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The Disciplined Trader : Developing Winning Attitudes : Mark Douglas



One of the first books to address the psychological nature of how successful traders think ~ The Disciplined Trader™ is now an industry classic. In this groundbreaking work published in 1990 ~ Douglas examines the causes as to why most traders cannot raise and keep their equity on a consistent basis ~ and brings the reader to practical and unique conclusions as to how to go about changing any limiting mindset. The trader is taken through a step-by-step process to break through those queries ~ and begin to understand that their very thoughts may be limiting their ability to accumulate and succeed at trading.

China's largest bitcoin exchange seeks recognition for currency : Bloomberg

BTC China, the nation’s largest Bitcoin exchange, has had low-level discussions with regulators seeking recognition of the digital currency that would allow it to be used to buy goods and services in the country.

The company has sought to discuss Bitcoin regulations with officials from agencies including the People’s Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission, BTC China Chief Executive Officer Bobby Lee said in a Nov. 29 interview in Shanghai. It’s not yet been able to arrange any high-level meetings, he said.

“They’ll ask us ‘how should you be regulated,’ and I’ll say ‘Hey, here’s what we’ve done proactively and here’s how we think you should regulate us,’” Lee said of the Shanghai-based company’s talks with regulators. Bitcoin is “not on the black list and it’s not on the white list. It’s in the gray area.”

The growth of Chinese investments in Bitcoin has come amid concerns that regulators may ban trading of the electronic currency. That was eased this month when deputy central bank governor Yi Gang was cited by the 21st Century Business Herald as saying that people were free to trade Bitcoin even as China refrains from recognizing it as a currency in the short term.

“This is very different from six months ago when I was very much unsure of Chinese opinion,” Lee said of Yi’s comments on Bitcoin.

The value of Bitcoin, which is not regulated by any country or banking authority, soared 80-fold from a year ago and traded at $1,000 apiece at 10:09 a.m. in Shanghai on BitStamp, an Internet-based exchange where Bitcoins are traded for dollars, euros and other currencies. It was quoted at 7,491.03 yuan ($1,230) on BTC China, which was set up in June 2011 as the first trading platform for the digital currency in the nation, according to its website.

FX : US Data Could Skew Positions for Dec Taper : Kathy Lien

The price action in foreign exchange market this morning provides investors with a taste of the volatility and excitement that they can expect in currencies this week. Stronger PMI numbers from Europe, China and the U.S. lifted risk appetite across the FX market. Sterling rose to its highest level in 2 years and the New Zealand dollar is up nearly 1% today against the U.S. dollar. With the exception of the euro, all of the major currency pairs are trading higher as investors respond positively to the recovery in global manufacturing. Even the Australian dollar rebounded despite disappointing economic data.

However there is no consistency once again in the dollar’s performance even though U.S. yields have moved higher and the ISM manufacturing index surprised to the upside. This should change, as the week progress because key data such as the non-manufacturing ISM and U.S. labor market reports will shape expectations for tapering and dominate trading. Don’t forget that investors are still divided on when the Federal Reserve will taper (December or March) and this week’s economic reports are important enough that they can alter expectations, starting with this morning’s ISM manufacturing index. Despite weaker manufacturing activity in the NY, Philadelphia and Chicago regions, manufacturing production accelerated across the nation with the ISM index rising to 57.3 from 56.4. This was the strongest pace of growth since April 2011 and the rise in orders in particular is very positive for the U.S. recovery. If we continue to get these upside surprises in U.S. data this week, investors will skew their positions for December tapering, leading to further gains in the dollar.

We have 7 central bank monetary policy meetings on the calendar, the non-farm payrolls report, the Beige Book and speeches by a number of U.S. policymakers. The Reserve Bank of Australia, National Bank of Poland, Bank of Canada, European Central Bank, Bank of England, Norges Bank and Banxico (Mexico) are all expected to leave monetary policy unchanged but the accompanying statements and press conferences could still trigger big moves in the respective currencies. If the RBA or the ECB suggests that additional stimulus is possible, EUR/USD could drop below 1.35 and AUD/USD could test 90 cents.

