Street Smarts: High Probability Short-Term Trading Strategies by Laurence A. Connors

Product Description

Published in 1996 and written by Larry Connors and "New Market Wizard" Linda Raschke. This 245 page manual is considered by many to be one of the best books written on trading futures. Twenty-five years of combined trading experience is divulged as you will learn 20 of their best strategies.

Among the methods you will be taught are:

* Swing Trading - The backbone of Linda's success. Not only will you learn exactly how to swing trade, you will also learn specific advanced techniques never before made public!
* News - Among the strategies revealed is an intra-day news strategy they use to exploit the herd when the 8:30am economic reports are released. This strategy will be especially appreciated by bond traders and currency traders.
* Pattern Recognition - You will learn some of the best short-term set-up patterns available. Larry and Linda will also teach you how they combine these patterns with other strategies to identify explosive moves.
* ADX - In our opinion, ADX is one of the most powerful and misunderstood indicators available to traders. Now, for the first time, they reveal a handful of short-term trading strategies they use in conjunction with this terrific indicator.
* Volatility - You will learn how to identify markets that are about to explode and how to trade these exciting situations.
* Also, included are chapters on trading volatility, trading Crabel, trading the smart money index, trading gap reversals, a special chapter on professional money management, and many other trading strategies!
Product Details
Amazon Sales Rank: #157220 in Books
Published on: 1996-01-01
Number of items: 1
Binding: Hardcover
238 pages
Editorial Reviews

Commodity Traders Consumer Report, March 1996
* * * * (out of 4 stars) ... excellent!, Commodity Traders Consumer Report, March 1996
Customer Reviews

You need the sophistication to appreciate it.
This is an advanced book, and it does no hand holding. It is a trading niche book. It is not about day trading, nor momentum trading, but a unique subset of short term trading called "swing trading". If you do not know the difference, this book is not for you. It is not earth shattering. But, it is written by traders who have done it for a living for decades. Thus, it is worth knowing how they think, and how they have earned a living. And, yes, you mostly only make a few hundred bucks at a time, if you are good. Not riches, but "a living".

The price is high, but this is a small niche market. They will sell few copies. Linda Raschke has done this technique of swing trading and earned a living at it for decades. I would not expect her to take time off to write about it for chump change. If it were a mass market, a lower price would be in order, but this book is good for very few people.

I give it four stars only because of the terse format. BUT, they are traders not literary artists. I cannot fault them for not writing War and Peace.

If you are an experienced trader, and expect nothing more than a few hundred bucks when a trade goes well, and protection from loss when it does not, this book will either confirm what you know, which is helpful, or add a trick or two that you did not know, which is more helpful. Traders are successful who earn a living, a few hundred dollars at a time, several times a day, day after boring day. It is not a book for others at all, and not a book to start with. If you magically expect more money than this, buy another book. And, nothing in short term trading is really new over time. This is not a breakthrough book of new and novel ideas. The first idea, "Turtle Soup" came from the Turtles which have been around many decades. It is nice to read that this pattern has not yet worn itself out, and is still used. I am happy to have it in my library. I am happy to know that old tricks still work for old dogs.

VERY BAD AND OVER PRICED !!!!
I cant this book is $175 !!! for the material inside is plain junk, i have read ALLOT of books from gann to elliot to andews and this has to be the worst book i have ever read the methods taught are very indicator based and will not work in the long run the wolf wave method is basicly elliot wave rehased, there are better books to learn the elliot wave best book in my opinion robert miner's book, as for momentum is concerned larry williams. and for breakouts edward's and magee. I have been trading for 10 years but i constantly buy books just to see if i can atleast get one golden nugget out of them, this book however has no good insight into anything i did not get one good idea out of this book. As for some of the reviews on here if you click see all my reviews this is the only book they have reviewed ....hmmm but if you are serious about trading the books i reccomended above are very insightfull atleast they were for me, miners book is old but is full of new ideas and less based on indicators and has very easy to follow rules for elliot, i guess what they say is right old is gold. good luck

if you don't like this, you don't understand trading
you can always spot s loser by one of (or both) of two reactions:

1- They want to get into a business to make money but think $200 is too much!!

