Traders' Library

12 Free Books & DVDs- Happy 4th of July

 
One of the most powerful lessons I have heard in 20 years of financial publishing is to invest in yourself. I am grateful to be able to help you, our most loyal customers, do just that with this gift. Please take advantage of this opportunity to get 12 trading courses for FREE.

There are no minimums--take one book or take them all. This offer will expire on 7/11/10 so please don't wait. You'll see that there are no gimmicks here when you click here. Which books you take are completely up to you. Your FREE items along with standard shipping charges will be added to your cart and sent to you immediately.

From John boYER, GENERAL MANAGER

Brand New Jea Yu DVD -- Sneak Peek

We are cranking out all the DVDs from our Legends of Trading Forum in April.  The first one is Jea Yu's DVD, Short-Term Profit Hunter: Stochastics, Moving Averages and the Mindset to Make You a Winning Trader.

You can Pre-Order now!

Here is a clip from the session!

What is your favorite trading method?

Online Surveys & Market Research

Sneak Peek at John Person's Newest DVD

So it has been a few weeks since our 2010 Legends of Trading Forum (which was a huge hit)!  We are busy editing and getting these DVDs into production, but we wanted to give you all something.  So here is a clip from John Person’s presentation:

Winner of the 3rd Annual Axiom Business Book Awards

Marketplace Books is proud to announce that we been awarded two medals from the Axiom Business Books Awards in the category of Investing. Toni Hansen’s latest release, Simple Steps to Trading Discipline: Increasing Profits with Habits You Already Have, won the silver medal, and our very own blog contributer, Sylvain Vervoort’s Capturing Profit with Technical Analysis: Hands-on Rules for Exploiting Candlestick, Indicator, and Money Management Techniques, won the bronze.

Congrats to Toni, Sylvain, and the whole Marketplace Books team!!

For the full list of winners click here.

Free Chapter Tuesday! Swing Trading by Oliver Velez

Free Chapter Tuesday!!  From Swing Trading by Oliver Velez. Check back next Tuesday for another free chapter!

If you would like to take the quiz for this chapter please log onto  www.traderslibrary.com/TLEcorner and see what you learned!

Chapter 3

The Japanese Candlestick Chart

Let’s take a look of some of the tools needed by the swing trader. First of all, notice on all of the charts I have shown you, Japanese candlesticks are used. A price chart is not a price chart to me unless it is displayed in Japanese candlestick form. Technically, a Japanese candlestick does not display any more information than a regular bar chart. They both display the opening, closing, high, and low of that particular period.  The difference is that the Japanese candlesticks display the information in a way that is much easier to see visually. The area between the high low is colored either red (black or closed) or green (white or open) depending upon whether the stock closed above or below its opening price. This places the emphasis on who won the battle each and every time period.   

 Charts can be displayed in a line form, a bar form, or several other forms.  The Japanese candlestick shows the information better visually than other methods.

A good example of this difference was seen on the day Microsoft gapped up five dollars. From the moment the stock opened it began selling off and continued to drop steadily throughout the day until it had lost three and a half dollars of the morning gap. Late in the afternoon the star of one of our favorite cable shows was giving her afternoon run-down and reported in an elated voice that, “traders were buying up Microsoft all day long as the stock was trading one and a half dollars higher.” While it is true that the stock was still up one and a half dollars, the true sentiment of the stock was very bearish as it had lost almost all of its opening gain.

This also allows for much more efficient scanning when looking for many of the patterns that I look for. Take a look at the examples of these two Japanese candlesticks in Figure 3.1.

The Ominous Call of Three Black Crows

21 Candlesticks Every Trader Should Know is one of our bestselling books.   Here is an excerpt:

Candle 19

The Ominous Call of Three Black Crows

The three black crows candle formation does not happen very frequently in stock trading, but when it does occur swing traders should be very alert to the crow’s caw.

 

The candlestick’s metaphor is three crows sitting in a tall tree. On the day the first black crow makes its appearance, the formation is most predictive if the first “crow”—or dark candlestick—closes below the previous candle’s real body.

Two more long-bodied consecutive down days then ensue. On each of these days, it appears as if the stock wants to regain its former strength, as the stock opens higher than the close on the previous day. By the end of each session, however, the sellers regain control and the stock drops to a new closing low. Here is what the three black crows candlestick pattern looks like:

JUST ANNOUNCED! Steve Nison to present at forum!

