Online Trading Cookbook

Alpesh Patel launched asset management company Praefinium Partners in 2004. He is a former Visiting Fellow in Business and Industry at Corpus Christi College, Oxford University. He has written 13 books on trading, translated into 8 languages. For Bloomberg TV he co-presented shows for three years as their in-house online trading specialist. He has had over 200 columns on trading published in the Financial Times through his Diary of an Internet Trader column. He is the founder of investingbetter.com which is an online trading education company and has his own investment software in partnership with Sharescope.Alpesh has lectured on trading from Beijing and San Francisco to Guatemala and from Spain to India, Singapore and Hong Kong.  Alpesh is also the founder of TraderMindMarkets.com, an online trading portal and alpeshpatel.com offering FX education as well as eglobaltrades.com, an online FX broker. He writes the TheTraderFather.com blog.Paresh Kiri has vast experience as a floor trader on the world’s second largest derivatives exchange LIFFE and as a Portfolio Manager. He is an FSA regulated investment manager.Starting his career on the LIFFE floor in 1993, Paresh was one of the first traders to embrace screen trading, through the LIFFE online trading platform APT (Automated Pit Trading). Paresh was one of the founders of Kyte Securities. Since leaving Eden Financial in 1999, Paresh has been managing private client and institutional money, and developing very specific operational services going back to Kyte Group to assist the development of an Index Options Desk, and seeking ways of bringing the strategies he developed to the wider public audience by structuring managed accounts services using on-line trading platforms. Paresh regularly coaches and holds private seminars on trading the markets. He sits on the Advisory Board of Sterling Group.

• Preface ixAcknowledgements xiiiAbout the Authors xvIntroduction 1Part I AperitifRecipe 1 Uncle’s Favourite 11Difficulty Level: BeginnerRecipe 2 What Good Dishes Taste Like – The Recipe for Trading Success 21Difficulty Level: BeginnerRecipe 3 Trend Lines and Channelling: Mind the Bumps 31Difficulty Level: BeginnerRecipe 4 Japanese as Easy as Sushi: Exotic but not Complicated 37Difficulty Level: BeginnerRecipe 5 Moving Averages: Decisions Decisions 43Difficulty Level: BeginnerRecipe 6 Breakfast at 8 49Difficulty Level: BeginnerRecipe 7 Let’s Get a Takeaway! 55Difficulty Level: BeginnerPart II Hors D’oeuvresRecipe 8 MACD, MA and Stochastic – Mixing Cocktails 69Difficulty Level: Beginner/IntermediateRecipe 9 The Breakout 75Difficulty Level: IntermediatePart III Amuse-boucheRecipe 10 Natural Diet: Don’t Forget Your Roughage 85Difficulty Level: IntermediatePart IV EntremetRecipe 11 MACD (Mac-D) and Friends 101Difficulty Level: Intermediate/AdvancedRecipe 12 Nouvelle Cuisine: New Issues 107Difficulty Level: Intermediate/AdvancedRecipe 13 Momentum: Short Termism Does Pay! 111Difficulty Level: Intermediate/AdvancedRecipe 14 Turtle Soup: The Most Famous Trading Recipe of All 117Difficulty Level: Intermediate/AdvancedRecipe 15 Pairs Trading: One of Your Five a Day! 127Difficulty Level: Intermediate/AdvancedRecipe 16 Double Big MAC-D 135Difficulty Level: Intermediate/AdvancedPart V EntreeRecipe 17 English Breakfast or All-Day Lunch 151Difficulty Level: AdvancedRecipe 18 Surfing the Waves: Fast Food 159Difficulty Level: Advanced/ExpertPart VI MainRecipe 19 Coffee Options and Spreads 173Difficulty Level: Advanced/ExpertRecipe 20 Bonds: Shaken Not Stirred 185Difficulty Level: AdvancedRecipe 21 Buffet: Today’s Special at McDonald’s 193Difficulty Level: AdvancedPart VII DessertRecipe 22 Common Cooking Mistakes and How to Avoid Them 203Part VIII PantryRecipe 23 Utensils and Common Ingredients 209Recipe 24 If You Can’t Stand the Heat: Taking Risks in the Kitchen 221Index 229