tools of the trader

Resources – Tools of the Trader

I thought it would be helpful to create a resource page or better a page with Tools of the Trader that I use myself and have found to be of high value. A place where you can come for all your trading needs. My plan for this page is to always be evolving thiw with new links, so to ensure you are kept up-to-date with it, I recommend subscribing to our news letter  for your convenience.

Brokers

If you want to be able to trade cost effectively, you need an online broker. This is probably the biggest headache in all of futures trading. Not because it is difficult to be approved for an account, nor is the sign up process difficult. The biggest pain is figuring out ´´whom to choose´´ given the vast amount of choise now available in this day ans age.

AMP Futures

AMP FuturesAMP Global Clearing is a Chicago-based Futures Commission Merchant (FCM) providing access to the global electronic futures markets for Individual Traders, US & Foreign Introducing Brokerages, CTAs, 3rd Party & API Developers. Why Pay More for Less? Get Cheapest Commissions & Excellent Customer Service at AMP. This is the broker I personally use in conjunction with the Ninjatrader platform. They have over 60 trading platforms available including 8 free trading platforms like Sierra Charts, MultiCharts, MetaTrader and eSignal.

 

 

 

 

NinjaTrader™

NINJATRADERNinjaTrader™, LLC is a leading provider of award-winning trading technology and brokerage services for active traders. Through NinjaTrader Brokerage™, discretionary, end of day and automated systems traders save on futures trades through deep discount commissions previously only available to professionals. Our flagship product “NinjaTrader™” is a FREE application for advanced charting, market analytics, system development and trade simulation.

 

 

 

Interactive Brokers

interactivebrokersInteractive Brokers Group provides automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 120 markets in numerous countries and currencies, from a single IB Universal Account to customers worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. 

 

 

 

 

 

Data Providers

Technical charts play a massive role in my trading strategies and are the single most important factor in eliminating stress and emotions from my trading. With this being said, finding a data provider is an extremely important area for you as a day trader.

The first place you should check is with your broker. Most brokers will offer technical charts with their trading platform, but in some cases, the charts may not meet your personal preference.

Rithmic

rithmicThis is the data provider I use. Rithmic data connectivity puts your trades first. Rithmic provides traders with high throughput performance and low latency connectivity performance formerly seen only by the very large trading houses and boutique hedge funds. Rithmic provides market data from and routes orders to the world’s principal exchanges, numerous regional exchanges and other trading venues.

 

 

CQG DATA / CONTINUUM

CQGI have used this data feed before (2008-2013) but I was experiencing connection loses and shifted at the time to Rithmic. It was like an on/off switch so I don´t know how the connection and quality is right now. 

 

 

 

 

Kinetick

Kinetick is NinjaTrader’s solution for fast, unfiltered, real-time market data for Stocks, Futures and Forex. Kinetick is optimized for NinjaTrader 7/8 and designed to exceed the expectations of the most demanding traders. I have no experience with this data feed! 

 

 

 

 

Trader Information Sources 

As a trader, you need to keep up-to-date on what is going around throughout the world and markets. While I’m not saying you should be spending hours upon hours with this sort of stuff, a quick browsing of the headlines is a great way to stay informed with dynamics that may influence the markets and your trade ideas. Here are some of the sites I use to browse headlines and news.

Business/Market News

ECONOMIC CALENDER

Books

All the books I recommend have nothing to do with “trading strategies”. When I was first getting started, I bought numerous books and, to be blunt, they all sucked!

Nonetheless, the books below are great for motivation and teaching you about psychology and how to deal with the tough times.

The Complete TurtleTrader

The Complete TurtleTraderThis is the true story behind Wall Street legend Richard Dennis, his disciples, the Turtles, and the trading techniques that made them millionaires.

What happens when ordinary people are taught a system to make extraordinary money? Richard Dennis made a fortune on Wall Street by investing according to a few simple rules. Convinced that great trading was a skill that could be taught to anyone, he made a bet with his partner and ran a classified ad in the Wall Street Journal looking for novices to train. His recruits, later known as the Turtles, had anything but traditional Wall Street backgrounds; they included a professional blackjack player, a pianist, and a fantasy game designer. For two weeks, Dennis taught them his investment rules and philosophy, and set them loose to start trading, each with a million dollars of his money. By the time the experiment ended, Dennis had made a hundred million dollars from his Turtles and created one killer Wall Street legend.

In this you can understand how important it is to have a system in place! I´ve read this book now three times and I love it.

 

 

 

 

 

 

 

 

 Trading in the Zone

Trading in the ZoneDouglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental habits that cost them money.  He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the “probabilities” of market movement that governs all market speculation. Great to work on your trading psychology!