2- They expect what they read to agree with their bias

Anyone who wants to make money but thinks a book is expensive at $170 has the wrong personality for trading. If you are like that, you have no business trading because you are too greedy and a coward.

Secondely, when you are making a comment about someone, it is really important to REALLY be sure that what you are saying is acccurate. The implication that Linda does not make money trading is just ridiculous. The woman is a bloody Market Wizard, for God's sake! She is also a pretty crap promoter of her services.

The book is excellent. The question is: does it contain methods that can make you money? Of course it does. You guys are clearly sleep walking because you are concentrating on believing that every method in the book will make you money all the time under any circumstances. Quit believing that and pick the ones that work under different market conditions.If you can't, it is your fault, not the book's.

If you watch Linda trading, you will see her using those setups under the right conditions. The fact is, if you cannot make money trading the setups in the book, you are either new and have to learn the basics first, or you are not cut out for this business.

The Mathematics of Financial Derivatives: A Student Introduction by Paul Wilmott

Product Description

Finance is one of the fastest growing areas in the modern banking and corporate world. This, together with the sophistication of modern financial products, provides a rapidly growing impetus for new mathematical models and modern mathematical methods. Indeed, the area is an expanding source for novel and relevant "real-world" mathematics. In this book, the authors describe the modeling of financial derivative products from an applied mathematician's viewpoint, from modeling to analysis to elementary computation. The authors present a unified approach to modeling derivative products as partial differential equations, using numerical solutions where appropriate. The authors assume some mathematical background, but provide clear explanations for material beyond elementary calculus, probability, and algebra. This volume will become the standard introduction for advanced undergraduate students to this exciting new field.
Product Details
Amazon Sales Rank: #78594 in Books
Published on: 1995-09-29
Number of items: 1
Binding: Paperback
333 pages
Editorial Reviews

Review
'The layout is good and clear, so is the style of notation ... overall this is an excellent tool for both mathematicians interested in the world of finance as well as finance practitioners keen to rebuild the foundations of their knowledge.' Rudi Bogni, Times Higher Education Supplement

'The book is pleasantly readable and gives a good introduction.' C. Praagman, ITW Nieuws
Customer Reviews

can' classify this book
This book is awkwardly written. Quite summarised, the approach used for discussing the PDEs is not familiar - see other reviews. The book as a whole doesn't fill any gab, e.g. it is not a mathematical finance book, definitely not., see Shereve or Neftcie for an example. On the other hand it is not a tools or recipes book for pricing derivatives. It doesn't do any function for me, just a waste of space. For every book I have - many, I can pick something useful from time to time, apart from that book, total waste. I am surprised of the book name, and who would be the target reader!!

Easy to read, very comprehensive.
I bought this book to learn about financial derivatives by myself. It is very easy to read for a first timer, no prior knowledge is required. It is also very comprehensive in its coverage of the subject. Overall it is a very good first book for the subject.

Not bad... but there is much better out there
Wilmott's book was one of the first to tackle options pricing from a PDE point of view. The original book (now out of print) was a little more detailed and later superseded by this cheaper "Student Edition" overview on one hand and the "Wilmott on Quantative Finance" 3-volume set on the other hand. A per its title, this is an applied mathematics book, and therefore a minimal level of math is expected from the reader (so please, do not compare with Hull...).

Taking a PDE approach, the book aims at presenting various methods for pricing financial options. While the first few chapters are pretty good at skimming the surface of the theory and laying down the key principles of options pricing, the book, in general, lacks depth. Many results (prices of barrier, lookback, asian, etc...) are given without real development or simply with a little "hand-waving". As soon as things get a little complicated, Wilmott just outlines the way forward and drops buzz-words.

In that sense, the book, while attempting go beyond introductory level topics in some details, does not provide great insight into the more difficult areas of option pricing and, lacking courage, simply goes through what has become the standard presentation without adding much value. Not for beginers, but not for more advanced readers either !

It is nonetheless an acceptable quick overview if you are looking for a refresher of key concepts. For a more thorough mathematical introduction to options pricing, You-Lan Zhu's book (for example) does a much better job at covering the PDE approach rigorously (proving for example some of the convergence criterias for the finite difference method, covering the linear complementarity approach as well as presenting other numerical techniques) without being overly formal.

