Mihir,AngeleeandShivam.
Andfinally,AlpeshB.Patel,astaunchadvocateforjusticeandfairness.
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Contents
Preface ix
Acknowledgements xiii
AbouttheAuthors xv
Introduction 1
PARTI APERITIF
Recipe1 Uncle’sFavourite 11
DifficultyLevel:Beginner
Recipe2 WhatGoodDishesTasteLike–TheRecipeforTradingSuccess 21
DifficultyLevel:Beginner
Recipe3 TrendLinesandChannelling:MindtheBumps 31
DifficultyLevel:Beginner
Recipe4 JapaneseasEasyasSushi:ExoticbutnotComplicated 37
DifficultyLevel:Beginner
Recipe5 MovingAverages:DecisionsDecisions 43
DifficultyLevel:Beginner
Recipe6 Breakfastat8 49
DifficultyLevel:Beginner
Recipe7 Let’sGetaTakeaway! 55
DifficultyLevel:Beginner
PARTII HORSD’OEUVRES
Recipe8 MACD,MAandStochastic–MixingCocktails 69
DifficultyLevel:Beginner/Intermediate
Recipe9 TheBreakout 75
DifficultyLevel:Intermediate
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viii Contents
PARTIII AMUSE-BOUCHE
Recipe10 NaturalDiet:Don’tForgetYourRoughage 85
DifficultyLevel:Intermediate
PARTIV ENTREMET
Recipe11 MACD(Mac-D)andFriends 101
DifficultyLevel:Intermediate/Advanced
Recipe12 NouvelleCuisine:NewIssues 107
DifficultyLevel:Intermediate/Advanced
Recipe13 Momentum:ShortTermismDoesPay! 111
DifficultyLevel:Intermediate/Advanced
Recipe14 TurtleSoup:TheMostFamousTradingRecipeofAll 117
DifficultyLevel:Intermediate/Advanced
Recipe15 PairsTrading:OneofYourFiveaDay! 127
DifficultyLevel:Intermediate/Advanced
Recipe16 DoubleBigMAC-D 135
DifficultyLevel:Intermediate/Advanced
PARTV ENTREE
Recipe17 EnglishBreakfastorAll-DayLunch 151
DifficultyLevel:Advanced
Recipe18 SurfingtheWaves:FastFood 159
DifficultyLevel:Advanced/Expert
PARTVI MAIN
Recipe19 CoffeeOptionsandSpreads 173
DifficultyLevel:Advanced/Expert
Recipe20 Bonds:ShakenNotStirred 185
DifficultyLevel:Advanced
Recipe21 Buffet:Today’sSpecialatMcDonald’s 193
DifficultyLevel:Advanced
PARTVII DESSERT
Recipe22 CommonCookingMistakesandHowtoAvoidThem 203
PARTVIII PANTRY
Recipe23 UtensilsandCommonIngredients 209
Recipe24 IfYouCan’tStandtheHeat:TakingRisksintheKitchen 221
Index 229