Walter Bressert – Intraday Timing for Low Risk Swing Trading (Audio, WorkBook)
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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.
A few rules by Walter Bresset
The question of how to achieve success in stock trading, remains relevant for many decades. He was particularly interested in the new traders who have not been able to create their own strategies to obtain stable and high profits. How should I start-up capital to turn into millions? Which universities finish? With one of the financial gurus to take an example? In today’s world, you will find a lot of answers. It only remains to choose the way in which you choose to go. Walter Bresset also willingly shared his experiences, calling not just blindly follow his example, and based on his advice to find their own path to financial success.
According to Bresset, 90 percent of people who start to work on the stock exchanges, unfortunately, very quickly lose their money. This is because they are “bad do your homework,” i.e, flippantly refers specifically to the nuances of stock trading, which directly affects whether you will get profit or donate part of their market status. Therefore, the main advice by Bresset is very simple: “Learn, learn, learn to know what works and what does not …”
In his book “The Power of a combination of oscillators and cycles” Bresset advises in intraday trading based on oscillators and cycles. He argues that, in principle, a trader can use any type of technical analysis, but to the time cycles must be treated with special care, because these cycles play a role of “glue” that ties together all the events in the market and allows you to experience the rhythm of what is happening. It is thanks to the analysis of cycles can learn about what you do not show any single graph: oversold or overbought tool, so – is it possible to make purchases or have the time has come to sell? In this case, Walter advises to remember that the daily chart, for example, defines the trend week cycle, for a four-hour – day, etc.
Knowledge of the Bresset`s trend calls extremely important for any trader. For a successful trade, you should work either in accordance with the trend, or learn to clearly define its point of reversal. It is no secret that the errors in this segment of technical analysis leads many traders to bankruptcy. In anticipation of a reversal of the trend, they often make the sale, for example, when should hold the warrant to purchase, or vice versa. This is a classic mistake of the beginners which leads to massive loss of capital. If you still do not know how to define the pivot point, trade in accordance with the trend.
The objective of the marketplace, the ability to accurately predict the situation, using their intuition, in fact, can only be found in a real financial genius. All other traders, including an experienced, better to push your emotions aside, because one correct solution will be three or four incorrect. But to make it as difficult as the market – this is the emotion. The greater the volatility is, the greater are emotional outbursts. To avoid them, Bresset advised to focus on the oscillators and cycles. He urged not to believe your fears, do not be tempted. Only those signals that you’ve got on relatively primitive signals should motivate you to open or close positions. As soon as you will be guided by mechanical laws of entry and exit, the market will be for you much less emotional.
It is necessary to use a clear rule: Do not use during intraday trading tools that can be influenced by the publication of reports, statistics, statements by officials and other economic news. Otherwise, you will not have to do business, and to play the lottery.
Finally, every trader should select for transactions only those tools that are running their chosen strategy. Invest in dubious assets or those papers, whose fate will depend on some subjective factors risky. In addition, the chosen tool must have sufficient liquidity so that you could lose it at any state of the market. For this reason, Walter thought it possible to make deals exclusively with futures highly liquid securities and the S & P 500. The Swiss franc, he also thought it was the currency that are least subject to fluctuations due to the release of the next news. However, he did not rule out the use of its strategy and other instruments. For example, in the grain trade sector, where simply can calculate the motion cycles of quotations according to seasonal planting, harvesting, and weather forecasts for the future harvest. At least, it is not difficult to predict what the year will be harvested less grain and buy assets for a few months before they rise. This is the same definition of a trend. Only it is not happening in intraday trade, and in the longer term.
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