Trend Following: How Great Traders Make Millions in Up or Down Markets, New Expanded Edition, (Paperback) by Michael W. Covel

Product Details
Amazon Sales Rank: #5123 in Books
Published on: 2007-03-19
Number of items: 1
Binding: Paperback
448 pages
Editorial Reviews

From the Back Cover

THE INVESTMENT STRATEGY THAT WORKS IN ALL MARKETS...WITH PROOF TO BACK UP THE PROMISES
Reveals the trading strategy that made John W. Henry rich enough to buy the Boston Red Sox.
Contains 50+ pages of easy-to-understand charts, actual results from top Trend Followers.
Shows how to apply trend following in your portfolio–one step at a time, in plain English.

“Trend Following will replace Market Wizards as the must-read bible for a new generation of traders.”

—Jonathan Hoenig, Portfolio Manager, Capitalistpig Hedge Fund LLC/Fox News Contributor


“Michael Covel’s Trend Following: Essential.”

—Ed Seykota, Trend Follower for 35 years and Original Market Wizard


“Investment books that have a lasting appeal offer insight that resonates with a large number of investors. We believe Michael Covel’s Trend Following will be such a book.”

—Richard E. Cripps, Legg Mason Chief Market Strategist


“A mandatory reference for anyone serious about alternative investments.”

—Jon Sundt, President and CEO of Altegris


“Michael Covel does an excellent job of educating his readers about the little-known opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor.”

—Christian Baha, CEO, Superfund


“Please read [Trend Following] whether you think you have an interest in trend following or are not quite sure…Covel has hit a home run with it.”

—Gail Osten, Editor-in-Chief, Stocks, Futures & OptionsMagazine


“Covel has created a very rare thing—a well documented and thoroughly researched book on trend following that is also well written and easy to read. This is one book that traders at all levels will find of real value.”

—John Mauldin, author of Bull’s Eye Investing


For more than 30 years, one trading strategy has consistently delivered extraordinary profits in bull and bear markets alike: Trend Following. Just ask the billionaire traders who rely on it...traders like John W. Henry, whose trading profits bought the Boston Red Sox!


In Trend Following, New Expanded Edition, you’ll meet them...and discover exactly how to use trend following in your own portfolio. This expanded edition includes more than 50 pages of easy-to-understand performance charts. It is the book multi-billion-dollar hedge funds have

made mandatory reading for their staffs.


Michael Covel goes right to the source, presenting powerful insights straight from the world’s top trend followers, and debunking Wall Street myths and misinformation from well-known pros who ought to know better. You’ll learn how to manage risk, employ market discipline, and, when the moment is right, swing for the home run.
Real proof, real data, real results
Decades of actual performance charts from professional money managers
All the information you need...in one number
Why the market price tells you all you need to know to trade
Pinpointing targets of opportunity
What to trade, when to trade, and how much to trade
How it’s done: classic case studies
Who profited from the global scandals of the last 15 years…and how they did it
Meet today’s leading trend followers
Extraordinary trader profiles, including top traders from the past 30 years

MICHAEL W. COVEL is the founder and President of Trend Followingâ„¢. A researcher of the most successful trend following investment managers, he has been in the alternative

investments industry consulting on trend following to individual traders, hedge funds, and banks for ten years.


From his writing to public speaking, Covel pulls no punches. Passionately educating his clients in order to find that “edge” has made Covel a widely respected expert in the field. He writes for numerous industry publications and is continually quoted and interviewed by Barron’s, Bloomberg, and RobTV, to name but a few. An experienced and successful entrepreneur, he is a frequent guest on national TV and radio shows and regularly gives presentations at international hedge fund conferences from Hong Kong to Tokyo, advising listeners on proper trading, decision-making, risk management, and trend following. Covel is also Managing Editor at TurtleTrader.com, the leading trend following news and commentary resource since 1996.


Living and working in Virginia, he is a lifelong baseball fan.

About the Author

MICHAEL W. COVEL is the founder and President of Trend Followingâ„¢. A researcher of the most successful trend following investment managers, he has been in the alternative investments industry consulting on trend following to individual traders, hedge funds, and banks for ten years.