With the U.S. government reopening in November, this month’s NFP report was expected to show a snapback in job growth. However last month’s 204k rise in payrolls exceeded the expectations of the most optimistic economist and because of that they are now looking for job growth to slow in November. If they are wrong and payrolls rise by more than 200k (190k would even do the trick), the unexpected strength of the labor market will prompt traders to readjust their positions for sooner rather than later tapering and this would be positive for the dollar. In fact, an upside surprise in non-farm payrolls report could be just what USD/JPY needs to break its 4 year high of 103.74 but the breakout could occur sooner if the leading indicators for NFPs also point to a stronger number.

Ex-Madoff aide:"I Created Fake Books And records : CNN Money

Frank DiPascali Jr., a former aide to Bernard Madoff facing up to 125 years in prison after pleading guilty in 2009, testified in court Monday that Madoff's firm ran an "extensive" fraud lasting decades.

"We were lying," said DiPascali, referring to former Madoff colleagues on trial for allegedly helping Madoff pull off his massive Ponzi scheme. "I'm talking about trades that ... actually didn't exist."

DiPascali, now a government witness, said he "created fake books and records" during his 33 years at Madoff's firm. "It was pretty extensive."

Fake trading went on "for as long as I can remember," he testified.

DiPascali, who rose from clerk to account manager, has pleaded guilty to charges that include securities fraud, investment advising fraud, perjury, international money laundering, income tax evasion, wire fraud and mail fraud. He has yet to be sentenced.

During testimony in U.S. District Court in Manhattan, DiPascali said he hopes his cooperation will cause the sentence to be "something substantially less than" 125 years.

In using DiPascali as their star witness, prosecutors are trying to destroy the myth that his ex-boss acted alone.

On trial are five former Madoff employees who were in the courtroom as DiPascali testified. They are accused of helping Madoff trick thousands of victims out of their money. All have pleaded not guilty.

In October, attorney Andrew Frisch, who is representing one of the defendants now on trial, attacked DiPascali's credibility in court, calling him "a pathological liar [and] a shredder of documents ... whose first instinct was to run and hide."

The trial began in October and is expected to last five months.

Meanwhile, Madoff is languishing in a federal prison in North Carolina, where he is serving a 150-year sentence. He was arrested nearly five years ago, on Dec. 11, 2008, and pleaded guilty three months later.

Madoff's brother, Peter Madoff, who also worked at the firm, pleaded guilty last year and was sentenced to 10 years in prison.

Banks slapped with $2.3 Billion fine for rate manipulation : CNBC

Some of the world's biggest banks have been hit with a 1.71 billion euros ($2.3 billion) fine for interest rate-rigging by traders, the largest fine ever imposed by the European Commission (EC).

Joaquín Almunia, vice-president of the EC and the Commissioner responsible for competition, said in a statement: "What is shocking about the Libor and Euribor scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other.

"Today's decision sends a clear message that the Commission is determined to fight and sanction these cartels in the financial sector. Healthy competition and transparency are crucial for financial markets to work properly, at the service of the real economy rather than the interests of a few," he added.

The offences involved traders conspiring to fix the European interbank offered rate (Euribor) and its Japanese equivalent, the Yen London interbank offered rate (Yen Libor), for profit.

The banks to be fined are Citigroup, Deutsche Bank, Royal Bank of Scotland, JPMorgan, and Societe Generale. Deutsche has to pay out the biggest fine for conspiring to rig both rates, with a 725 million euros bill. RBS was also fined over the setting of both kinds of rates, and must pay a total of 391 million euros.

At the other end of the scale, U.K. broker RP Martin was fined 247,000 euros for one infringement relating to Yen Libor.

Investigations into Crédit Agricole, HSBC, JPMorgan and broker Icap are ongoing.

"The settlement makes no finding that JPMorgan Chase management had any knowledge or involvement in the conduct at issue, or that the traders' actions had any impact on the firm's Libor submissions or the published Libor rates," a JP Morgan spokeswoman said in a statement.

The bank "intends to defend itself fully" against additional allegations its traders rigged Euribor - but has admitted that its employees rigged Yen Libor.

UBS has previously admitted taking part in the rigging of Yen Libor, but has avoided a 2.5 billion fine by blowing the whistle on other banks. It took part in five violations of regulations uncovered by the EC, while other banks involved took part in 1-3 infringements.

