Fly Fishing the Stock Market: How to Search for, Catch, and Net the Market's Best Trades

Book description

How the strategies and tactics of fly fishing can translate to improved trading performance

Much like trading, successful fly fishing requires both an understanding of "big picture" conditions and the ability to implement tactical techniques to actually catch the fish. In Fly Fishing the Stock Market, Dr. Stephen Morris compares his method for trading stocks with his favorite past time, fly fishing—providing fresh insights into his successful trading approach. Engaging and accessible, this book skillfully describes how Morris applied this approach to generate an astounding 268% growth in his account in the volatile and confusing, post-financial crisis markets.

Morris explains how he uses technical indicators to determine what he calls the "market season" and how he then zeros in on individual stock patterns to make his trades. He also reveals unique tools, such as the Market Timing Monitor and Weather Station, which give him a sense of the market's long-term condition and provides the basis for his trading and risk management strategies.

  • Filled with the authenticity of a real trader figuring out how to uncover profitable trading opportunities

  • A companion Website contains supplementary material that allows you to learn in a hands-on fashion long after closing the book

  • Provides a compelling portrait of how a successful trader thinks about markets, develops a method, and then implements the method in real time

  • The author's spectacular returns are backed by publicly documented records

Just like fly fishing, traders must adjust their approach constantly because market conditions constantly change. This book will help you achieve this elusive goal, and capture consistent profits in the process.

Table of contents

  1. Cover
  2. Series
  3. Title Page
  4. Copyright
  5. Dedication
  6. Introduction
  7. Part I: Fly-Fishing Lessons
    1. Chapter 1: Three P's in a Pod
      1. PASSION
      2. PATIENCE
      3. PERSISTENCE
    2. Chapter 2: The Tackle Box
      1. WHAT GOES INTO THE TOOLBOX
      2. BAR CHARTS AND CANDLESTICKS— SAME MARKETS, DIFFERENT ANGLES
      3. BULLISH AND BEARISH ENGULFING PATTERNS
      4. TRENDLINES
      5. TOPS
      6. BOTTOMS
      7. FALSE BREAKOUTS
      8. GAPS
      9. TRIANGLES
      10. VOLUME
      11. COMPUTERIZED INDICATORS
      12. MOVING AVERAGES
      13. MOVING AVERAGE CONVERGENCE-DIVERGENCE
      14. THE IMPULSE SYSTEM
      15. FORCE INDEX
      16. CONCLUSION
    3. Chapter 3: Developing Your Technique
      1. ANALYTICAL TOOLS AND STEPS
      2. UNDERSTANDING ENTRY ORDERS
      3. CONCLUSION
    4. Chapter 4: Expectations
      1. WHY MANAGED FUNDS CAN BE “DILUTIONAL”
      2. CONCLUSION
  8. Part II: Expect the Unexpected
    1. Chapter 5: Seeing Is Not Believing
      1. GETTING TRAPPED AT THE EXTREME EDGE
      2. CONCLUSION
    2. Chapter 6: The Art of Deception
      1. WHEN THE PREY IS EXHAUSTED
      2. THE DECEPTIONS OF V-BOTTOMS
      3. THE DECEPTIONS OF SYMMETRICAL TRIANGLES
      4. THE DECEPTIONS OF ASCENDING TRIANGLES
      5. THE DECEPTIONS OF HEAD-AND-SHOULDERS
      6. THE DECEPTIONS OF BREAKOUTS
      7. CONCLUSION
  9. Part III: Time to Go Fishing
    1. Chapter 7: Fishing Seasons/Market Seasons
      1. MARKET SEASONS
      2. THE INFLUENCE OF VOLATILITY
      3. MONITORING MARKET SEASON CHANGES
      4. THE WEATHERVANE: A MARKET TIMING MONITOR
      5. THE WEATHER STATION
      6. ADDING THE DETAIL OF PRICE PATTERNS TO STRENGTHEN THE MESSAGE
      7. CONCLUSION
    2. Chapter 8: Matching the Hatch
      1. BOTTOM PATTERNS
      2. PULL-BACK PATTERNS
      3. TOP PATTERNS
      4. PULL-UP PATTERNS
      5. THE SYMMETRICAL TRIANGLE: AN ALL-AROUND GENERAL-PURPOSE PATTERN
      6. CONCLUSION
    3. Chapter 9: Terrestrials and Cut Banks
      1. FUNDAMENTAL ANALYSIS
      2. USING FUNDAMENTALS TO COMPLEMENT TECHNICAL ANALYSIS
      3. A DISCONNECT BETWEEN TECHNICALS AND FUNDAMENTALS
      4. FUNDAMENTALS ON FIRE: MOMENTUM TRADING
      5. CHASING THE BIG ONES
      6. CONCLUSION
    4. Chapter 10: Catch and Release
      1. SETTING THE HOOK WITH THE STRIKE INDICATOR (ENTRY)
      2. THE STRIKE INDICATOR ENTRY STEPS
      3. SNAG MANAGEMENT (STOP-LOSS)
      4. THE DRAG SYSTEM (TRADE MANAGEMENT/PROFIT EXIT)
      5. EXAMPLES OF DRAG SETTINGS
      6. EXIT TO ENTER?
      7. CONCLUSION
    5. Chapter 11: A Word About Bait Fishing
      1. DAILY BAIT-‘N’-WAIT
      2. WEEKLY BAIT-‘N’-WAIT
      3. MONTHLY BAIT-‘N’-WAIT
      4. CONCLUSION
  10. Part IV: Fishing Journal
    1. Chapter 12: The Trophy Room
      1. NECKLINE BREAK…UP: 9/28/09
      2. THE JANUARY EFFECT: 1/5/10
      3. A GEM IN THE JUNK PILE: 1/1/10
      4. GREATER FOOL TRADE: 4/17/10
      5. THE PERFECT STORM: 2/5/10
      6. TIME OF POSSESSION: 8/14/10
      7. W-BOTTOM: 9/11/10
      8. LOGICAL ENTRY AND EXIT—LONG ENTR: 9/11/10
      9. CONCLUSION
    2. Chapter 13: The One That Got Away
      1. GLF TRADE
      2. JTX TRADE
      3. RMBS TRADE
      4. CONCLUSION
    3. Chapter 14: The Structure of Success
      1. THE BUILDING BLOCKS CONCEPT
      2. CONCLUSION
    4. Conclusion
  11. Appendix A: My Trading Journal
    1. VALUE VERSUS MOMENTUM
    2. ANALYSIS
    3. GROUP STRENGTH
    4. TRADING AND POSITION SIZING IN VOLATILE MARKETS
    5. TRADE MANAGEMENT
    6. BREAKOUTS
    7. TAKING PROFITS
    8. THE ENTRY/EXIT REVIEW
    9. TRADING SYSTEMS
    10. TRADING STRATEGIES
    11. LEARNING AND PROGRESSING
  12. Appendix B: Table of Indicator Sets
  13. References
  14. About the Author
  15. About the Website
  16. Index

Product information

  • Title: Fly Fishing the Stock Market: How to Search for, Catch, and Net the Market's Best Trades
  • Author(s):
  • Release date: August 2012
  • Publisher(s): Wiley
  • ISBN: 9781118336045