From his writing to public speaking, Covel pulls no punches. Passionately educating his clients in order to find that “edge” has made Covel a widely respected expert in the field. He writes for numerous industry publications and is continually quoted and interviewed by Barron’s, Bloomberg, and RobTV, to name but a few. An experienced and successful entrepreneur, he is a frequent guest on national TV and radio shows and regularly gives presentations at international hedge fund conferences from Hong Kong to Tokyo, advising listeners on proper trading, decision-making, risk management, and trend following. Covel is also Managing Editor at TurtleTrader.com, the leading trend following news and commentary resource since 1996.


Living and working in Virginia, he is a lifelong baseball fan.

Excerpt. © Reprinted by permission. All rights reserved.
Preface

"Men wanted for hazardous Journey. Small wages. Bitter cold. Long months of complete darkness. Constant danger. Safe return doubtful. Honor and recognition in case of success."1

This book is the result of an eight-year "hazardous journey" for the truth about Trend Following. It fills a void in a marketplace inundated with books about finance and trading but lacking any resource or, for that matter, practically any reference to what we believe is the best strategy to consistently make money in the markets. That strategy is known as Trend Following:

When it is a question of money, everyone is of the same religion.

Voltaire

"Let's break down the term 'Trend Following' into its components. The first part is 'trend.' Every trader needs a trend to make money. If you think about it, no matter what the technique, if there is not a trend after you buy, then you will not be able to sell at higher prices . . . 'Following' is the next part of the term. We use this word because trend followers always wait for the trend to shift first, then 'follow' it."2

Trend Following seeks to capture the majority of a trend, up or down, for profit. It trades for profits in the major asset classes—stocks, bonds, currencies, and commodities. However simple the basic concepts about Trend Following are, they have been widely misunderstood. Our desire to correct this state of affairs is what, in part, launched our research. We wanted to be as objective as possible, so we based our writing on the available data:

Trend followers' month-by-month performance histories.
Trend followers' published words and comments over the last 30 years.
News accounts of financial disasters.
News accounts of the losers in those financial disasters.
Charts of markets traded by trend followers.

Charts of markets traded by losers in the financial disasters.

Education rears disciples, imitators, and routinists, not pioneers of new ideas and creative geniuses. The schools are not nurseries of progress and improvement, but conservatories of tradition and unvarying modes of thought.

Ludwig von Mises

If we could have developed a book comprised of only numbers, charts, and graphs of Trend Following performance data, we would have. However, without any explanation, few readers would have appreciated all of the ramifications of what the data showed. Therefore our approach to writing Trend Following became similar to the one Jim Collins describes in Good to Great, in which a team of researchers generated questions, accumulated data in their open-ended search for answers, and then energetically debated it.

Trend followers we studied form a sort of underground network of relatively unknown traders who, except for an occasional article, the mainstream press has virtually ignored. What we have attempted to do is lift the veil, for the first time, on who these enormously successful traders are, how they trade, and what is to be learned from their approach to trading that we might apply to our own portfolios.

Trend Following challenges much of the conventional wisdom about successful trading. We were determined to avoid being influenced by knowledge institutionalized and defined by Wall Street. We were adamant about fighting "flat earth" thinking. During our research, we tried to avoid starting with an assumption and then finding the data to support it. Instead we asked the question and then, objectively, doggedly, and slowly, let the answer reveal itself.

If there was one factor that motivated us to work in this manner, it was simple curiosity. The more we uncovered about trend followers, the more we wanted to know. For example, one of our earliest questions was who profited when Barings Bank collapsed in 1995. Our search unearthed Barings Bank-related performance data including that of trend follower John W. Henry (now the majority owner of the Boston Red Sox). His track record generated new questions, such as, "How did he discover Trend Following in the first place?" and "Has his approach changed in any significant way in the past 20 years?"

We were also curious about who won the $1.9 billion Long Term Capital Management lost during August and September 1998. We wanted to know why the biggest banks on Wall Street would invest $100 billion in an options pricing model, Nobel prize-winning or not. Further, considering what mutual fund managers have lost in the past few years and what successful trend followers have earned during the same time period, we could not understand why so few investors know anything about Trend Following. We also became interested in:

The important thing in science is not so much to obtain new facts as to discover new ways of thinking about them.

