DeMark on Day Trading Options is the first book to combine two of today’s hottest trading phenomena – day trading and options trading – into one exciting blueprint for making money in volatile markets. He provides insights on selecting the best options to trade for specific markets, details how traders can accurately predict market movements, and introduces the ingenious option trading variable he developed.
Author’s Note:
Although some option-writing techniques may be profitable, the degree of success traders enjoy is limited to the value of the option at the time the trade is initiated which is a function of market volatility, the underlying security price, and the time remaining before an option’s expiration, among other considerations as well. In actuality, trading defensively and adhering to option models and complicated option-writing strategies contradicts the goal of most option traders, which is to leverage their investments and make a significant amount of money within a short period of time. They perceive, we believe incorrectly, that this selling methodology is a safer and a more profitable means of trading than the outright purchase of options. Similarly, we could present theoretical price valuation models that describe option price behavior given various levels of price activity of the underlying security along a specified time spectrum. After all, models are helpful since they are designed to provide a trader with an option-pricing road map. On the other hand, how often has real-time trading conformed to a market model? Not often and especially not in those instances in which traders have relied heavily upon a specific game plan to trade their own accounts aggressively.
We’re certain there are a number of excellent books that discuss how to write or sell options and lock in respectable returns. Unfortunately, the option-investing public is often precluded from participating in these trading strategies because the implementation of these techniques requires either a large capital commitment or the possession of the underlying security. As a result, an undercapitalized trading novice is forced to either buy options outright or forego participation in this potentially rewarding trading opportunity. Fortunately, we believe that what may be perceived by some as an inferior and riskier approach to option trading is in reality a preferable form of trading, provided proper guidelines are followed. In other words, we feel that buying options outright without the requirement of, or concern for, complex formula-ridden and capital-intensive methods of writing or selling options can be more rewarding, both financially and emotionally. If you are like we are, you prefer limited risk and unlimited gains and that is precisely the focus of our book.
Despite the multitude of formidable barriers to successful trading, there exist numerous strategies which enable traders to buy and to sell options, even intraday, profitably. These methods are a reasonable and a practical alternative to the sophisticated, hypothetical trading techniques which require large account balances and complex computer-driven market models. We believe all that is required is a basic understanding of the operation of the options markets and a measure of trading discipline and money management skills. This book concentrates upon the presentation of simple, easily understood methods to identify option-trading opportunity zones. Our methodology deemphasizes the commonly accepted practice of selling an option in anticipation of the premium value’s decline to zero as time lapses into option expiration. Rather we attempt to provide a disciplined option trader with an open-ended profit potential, since our basic approach merely requires buying and
then liquidating an option position at the appropriate time.
Although this book may occasionally describe or refer to various option-writing strategies or trading models, they are incidental to the thrust of our discussion which is to present a number of approaches to successfully buy and day trade options. Certainly, there is nothing to prevent a trader from employing the daytrading techniques presented in this book and then electing to extend the holding period longer than the conclusion of the entry day’s trading. The important consideration is to adhere to the application of a mechanical and disciplined approach to both the selection of option-trading candidates and the timing of their purchase.
Contents:
- Option Basics
- Option Mechanics and Trading
- Tools and Techniques
- Option Indicators TD % F and TD Dollar-Weighted Options
- Anticipating the Trend: TD Sequential, TD Combo, and TD Setup Trend
- Disqualified Breakouts: TD Lines and TD Retracements
- Perfecting an Oscillator: TD REI and TD POQ
- Moving Forward in Reverse: TD Fib Range, TD Exit One, TD REBO Reverse, TD Camouflage, and TD Range Projection
- Pulling ItAII Together
DeMark On Day Trading Options: Using Options to Cash In on the Day Trading Phenomenon By Thomas R. DeMark pdf
Sawyer Estrada (verified owner) –
I enjoyed this book immensely and since I have been trading for over 30 years and never read anything approaching the uniqueness of this book. I also read with much interest the author’s other two bboks. However, the reason I would prefer not to assign a full 5 stars is because I truly believe the author knows much more than the general (and sometimes specific) ideas he posits in the books. I realize that the author has no obligation to share more than the very helpful ideas we find within the pages of the book but it would have been much, much more useful to include more information. I assume that for the small amount of money invested in the books, he did not want to provide more information. Also perhaps the size of the book would be volumes. Nevertheless the new, original ideas included in the book are compelling and very helpful.