 

 

 

 

 

 

 

 

 

 

 

Buffett: The Making of an American Capitalist

Buffett: The Making of an American CapitalistStarting from scratch, simply by picking stocks and companies for investment, Warren Buffett amassed one of the epochal fortunes of the twentieth century–an astounding net worth of $10 billion, and counting. His awesome investment record has made him a cult figure popularly known for his seeming contradictions: a billionaire who has a modest lifestyle, a phenomenally successful investor who eschews the revolving-door trading of modern Wall Street, a brilliant dealmaker who cultivates a homespun aura.

Journalist Roger Lowenstein draws on three years of unprecedented access to Buffett’s family, friends, and colleagues to provide the first definitive, inside account of the life and career of this American original. Buffett  explains Buffett’s’ investment strategy–a long-term philosophy grounded in buying stock in companies that are undervalued on the market and hanging on until their worth invariably surfaces–and shows how it is a reflection of his inner self.

 

 

 

 

 

 

 

 

 Market Wizards

What separates the world’s top traders from the vast majority of unsuccessful investors? Jack Schwager sets out to answer this question in his interviews with superstar money-makers including Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz, Tom Baldwin, and more in Market Wizards.

This classic interview-style investment text from a financial expert is a must-read for traders and professional financiers alike, as well as anyone interested in gaining insight into how the world of finance really works.

One of the most insightful, bestselling trading books of all time.

 

 

 

 

 

 

 

 

 

Trade Your Way to Financial Freedom

Trade your way to financial freedomThis trading masterpiece has been fully updated to address all the concerns of today’s market environment. With substantial new material, this second edition features Tharp’s new 17-step trading model. Trade Your Way to Financial Freedom also addresses reward to risk multiples, as well as insightful new interviews with top traders, and features updated examples and charts.

What I like about this book are the interviews with top traders and they will address the importance of trade management.

 

 

 

 

 

 

 

 

 

 

 The Alchemy of Finance by george soros

George Soros is unquestionably one of the most powerful and profitable investors in the world today. Dubbed by BusinessWeek as “the Man who Moves Markets,” Soros made a fortune competing with the British pound and remains active today in the global financial community. Now, in this special edition of the classic investment book, The Alchemy of Finance, Soros presents a theoretical and practical account of current financial trends and a new paradigm by which to understand the financial market today. This edition’s expanded and revised Introduction details Soros’s innovative investment practices along with his views of the world and world order. He also describes a new paradigm for the “theory of reflexivity” which underlies his unique investment strategies. Filled with expert advice and valuable business lessons, The Alchemy of Finance reveals the timeless principles of an investing legend.

An extraordinary . . . inside look into the decision-making process of the most successful money manager of our time. Fantastic.

 

 

 

 

 

 

 

 

 

Confessions of a Street Addict

Jim Cramer takes readers on a wild Wall Street ride—revealing how to play the game, who breaks the rules, and who gets hurt.

Everyone on Wall Street knows Jim Cramer, and Cramer knows Wall Street better than anyone. In the most candid and outrageous look at Wall Street since Liar’s Poker, Cramer, co-founder of TheStreet.com, radio and television commentator, and for years a premier money manager, takes readers on the wild ride that is Wall Street — revealing how the game is played, who breaks the rules, and who gets hurt.

 

 

 

 

 

 

 

 

 

 

 

Trump: The Art of the Deal

I simply enjoy reading about successful people and their journeys.

 

 

 

 

 

 

 

 

 

 

 

 

 

Cold Hard Truth: On Business, Money & Life

Kevin O’Leary shares invaluable secrets on entrepreneurship, business, money and life. 

Movies / Documentaries

The market is closed, the world is at a standstill, its New Year’s Day and you may not be at your best. That doesn´t mean you can´t get a Wall Street in your day though. Kick back with a tall glass of coconut water and watch one of these Wall Street movies. You’ll definitely enjoy yourself, and you might even learn something. Consider the below:

Million Dollar Traders

Million Dollar Traders followed a group of twelve wannabe traders dealing in shares during the events of the financial crisis of 2007-2009 which was then whittled down to the final eight. The contestants came from various backgrounds, including a fight promoter, a day trader, an IT/banking recruitment consultant, a working mother, a retired IT engineer and a student, among others. During the series van Dam gave the London-based contestants the sterling equivalent of $1 million of his own money to trade for 2 months. Former professional trader Anton Kreil, was appointed as the manager of the group.

As with the original experiment, those who lasted the course broadly confirmed the claim that novices could become professional-level traders, making small profits or at least lower losses trading in very turbulent markets during the filming than professionals, who lost four times greater amounts over the same period.

Floored Into the pit

Floored is a 2009 documentary film about the people and business of the Chicago trading floors. The film focuses specifically on several Chicago floor traders who have been impacted by the electronic trading revolution and whose jobs have been threatened by the use of computers in the trading world. Directed by James Allen Smith, the film runs for 77 minutes.

