The Big Trade: Simple Strategies for Maximum Market Returns
A powerful, profitable, and elegantly simple system for traders
Markets can be extraordinarily complex, and unfortunately most trading systems are too. The Big Trade presents a new system that helps filter out the noise. It leaves behind only meaningful signals you need to listen to in order to make profitable trades. Employing simple math and charts, it codifies the past behavior of traders in your favourite stock to assist you to recognize high probability trading patterns.
Peter Pham's system breaks with traditional analytical tools and rejects the theory of predictability. Instead, it lets traders understand both how markets are structured and how they behave. The result is a simple action plan that is as effective and applicable for day traders as it is for generational investors. Blending his personal story and analytical techniques, The Big Trade guides traders of all experience level to find the probability that a stock price will rise or fall in a particular time period.
The Big Trade:
- Gives traders a powerful, yet simple trading methodology
- Was written by a trader with twelve years of both buy and sell side experience in global equities trading
- Is appropriate for most styles of trading, including institutional investing and day trading
For traders who want a universal approach that works for any market at any time, The Big Trade offers a new and effective methodology for successful trading without gimmicks or magic formulas.
each can be seen in Table 2.2. Table 2.2 Historical Weekly Data Example That said, however, each price—open, close, high, and low—signifies something different. We’ll take them individually and explain what’s happening at each of them. While all of these concepts are applicable for any time frame, there are certain conditions that happen only at the beginning and end of each trading session. So, with that in mind, for the purposes of discussion, a bar or candle will represent a day. The
each trading day, look at what happened, glance at your statistics, and know with confidence where your investments are in relation to their historical behavior and whether any action is warranted. If you are investing at the monthly time frame, looking to hold the stock for a couple of years, then reviewing the price action at the end of each week makes sense. Set your spreadsheet up to grab weekly, monthly, and quarterly data and review it over the weekend. This system is adaptable to all of
focused on what is happening now. This leaves you the flexibility to review your position as a good one and be content to let it ride into the next bar. Both are perfectly valid strategies, as is pulling your initial stake off the table (selling) and leaving your profit in the form of stock if you like the chances of its continuing to make you money. My studies during those two years I spent devouring knowledge and sleeping on Andrew’s couch led me to this way of trading. Armed with all of this
long enough to realize the strength of the value investing methodology. That may very well be. I’m not here to impugn anyone’s preferred approach to value investing. But investing, to me, is far more than just finding value in a numeric sense. Yes, I could agree with him that company XYZ is undervalued, but that still doesn’t mean that the stock is a good buy. It may well be at some point, but it may not be because, ultimately, value is a subjective thing. Nothing has intrinsic value; not even
price. Table B.2 Supporting Data for F Source: Data from Yahoo! Finance. Going short on the weekly close below $12.00 at $11.92 would be a high-percentage move. Ford opens the next week at $12.01. There is a 66.1 percent chance that if it moves $0.10 above the open that it can eclipse the previous week’s high, which would be a sign of buyers coming in to support the range. That does not happen; it reaches just $12.05 and then sells off. It closes at $11.88 on Monday April 16. On the 17th it