Miguel Whitaker (verified owner) –
I have a degree of apprehension when I recommend this book as being revolutionary in the realms of trading markets. Most books within this arena are devoted to the same, redundant useless trading techniques. These methods are unique and more than that they are effective and produce consistent profits. I have a bloombeg and a CQG trading machines and this book makes the methods easier to trade. Regardless it is imperative that there be some understanding of the basis and formulation of these revolutionary trading tools. Bravo Senor Demarco
Kash Castro (verified owner) –
Prior to xmas and on my birthday I received a copy of DeMark’s ‘New Science of Technical Analysis’. I have been a professional trader for over 20 years and currently head up the trading operation at one of the major Wall Street firms. I thought I knew how market operateed and I shared my expereince on TV, radio, and in newspapers for years. Upon reading this book and as well ass the other two in the DeMark set, I have gained a profound new awareness how markets truly behave. The author is beyoind peer in defining and describing the intricacies of price behavior. What an enlightening series of reads.
Eloise Ballard (verified owner) –
My trading partner introduced me to the author’s work. He told me that the author had worked closely with Paul Tudor Jones, Leon Cooperman, Steve Cohen and other industry titans. To be associated with these guys, he had to have something of value. After reading his books, my conclusion is that he truly possesses a creativity and market awareness that is unmatched in the industry. Although the ideas he presents can be profitably applied, I am certain that he does not share everything he knows with the reader. Regardless something is better than nothing.
Margo Macias (verified owner) –
You may want to think twice about this one. Not to be negative, but it is very hard to follow. Clear and concise dialog is absent in favor of unnecessary “branding” if you will of common techniques mixed with completely unverified and difficult to back test methods for trading the markets. This is trading celebrity gone wrong. I would love to know the remaining balance of an investment account traded with these “TDious” indicators. You can at least save yourself from this trade.
Amy Buckley (verified owner) –
The previous reviewer cites the perception of the author’s inflated ego. I too was distracted by the author’s tendency to refer to “TD” indicator this and that and this disturbed me. However, i had the good fortune to meet the author at a Bloomberg seminar and the author explained why he chose to preface his indicators with the ‘td’. The justification he gave was that his attorney wanted him to trademark and control the indicators and that was the effective way for him to accomplish that goal. I accept that reason and more than that I can overlook the petty complaint that it is distracting by concentrating upon the value I find in the indicators. I say call them whatever the author wants to since bottom line they are the best I have seen in my 35+ years in the industry.
Azrael Strong (verified owner) –
I am a fan of Demark’s indicators if you or I can ever get them. His indicators are only given to high dollar companies like reuters. My reading of this book was a painful process of trying to understand a indicator I cannot even use in trial applications. IT is clear that Demark has left his loyal following to make up bargin basement Metatrader indicator rejects. Like most in this business…..business comes first. I rank this has a 3 and the only reason it got a three was because of the quality of the work. Demark is really only valued by the traders who honestly don’t need him to trade like myself. If I was a rookie and pick up one of his books I would not trade the markets because of the over don’t explanation and indicators I could not follow. Do not read the reviews folks. They seem real suspect. Make a simple explanation book Demark and make your real indicators available.
Moshe Kim (verified owner) –
I bought the book to learn the details of DeMark’s Sequential system, but found it loaded with many other of his indicators as well. The father and son have teamed together to explain their concepts in a completely understandable fashion. Some people have complained they are repetitive in explaining both the long and short side of each indicator when it would only have been necessary to indicate that one is just the reverse of the other. I will admit it would have been better to separate the two descriptions in separate paragraphs, but I see nothing wrong in explaining both sides to completely eliminate any confusion between the two.
Undoubtedly, the DeMark’s indicators are totally unique in the technical analysis world. The only problem is that to use these indicators they must be automated. They are too complex to identify by just observing a chart. However, you can essentially automate them using a spreadsheet, but even then you will be limited to tracking only a very few securities in a few time frames without being overwhelmed. If you limit your coverage to just a couple of securities at relatively longer (daily, 60, 30, 10 minute)time frames you will find them useful. Professionals will be able to track them much more efficiently using Bloomberg and some other data sources.
I can’t say much about using options to implement the indicators, as this is not my immediate interest.