Steve Nison, President of Candlecharts.com, has just signed on to present at the Traders’ Library forum in Chicago on April 23^rd-25^th.  We already had an impressive list of speakers and now we were able to add the “Father of Candlesticks.”

 

Be sure to register to see him live!  Keep a look out for his session description!

 

Steve Nison is uniquely qualified to help you fully exploit the opportunities candlestick charts present to today's markets. As a renowned author and speaker, he has the distinction of being the first to reveal candlesticks charts to the Western world. Mr. Nison has authored three acclaimed books including Japanese Candlestick Charting Technique.  His books have been translated into ten languages and are considered the Bibles of Candlesticks.  

Voted Best Book by TradersPlanet

Make Money Trading - How to Build a Winning Trading  by Jean Folger and Lee Leibfarth also won award from TraderPlanet!  It was voted #1 Best Book!

We also came in 2cd place with Steve Palmquits Money Making Candlestick Patterns: Backtested for Proven Results. (read the blog post!)

So here is a excerpt from our #1 book:

Chapter 5: Charting the Market

Chart Types

Bars and Candlesticks

Price charts simply provide a history of price and volume over a specified interval. This visual history of price action is only as useful as the data that is used to create it. In other words, a charting platform must have accurate and consistent data in order to provide traders with reliable charts. Since price charts are the primary means of making trading decisions, they must be dependable. Once data is received by a market analysis platform, the prices can be displayed in a variety of charting methods. Price charts are two-dimensional graphs that display price along the vertical axis, and the charting interval along the horizontal axis. In order to have useful price charts, an interval must be selected that reflects a snapshot of the price fluctuations for a given period. For each interval, several data points are recorded that include the price at which the interval began (Open), the highest price during the interval (High), the lowest price during the interval (Low), and the last price during the interval (Close). In addition, the number of shares or contracts traded during the interval (Volume), and the elapsed time for the interval (Time in minutes) are recorded.

2009 TraderPlanet STAR Award Winners

We are really excited here at Marketplace Books!  We just found out that one of our titles came in 2cd Place in the 2009 TraderPlanet STAR Awards- Books category.

Congrats to Author Steve Palmquist for his stellar job on Money Making Candlestick Patterns: Backtested for Proven Results. This award is given to honor companies and individuals who influence the financial industry with there outstanding products.

Click here to read the Press Release and see all the categories and winners!

Sneak Peek at Jea Yu's New Book

SNEAK PEEK! - The following is an excerpt from Jea Yu's upcoming book Trading Full Circle. This book is the perfect tool for profiting in all financial markets!  Don’t miss Yea Yu presenting at the 2010 Traders Library Trading Forum in Chicago!

From Chapter Five - Candlesticks: Price Tool

I still use candlesticks on my price charts. They are tried and true as long as you stick to the basic reversal patterns. I don't go much beyond hammers and stars. I like to keep it simple because I have found that the more complicated the candle formations, the more room for failures. A machine with a few parts is more reliable than one with a hundred moving parts, and easier to fix.

Don't Judge a Candle Before its Close
Don't make the mistake of judging a candle before it actually closes. Due to the common knowledge of candle formations, traders may often try to paint a hammer or star mid-candle close, only to step off right before the close. When I refer to close, that means the final formation of the candle based on the incremental time frame of the chart. For example, on a 5-minute chart, a candle finalizes its formation every 5 minutes from the top of the hour (10:00 a.m., 10:05 a.m., 10:10 a.m., etc.). A candle may look like a hammer at 9:57 a.m., but at 9:59:21, the buyers may pull their bids and panic out more sellers, only to close as a solid continuation red candle at the 10:00 a.m. candle close. This happens numerous times during the trading day with numerous stocks. They are as common as wiggles. Always wait for the candle close (which updates the moving averages too) before judging the candle. Don't be too anxious.

Shooting Stars
Shooting stars are exhaustion candles that form at the peak of uptrends. Usually, they form on the final climactic pop on volume as the last of the buyers panic into the stock in a frenzyonly to look down and realize that they chased too high. The panic selling triggers earlier buyers to start taking profits. The shorts smell this and start shorting the stock in anticipation of further selling. This is illustrated with a small candle body with a long tail or shadow at least twice the size of the body, as in Figure 5.1.