Sir William Bragg

How trend followers win in the zero-sum game of trading.
Why Trend Following has been the most profitable style of trading.
The philosophical framework of trend followers' success.
Timeless principles of Trend Following.
The Trend Following worldview of market behavior.

Reasons why Trend Following is so enduring.

Many of the trend followers we studied are reclusive and extremely low key. Some discovered Trend Following on their own and used it to make their fortunes out of home offices. Bill Dunn, a successful trend follower who has beaten the markets for over 25 years, works out of a quiet, spartan office in a Florida coastal town. For Wall Street, this approach to trading is tantamount to sacrilege. It goes against all the customs, rituals, trappings, and myths we have grown accustomed to associating with Wall Street success. In fact, it is our hope that our profiles of trend followers will correct the public's misconception of a successful trader as a harried, intense workaholic who spends 24/7 in the labyrinth of a Wall Street trading firm, surrounded by monitors and screaming into a phone.

We've assembled the first comprehensive look at Trend Following, but this is neither a course nor the only resource you will ever need. It is to be used in conjunction with our Web site at www.trendfollowing.com. We have tried to be comprehensive with our definitions. However, if we mention an unfamiliar word, name or reference a source you haven't heard of, please go to Google (www.google.com).

Fish see the bait, but not the hook; men see the profit, but not the peril.

Chinese Proverb

We have tried to make the material accessible and interesting enough so it might give you an occasional "aha" experience. However, if you're looking for trading "secrets," you need to look elsewhere. There are none. If you're in the mood for stories about what it's like inside a typical Wall Street firm or how greedy traders sow the seeds of their destruction, like in Den of Thieves, or Barbarians at the Gate, we will not meet your needs.

To be aware how fruitful the playful mood can be is to be immune to the propaganda of the alienated, which extols resentment as a fuel of achievement.

Eric Hoffer

You may have noticed that I use "we" instead of "I" when describing the process of writing this book. That's because it could not have been written without the generosity of the traders, professors, investors, colleagues, and friends who graciously shared their wisdom and trading experiences with me. Without their support, hard work, long hours, and creativity, Trend Following would still be an ongoing hazardous journey. So if there is any "honor and recognition" to be given, it is to everyone who participated, not just the person whose name appears on the cover.


© Copyright Pearson Education. All rights reserved.
Customer Reviews

Great Read
I bought both of this author's books on the recommendation of Amazon. The first book, the Complete TurtleTrader was the one that I read first. I wish I would have read them in reverse. Trend Following built up the story. After reading Trend Following I went back and read the Complete TurtleTrader again.

What made the book great? Well like most reading these types of books, I am a person who wants the most out of my money. I want my money to perform. The little girl in side of me still says that I can make serious money like the boys do. This book inspired me to make the most of what I can use.

Read it - but take my advice, read Trend Following first, Complete TurtleTrader second.

Impressionable, but...
If you are looking for clear cut set of rules/strategy that you, the individual investor, can follow to make money, then look elsewhere. The trend followers solely follow the movement of the price in exclusion to everything else. They identify a trend - uptrend or downtrend - and play upon it. As noted in the book, they react to and not predict the prices.

The methods, far and few, explained in the book are definitely not suitable for me - the retail investor. First of all, I don't have access to a trading system that can follow the rules outlined. Second, I am not a trader in the strict sense myself, where trades are triggered by a system without me realizing what is happening. To perfect such a system would take me ages given that investing isn't my main bread winner. This book will pass off as a great text book in the annals of the Ivy League schools, but when it comes to making money for you, the individual investor again, I think you are better off reading the likes of Jesse Livermore, Nicolas Darwas and William O' Neal. Read the Lessons from the Greatest Stock Traders of All Time' by John Boik or any of William O'Neals books. They define clear cut rules that we can all follow and make money. How else would I have made about 80K in the past three years compared to the first 8 years of my investing where I barely made any.

