Secrets of the Undergroundtrader [Hardcover]

Jea Yu (Author), Russell Lockhart (Author), Jea Yu (Author), Russell Lockhart (Author)

Book Description

Publication Date: August 18, 2003

Swing trading tips and techniques from Undergroundtrader.com--voted Forbes's "Best of the Web" for 2000, 2001, and 2002

Short-term and swing trading has become the strategy of choice for active, aggressive traders and investors. Secrets of the Undergroundtrader details the advanced methods today's most successful traders live by, from stochastics and candlesticks to 3-price breaks, volatility signals, and more.

Each of these methods is tested daily in the trenches and is designed to allow traders to more accurately time entry and exit points in bull, bear, and nontrending markets. The authors open by explaining how the methods work and then provide step-by-step directions so traders can:

• Learn and become comfortable with the method
• Implement the method in the heat of trading
• Manage the method both mentally and physically

Editorial Reviews

From the Back Cover

Trader-Tested, Market-Proven Techniques to Increase Your Trading Profits Now--from the Experts at Undergroundtrader.com

Undergroundtrader.com is the hottest site on the web for results-focused, no-nonsense short-term and swing traders. Now, in Secrets of the Undergroundtrader, two of the site's leading voices--founder Jea Yu and primary instructor and analyst Dr. Russell Lockhart--detail dozens of powerful, short-term trading methodologies for replacing the mystery and second-guessing in your fast-action, high-stress trading day with confidence, certainty, and dramatically improved success.

Let the trader-tested, market-proven techniques in this in-depth book show you how to:

• Uncover and act on transparent profit opportunities--before they become too transparent
• See and follow the smart money, and enter trades only when the scales are tipped firmly in your favor
• Manage yourself physically and psychologically to maintain a necessary--and profitable--detachment

The key to day in/day out trading success trading lies in acting fast to cut losing trades while recognizing winners and letting them run. Easy to say, not so easy to do. Secrets of the Undergroundtrader shows you how to simplify this process, by sensing fast-breaking opportunities, smelling traps, and quickly getting in and out of each trade with a profit--before most traders are aware that the opportunity ever existed.

Today's markets are brutal, unpredictable, and unforgiving. Those traders that survived debacles of the recent past are finding far fewer obvious opportunities, far greater difficulty in taking advantage of those opportunities, and a trading arena that--once again--reserves its greatest rewards for the skilled, the knowledgeable, and the patient.

Secrets of the Undergroundtrader presents and explains the advanced methods that today's most successful traders are using to increase their success in bull, bear, or non-trending markets. Whether revisions to historically successful methods or substantially new approaches, they have been refined, modified, tested daily in the trenches at undergroundtrader.com, and proven their effectiveness. Traders looking to update and jumpstart their trading programs will get the inside story on:

• The "dopplar" foreshadowing effect of 13/60 minute moving average stochastics charts
• Pup (PowerUPtick) and mini pup break patterns that often signal short squeezes of bearish leandowns
• Techniques for properly adjusting time frames for trending, oscillating, and light volume range markets
• Accurate confirmation of crossovers and breaks with a 3 shift moving average
• Techniques savvy traders are using to incorporate e-minis futures and soybean futures into their trading arsenals

Short-term and swing trading are the proven methods of choice for today's most active, aggressive traders and investors. Yet regardless of the strategy you choose, without the proper tools and training for using those tools you will continue to experience the frustrations and defeats that have, probably more than once, made you seriously consider throwing in the tool and returning to the deceptively risky "buy and hold" strategy. Before you make that mistake, let Secrets of the Undergroundtrader save you hundreds of hours and thousands of dollars by introducing you to short-term trading methods and techniques proven to work in the heat of trading battle, and destined to transform your trading program from a disorderly series of random actions and reactions into a disciplined and market-tested approach that will allow you to regain control of your trading results--by first regaining control of your trading systems and emotions.

Jea Yu is cofounder and managing partner of Undergroundtrader.com, considered one of today's dominant swing trading websites. A popular speaker at trading conferences nationwide, Yu has written articles for industry journals including Active Trader and Online Investor and also created two top-selling trading videos, Level 2 Trading Warfare and Beating the Bear.

