The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks (Wiley Trading) - Hardcover

Ord, Tim

Hardcover

ISBN 10: 047013898X ISBN 13: 9780470138984

Verlag: Wiley, 2008

Inhaltsangabe

In The Secret Science of Price and Volume, leading market timer Tim Ord outlines a top-down approach to trading―identifying the trend, picking the strongest sectors, and focusing on the best stocks within those sectors―that will allow you to excel in a variety of markets. With this book as your guide, you’ll quickly become familiar with Ord’s proven method and discover how it can be used to make more profitable trading decisions.

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Über die Autorin bzw. den Autor

TIMOTHY ORD is President, Editor, and Publisher of The Ord Oracle, which is an electronic advisory newsletter that recommends S&P, NASDAQ, and gold stock trades. He is frequently listed as one of the top-ten market timers in the country. Timer Digest ranked him the number-one gold timer for the one-year period ending January 13, 2006, and the number-two gold timer—and number-five S&P timer—in 2004. Ord introduced the tick index method in 1991, and the method is now widely used by short-term stock traders. He has also developed a new trading method (packaged in a software program) called Ord Volume, which measures strength in a rally or decline for a stock or index. His Web site is www.ord-oracle.com.

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The Secret Science of Price and Volume

Price and volume analysis is a proven way to trade the markets. Pioneered by Richard Wyckoff during the early decades of the twentieth century, this technique continues to produce consistent profits for many practitioners.

Over the course of his successful career, leading market timer Tim Ord has developed a distinct understanding of this discipline and built a winning trading strategy around it. Now, with The Secret Science of Price and Volume, he looks to share his invaluable insights with you.

Written in a straightforward and accessible style, The Secret Science of Price and Volume outlines a top-down approach to trading that will allow you to make the most of your time in a variety of markets from stocks to commodities. With this book as your guide, you'll quickly become familiar with Ord's time-tested method and discover how it can be used to make more profitable trading decisions.

Step by step, you'll learn how to:

• Gauge the sentiment of a market to determine if the trend is bullish or bearish, and whether a possible high or low is nearby
• Evaluate breadth, volume, and momentum in order to identify triggers to enter the market
• Find the best performing sectors that are aligned with the market
• Select the strongest stocks within those sectors

Ord also illustrates various techniques for identifying trade setups, concentrating on the volume within a specific index or issue. Using these tools, he shows you how to "listen" to what the market is saying and move in concert with it, rather than making random trades based on one signal, a hunch, or rumors. Rounding out this detailed discussion, Ord replicates the sequence of steps you should take to create a successful game plan for winning in the market.

By tackling the markets from the top down identifying the trend, picking the strongest sectors, and focusing on the best stocks within those sectors you can capture high returns with low risk. The Secret Science of Price and Volume will help you to do this and much more, as it details a practical way to make better trades.

Aus dem Klappentext

Price and volume analysis is a proven way to trade the markets. Pioneered by Richard Wyckoff during the early decades of the twentiethcentury, this technique continues to produce consistent profits for many practitioners.

Over the course of his successful career, leading market timer Tim Ord has developed a distinct understanding of this discipline and built a winning trading strategy around it. Now, with The Secret Science of Price and Volume, he looks to share his invaluable insights with you.

Written in a straightforward and accessible style, The Secret Science of Price and Volume outlines a top-down approach to trading that will allow you to make the most of your time in a variety of markets from stocks to commodities. With this book as your guide, you'll quickly become familiar with Ord's time-tested method and discover how it can be used to make more profitable trading decisions.

Step by step, you'll learn how to:

• Gauge the sentiment of a market to determine if the trend is bullish or bearish, and whether a possible high or low is nearby

• Evaluate breadth, volume, and momentum in order to identify triggers to enter the market

• Find the best performing sectors that are aligned with the market

• Select the strongest stocks within those sectors

Ord also illustrates various techniques for identifying trade setups, concentrating on the volume within a specific index or issue. Using these tools, he shows you how to "listen" to what the market is saying and move in concert with it, rather than making random trades based on one signal, a hunch, or rumors. Rounding out this detailed discussion, Ord replicates the sequence of steps you should take to create a successful game plan for winning in the market.

By tackling the markets from the top down identifying the trend, picking the strongest sectors, and focusing on the best stocks within those sectors you can capture high returns with low risk. The Secret Science of Price and Volume will help you to do this and much more, as it details a practical way to make better trades.

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The Secret Science of Price and Volume

Techniques for Spotting Market Trends, Hot Sectors, and the Best StocksBy Tim Ord

John Wiley & Sons

Copyright © 2008 Tim Ord
All right reserved.
ISBN: 978-0-470-13898-4

Chapter One

My Path to Successful Trading

My path to successful trading has been anything but smooth. Along the way there have been many twists, wrong turns, obstacles, and potholes. Looking back on my career, I can see that I learned from my mistakes just as much as from my successes-perhaps even more. What made a difference was my willingness to following my dream, to chart my own course, if you will. I knew what I wanted (at least most of the time), and one opportunity led me to the next.

Over the course of my trading career to date, I've been a stockbroker as well as a market analyst, specializing in technical analysis. Through careful study of the market, along with a good deal of diligence and persistence and maybe even a little luck, I have achieved some success-including national Timer Digest rankings for both the Standard & Poor's (S&P) 500 Index and in the gold market. I am the president, editor, and publisher of The Ord Oracle, my newsletter on the S&P, Nasdaq, and gold issues, which I established in 1990.

