New Guy Question/Clarification

Discussion in 'Professional Trading' started by sdunlimited, Mar 2, 2006.

  1. Hello!

    I've recently become interested in trading futures and am trying to learn as much as possible before jumping into the fray. I have experience purchasing stocks and mutual funds and am familiar with many terms, tools, techniques, etc. I have a couple of questions I'm hoping a more experienced crowd can help me out with.

    1) What are the absolute best books you have read that have actually helped you make more successful trades in the futures markets? I've checked out the referral lists but am curious about the empirical evidence as to what you feel benefitted you the most.

    2) Ted Warren and Nicholas Darvas often referred to a 'shakeout' that would scare away the last 'weak shareholders' in a specific stock. What is the purpose of this? I understand the idea of following the tracks of a market maker, etc., but I'm confused as to why there would be a purposeful 'shakeout' before a spike up.

    Thank you in advance for your time and advice. If there are any other pertinent comments you have for somebody looking to eventually attempt to trade futures successfully, my ears are open.

    Take care~
  2. Once all the sellers are out there is no place for the price to go but up.

    Then you have all the weak hands chasing the price up as they try to get back on the winning side. (See Ripley) Just kidding