The film has become particularly relevant in light of the U.S. financial crisis of 2009; Greg Burns of the Chicago Tribune has said of the film’s director, “By dealing with hard times in the workplace, Smith taps into a vein running through millions of lives in this brutal recession, as the nation’s unemployment rate soars toward 10 percent” 

Critics have suggested a meta-fictional subtext to the documentary, linking the film’s storyline about Chicago traders to the plight of independent filmmakers in a time of the declining influence of film festivals and the ubiquitousness of free internet content. Ironically, the documentary itself was widely available on video sharing sites before its official “web premiere” on September 6, 2013.

Quants: The Alchemists Of Wall Street

Quants is 45-minute documentary on the inner-workings of quantitative analysts on Wall Street. Quants are the math wizards and computer programmers in the engine room of our global financial system who designed the financial products that almost crashed Wall Street. The credit crunch has shown how the global financial system has become increasingly dependent on mathematical models trying to quantify human (economic) behaviour. Now the quants are at the heart of yet another technological revolution in finance: trading at the speed of light.

What are the risks of treating the economy and its markets as a complex machine? Will we be able to keep control of this model-based financial system, or have we created a monster?

A story about greed, fear and randomness from the insides of Wall Street.

Enron: the smartest guys in the room

Corporate audio and videotapes tell the inside story of the scandal involving one company’s manipulation of California’s energy supply and its, and how its executives wrung a billion dollars out of the resulting crisis.

Rogue Trader

Rogue Trader tells the true story of Nick Leeson, an employee of Barings Bank who after a successful spell working for the firm’s office in Indonesia is sent to Singapore as General Manager of the Trading Floor on the SIMEX exchange. The movie follows Leeson’s rise as he soon becomes one of Barings’ key traders. However, everything isn’t as it appears — through the 88888 error account, Nick is hiding huge losses as he gambles away Baring’s money with little more than the bat of an eyelid from the powers-that-be back in London.

Eventually the losses mount up to well over £800 million and Nick, along with his wife Lisa, decide to leave Singapore and escape to Malaysia. Nick doesn’t realise the severity of his losses until he reads in the newspaper that Barings has gone bankrupt. They then decide to return to London but Nick is arrested en route in Frankfurt. Nick is extradited to Singapore where he is sentenced to six and a half years in jail and is diagnosed with colon cancer. Because of this, he did not complete his sentence.

 

 

 

 

 

 

 

 Trading places

No movie about Wall Street is funnier than the 1983 entertaining comedy that revolves around the stock market.

Eddie Murphy and Dan Akroyd are at their best as director John Landis tells the tale of how one man’s fall from Wall Street is another man’s blessing. Watching Murphy talk about futures and markets is hilarious and unparalleled in humor.

 

 

 

 

 

 

 

 

 

 

Wall street (1987)

The classic Wall Street film. Oliver Stone originally set out to depict the greed associated with Wall Street in the 1980s. Little did he know, it would go on to become one of the finest pieces of financial cinema ever created. Traders still go nuts for this movie and everyone loves Michael Douglas’ character Gordan Gekko, who is modeled partly after Michael Milken and Ivan Boesky.

 

 

 

 

 

 

 

 

 

 

 

wall street: money never sleeps

The film takes place in New York, 23 years after the original, and revolves around the 2008 financial crisis. Its plot centers on a reformed Gordon Gekko, played by Douglas, acting as an antihero rather than a villain, and follows his attempts to repair his relationship with his daughter Winnie (Mulligan), with the help of her fiancé, Jacob (LaBeouf).

 

 

 

 

 

 

 

 

 

 

 

Boiler Room

If you’ve ever worked in a job in sales or telemarketing, this should seem all too familiar to you. Vin Diesel and Giovanni Ribisi as Long Island pump and dump brokers? Count us in. This classic flick showcases Ribisi’s rise to the top as he learns the ins-and-outs of operating in a boiler room out of Long Island. 

 

 

 

 

 

 

 

 

 

 

 

The wolf of wall street

Overall “The Wolf of Wall Street” is a full on adrenaline ride that never loses momentum. It’s directed with a lot of flair and energy and has an incredibly well written script that gives it depth and a ton of laughs. The cast is fantastic and DiCaprio gives his best and most fun-filled performance to date. I really enjoyed this movie.

 

 

 

 

 

 

 

 

 

 

 

Arbitrage

A troubled hedge fund magnate desperate to complete the sale of his trading empire makes an error that forces him to turn to an unlikely person for help.

 

 

 

 

 

 

 

 

 

 

 

 

Cosmopolis

Riding across Manhattan in a stretch limo in order to get a haircut, a 28-year-old billionaire asset manager’s day devolves into an odyssey with a cast of characters that start to tear his world apart.

 

 

 

 

 

 

 

 

 

 

 

Margin call

When an entry-level analyst unlocks information that could prove his firm’s downfall, his co-workers are forced to choose between money and morality in this high-stakes thriller.

 

 

 

 

 

 

 

 

 

 

 

too big to fail

The “too big to fail” theory asserts that certain corporations, particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system, and that they therefore must be supported by government when they face potential failure. It basically chronicles the financial meltdown of 2008 and centers on Treasury Secretary Henry Paulson.