The Markets Never Sleep shows how to analyze all the global markets and use timing and money management to control losses and reap significant rewards without using up all of one’s emotional energy. In other words, everything needed to make trading fun and profitable. This book is an excellent primer for futures and the global financial market, a clear voice of their importance for all traders. Thomas L. Busby also gives an easy-to-understand professional approach to discipline, money management, and the ‘numbers’ to watch that indicate market direction. Help for all traders to earn bigger, more consistent profits.
Introduction:
The book begins by noting the inherent risks involved in long-term trading. In our age of rapid communications, a disaster thousands of miles away has the ability to torpedo our financial markets and send them into a tail-spin. Consider the events of September 11, 2001, or Black Monday of 1987. Therefore, knowing about the 24-hour nature of the markets offers protection and allows the savvy trader to hedge positions or seek some other form of protection, should there be a need to do so. In the first chapter, I discuss my trading day and how I use time and the 24-hour nature of the markets to help me become profitable and gain greater consistency.
Chapter 2 focuses on how the global markets work. It surveys some of the most important aspects of the financial landscape, such as interest rates, national debt, trade imbalances, energy availability and costs, precious metals, bonds, and geopolitical events. Chapter 3 explains the significance of understanding global connections and why traders need to know them. Chapter 4 looks at Asia from two standpoints. First, each trading day begins in the Land of the Rising Sun. It is here that the sun first passes across the morning sky. The economy and trading products of Europe are the focus of Chapter 5. Chapter 6 gives an overview of our nation’s major exchanges and indices. It also explains the significance of time in my trading and how I use the element of time to help me make money. Especially in the morning hours, I take advantage of information from Asia and Europe to improve my trading odds. In Chapter 7, I explain some of my short-term trading strategies. In particular, I outline the criteria I use for trading equities, and I describe the process that I use for buying and selling stocks. Chapter 8 discusses some swing trading strategies across time zones that may be helpful for these traders.
Chapter 9 shifts to long-term strategies. Many traders enjoy holding positions longer than I typically do. And, many of these traders are also profitable. The “Golden Keys to Unlocking the Secrets of the Financial Markets” are the focus of Chapter 10. Time, key numbers, and market indicators open the doors to financial success. Chapter 11 discusses some strategies that I use to manage risks. Some are simple and basic, like using stop orders for protection and diversifying a portfolio, and others are more advanced, like hedging losing positions with index futures or with a LEAP. The goal of Chapter 12 is to offer some guidance for gaining consistency. Using a 24-hour trading clock and taking advantage of global information is part of the solution. Other helpful ideas include having a plan and following it, using good money management techniques, keeping emotions in check, discarding bias, and setting realistic goals. If you employ these techniques, consistency should greatly improve.
Chapter 13 reviews the steps that I take in order to be ready for my battle with the bulls and the bears. I check for scheduled news, gather key numbers, test my equipment, and prepare myself mentally and emotionally for battle. If I am ready, I know my chances for success are tremendously increased. In Chapter 14, I offer some strategies for dealing with the greed/fear dilemma. I also share some techniques that I use to stay mentally positive and psychologically up to the task. Each day offers new challenges, and winners must be ready. Traders must guard against that tendency. Even though I monitor global markets around the clock, and sometimes trade some of the products on foreign exchanges, my life is actually more relaxed that it was in those early days. That is because I use technology to help me keep an eye on the world, but I select trading times that fit my schedule, my trading strategies, and my lifestyle. I still have time to sleep, play golf, and enjoy my life. Chapter 15 explains how I do it.
Chapter 16 identifies the traits of a winner. Trading success requires persistence, a desire to win, discipline, flexibility, composure, and some other important characteristics. Those who do not possess these characteristics and are unwilling to develop them will not succeed. Finally, Chapter 17 wraps up the book and briefly surveys the high points. The financial markets never sleep, and modern technology allows traders to take advantage of that fact. By using a 24-hour trading approach, educated and skilled traders are able to expand their world, have more trading opportunities, and achieve more consistency. It is my sincere hope that by reading this book, your trading will become more profitable, more consistent, and more enjoyable.
Contents:
- Let’s Rock and Roll: Why I Like the Global Beat
- Stepping to the Tune: Understanding How the Markets Work
- Gettin’ in the Groove: How to Think Globally
- Land of the Rising Sun: The First Tunes Are Asian
- Land of the Long Siesta: Europe Joins the Party
- The United States Steals the Show
- Short-Term Strategies around the World
- Swing Trading Strategies across Time Zones
- Approaches to Long-Term Trading
- Golden Keys to Unlocking the Secrets of the Financial Markets
- Managing Risk in Global Markets
- Consistency, Consistency, Consistency
- Preparing for the Trading Day
- Mind Over Matter: Breaking through the Psychological Barriers
- You Still Have Time to Sleep
- So You Want to Be a Trader: Profile of a Winner
- Wrapping It Up
The Markets Never Sleep: Global Insights for More Consistent Trading By Thomas L. Busby, Patsy Busby Dow