Cara Heath (verified owner) –
Very smooth efficient transaction
Gabriella Jordan (verified owner) –
This book is great to become conversant in demark indicators, which by now (15 years after the publication of this book), are sort of standard market indicators for most technical traders, like RSI, stochastics, MACD, etc. Do the indicators work? This is obviously a different question and from my simple analysis in futures markets, I can only say that it does “not obviously work”. It might work, but not obviously, and then why would it – there is no magic bullet and the markets are complex and subject to many drivers that demark indicators cannot capture.
However, I recommend a read, if nothing else, to realize that you can make your own demark signals and dont have to pay Bloomberg or Reuters exorbitant fees to get them.
Ramona Xiong (verified owner) –
It’s a good book but seems like some of this stuff just isn’t available for use in the everyday world. I use TD Ameritrade and someone did setup the countdown method. Still full of plenty of useful info for someone who’s a technician and if you have programming skills to boot you might want to play with some of this stuff.
Saul Clements (verified owner) –
book does not make any sense
Randy Conley (verified owner) –
I head the trading desk for over the counter sales at one of the largest institutional brokerage houses and I require my traders to be conversant in these studies before I allow them to trade our firm’s capital. The models explained in this book have earned us big returns and have help us avoid the ‘bullets’ many times. These are the best tools we have discovered on Wall Street. We are not adverse to recommending their study because they take time to learn and most traders are innately lazy!
Ivanna Bentley (verified owner) –
I have read and re-read everything published on trading markets. Never, and I repeat NEVER, have I seen and enjoyed as many potentially profitable trading ideas as I have seen in this book. Already, with the help of my Bloomberg and CQG and my trading partner’s ILX-Thomason machines, I have enjoyed numerous highly profitable trades. I did have one loser but 14 profitable trades during the same period was outstanding performance results. I look forward to applying these and other techniques I have studied in this book to enhance my company’s trading results
Salem Reese (verified owner) –
While I may have been critical of this author’s previous book, I realize I was totally in error. I was convinced I knew everything about how markets behaved. I was obviously wrong! I was enamored with my own biased opinions regarding market expectations. Eventually, I admitted to myself that I was ill-prepared to trade successfully and was deluding myself. The litany of losses I endured was a testament to my trading failures. It was an admission that I was afraid to acknowlege. My fellow technical friends convinced me that I had been incorrect in my judgment of the previous DeMark book. Upon re-reading the book I borrowed from them I realized that I had been unfair and was now prepared to study the material with an open mind. I decided to read this book as well. Although the previous book is definitely a major contribution to the annals of successful trading, this book seems to be much clearer in expressing the author’s views. Despite the title’s reference to options, this book has application to markets overall. I admit my initial impetuousness and now am openly recommending this book to all my cohorts in the technical trading societies, as well as to fellow participants in newsgroups related to investments. This book will most definitely be a key reference book in a trader’s library for years to come.
Penelope Carr (verified owner) –
Still using the patterns described in this book to pull money out of the options market.
Aryan Esparza (verified owner) –
I wish to state that for years, I have been trying to understand the basics of option trading, especially the relationships and concepts concerning most types of spread trading. I had reviewed/bought many books and none had provided a total, concise picture as those contained the first section of this book. But beyond page 80, I found the provided information beyond my scope of understanding and application for my limited trading. If one is in a similar situation as myself in trying to find a summary of the basics, I recommend that you go to the library {like I did} and read those first 80 pages. But for those who are advanced in understanding of complex options strategies as described the latter sections, your assessment/ratings would be required. For beginners like myself plus those Options Instructors who wish to provide a easy to understand summary for their students, a read of those first 80 pages would be truly worth it.
Sawyer Flowers (verified owner) –
Please check the record, tom demark has been consistently wrong on his market predictions. So, he and the kid sell Prominent technical strategist Tom DeMark predicts that stocks, which have rallied mightily following Donald Trump’s victory in the U.S. presidential election on Tuesday night, are on the verge of peaking and then subsequently tumbling by as much as 11%.books.DeMark told MarketWatch on Nov. 11 that he was forecasting an 11% slump for the S&P 500 SPX, +1.37% but says a 5% or 6% slide is more likely now, with the S&P 500 index closing at 2,202.94 on Tuesday, about 11 points shy of his prediction for the level that would represent his estimated top for the broad-market benchmark.
Why Tom DeMark, Jan 6, Still Thinks Dow Won’t Break 20,000
Lionel Harris (verified owner) –
Not an easy read