Big trading profits are achieved when you identify the big market trends - and ride them for all they're worth. Now, BigTrends.com founder Price Headley provides a playbook that shows you how to spot stocks ready to take off - and strategies for reaping consistent rewards in all market climates. Emphasizing the aggressive use of options, his methods cover all the major market indicators - including the CBOE Volatility Index, Nasdaq 100, Rydex Mutual Fund Flows, and Equity Put/Call Ratio. Don't feel pressured to make mediocre daily trades. Get ready to post some big returns, when you start using the BigTrends method for finding market winners.
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If youre the kind of savvy trader or investor who aggressively seeks profits in bull and bear markets, Big Trends in Trading: Strategies to Master Major Market Moves is for you. Price Headley, a trading expert and founder of BigTrends.com, draws on his extensive trading experience to show you how to find the best trends in the market and use proven strategies to capture profits from them. Youll learn the secret to success in any market by utilizing a trading plan that accurately identifies prevailing market conditions and then seeks out situations with the highest reward-to-risk ratios.
Big Trends in Trading explores indicators that will help you gauge investor sentiment so you can make significant gains before most other investors have even caught on to trends. Youll learn how to use: *The CBOE Equity Put/Call Ratio to determine upcoming turning points in the market *RYDEX Mutual Fund Flows to gauge the speculative sentiment among active fund switchers *The CBOE Volatility Index (VIX) after an uptrend or decline *Volume indicators that include vehicles such as the Nasdaq 100 Trust (QQQ) and S&P 500 Depository Receipts (SPY)
. . . as well as services that track investor sentiment, including the Investors Intelligence (II) survey.
Big Trends in Trading also guides you through specific stock selection strategies that Headley has used successfully over his career. Youll learn how to use numerous standard technical indicators and measures such as Moving Average Convergence Divergence (MACD), Support and Resistance, Wilders Average Directional Movement Index (ADX), as well as Headleys favorite proprietary indicators: Acceleration Bands and Momentum Divergence.
After a complete examination of indicators such as relative strength and growth-oriented fundamental factors, Big Trends in Trading moves from stocks to options and discusses the power of trend-based strategies for options buyers, as well as various other options strategies that will allow you to profit in all market environments. Strategies such as buying protective puts and selling covered calls can help you capture the best bang for your buck, while you manage the risks associated with your options trades.
Big Trends in Trading doesnt just teach you about the mechanics behind successful stock and options selection. This comprehensive guide goes beyond your average trading guide and addresses the key success factors often overlooked by traders. Headley guides you through the process of building a trading plan that will fit your personality, helps you identify and overcome hurdles to developing a winning mindset, and provides effective money management rules to minimize risk while maximizing your ability to profit from big trends.
Filled with powerhouse strategies, vivid case studies, and helpful charts, Big Trends in Trading will put you on the path to trading profits and investment success.
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Table of Contents:
PART I: GETTING THE MARKET RIGHT FIRST.
The CBOE Equity Put/Call Ratio--My Favorite Contrary Indicator.
RYDEX Mutual Fund Flows--The Crowd is Often Wrong at Extremes.
The CBOE Volatility Index (VIX)--Fear Reigns at Major Bottoms.
Volume Indicators--Contrarian Opportunities on Buying or Selling Panics.
Surveys--How to Use Crowd Opinion to Your Advantage at Major Turning Points.
PART II: STOCK SELECTION TECHNIQUES.
My Favorite Classic Trend Indicators.
Acceleration Bands and Moving Average Envelopes--Spotting the Points When a Stock Can Go Parabolic.
Momentum Divergences--When to Take or Avoid Stock Price Breakouts.
Relative Strenght--Your Key to Maximizing the Bang for Your Buck.
PART III: OPTIONS.
Big Trends--Your Edge versus the Options Pricing Model.
Options Strategies for Different Market Conditions.
Trading Psychology and Money Management.
Appendix A: Stock Picking Checklist.
Appendix B Types of Orders.
Appendix C Favorite Web sites.
Appendix D Favorite Quotes.
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Book Review by Jaye Abbate, Traders' Library
Big Trends in Trading: Strategies to Master Major Market Moves
“Simplify! Simplify! Simplify!”
This famous line from Henry David Thoreau's Walden is also the mantra of trading expert Price Headley in his groundbreaking new book, Big Trends in Trading. Early in his trading career Price found that by doing too much research, monitoring too many indicators, and analyzing too many opposing views he - like many other traders - would be unable to take any action. He was a victim of “analysis paralysis.” But he was also quick study - and he soon discovered that “simpler is better.”
By simplifying his investment approach to focus only on the indicators that work best, Price was able to reduce the “clutter” that immobilizes a trader from making trades, or “reduces hesitation in cutting losses quickly without doubt or hope.” Price's search for a simpler approach led him to concentrate only on the “big trends” in the markets, and he developed proven strategies to capture big profits from them. And since in trading, as in big game hunting “there is an ever-present danger of getting trampled,” Price also devised strategies to manage risk simultaneously with the effort to “bag the big one.”
Now, Price's new book reveals the BigTrends system that grew out of his search for above-average returns, across all time frames. It's an approach that is applicable for active, short-term traders and longer-term investors. He provides flexible tools so readers can easily adapt this system to changing market conditions. And he shows you step-by-step how to identify the big market trends - and then ride them for all they're worth.
Big Trends combines contrarian investing, technical analysis, and the aggressive use of options in a straightforward, easy-to-understand system that shows you how to spot stocks ready to take off - plus time-tested indicators and systems that reap consistent rewards in all markets. And - sticking to his “simpler is better” theme, he helps you hone in on only the most high-potential trades, so you don't waste time or feel pressured to make mediocre, more risky daily trades. In addition to specific stock selection strategies he uses successfully in his own career, you'll find:
- Price's favorite classic trend indicators.
- His own powerful and proprietary indicators: Acceleration Bands and Momentum Divergence.
- Big Trends - your edge versus the Options Pricing Model
- How to use the power of trend-based strategies for options buyers and adapt various option strategies to changing market conditions
- Vivid case studies, tips on trading psychology & money management - and more
Among his peers, Price is one of the most innovative and respected new names in the industry. Options guru Larry McMillan says Price “has always been known for his thorough and accurate research, and he shows why in Big Trends in Trading. Serious traders will benefit from reading this book."
The venerable market technician, John Murphy claims that ...
“By emphasizing the 'big trends,' Headley stresses the importance of concentrating only in the most profitable situations-and tells you how to find them. I personally like his choice of technical indicators-and his unique way of using them. I also like his coverage of money management and the mental aspect of trading-which are just as important as the trading system employed-but too often neglected. All in all, an outstanding piece of work."
In short, Big Trends doesn't just teach you about the mechanics behind successful stock and options selection. It goes beyond - guiding you through the process of building a trading plan that will fit your personality, help you develop a winning mindset and minimize risk while maximizing your ability to spot - and profit from - the 'big trends.”
Life's too short to spend on complex, less effective trading strategies. Simplify your life - and start posting some big returns when you start using the Big Trends method for finding market winners.
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