There are a lot of anecdotes in the book - literally, every page has 2-3 of these. All of these may impress, but in the end they are nice to feel scholarly about. If you are a beginning investor, the first chapter -Trend following, all of 22 pages - lays the foundation by explaining the different schools of thought regarding investing. Then there is 55 pages outlining the great trend followers are their performance but never in clear and precise terms or rules what their methods are. It almost feels sycophantic reading about other 'great' beings the way it is written. At last, after reading almost 210 pages, I got to see some system of trading. All these are pretty dry.

This is possibly the only one exception to the many great investing books in my library that I could have borrowed from the library. You will be better off reading 'How to make money in stocks..' by William O' Neal again and again and again.

Not bad, but not very useful
I own this book, I even recommend this book. But let me explain the 2 star rating....

While the book is a good history lesson, and shows how some of these guys make a lot of money, it's just not practical advice for the rest of us. I highly doubt that many of us have a billion dollar hedge fund to run.

Also, there are no real strategies in this book.

However, it did get me thinking in a different way. So for that, it is worth the money. (The main thing was to allow for larger swings against your position, allow the market a little more room than I did before.)

I know that this guy sells other products on his website, but to be honest, I don't see them being worth it. Most of this book is about defending trend traders, which is fine, but I wasn't attacking them in the first place.

I have begun to use the 4 hour chart more with his thinking, and I have to say it makes a little more sense. Not to get caught up in "micro-movements" as I call them. But to allow massive 300 pips swings against you on a weekly chart isn't practical for most of us.

So in conclusion, I think it's a good read, but if you get what I got out of it from my review, then it may or may not be worth the money.

Trading Chaos: Maximize Profits with Proven Technical Techniques (A Marketplace Book) by Justine Gregory-Williams

Product Description

How to trade the markets by integrating Chaos Theory with market sentiment
In the first edition of Trading Chaos, seasoned trader and psychologist Bill Williams detailed the potential of Chaos Theory-which seeks to make the unpredictable understandable-in trading and it revolutionized financial decision-making. The Second Edition of Trading Chaos is a cutting edge book that combines trading psychology and Chaos Theory and its particular effect on the markets. By examining both of these facets in relation to the current market, readers will have the best of all possible worlds when trading.
Bill Williams, PhD, CTA (Solana Beach, CA), is President of Profitunity.com, a leader in the field of education for traders and investors. Justine Gregory-Williams (Solana Beach, CA) is President of the Profitunity Trading Group and a full-time trader.
Product Details
Amazon Sales Rank: #75451 in Books
Published on: 2004-02
Number of items: 1
Binding: Hardcover
228 pages
Editorial Reviews

Download Description
How to trade the markets by integrating Chaos Theory with market sentiment
In the first edition of Trading Chaos, seasoned trader and psychologist Bill Williams detailed the potential of Chaos Theory-which seeks to make the unpredictable understandable-in trading and it revolutionized financial decision-making. The Second Edition of Trading Chaos is a cutting edge book that combines trading psychology and Chaos Theory and its particular effect on the markets. By examining both of these facets in relation to the current market, readers will have the best of all possible worlds when trading.
Bill Williams, PhD, CTA (Solana Beach, CA), is President of Profitunity.com, a leader in the field of education for traders and investors. Justine Gregory-Williams (Solana Beach, CA) is President of the Profitunity Trading Group and a full-time trader.

From the Inside Flap
Published in 1995, the bestselling first edition of Trading Chaos provided readers with the most practical and comprehensive guide for applying chaos theory to the real world of trading and investing. But today, the markets are different than they were even a few years ago. So with fresh research in hand, coauthors Bill Williams and Justine Gregory-Williams have updated their profitable methods and provide new techniques to help you take profits from the markets.

Trading Chaos, Second Edition will not only show you how to anticipate, recognize, and react to impending bull and bear market conditions, it will also introduce you to the latest findings in physics and psychology as applied to various markets-stock, bond, futures, indexes, and many others.

The first portion of this book is devoted to understanding how the rewards you'll acquire in trading and investing are determined by what is happening inside of you. By digging through some very interesting and deep psychological principles, you can become a profitable "trade/vestor"-using technical techniques for good short-term entries and exits, but also holding on to long-term investments when the opportunity presents itself. Trading Chaos, Second Edition will help you build a solid psychological foundation before you enter the markets.