From the time I began in the market as a stockbroker in the 1980s through the present day, I have been a student of the market, learning from books, courses, other traders, and even from my customers. If you keep your eyes and your mind open, you'll be rewarded with many lessons and experiences. In trading, it is essential, and in life it certainly makes things interesting.

I grew up on a farm in a small town called Beatrice, Nebraska, population 12,130. Before my high school graduation in 1967, the school's career counselor called a meeting with my parents and me. I told him that my plans were to go to college. The counselor, however, advised my parents that I would not last three months in college and told them not to waste the money. The military, he said, was a better option, and suggested the Army as a good choice and the infantry as the best division for me. Obviously displeased with my antics in high school, the counselor thought that I needed discipline, and the Army would teach me that.

However, I did go to college and I did last more than three months. As a matter of fact, I spent six years, graduating in 1973 from the University of Nebraska, with a teaching degree in mathematics. This choice of study would prove fortuitous later on as a technical analyst, although in the short term it had some drawbacks. At the time I went to college, there was a teacher shortage, so much so that the government gave financial incentives to students entering teaching programs in the 1960s. That financial incentive drew a lot of students to teaching, so that by the time I graduated from college there was a mass of new teachers, and the market was flooded. (Funny how government incentives work, isn't it?)

Unless you had a parent who was a principal somewhere who could get you a job, back then you were an unemployed teacher. I did find a job at the Nebraska State Prison as a prison counselor and worked there for nearly three years. (The prison job is an interesting story unto itself, but that will get me off the subject of my path to successful trading.) Suffice it to say that, while the prison job was interesting, I was seeking something more financially rewarding. One of my very good friends at the time had just gone to work for a brokerage firm, and he had a lot of good things to say about his new job. Hearing him talk, I kept telling myself, "I could do this. I know a lot about 'stocks.' I was raised on a farm and I was around cattle all my life, so I know stock!" (If you haven't caught on already, I was thinking of the livestock variety.)

Buoyed with confidence, I went out and interviewed with a different brokerage firm than where my friend worked and ended up in Omaha with a job at one of the major wire houses at that time. I was sent to San Francisco to receive my education and training and to pass the National Association of Securities Dealers (NASD) Series 7 examination to become a licensed stockbroker. I passed the exam and came back to Omaha to start my new job.

BECOMING A BROKER

I thought that clients would be lined up at my door and that orders would be flowing into my office. Not the case-not the case at all. As a new broker, I made cold calls-from the phonebook-all day. This was not what I had envisioned. However, I did make a decent living, and my lifestyle improved to the point that I owned a new three-bedroom condominium and I drove a fancy sports car. Life was good.

I became dissatisfied, however, not with the job itself but rather with the management. I didn't like the idea of someone watching every move I made: how many phone calls I made, how much time I spent on the phone with potential clients, whether my coffee break lasted 10 minutes or 20.... I wanted something where being managed was not an issue. I heard about being an independent contractor broker, which would mean paying my own expenses and sharing office space with other brokers. There was no management at all; independent brokers came and went as they pleased, as long as they paid their share of the expenses. Omaha did not offer this opportunity, but several brokerage firms in Colorado did. So I sold my condo, packed up my belongings, and moved to Colorado, where I got a job with a firm that had several offices throughout the country with about 200 independent brokers.

Within a couple of years I had become vice president and senior option principal for this firm. Life was good again. This time frame was the late 1970s and into the early 1980s, when the "Elliott Wave" technical analysis fad was becoming popular, along with W. D. Gann trading methods. Explained simply, Elliott Wave is a form of technical analysis theorized by Ralph Nelson Elliott, who believed that market action unfolds in specific wavelike patterns. W. D. Gann was a famous stock and commodity trader, who based his forecasts on time and price. Hearing about Elliott Wave and Gann got me very interested in technical analysis; although I was by no means good at it in the beginning, I was better than most at the time. Majoring in mathematics in college hadn't landed me a teaching job, but it was about to play a very important role in my future career.

FIRST FORAY INTO TECHNICAL ANALYSIS

I did face one big drawback as I began my foray into technical analysis. Back then, computers were very expensive and you needed to be a programmer to run one. Needless to say, I did not have a computer at my disposal. Instead, like a lot of people in the markets in those days, I had to rely on printed charts of stocks and indexes that were sold by companies. The information would be updated through Friday's close and mailed over the weekend. Then, during the week, you had to update the charts by hand. Back then, I used simple moving averages and basic patterns such as "head and shoulders," "triangles," and such.

I also subscribed to several leading market letters, including Robert Prechter and Joe Granville. I wasn't so much interested in the trades they recommended, but rather how they came to the conclusions of what was bearish or bullish. At this early time in my career, charts looked like a bunch of random lines and did not have a definite meaning. Trading felt to me like...

Details zur Ausgabe

• Verlag: Wiley
• Erscheinungsdatum: 2008
• Sprache: Englisch
• ISBN 10: 047013898X
• ISBN 13: 9780470138984
• Einband: Gebundene Ausgabe
• Auflage: 1
• Anzahl der Seiten: 208
• Kontakt zum Hersteller: Wiley-VCH GmbH; product_safety@wiley.com; ; Boschstrasse 12; Weinheim; 69469; Deutschland