Sneak Peek at David Penn's New Book

Last week we released our brand new eBook from David Penn, The Three Secrets to Momentum Indicators.  We are very excited and proud here at Traders’ Library for the new, exciting, interactive format of this eBook.  It puts you in control of the charts, providing easy access from any reference in the text and gives you the definitions of key terms with a click of the mouse.

So here is an excerpt from Chapter 3 and it gives you a glimpse into his first secret! Enjoy!

 

Chapter Three:
Introduction to Japanese Candlesticks

It is absolutely true that the many of market technicians who rely on price charts use Japanese candlesticks in order to read price data. But I cannot help but wonder whether what was so novel ten years ago, when Japanese candlestick charting was making its major inroads onto the price charts of technical analysts, is now so commonplace that traders have forgotten the fundamental interpretive power of the Japanese candlestick line.

While I am not going to argue that the effective use of Japanese candlesticks makes technical indicators irrelevant, I will suggest that a true understanding and appreciation of Japanese candlesticks can turn the relationship most market technicians have between their technical indicators and Japanese candlesticks on its head. That is to say that while for many traders, the Japanese candlestick chart has become just another template, traders who re-educate themselves on candlestick lines can use those lines as a primary technical “indicator” and allow other technical tools to provide confirmation.

2010 Chicago Trading Forum! April 23-25!

Please join Traders’ Library this April for our Legends of Trading Forum- come have an educational weekend in Chicago with some of the biggest names in trading!  We already have some HUGE names signed on to present- Chuck LeBeau, (Chuck is also this years Trader’s Hall of Fame Award winner!!) Larry McMillan, John Person, Price Headley, Jake Bernstein,  Jea Yu, Price Headley, Todd Gordon, Tom Sosnoff, and more to be announced.

This year you we are offering the best deal we have ever offered!  Come spend a whole weekend with all these traders (plus more) for only $99!  Plus breakfast and lunch on Saturday and Sunday, trading manuals of ALL the presentations, and you get to network with traders just like yourself!

This event is not to be missed- Don’t take just my word for it, see what past attendees have to say!

Hope to see ya there!

January 14, Market Analysis and Trading Plan.

An Excerpt from the Timely Trades Letter.

The market continued to move within the tight trading range formed last week, after the breakout that started on 12/21. During the first three days of this week the market only moved about ten points on a closing basis since last Friday. The interesting thing about this tight range is that during both Tuesday and Wednesday's sessions the market bounced off the 2270 horizontal support area, which is the bottom of the tight range as shown in the chart below. 

The market usually does not just run straight up, it typically runs for a bit, and then retraces or bases, and then runs again. Tight bases like the one formed last week usually do not last long, and are typically a positive sign after a nice run. Tight ranges after a run are often continuation patterns, which is why I have continued to hold longs as the market is going through this resting process. Trading is a statistical business where I want to be positioned to profit if the market does the usual or normal thing. This does not imply that traders generate profits every time they get positioned for the market to do the normal thing, but almost by definition this is the best option over the long run. In any case, given the positive patterns, I want to continue holding longs while the market is above the 2270 support area.

Even through the market moved sideways during the last three days, we saw several profitable moves in the setups from the last Letter. BID ran 9%, CAKE ran 4%, and JDAS ran 7%. Moves like this keep bread on the table while the market decides what it's next move will be. Seeing good moves when the market is resting indicates that we are using the right patterns.

Top 10 of 2009- 5 and 4 Revealved

By John Boyer

5. Larry McMillan’s New Options Strategy Course—One of the first experts to put effective strategies in writing and unquestionably one of the most read, Larry has helped more traders understand options than probably any other author. This course brings his personality and favorite strategies to life and give traders that nuance you can only get in a live session.

4. Strategies for Profiting with Japanese Candlestick Charts-Steve Nison—The original candlestick master, every charting software and user of the most popular charting technique owes Steve a tip of the hat.  Before this course was created, sessions with this legend were almost impossible to get into. This paved the way for Steve to reach thousands and thousands of traders who have learned from his teaching.

CHECK BACK FOR THE TOP 3 OF 2009!