After you've learned how to gain an inner analytic edge, the authors will show you how the application of self-knowledge will improve your bottom line. Through numerous charts, checklists, and examples, you'll be introduced to proven techniques that can make the unpredictable understandable and make your journey into the markets more profitable. You'll learn how to:
Sharpen entries and exits, and reduce whiplashes with the powerful "Alligator" indicator
Get into a new trend very early with proper use of the "First Wise Man"
Add on aggressively after your first entry using the "Second Wise Man" with the help of the Awesome Oscillator (AO)
Make fractal breakout trades with the "Third Wise Man"-these almost guarantee profitable follow-through on a trade

In this early part of the twenty-first century, you have a choice to either be a part of the last generation of traders and investors using linear (ineffective) techniques or the first generation using effective nonlinear (chaotic) techniques. By reading the Second Edition of Trading Chaos, you'll learn how you can take your trading skills to the next level and make steady profits in any market.

From the Back Cover
Praise for
TRADING CHAOS
SECOND EDITION

"As a trader and an author for over fourteen years in stocks, futures, and options, it still amazes me when I read a book that teaches me new approaches to the market. This book is one of these amazing books that can teach the novice or the professional something important to take them to the next level of their trading. It is a must read for everyone interested in looking at the markets in a new way."
-George Fontanills, President Emeritus, Optionetics

"Bill and Justine Williams, two of the truly great teachers of market action, have written an outstanding book. It not only covers the psychology of personal trading but provides one with a well defined, coherent trading plan. This book is must reading for any serious trader, whether a beginner or experienced veteran."
-John R. Hill, President, Futures Truth Company

"What Bill Williams does best is raise questions and doubts in the minds of his readers. But, even better, he then provides wonderful new choices for thinking and acting. He has a deft lightness in his writing and a seriousness of purpose that drew me in like a magnet."
-Rodney Napier, PhD, head of The Napier Group
coauthor, The Courage to Act and Groups: Theory & Experience (now in its seventh edition)
Customer Reviews

Bill and Justine did a great job
Bill and Justine are made me aware of what is driving the markets. Before I met them I was caught in a circle of winning and losing money in trading. The first edition opened my eyes, new trading dimensions got me out of the dream. The home study course showed me that It is possible to trade consistently, The personal workshop with Bill taught me more than enough of the inside of the markets to grasp the why and how. Eventually workshops by Justine in the middle of Chicago made me implement it all.

This new edition of Trading Chaos is refreshing. It's not about "the magic system", it's not about how to design the perfect system. No it's about real life and how the markets fit in. The perfection in the chaos, the perfect repetition of the small in to the bigger picture.

Don't buy this book if you want to know which market to trade and make money. Don't buy this book if you are looking for the magical tip.
Do buy the book if you want to learn what the market is driving and how you can profit.

Do buy this book if you are clueless (like I was) about your trading mistakes.
If you are serious go for the book, think of the implications and contact Bill and Justine to do a follow up. I did it 10 years ago and never had a moment of regret.

Solid trading book
For large traders and institutional traders who need to move large volume and order flow, this book offers multiple entry and exit strategies and tactics. Out of necessity, these traders have to scale in and out of their positions to dampen the immediate effect of their trading on the markets. Even for private retail traders, this book conveys choice of logical set-ups to incorporate into their trading operations. Overall, I feel that this book deserves your attention.

Great book - very intense
I've been looking for a book like this for a while. I first came across Bill Williams through the Metastock indicators and the Expert System. After loading an expert called "PS Fractal Trading System 2" I was amazed at the signals.
Having read through the book - I have the following quibble. There is a huge difference in the parameters of the alligator in what comes with Metastock (v9 and v10) and what the book gives. The book says the green line is 13 bar smoothed average offset 8 bars into future. Likewise the red is 8 bar offset 5, and the green is 5 bar offset 3. However this does not correspond to the Metastock indicator he provides. For the curious, the Metastock ones referred to in page 206 of book have the following values: Green: 9 period EMA of Median offset 3. Red: 15 period offset 5, and Blue 25 period offset 8