How to Beat the Market Makers at Their Own Game: Uncovering the Mysteries of Day Trading (Wiley Trading)
The basic skills for becoming a successful trader from a master of the game
Written by Fausto Pugliese (founder and CEO of Cyber Trading University) this must-have resource offers a hands-on guide to learning the ins and outs of active trading. How to Beat the Market Makers at Their Own Game gives professionals, as well as those relatively new to investing, a behind-the-scenes look at the inner workings of the marketplace and a comprehensive overview of basic trading techniques. The book explains how to apply the trading strategies of acclaimed trader Fausto Pugliese. Step by step the author covers the most common market maker setups, shows how to identify market maker traps, and most importantly, reveals how to follow the direction of the lead market maker in an individual stock.
Throughout the book, Pugliese puts the spotlight on Level II quotes to help investors understand how market makers drive prices and manipulate the market. This handy resource is filled with the tools needed to interpret market maker activity so traders can truly understand the market and trade accordingly.
- Offers an accessible guide for developing the investing skills to trade with confidence
- Filled with the real-world trading experiences and techniques of Fausto Pugliese
- Covers simple technical patterns that are important in day trading
- Includes a website with exercises to help master the book's techniques
How to Beat the Market Makers at their Own Game will become your well-thumbed resource for learning what it takes to succeed in short-term stock trading.
100 round lots) is even better. Ideally, there should be a minimum of three or four market makers in each price tier. As always, the point of this rule is to make sure there is a wide breadth of opportunities to get in and out of the stock. ■ Rule #4 Stay away from stocks with low trading volumes. Stocks with low trading volumes (i.e., stocks for which relatively few shares are traded on any given day) have wider spreads. The spread is the difference between the bid (the price at which you can
side, there are 20 round lots available at $1.95 and 74 round lots available at $1.96. At just more than three million shares traded, the volume is within the acceptable range, and there are more than enough market makers on both sides of the window. Finally, let’s look at the spread: with 94 round lots available between $1.95 and $1.96 per share, it’s very likely that you would be able to buy the stock within this range. With eight market makers looking to buy more than 100 round lots at $1.94,
salary! Let’s assume you just executed one of these profitable trades: While $250 doesn’t seem like much, it works out to about $75,000 after 52 weeks. That’s not bad for an extra hour of work. You’ll notice that the market maker didn’t feel the need to use indicators to make a profit. Now, please understand that I’m not suggesting that indicators are useless. They can be quite helpful in providing guidance to swing traders and long‐term investors, because such investors have one luxury that day
to the success of Cyber Trading University since its inception, I have decided to generate a comprehensive version of active trading that is intended for both expert and novice individuals alike, who simply want to learn how the system operates. I’m going to take a systematic approach to explaining the system to you. First, I’ll explain how the market works, and by that, I mean how it reallyy works. Second, I’ll explain the basic strategy of how to execute my system, given the tools available to
with four? • Look for big orders on Totalview when looking at the stock chart for pivot points, support levels, or resistance levels. • Have a legal pad, green and red pens, and a calculator when looking for tradable stocks. • Have a backup computer, just in case the one you are using blows up. If possible! • Dress comfortably when trading. • You have to set realistic goals. • You should not care what stocks you trade or what they do but only that you make your day’s pay. • Do not fall in love