The keys to successful speculation

An Applied Technical Trading Manual
By Daniel T. Ferrera


Click These Links For:

INTRODUCTION
DAN'S OVERVIEW
TRADING EXAMPLES
TABLE OF CONTENTS
PRICE & ORDERING

INTRODUCTION

 

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 to trade successfully?”  This is an impossible question, for the truth is that, to my knowledge, there really isn’t one, as most are sadly aware. 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 transition that psychological gap between theory and practice.  This situation is finally about to change with the release of this new course, The Keys To Successful Speculation. 

Those of you who have studied Dan’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 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 Dan calls his “put up or shut up work”, takes a radically different approach than anything he has produced before

The Keys To Successful Speculation presents the first fully intact trading manual, of which I’m aware, that 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 like it.

For the first time ever, I feel I can say with confidence that this course will provide all the necessary tools and strategies for any speculator to make consistent high percentage returns from any market, without the need for any further materials.  At the same time it provides a consistent 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. 

I hope this course leads to the long sought success that many of you have been working towards.

All the best,
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

Trading Examples:
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

Mathematical Analysis Section 1                             Pages 22-28

Perspective                                                                 Pages 29-34

Mathematical Analysis II Geometry Review          Pages 34-37

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 Magnetic Force             Pages 56-59

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 Opportunity                 Pages 79-85

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
           

PRICE & ORDERING                                 

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

 

First Customer Feedback From The Online Salon:

 

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

Hello Everyone,

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.

Keys is Excellent! At first, I must admit I felt a little disappointed, as I thought I was too simple to work, and perhaps was too expensive, but it works and has paid for itself – very happy with this method.

J.R.

 

 

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.