e
A Marketplace Books trading guide
Intra-day Trading Strategies Proven Steps to Trading Profits eGuide to the Video Seminar by
J eff C ooper
Copyright Š 2012 by Jeff Cooper Published by Marketplace Books Inc. All rights reserved. Reproduction or translation of any part of this work beyond that permitted by section 107 or 108 of the 1976 United States Copyright Act without the permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Permissions Department at Marketplace BooksŽ. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers.
This book, along with other books, is available at discounts that make it realistic to provide them as gifts to your customers, clients, and staff. For more information on these long lasting, cost effective premiums, please call us at 800-272-2855 or e-mail us at sales@traderslibrary.com.
ISBN: 1-59280-553-1 ISBN 13: 978-1-59280-553-2
Table of Contents
INTRA-DAY TRADING STRATEGIES
Publisher’s Preface How to Use This Book
v vii
Meet Jeff Cooper
ix
Introduction : Exactly What is Intra-Day Trading?
xi
Determining Time Frames Intra-day Trading
xii xiii
Chapter 1 : I t’s Like a Sword Fight
1
2 3 4 7
The Wheels of Price and Time Observing Market Behavior Confirmation Chart Interpretation
Chapter 2 : The Truth About Indicators
13
The Right Mindset Momentum Pattern Interpretation
15 16 17
Chapter 3 : The Simple Tools are Often the Best
27
Chapter 4 : Anticipating the Next Move
41
41 54
Recognizing Patterns, Tempo, and Delay Using Pattern Identification Tools to Time Set-Ups
Chapter 5 : Triangulating the Trend
61
Triangles Recognizing Repetitive Patterns
61 68
Chapter 6 : When Stocks Don’t Behave as They Should
73
73 86
Case Studies Friday Afternoon Breakouts
Chapter 7 : Powerful Patterns
89
The Grenade A Bleedback Expansion Volume Breakout The Boomer The Power Surge Formation A Case for Short-term Trading The Holy Grail Combining Patterns and Signals: Making Them Work for You
89 92 93 94 95 98 99 101
Trading Resource Guide
107
PUBLISHER’S PREFACE What you have in your hands is more than just a book. A map is simply a picture of a journey, but the value of this book extends well beyond its pages. The beauty of today’s technology is that when you own a book like this one, you own a full educational experience. Along with this book’s author and all of our partners, we are constantly seeking new information on how to apply these techniques to the real world. The fruit of this labor is what you have in this educational package; usable information for today’s markets. Watch the video, take the tests, and access the charts—FREE. Use this book with the online resources to take full advantage of what you have before you. If you are serious about learning the ins and outs of trading, you’ve probably spent a lot of money attending lectures and trade shows. After all the travel, effort, expense, and jet lag, you then have to assimilate a host of often complex theories and strategies. After thinking back on what you heard at your last lecture, perhaps you find yourself wishing you had the opportunity to ask a question about some terminology, or dig deeper into a concept.
v
You’re not alone. Most attendees get bits and pieces out of a long and expensive lineage of lectures, with critical details hopefully sketched out in pages of scribbled notes. For those gifted with photographic memories, the visual lecture may be fine; but for most of us, the combination of the written word and a visual demonstration that can be accessed at will is the golden ticket to the mastery of any subject. Marketplace Books wants to give you that golden ticket. For over 15 years, our ultimate goal has been to present traders with the most straightforward, practical information they can use for success in the marketplace. Let’s face it; mastering trading takes time and dedication. Learning to read charts, pick out indicators, and recognize patterns is just the beginning. The truth is, the depth of your skills and your comprehension of this profession will determine the outcome of your financial future in the marketplace. This interactive educational package is specifically designed to give you the edge you need to master this particular strategy and, ultimately, to create the financial future you desire. To discover more profitable strategies and tools presented in this series, visit www.traderslibrary.com/TLEcorner. As always, we wish you the greatest success.
Chris Myers vi
President and Owner Marketplace Books
HOW TO USE THIS BOOK The material presented in this e-book and online video presentation will teach you profitable trading strategies personally presented by Jeff Cooper. The whole, in this case, is truly much greater than the sum of the parts. You will reap the most benefit from this multimedia learning experience if you do the following.
Watch the Online Video The online video brings you right into Jeff Cooper’s session, which has helped traders all over the world apply his powerful information to their portfolios. Accessing the video is easy; just click the links throughout the book to watch. The great thing about the online video is that you can log on and watch the instructor again and again to absorb his every concept.
Read this e-Book Dig deeper into Cooper’s tactics and tools as this e-book expands upon Cooper’s video session. Self-test questions, a glossary, and vii
key points help ground you in this knowledge for real-world application.
Take the Online Exams After watching the video and reading the book, test your knowledge with FREE online exams. Track your exam results and access supplemental materials for this and other guide books at www. traderslibrary.com/TLEcorner. If this is your first time at the Education Corner, you will be asked to create a username and password. But, it is all free!
Go Make Money Now that you have identified the concepts and strategies that work best with your trading style, your personality, and your current portfolio, you know what to do—go make money!
viii
Jeff Cooper
MEET JEFF COOPER
Jeff Cooper began his trading career in 1981 at Drexel Burnham working for his father, a hedge fund manager. Jeff left Drexel Burnham in 1986, choosing to trade exclusively for himself. After establishing a successful career as a private trader, he then went on to write three best selling books on the subject: Hit & Run I, Hit & Run II, and The 5 Day Momentum Method. In addition to his books, Jeff has also produced videos including Seven Set-ups that Consistently Make Money, where he teaches traders exactly what it takes to earn a predictable profit in the trading arena, and a charting course entitled Unlocking the Profit of the New Swing Chart Method. Today, Jeff trades for himself from his home overlooking the Pacific Ocean in Malibu California. ix
Introduction
Exactly What Is Intra-Day Trading?
“The trend is your friend.” This is one of the oldest market maxims and one of the most profound. It is also true, but, like a lot of maxims, it raises an important question: how do we define a “trend”? Most people would define a trend as a move of price in a specific direction. It is characterized by a series of higher high price levels, offset with swings to higher lows; or going in the opposite direction, a trend would be a series of lower lows with swings to lower highs. But I challenge you to ask a different question: What is the time frame of your trend? Are you referring to the trend existing weekly, monthly, or even hourly? Time frame is the window through which stock price trends are studied. A time frame may be daily, weekly, or monthly; it may also be hourly or consist of even smaller increments. xi