Walter Bressert – Intraday Timing for Low Risk Swing Trading (Audio, WorkBook)
About the Author
Walter Bressert has been using market cycles to trade stocks and commodities since the 1970s when his HAL Commodity Cycles was one of the most widely known advisory services focusing on cycles.
Chartered economists have not much chance to reach success in stock trading. Such a conclusion was made by the legendary trader Walter Bressert. Unlike most of his colleagues, he received a good education in economics. However, starting to make transactions on the trading floor, quickly disillusioned with their theoretical knowledge. Widely known for its dictum that the graduates of educational institutions providing economic profession, as a rule, is not so well understood how the world is arranged. They just do not know life, so, their decisions are based solely on theory, and are often wrong. As a consequence – loss of capital. Walter Bressert devoted his life to the trade studying. He paid special attention to technical analysis of market conditions, which he regarded as the foundation of a correct prediction. Walter willingly shared his experiences with market participants.
What can replace the lifeless theory?
This long-standing conflict between adherents of technical analysis and those economists who believe that the stock quotes are moving mostly in line with economic indicators. There is no secret that the fundamental analysis, which tend economists work well enough in the long run. However, most stock traders tend to make short trades and profit today. The same strategy was following Walter Bressert, and he gained fame unsurpassed master of intraday trading.
Began trading on the stock exchange, Walter fast enough realized that received economic knowledge did not help him make the right decisions in transactions. And this, despite the fact that he is not selling some exotic instruments, the S & P 500 and the most highly liquid futures. Bressert, back in the 80s of the last century, tried to improve his skills and looking for materials for further study of trade on the Stock-Market. But, to his surprise, was forced to admit that nothing, in fact, simply does not exist in nature.
Meanwhile, the practice has proved that the experience and the ability of feeling the market, helps traders a hundred times better than any existing theory. Walter Bressert was convinced of this by example. It was then that he came up with the idea to write about their strategies intraday trading. So, after a while, it was published textbook “The power of a combination of oscillators and cycles”, in which Bressert gives lots of advice how to lucrative trade on the Stock-Market.
According to experts, the concept proposed by Walter Bresset,can be reduced up to two main ideas:
- In order to properly assess the market situation, a trader needs to develop the ability to sense the time frame – the so-called rhythm, which is inherent in each market and forms a well-defined cycles fluctuations of quotations.
- You must learn to identify overbought and oversold market. Bresset pointed that this skill is key to making a profit on the Stock-Market. The most reliable way to determine such states Walter considered the ability to use oscillators. In particular, if the position is above 80-90 marks, the price may be considered excessive. If the values are in the range of 30-10, the price can be considered low.
By learning to properly assess, Bresset offers to take the next step leading to a correct understanding of the trend. Biographers o Walter Bresset often regurgitate incident that occurred at the beginning of the career of the legendary trader. Once, in the stock room, senior colleague approached to Walter who decided to tell him “extremely simple” recipe for success in trading. According to him, in a downtrend it is needed to sell everything that is in demand. And when it becomes a trend upward, buy assets that suddenly begin to fall. It is said that Bresset initially did not pay attention to such a primitive advice. But ten years later, when he began to think about the rules of successful trading on the stock exchange, thought of it first.
Later, Walter argued that the only guarantee of earnings in financial speculation is the knowledge of the trend. It must be time to “catch” and anticipate the reversal. This is important even in intraday trading, when fluctuations occur, at first glance, apart from the main trend. However, if you try to use intraday strategy, Bresset advised to be attentive while choosing the instruments. In particular, he believed that for transactions within one day perfect just the S & P 500, and the Swiss franc futures on Treasury bonds. All other assets Walter avoided.
Finally, the success of each trader, Bresset considered coping with emotions. In his opinion, the accounting time frames and oscillators are the perfect material for the formation of a mechanical strategy intraday trading. But you can always spoil everything if you do not manage to refrain from excessive worry, which almost always lead to ill-considered actions. Walter Bresset constantly repeated that the market continuously checks the trader’s mind to the test. Sometimes it seems that someone is deliberately trying to take away your composure and divert attention. Not only that the trader is tempted to close its positions already with a minimum profit. He also makes a purchase or sale, in no way related to its own strategy. Bresset, by the way, admitted that he himself could not always keep the Olympian calm during the auction, which significantly reduces the efficiency of its business. However, in his opinion, you can also cope with the emotions, if you prefer to search for points of entry and exit, and then clearly stick to their own forecasts.