Barclays, which also avoided a 690 million euros fine from the EC over its role in Euribor manipulation, was the first bank to announce a fine over the London equivalent, Libor, last year, which kicked off a slew of revelations about the fixing of the rate, which affects things like the rates paid on mortgages and savings. The interest-rate rigging is one of many reputational issues facing global banks at the moment.

Goldman Sachs Sued By Singapore Client Oei Over Loss

Goldman Sachs Group Inc. (GS) was sued by Singaporean wealth-management client Oei Hong Leong over a $34.3 million loss on Brazilian real-yen options trades he claimed the bank misled him into making.

Oei accused the New York-based bank of fraudulent misrepresentation, breach of fiduciary duty, fraudulent inducement and unjust enrichment in papers filed yesterday in New York state court.

Goldman Sachs rejected allegations that it acted improperly or cheated him, according to a letter it wrote to Oei in July and filed in a Singapore court, where the businessman is suing a unit of the bank over the same loss. The bank has said it will defend that lawsuit, which it is seeking to halt in favor of private and confidential arbitration.

“A lot of clients are like me, they trust the big banks like they trust their doctors,” Oei, 65, said in an interview today. His friends have had similar experiences and he is suing for “justice and fairness” for all clients, he said.

Andrea Raphael, a spokeswoman for Goldman Sachs in New York, said Oei’s lawsuit is without merit and will be defended.

Oei said in the New York lawsuit that he cut dealings with Goldman Sachs in 2011 after it profited on a losing trade it persuaded him to make. He said he resumed transactions after senior executives including President Gary Cohn and Asia head David Ryan visited him in April 2012 and said his interests would be placed first.
Currency Bet

Oei said he relied on claims by Mats Dewitte, Goldman Sachs’s executive director for fixed income, currencies and commodities in Asia, before betting on May 15 the Japanese currency would fall against the real.

The bank had claimed the real was a stable and liquid currency anchored to the U.S. dollar, he said.

The real has fallen 12 percent since May 1 against the yen, the worst performer among 16 major currencies tracked by Bloomberg. The Brazilian currency dropped to a four-year low in June after the U.S. Federal Reserve said it may moderate bond purchases that have fueled demand for emerging-market assets.

Oei in 2009 settled a claim against Citigroup Inc. over S$1 billion ($797 million) in trading losses.

The Indonesia-born businessman, who made S$7 million trading American International Group Inc. shares in September 2008, in October that year predicted the global credit crisis would worsen because European banks would falter. A day after his remarks, then British government said it would inject 50 billion pounds ($81.2 billion) into the nation’s banks to keep them from collapsing.

“Trading is like the casino, sometimes you win, sometimes you lose,” Oei said.

The case is Oei v. Goldman Sachs Group Inc., 161176/2013, New York State Supreme Court, New York County (Manhattan).

Getting Started Patterns : Thomas Bulkowski



An accessible guide to understanding and using technical chart patterns

Chart pattern analysis is not only one of the most important investing tools, but also one of the most popular. Filled with in-depth insights and practical advice, Getting Started in Chart Patterns is designed to help both new and seasoned traders profit by tracking and identifying specific chart patterns. Expert Thomas Bulkowski opens with a basic discussion of chart pattern formation and how bad habits can hurt trading. He then moves on to introduce over 40 key chart formations as well as numerous trading tactics that can be used in conjunction with them. Readers will benefit from the specifics (actual trades with dollar amounts) outlined throughout the book and the frank discussions of how trading behavior can affect the bottom line. Anecdotes from Bulkowski's own trading experiences are also included to shed light on how one of the best in the business goes about trading with chart patterns.

High Profit Candlestick Patterns : Stephen Bigalow



High profit trading patterns, revealed by utilizing time-honored Japanese candlestick signals. A straight-forward approach to understanding and exploiting market opportunities. Practical applications to predict stock price movements consistently and profitably, a winning system in good times or bad! All detailed in: "High Profit Candlestick Patterns: Turning Investor Sentiment into Profits" By Stephen W. Bigalow

Don’t play the market, Beat the Market! Stephen W. Bigalow’s first book "Profitable Candlestick Trading" taught the novice investor how to quickly identify the best trading opportunities. Now his new book, "High Profit Candlestick Patterns" takes his teaching to the next level. Combining the proven results of Japanese Candlestick charting with effective Western technical analysis, produces even higher profit wealth-building stock selection techniques. Learn the key to profitable stock selection with this safer approach to investing and avoid expensive trading mistakes. Quickly learn the simplest, yet most intelligent, approach to stock selection. Candlestick signals visually produce compelling results. Japanese candlestick charting techniques, integrated with statistically proven Western technical analysis, produces an even more powerful investment platform. The ability to recognize trading patterns in their very early stages empowers an investor with high profit trading strategies.

