The keys to successful speculation
An Applied
Technical Trading Manual
By Daniel T. Ferrera
DAN'S OVERVIEW
TRADING EXAMPLES
TABLE OF CONTENTS
PRICE & ORDERING
The most commonly
repeated question I am asked over and over again by market students is, “What
one book can I read that will teach me all the basics I need to begin trading?” This is a difficult question, because most books
only give bits and pieces of the knowledge needed to begin from scratch and
to learn all the necessary details of setting up an account, money management,
risk management, entry strategies, stop placement, exit strategies, etc. The
best response I can give is to outline a study course of the best works that
are available, which every researcher must then integrate into a trading strategy
for himself. Some are able to do this,
in time, but many are not able to make the transition over that psychological
gap between theory and practice. This
problem is finally been resolved with the release of this Daniel Ferrera's
course, The Keys To Successful
Speculation.
Those of you who have studied Ferrera's other courses, know that
his prior works have primarily focused upon uncovering the deeper and more
complex, esoteric elements of Gann analysis, cycle theory, and the like. Yet Dan recognized that many students of this
deeper analysis are blocked or confused when it came to developing successful
trading strategies and applications from the more complex material. There
is a huge gulf between analyzing the markets and trading the markets, a gulf
that many researchers never successfully breach. This new trading course,
what we consider to be a sort of Trading 101 Course, takes a radically different
approach than anything he has produced before
The Keys To Successful Speculation
presents a fully intact trading
manual, which will clearly teach anyone, including those with absolutely no
prior knowledge of the markets, Gann, or forecasting in general, to successfully
trade in any market, from stocks, to futures, to options, in any time frame,
from day trading to long term trading, beginning with very limited capital,
as little as a few thousand dollars. This book is not esoteric, and is not focused
on abstract analytical and theoretical principles, but is totally application
orientated, specifically outlining a clear trading strategy incorporating
all necessary principles of money management, charting, risk management, swing
trading, signal generation, the use of options and much more. In all my years
in this field, I have never seen anything that so clearly and easily provides
all the needed instruction
Besides being confident
that this course will provide a clear and logical system that anyone can understand
and learn to trade with, I can also say that it provides a strategic logic
upon which more advanced analysts can overlay their deeper understanding and
market research to produce even more successful return streams, and more powerful
trading systems. Successful trading requires that one have a plan of
strategy, whatever the level of trader, and this course provides that logic
and strategic thinking that is required to develop that trading plan.
I hope this course provides the first step to the long sought success that
many of you have been working towards.
Sincerely,
W. B. Stewart
Sacred Science Institute
We asked Dan to
give a brief overview of this trading methodology and some examples and he
responded with the following:
Dan’s Overview & Examples of His Trading System:
1. System
objectivity/discretional approach. The approach is
very straight forward and easy to apply and understand.
Subjectivity
is eliminated as much as possible.
2.
System%predictability/timeframe: The methods work on all
time frames without changing any rules and works in a
consistent manner.
3.
Win/losses/drawdown/min capital req. Average capital
would be $5,000 but someone could start trading it with
options for less upfront capital. Drawdowns are kept well
under control if you follow the entire method and the
number
of winners should out do the losses by an average of 6
to 1
with a risk to reward ratio that is always greater than 3
to 1.
4. System
return/time. This depends on what time frame you
use when you trade it. In the book, I illustrate a
trading
run on the S&P emini that resulted in a 200% return
in
9-months
using only one of the trading approaches presented
in the material. I made every attempt to keep things
simple.
5. System
math/logic support. The logic is based on laws of
motion and laws of attraction, but no complex math formulas
are used nor needed to exploit these advantages. Only a
new
perspective is required.
6.
Psychological and other consequences/amount of work to
learn and make/stick to decision. The approach is pretty
easy to learn. I cannot predict how long it will take
anyone
to overcome any psychological issues they may have from
prior experiences, but I personally believe that if one
really follows everything discussed in KEYS, that they will
and should make money from trading in this way.
I hope this
information is helpful,
Dan
Here are a few examples of Keys trades in Soybeans and in Bonds. I did one
on a daily and the other on an intra-day so that people can see that it works
on all time frames. The trades were generated using the first 3 swing patterns.