Russell Lockhart, Ph.D. is primary instructor and technical analyst at Undergroundtrader.com. A Jungian psychoanalyst in private practice for nearly 30 years, Dr. Lockhart has held faculty positions at UC Santa Barbara, UCLA Neuropshychiatric Institute, UC Berkeley, and other institutions. He is author of the online Hints & Helps for the Active Trader, The Owl newsletter, and trading articles such as "New Light On Candles" in Chartpoint.

About the Author

Jea Yu is cofounder and principal analyst for Undergroundtrader.com, one of today's most-viewed trading websites, and a creator of top-selling trading videos.

Russell Lockhart provides realtime analysis for Undergroundtrader.com and has been on the faculty of UCLA and several other universities.

Product Details

• Hardcover: 288 pages
• Publisher: McGraw-Hill; 1 edition (August 18, 2003)
• Language: English
• ISBN-10: 0071417370
• ISBN-13: 978-0071417372
• Product Dimensions: 9 x 6 x 1.1 inches
• Shipping Weight: 1.5 pounds
• Average Customer Review: 3.2 out of 5 stars  See all reviews (12 customer reviews)
• Amazon Best Sellers Rank: #902,455 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

15 of 16 people found the following review helpful:

4.0 out of 5 stars 2 Books in One, July 20, 2004

By 

bok "bokster" (Singapore) - See all my reviews

This review is from: Secrets of the Undergroundtrader (Hardcover)

this book is written by 2 persons, and is split into 2 very different sections.

the first section is written by Yu, founder of the undergroundtrader.com. it is 168 pages long.

Yu's style is straight to the point. he starts by describing why he has needs for certain indicators, then describe its use. doing so one by one, he introduces the entire arsenal of indicators that he uses for 'successful trading'.

after this, he would show you how to trade using these indicators. very detailed descriptions and very informative. the only fault is the lack of graphics, so that you may need to use more imagination to understand what he has so aptly described. he has also detailed how scalpers or swing traders could make use of his methods. everything is very well written and detailed.

this section ends off with one chapter called "putting it all together: a sample week of trades" which is self explainatory.

the second section is writtenn by dr. lockhart. he lives up to his name by being a doctor (phd, i presume), he spends the first 2-3 chapters (50-100 pages) of his 4 chapters (155 pages) on theories and fundamentals.

generally, these theories are basically the dow theory, basic monetary growth theories, fibonacci, gann, candlestick patterns etc. what he dwells on are nothing new, but he likes to give some of these theories new names, and also name many priciples for his theories. these theories will help in the understanding of the main trading premises, but it is really nothing new for traders/investors well versed in the basic fundamentals of dow theories etc.

in his last chapter, he points out the use of various techniques to the calculate the basics of trading. ETS, entry, target + stop. a method for trading is also discussed, the "three point break" method, this method has been covered by steve nison in advanced candlestick patterns.

this section is not like the first, it is more theories and background for traders. it's all about learning the basics and fundamentals of trading. i'll liken it to playing tennis, this section will tell you about the psychology in a game, the wind conditions, the crowd's effect, the court, positioning, your basic strokes, serves etc. while the first section details how to deal with each kind of shots and return the winner.

I'm not entirely sure they've put the correct section at the back of this book. generally, this book is informative and useful for day traders to read up on yu's portion. he has some ideas that is definitely worth exploring. he has detailed a very good method. lockhart's portion is too back to fundamentals, it'll be useful for traders still fresh in the business to catch up on the basics but rather redundant for seasoned traders.

this book may also be applicaple more to the US markets only. i'm not entirely sure it'll be applicable to the tiny singapore (or such relatively small mkts) market here, i intend to find out!

12 of 15 people found the following review helpful:

5.0 out of 5 stars required reading, September 9, 2003

By 

Matthew B. Nutial (North Canton, OH United States) - See all my reviews

This review is from: Secrets of the Undergroundtrader (Hardcover)

This book ought to be required reading to anyone who is or desires to be a day trader. I have read over 70 books since I started trading and this is by far the best. No matter what your experience level or trading style, Jay, Ral, Luke and John are crack teachers. If these guys can't teach you to trade, you may want to consider a new career. ~

18 of 24 people found the following review helpful:

1.0 out of 5 stars Not a good book at all, save your money, July 11, 2004

By A Customer

This review is from: Secrets of the Undergroundtrader (Hardcover)

The reviews were obviously written by the writers or their friends. Buy Trading for a Living by Dr. Elder, and High Probability Trading by Marcel Link. These are the best 2 books I've read out of 35 books I've read in 12 years of trading. Good Luck.