For the technical investor, the combined analysis provides potent trading programs. The fundamental investor gains tremendous insights into the timing of positions. The introduction of cutting-edge computer generated technical analysis, with the world's most proven trading technique, becomes a powerful tool for understanding the movements of the markets. Discover simple techniques that put the probabilities highly in your favor.

Japanese candlestick signals provide an immense amount of information. They graphically depict what is occurring in investor sentiment. This alone provides a huge advantage for the investor. Having the ability to identify reversals in price trends, utilizing statistically proven and utilized signals, allows an investor to develop high profit trading strategies. The psychological elements not only reveal trend reversals, but they provide the insights for understanding why that reversal is occurring. This becomes a very powerful investment tool.

The graphic illustrations in this book are simple common sense revelations. Utilizing candlestick signals in conjunction with Western technical patterns produces two strong investment elements. First, it allows for the recognition of the optimal times for entering a trade. Second, the candlestick signals revealed immediately when the trend pattern is not performing correctly, allowing for quick exits.

You will receive a whole new perspective for profitably investing in the markets. You do not have to learn formulas nor develop investing talents. The combination of candlestick signals with easy-to-identify trading patterns will vastly expand your investment confidence. The self-mastery of profitable investing is greatly simplified with quick visual evaluations.

Guppy Trading, Essential Methods For Modern Trading : Daryl Guppy



A compilation of the very best of Daryl Guppy

Daryl Guppy has been one of Australia's foremost experts on share trading and charting for almost 20 years. His first book, Share Trading, is still a must-read for people wanting to learn about the market and is widely accepted as the best-selling trading book ever in Australia.

Guppy Trading contains detailed analysis of many topics, including:

making effective trades based on news events and informed trading
advanced application of the Guppy Multiple Moving Average to assess the true strength of a trend
how to establish and improve trade entry, exit and stop loss points in volatile markets
effective trading of international markets
safely integrating derivatives to boost portfolio returns.

Guppy Trading contains 23 of the most enduring and important chapters from Guppy's earlier books, completely revised, and combines them with 10 entirely new chapters. These new chapters detail new trading methods and instruments that have been developed to create additional opportunities and ensure survival in interconnected modern markets. This comprehensive compendium is critical reading for traders looking to maximise their returns.

Trading Price Action Reversals : Al Brooks




A detailed guide to profiting from trend reversals using the technical analysis of price action

The key to being a successful trader is finding a system that works and sticking with it. Author Al Brooks has done just that. By simplifying his trading system and trading only 5-minute price charts he's found a way to capture profits regardless of market direction or economic climate. His first book, Reading Price Charts Bar by Bar, offered an informative examination of his system, but it didn't allow him to get into the real nuts and bolts of the approach. Now, with this new series of books, Brooks takes you step by step through the entire process.

By breaking down his trading system into its simplest pieces: institutional piggybacking or trend trading, trading ranges, and transitions or reversals (the focus of this book), this three book series offers access to Brooks' successful methodology. Trading Price Action Reversals reveals the various types of reversals found in today's markets and then takes the time to discuss the specific characteristics of these reversals, so that you can use them in your everyday trading endeavors. While price action analysis works on all time frames, there are different techniques that you can use in trading intraday, daily, weekly and monthly charts. This, among many other issues, is also addressed throughout these pages.

Offers insights on how to handle volatility and sharp reversals
Covers the concept of using options when trading certain charts
Examines how to deal with the emotions that come along with trading
Other books in the series include Trading Price Action Trends and Trading Price Action Trading Ranges

If you're looking to make the most of your time in today's markets the trading insights found in Trading Price Action Reversals will help you achieve this goal.