There a 7 entry methods in total, so this is about half. Anyway, the entries
used were Lost Motion, 2-lower tops or 2-higher lows and 4th time at the same
price.
SOYBEAN DAILY TRADING EXAMPLE
http://www.sacredscience.com/ferrera/Soybeans.htm
BONDS INTRA-DAY TRADING EXAMPLE
http://www.sacredscience.com/ferrera/Bonds.htm
The Keys To
Successful Speculation
Table of Contents:
Introduction Pages
1-2
Dedication Page
3
Risk Discloser Pages
3-4
Commodity Basics Pages
4-5
How Much Do You Need To Start
Correctly Page 6
The Profession & Business Page 6-7
Charts Pages
7-8
The Keys To Successful
Speculation Pages
9-22
Mathema
Perspective Pages
29-34
Mathema
Instantaneous Balance Stability Pages
38-42
Gann’ Mechanical System Pages
42-51
Swing Trading Improvements Theory & Principle Pages 52-53
Understanding and Exploiting Lost Motion Pages 53-56
Endpoints of Swings Have Magne
Zones of Influence Define Test & Failure Pages 60-62
Simple Profit Targets & Market Examples Pages 62-68
Trading Pattern #2 Pages
69-70
How Price Can Change Polarity Pages 71-72
The Fourth Time at The Same
Level Pages 72-75
How to Determine A Useful Swing
Size Page 76
How To Determine Useful Stops Pages 77-78
Trading Is A Profession Pages
78-79
Understanding The Options
Probability of A Price Move Pages
85-87
Understanding Option Spreads Pages 87-90
Successful Trading Page
91
What Is Luck Page
92
Conclusion Pages
93-94
Opportunist System Pages
95-99
Swing Trading Stocks Based on Square Roots Pages 100-104
Questions & Answers Pages
104-139
Understanding Trends & Trendline Breaks Pages 112-114
Trends Again, Bar Grouping Technique Pages 114-119
Gann’s Red Light Green Light Trend Indicator Pages 119-130
Using Inside Bars
to Enter With the Trend
Pages 132-138
Gann’s Natural Resistance Levels & Cycle Points Pages 139-163
Student Questions & Answers From Online Salon Pages 164-245
We have created new Keys To Speculation Ferrera Trading Salon, which is
be dedicated only to trading and applied principles, to which everyone with
this new course will have access to discuss their trading with Dan. Dan is already moderating
this Salon and will answer any questions anyone has about the tools and strategies
in the book. Dan
also has developed a number of Trade Station indicators and tools which he
are included with the book’s CD ROM which readers are invited to further develop
within the Salon.
I must forewarn you that Dan has suggested to
me a number of times that he may only release a very limited number of these
courses, so they may not be available forever. He has hinted to me that only a
few hundred copies of this course will be made available worldwide. Also, Dan
has indicated that this course will be a required pre-requisite for his future
material on price cycles.
The Keys To Successful
Speculation, by Daniel T. Ferrera
2004. 350
pages. Hardcover,
w/CD ROM Indicators.
PRICE: $1500.00
Click
this link to order now:
http://www.sacredscience.com/store/commerce.cgi?product=FER
PLEASE
NOTE:
For
the first time, Dan is also requiring a signed Non-Discloser Agreement.
**WE
MUST HAVE NON-DISCLOSURE AGREEMENT TO SHIP**
When you place the order, we will email the
NDA to you.
Please print, fill out, sign and fax the NDA
back to us at:
FAX: 951-346-5590
Customer
Feedback From The Online Salon:
It is a pleasure to write this recommendation for Dan Ferrera's Keys to Successful Speculation. Over the last ten years I developed a number of unique tools for trading markets, but never felt like I had the correct method for utilizing these tools. I never had risk and money management rules that I could rely on. Recently I was going to through my library looking for some guidelines and picked up Dan's Key's again. I was blown away by how perfect this book is for what I was looking for. What I found was not what I expected to find. I expected forecasting techniques, which I already have in abundance, but what I found is far more useful; I found how to make forecasting techniques very profitable. What I found is how to favorably bias the risk / reward equation as the primary rule of trading. What a gift.
With this any method of
trading becomes profitable. One can use moving averages, Gann Theory, Cycle
theory, Elliott Wave, Fibonacci, trend line methods, stochastics, it does
not matter. The true objective is not to make a smarter trading system, its
to make a smarter trader and Keys is the one book I have found that does that.