Top Ten of 2009 by John Boyer

It is that time to declare the Top Tens of everything, but I wanted to make our best of the best list a little interesting. I have pulled the numbers and lined up the top sellers of this year and thought I would give a little bit of info on each one. I’ll post them over the next few days so make sure to come back to see who wins the title of top trading product of 2009.

10. Think and Grow Rich-Napoleon Hill—This is one of the greatest financial books of all time without question. It is interesting to keep in mind the perspective from which it was written. Published in 1937, the US was still clawing its way out of the depression and this masterpiece offered the most important element of that recovery. Hope. Anyone can be successful and this book shows how. Still a huge influence today, its simple, direct advice and tactics are loved by traders and dreamers everywhere.

9. Strategies for Profiting on Every Trade-Oliver Velez—One of the most motivating trading educators in the business, Oliver Velez inspires his students to take action. This title is a perfect example of his ability to break down the trading steps and put his tactics to work improving profits. It is a strong favorite of traders because it make the concepts accessible and easy to act on.

How to Avoid Curve Fitting- Extended Testing

Selection today is from Steve Palmquist's ground-breaking book, Money-Making Candlestick Patterns: Backtested for Proven Results. If you trade with candlesticks, this is a must-have resource.

HOW TO AVOID CURVE FITTING: EXTENDED TESTING
A common suggestion by traders new to backtesting is to just combine all the filters that improve results and trade the resulting system. Sometimes it works and sometimes it does not. Just like everything else, the results of combining filters need to be tested. It is possible to keep adding filters to a trading pattern until most of the losing trades in a given time period have been filtered out. This is called curve fitting.

October 28 Market Analysis and Trading Plan

Timely Trades Letter™:

October 28, 2009
NASDAQ Outlook & Key Trading Levels:

The market remained in the recent narrow trading range just under the 2160 resistance area during Monday's session. On Tuesday the market broke below the range to retest and break below the ascending trend line, drawn through the lows of 03/09 and 07/13. Wednesday's session saw the market follow through on Tuesday's break of the ascending trend line, with the market dropping on strong volume and approaching the lower Bollinger Band. 

The trading plan was to trade lightly, if at all, on the long side using just a couple of positions to protect profits from the previous run while the market was below resistance and above the ascending trend line. The trading plan called for new short positions if the market broke below the ascending trend line. When the market broke the trend line on Tuesday, it was time to close any open longs and look for a few shorts. Reducing our long positions as the market approached the 2160 resistance area, and just trading a couple of small positions while the market moved sideways under resistance, protected previous profits which can be put to work again when the trading range is broken either way. In this case, the market decided to break below the ascending trend line which changes the focus to short positions and inversely correlated ETFs.

FREE Exclusive Webinar with Steve Palmquist

You're Invited!

Take a look at the performance of the Bullish Engulfing candlestick pattern and how you can maximize the results in today's market.

Who: Steve Palmquist
What: FREE Exclusive Webinar
When: October 8th, 2009 | 5 PM EST
Where: Click here to Register

Steve Palmquist was one of the speakers at our 2009 Las Vegas Trading Forum in June. If you've missed that event, now, you can tune in on his discussion on the Bullish Engulfing candlestick pattern and how it's performing in today's market--plus, how to most effectively use it to improve results.

Palmquist will show you how it has performed in various market conditions and show you ways to improve its trading results through the use of various filters and by learning how to select only the most powerful patterns. You will discover what type of stock works best with the Bullish Engulfing pattern, when is the best time to use it and when it should be avoided. You'll also know how holding time, volume patterns, moving average filters and stock price effects the results as well as how variations in the pattern shape effects the results. 

Be sure to login a few minutes early since we expect a full house!

Register Now

Is it a 4th Wave? What do Jeff Greenblatt and history say...

by Jeff Greenblatt, author of Breakthrough Strategies for Predicting Any Market and several ground-breaking DVD courses. His website is www.LucasWaveInternational.com.

Tech is beyond the 50% retracement. I thought it would be time to take a short look at history and see what has materialized after past debacles. I’m purposely leaving out instances that were new bull markets; after all, we do have the luxury of hindsight. We know the period after the 2002 bottom led to new highs. But I thought we’d go back to the late 20th century and look at the end of other important bear markets and see what happened.