Saturday, September 6, 2008

An Introduction to Trading

This is the master page and table of contents for the e-book "An Introduction to Trading". The book is being written one blog post at a time, and all the posts will be linked below. The goal of the book is to help developing traders gain a better understanding of the principles and practices of trading. Readers are encouraged to share their ideas, links, and experiences in comments to the posts to add perspective and insight. This e-book is being made available at no cost to readers; I ask only that the posts not be reproduced on other sites or used for any commercial purposes. Thanks for your support and understanding--


An Introduction to Trading

Part One: The Principles

Learning How to Trade

Developing a Conceptual Framework

Stock Market Cycles

Cycles and Their Implications

Tracking Cyclical Movements in Markets

Stock Market Cycles Across Timeframes

The Market's Auction Process

Market Auctions and Multiple Time Frames

Part Two: The Practice


VousDeux said...

I'm curious about the implications of the market cycle as it would apply to the S&P 500. Do you see March 2000 as a momentum high, or a price high?

The VIX would seem to suggest a period of declining volitility between about June of 2006 and July 2007 (I arrived at this opinion by drawing trend lines across the tops of the spikes on the VIX). This could easily be construed as a move toward a price high.

If my trend lines are any indication, the VIX is also showing a period of declining volitility beginning January 2008.

If March 2000 is a momentum high, then I think that means this market has yet a long way to go on the downside, but if July 2007 is a price high, then we are probably very near a pivot.


Brett Steenbarger, Ph.D. said...

Yes, the notion that we would have a momentum high in 2000 and a price high in 2007 implies that the secular bear market could extend well beyond the present.


Iceman said...

Did I miss something? I've read your "An Introduction to Trading", Part 1. And I really enjoyed it. But where is Part 2? You've got me hooked, you can't just leave a book unfinished. Thanks for what you've done, but I want and really need more. Please?

Brett Steenbarger, Ph.D. said...

Thanks for the interest, Iceman. I hope to resume writing the online book early in 2010, once my coaching and other writing obligations become more manageable.


Unknown said...

This looks great. Any word on when Part Two will be available?