It does not matter what trading system you use, Keys provides a "Statistical
advantage" before you even begin to trade by applying both account management
skills and then consciously biasing the risk:reward ratio of the game. I am
convinced that this is the only way to make a living in the trading business.
Everyone always talks about the upside of trading believing that with unlimited
gain potential and limited losses that it's eventually inevitable that given
enough time and resources that you will surely hit it big. However in reality,
success in this endeavor is very low because nobody truly understands how
to apply this concept when they begin actual trading. Keys teaches this and
if you really look at it from a consistent theme basis, you will see that
all the entry triggers in the book are just techniques to begin applying Dan's
real message of skewing risk:reward in your favor all the time. I am very
grateful for Dan's work and wanted to write and tell you so.
Steven Rideout
I really like Keys, I use Wheels and Dan's annual reports as reference but I think the practicality of Keys is awesome! I think Keys is the best trading book I have purchased to date and I have bought some real BS... I definately think it is the best course I've see so far for trading, the esoteric stuff doesn't work so well for me, even Dan's stuff. I think the practicality of Keys is what differentiates it from other courses. Thanks, VK
Thanks
to Sacred Science & Dan for keeping the light burning brightly for those
of us still seeking a suitable methodology. After being financially &
emotionally damaged for years this course has me unable to sleep. When I got
to the top of the page 94 & Dan says 'this concludes the course' the blood
drained from my face. I was thinking to myself "money management is the
big message to come from that course, I'll keep it in mind."
Then I got to the red light green light section. Combined with the boxing the chart, itis pure genius! Why did this not occur to me, after 15 years of struggle & anguish & occassionally giving up on myself. I have tried to combine time frames with various timing methods on the swing charts for years, the one thing that held me in check was the starting point & end point. The methodology is now clear. I know the struggle is over. This is all about money management & my trading plan. I now need to adapt to knowing that the future is assured (financially at least). I now feel drained because it was the fight & struggle that kept me going for so long. I will adapt.
Thanks so much to Dan,
DS
I originally posted this under the "Keys To Sucessful Speculation: Salon", but I wanted other followers of Dans' writings to see what an excellent book The Keys To Sucessful Speculation is and the fantasic returns it has generated! Since I first posted this message on June 25 2004 I am up close to 25% on my account. My confidence is beginning to heal after the years of financial and psycological ruin. What follows is the original post.
From despair to elation. I have been trading for about 10 years. I have spent
more on trading systems, books and charts then I have made in the market.
I have seen a thousand different trading strategies and I have tried almost
all of them with only greater losses trading to show for my investment. I
have had such poor trading results that I became scared to actually put on
a trade. I would just sit and stare at my computer screen, saying: "I
should of bought here or I should have sold there." I had just about
given up on finding something that would actually work and make me a successful
trader. I read a little bit of Dan’s other books at a friend’s house and thought
they were really interesting. My friend said that he got an email about Dan’s
new book and at a pre-release special price, so I thought I would take one
more chance, throughout my 10-years of trading, I have said this over and
over again. I had my tax return check and decided to give Keys a try. When
the book arrived I was a little disappointed. I thought this is nothing special
and felt that I had just thrown nearly $800 down the drain. I read the book
a few more times as was suggested and realized there might actually be something
to this approach and trading philosophy. Then the day came to putting on a
real life trade, I froze up again, I couldn’t pull the trigger. I watched
the charts for a couple more days and I looked at all the past setups and
made an ultimatum. I would put on the next trade or I would quit watching
the markets all together and just give up. The time came, to put on a trade.
I hit the send button, I was short the S&P Emini, the trade didn’t do
much at first but then it started to move in my favor. It worked perfectly!
The next trade was another Emini trade this time I went long, and this time
it wasn’t as hard to pull the trigger on this trade but I still had to mentally
force myself to do it. This trade also worked. I immediately called my brokerage
firm and had them send me for almost 70% of my profits. I can’t wait for this
check to arrive!!! I have never received a check from all my days of trading
unless it was to close out my account due to losses. While writing this, I
put on another trade. I went short the Emini again, I had an easier time pulling
the trigger this time but things went wrong and I got stopped out for a small
loss. I didn’t have those feelings of despair this time because my stop was
mentally and emotionally tolerable. The trade also gave me a chance to re-enter,
so I did. At this point, the trade has moved far enough in my favor that I
can’t loose anything. I am so happy I finally found something that really
works. I don’t know why Dan would even sell this material to the public. I
feel liberated!!!!! Thanks So Very Much!
