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The Big Trade: Simple Strategies for Maximum Market Returns

ISBN: 978-1-118-49895-8
224 pages
February 2013
The Big Trade: Simple Strategies for Maximum Market Returns (111849895X) cover image
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.

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Acknowledgments xi

Preface xiii

Chapter 1 Breaking with Tradition 1

Then I Got High 1

Training Sequence 5

Technical Difficulties 8

Reading Is Fundamental 17

Inductively Coupled Failure 19

The Big Trade 22

We’re Getting the Band Back Together 23

Summary 26

Chapter 2 The Conditions of Change 27

Livin’ on the Edge 27

Closing Time 31

The Outsiders 36

Living Day to Day 38

Sold to the Highest Bidder 42

Breaking It Down 49

Finites Move in Infinite Markets 55

Summary 61

Chapter 3 Wax On, Wax Off 63

What Goes Around Comes Around 63

It’s Always Noon Somewhere 71

Opening Range Jitters 77

Objects in Motion 84

Summary 89

Chapter 4 As the Market Turns . . . 91

Subconscious Implications 91

Elephant Walk 95

Breakouts versus Reversals 98

Losing Your Inhibitions 100

Reversal of Fortune 103

Traders Do It with Frequency 111

Rules of Engagement 112

Turn Around and Make Money 116

Heading for the Exits 119

Becoming a Reactionary 125

Summary 126

Chapter 5 The Range Is Your Friend 129

Sideways 129

Waves of Sentimentality 132

Where Are They Now? 135

The Edge of Value 137

The Great One 141

Summary 143

Chapter 6 Closing Arguments 145

Crossing the Great Stream 145

Pressing the Issues 150

The Point of the Journey Is Not to Arrive 153

Summary 156

Appendix A Terms and Definitions 159

Appendix B Trading Examples 163

Appendix C Spreadsheet Examples 181

Appendix D Supporting Data for Nvidia Example in Chapter 4 183

About the Author 187

Index 189

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PETER PHAM is recognized worldwide as an expert consultant in global equities with more than twelve years of experience in all aspects of capital markets. He has held senior positions at several respected brokerage and investment firms, and worked with some of the world's largest international funds. Pham's site, AlphaVN.com, is an independent research and consulting firm focused on Southeast Asia, where he publishes his views on the capital markets and trading daily. He was a rated broker in Asiamoney's 2012 Broker Poll of fund managers and currently resides in Ho Chi Minh City, Vietnam.

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December 18, 2012
The Big Trade: Simple Strategies for Maximum Market Returns

In the past, back as far as ancient China's rice markets, people have been analyzing how price, volume, and time interact to help guide their financial decisions.

Whether they settled on using trend lines or chicken entrails, Elliott waves or the distribution of tea leaves, their approaches were designed to help them predict the future.

"Predicting the market is a fool's errand," noted Peter Pham, author of The Big Trade: Simple Strategies for Maximum Market Returns, dispelling the myth that markets are predictive, saying that our brains are trained to look for a data set that distinctly stands out from the rest of the data.

Pham, a rated broker in Asiamoney’s 2012 Broker Poll of fund managers, recommends designing your own trading system like a painter beginning with a blank canvas, as opposed to using charts filled with myriad indicators and lines defining what had happened in the past—often sending mixed messages for our brains to process.

The Big Trade, published by Wiley provides:

  •  Powerful analytical techniques that go beyond traditional price analysis to focus on price trend probabilities across an array of time intervals
  •  Proven strategies for trading success adapted from trading legends, such as Toby Crabel and Victor Niederhoffer
  •  Keen insights into human behavior and pattern recognition and how to translate that knowledge to stock trading success.

The Big Trade is an engaging account of personal experience, revealing many valuable lessons for trading success. It is a must-have guide for traders and investors of all styles and levels of experience—from novice day traders to seasoned institutional investors.

This book is now available at all leading bookstores and online book retailers. For more information, go to: www.wiley.com/buy/9781118498958.

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