Master Traders: Strategies for Superior Returns from Todays Top Traders

Praise for Master Traders "Fari Hamzei has assembled an impressive array of trading authors. Fari's own work on sentiment indicators is definitely worth reading, as usual, as is technical 'master' Phil Erlanger's. Furthermore, there is plenty of useful information on derivatives in the chapters by Alex Jacobson and Jon Najarian." —Lawrence G. McMillan, The Option Strategist and President, McMillan Analysis Corp. " Master Traders provides invaluable market education and wisdom from those who have distinguished themselves, not only by their track records in the market, but also for their risk and money management expertise. Strikingly, readers will find that these Masters use the basic understanding of human nature to achieve trading success and know how to achieve simplicity by focusing on the essence of opportunity." —Mario Alberico, Partner, Financial Services Industry, Accenture, LLP and former senior vice president of electronic trading and market data, Chicago Mercantile Exchange "Fari Hamzei knows a lot about the markets and so do the traders/analysts he has assembled here. From sector analysis to option strategies, from price and volume to volatility, there is sure to be something of interest in this compilation for every trader." —John Bollinger, CFA, CMT, BollingerBands.com "A straightforward, down-to-earth guide to using technical analysis, tips from the master traders, and excellent options information for successful trading. In my opinion, a manual every investor can profit from." —Ned Bennett, CEO and co-founder, optionsXpress, Inc.

Foreword by Steve Shobin ix Preface xi Acknowledgments xvii INTRODUCTION: Trader Evolution and the Keys to Success 1 Greg Collins PART I Technical Analysis CHAPTER 1 Playing with Fear and Arrogance 13 Jeff deGraaf CHAPTER 2 Sector Analysis: Tools of the Trade 27 Frank Barbera CHAPTER 3 Evaluating Probabilities to Improve Profitability 60 Kevin Tuttle CHAPTER 4 The Secret Science of Price and Volume 87 Tim Ord PART II Fundamental Analysis CHAPTER 5 The Keys to Biotech Investing 109 David Miller CHAPTER 6 Investigative Investing: Themes and Methods for Uncovering Value 122 Kai–Teh Tao PART III Sentiment CHAPTER 7 The Secret Messages of Equity and Options Markets 139 Fari Hamzei CHAPTER 8 Trading Seasonality 158 Phil Erlanger PART IV Derivatives CHAPTER 9 Volatility and Its Importance to Option Investors 183 Alex Jacobson CHAPTER 10 A New Options Game: The Market Taker 205 Jon “Doctor J” Najarian PART V Trading Size CHAPTER 11 Making Sense of Market Moves: Using Technical and Fundamental Analysis Together223 Jeffrey Spotts CHAPTER 12 New World Trading of Old World Markets: European Derivatives 242 Timothy Corliss CHAPTER 13 Options Applications to Pairs Trading 263 Dennis Leontyev EPILOGUE: Beyond the Horizon 284 Fari Hamzei About the Author 292 About the Contributors 293 Index 296