» New Trading Dimensions: How to Profit from Chaos in Stocks, Bonds, and Commodities (A Marketplace Book)

New Trading Dimensions: How to Profit from Chaos in Stocks, Bonds, and Commodities (A Marketplace Book) Reviews

Customer Rating:
Summary: It is right but difficult to make profit
Comment: I was very interested in Bill Williams's trading method, because I have used Metatrader4 to treat currency pairs. MT4's technical analyses have Bill Williams's alligator and AO and AC and others in default setting. I read this book and try to do exactly and realized that it is difficult to make profit in flat and corrective triangle waves. To avoid this waste of money, you must understand Elliot wave principle or keep eyes on the chart. But once a trend start, this method makes profit certainly. Totally make a little profit unless lost compensation at all in flat double and triple three.

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Customer Rating:
Summary: If you use the alligator method of trading: Vote For - else if not - Vote Against
Comment: 1. Everything in the Universe follows the path of least resistance

2. An always underlying and usually unseen structure determines the path of least resistance.

3. The always underlying and usually unseen structure can be discovered, and it can be altered.

4. The four largest money gatherers and distributors in the world are: war, medicine, insurance, and religion.

5. Traders who let the new incoming information organize their trading will be in sync with the market and thereby will be winners.

6. "The market is infinitely complex. Freedom and free will-strange attractors-prevail over rules and determinacy.

7. Fractals are the way markets organize themselves.

8. Everything that exists is drawn out of this quantum soup by attractors. All outer phenomena are governed by four attractors: point attractor, cycle attractor, torus attractor, and strange attractor. Point attractor lives in the dimension of a line, which is made up of infinite number of points. Whenever, a point attractor is governing, a person is drawn to one particular activity, or repelled from another. The cycle attractor is back and forth movement, like a pendulum or circling magnet. It is characterized of a range bound or bracketed market where the price moves up and down in a range over a period of time. One activity automatically leads into another activity. In grain markets, one year of high prices produces more plantings in the next spring, which produces lower prices. The cycle attractor produces a structural tension between the two poles and opens the way for integration between the two opposites. The torus attractor begins a complex cycle that repeats itself as it moves forward. If the bond interest goes up, it attracts mre investors. Bond prices go up, which lowers the interest rate and makes bonds less attractive, and so on. Third dimension, predictions are more precise, higher degree of irregularity, patterns more complex, and repeating function. Strange attractor becomes self-organizing. One characteristic of strange attractor is its sensitivity to initial conditions. The slightest variation in the beginning can make enormous differences in the end result. The strange attractor allows us to participate in the ebb and flow of the market and of life.

9. Bill Williams trade approach involves five perspectives: 1. Momentum 2. Change in the speed of current momentum 3. Appearance of initiating fractal 4. zonal influences 5. balance-line differentials.

10. To win consistently in the markets you must get to know them and how they process incoming information. Get in tune with the market and change your belief about the market and the world.

11. One of the keys to profitable trading is to take only those trades with the most potential and stay out of situations where there is marginal potential.

12. Most of the time the market goes nowhere and about 15 to 30 percent of the time does the market trend. We don't want to waste time entering and existing the market without profiting, if the market is going nowhere then opportunity is going nowhere.

13. Alligator is blue line (13 bar moving average), red line (8 bar moving average offset 5 bars into the future), and green line (5 bars moving average 3 bars into the future). Blue is the jaw, red line is the teeth, green is the lips the balance line. When all three lines are intertwined the alligator is sleeping, range bound market. We don't want to loss money during a range bound. All five highs or lows should be on the same side of the blue balance line. The stop to exit is just inside the red line (teeth).

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Customer Rating:
Summary: Extremely specific strategies and tactics involving MACD and Moving Average Oscillator
Comment: If moving average oscillator is part of your trading plan, this book will help tremendously. This book has very specific strategies and tactics concerning moving average oscillator usage. Although they are not meant to be mechanized, they are systematic enough to be used in very structured way.

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Customer Rating:
Summary: One of the keys to becoming a better trader...
Comment: I've read all three books by Bill Williams and I think this is his best work.

I'm not sure if I agree with every trading tool that he presents, but, like any new information: you apply them to your own objectives. However, make no mistake...his ideas are important and he's done extremely well to lay them out in a readable manner.

This is just my own opinion, but I feel that you can't dismiss other aspects of technical analysis. Combining a few important technical rules with non-linear trading techniques will produce excellent results as long as you apply them correctly. Further, I've read many books on linear mechanical trading models and usually they don't describe ideas that lend themselves to you as a trader adapting efficiently to changing market conditions.

Put simply, if you read between the lines, he suggests a way of thinking that is non-linear and constantly changing: the crux of the markets.

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Customer Rating:
Summary: Worth reading
Comment: It's not the trading methodology that makes this book valuable. Whenever I reread it I completely skip that part. As a matter of fact, in his next book "Trading Chaos Second Edition" Bill pretty much admits the system underperforms in current market conditions and makes the very significant refinement of using a counter-trend signal that he refers to as a "divergent bar" for first entry. He says without saying it in that book that those following the method in this book will be "late and have a difficult time making any money."

No, the reason I have held on to this book, instead of selling it with the others, is the psychological stuff, and the innovated way he ties physics in with successful trading. It is very introspective, thought-provoking, and yes, quite helpful. To quote the book, get out of the win vs. loss mindset and get into the here and now process of noticing what is happening and being in tune with the market.

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