T. Marks
I wanted to write a review about my experiences using Dan’s latest book “The Key’s To Successful Speculation”. But before I do that, I wanted to write about what brought me to buy this new course. I am 35 years old. I have been trading on and off inconsistently since I was 25. I always felt to succeed in the markets you had to have some complicated plan to make money from the markets because you are trading against the smartest minds in the world. I have spent so much money reading numerous trading books on technical analysis and how to make money in the stock market that it is too many to write about. I have bought so many different technical analysis software programs including (Advanced Get, MetaStock, Nature’s Pulse, AIQ, Omega Research, etc…) and other add on software to go with these programs to find a “Holy Grail” to trading that I just about given up trading and just invest in mutual funds because I never had a trading plan to consistently make money.
When I became aware of Dan’s new course through an email sent by Brad Stewart, I was to say the least a little skeptical. I have spent so much money in the past; I couldn’t imagine another trading course that would make me become the trader I wanted to become. I was just about ready to leave for my golf trip to Palm Dessert with some friends and in came my tax return check from the IRS. After rereading the book’s contents, I gave it one last shot and bought Dan’s book to learn how to trade. When I received “The Key’s To Successful Speculation” in June of 2004, I was a little let down. In the past, I was so used to seeing a book with numerous chart examples and explanations that compared to what I received; Dan’s book looked a little thin.
I started reading his book and boy was I surprised. Dan is a very direct writer. He gets right to the point and leaves little for second guessing. The way he wrote his book, I felt he was writing it directly to me. He pointed out numerous trading mistakes I made and why most traders fail when they trade. He explains how to trade and when to enter and exit. He thoroughly explains money management and why it is the most neglected area in trading. Dan writes that you should read this material numerous times to fully grasp the material in this course. I would venture to say, you should read this at least 10 times before you put on your first trade. I placed three trades after reading the book the fourth time and took very manageable loss on each trade. I should have waited until after reading it the tenth time, but it was a manageable loss and I wanted to get my feet wet. Before reading this book, I didn’t have any risk/reward plan. I had no real understanding of where and when to enter and exit, nor how to manage a trade when I am in it.
Now I feel very confident in what I am doing. You don’t need the most complicated trading strategy like I thought you would need to be successful. I know when and where I should buy and sell. I mostly trade stocks, but this material works very well with futures and options. The one thing that I noticed after learning this material is that you have to be very patient. I am more focused and feel very much empowered in knowing that I am on the right track. I am not taking any foolhardy chances like I have in the past. I know that if I work with persistence and follow and trade the market as per the rules in Dan’s book, “The Key’s To Successful Speculation”, then I will succeed and reach my goals in becoming a successful trader.
If you are not sure and feel that this is just another trading book, then learn from my initial mistake and buy this book. You will learn more about trading than anything else you will find on trading the markets. If you are not having the trading success you want, give this course a try. You won’t be sorry!
Thanks Dan for writing a great book and for answering my questions in the forum. I also want to thank Brad for sending that email and for having a great forum allowing us traders ask questions to help in our understanding of the material.
If you have any questions, I am more than happy to answer. If you have a very detailed question, I am sure Dan or Brad would be very happy in answering your question.
Wishing you much success,
Joe D.
Disclaimer:
There is no guarantee that these market structures will continue to work in the future, i.e. “Past performance is not indicative of future results”. You should understand that there is considerable risk of loss in the Stock Markets, Futures Markets and Option markets. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since the trades may not have been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits of losses similar to those shown. Neither I, nor anyone else involved in the production of this material, will be liable for any loss, damage or liability directly or indirectly caused by the usage of this material. The data used in this material is believed to be from reliable sources but cannot be guaranteed. The examples and projections contained in this work are not to be taken as “investment advice”. Ultimately, you are responsible for all of your investment decisions. If you are unwilling to accept this responsibility, then you should not invest in the financial markets at all.