The art of trading ref wayne pdf free download

Mar 22, Emkay rated it liked it. Sep 12, Wycliffe rated it really liked it. Jun 04, Molehin Gideon marked it as to-read. Incredible stuff. Byron rated it did not like it Jun 03, Thato Mokoena rated it really liked it Nov 26, Qhawe rated it it was ok Sep 28, Francois Nekosie rated it liked it Sep 13, Mwita Maswi rated it did not like it Dec 15, Ezefrank rated it it was amazing May 25, Vusumzi Mqakama rated it it was amazing Sep 11, Mohammed Boqorre rated it did not like it Dec 10, Michael Ihaluah rated it it was amazing Oct 07, Martin Kale VI rated it it was amazing Feb 06, There are no discussion topics on this book yet.

Be the first to start one ». Readers also enjoyed. About Ref Wayne. Ref Wayne. He has consulted for many companies and addressed more than , people through television and seminars throughout South Africa and Botswana and as a Keynote speaker and seminar leader; He addresses more than 80 people every year in South Africa alone. He has studied, researched, written and spoken in the fields of Forex Trading, Business, Philosophy and Psychology and also an author of The Art of Trading and Armageddon.

Books by Ref Wayne. On the verge of losing my sanity, I came to my senses. Up to this point my concept of reality was based on a set of personal experiences. This hit me like a ton of bricks. What would lead anyone to accept this? For starters, have you ever stopped to think that you surround yourself with people who basically agree with you and your train of thinking? If you are a sports fan, how much time do you spend hanging out at the local chess club?

If you are a Democrat, how many Republicans do you play chess with? At the most basic part of our thinking, we tend to define reality as we personally choose to define it.

They saw business and success in a similar fashion. We all had similar results. The fact is the markets are made up of people who all think differently for their own reasons.

The only thing we have in common is that we all participate together. The guy next to you could just as easily be an axe murderer or the president of General Motors. Each has a different perspective of reality and what is happening around him. In trading the only thing we have in common is that we are buying and selling in the same place—each of us choosing to look at the markets in our own unique way.

This was new to me. This was not the world I was used to being in. At that point my thinking practically went faster than I could handle. My profession began to expose me to a new reality, which in turn began to open up a completely different set of variables. It might be possible that all my life experience up to this point meant nothing in this new world, this new paradigm. Until that moment, I saw c As I accepted the possibility that the markets and trading might have a completely distinctive reality all its own, a flood of questions ran through my mind.

What would this reality consist of? How is it created? Who creates it? How does it differ from what I already know? How can I understand it if I have no basis to compare it to? If the markets have a reality all their own, then the reason so many people fail is because they refuse to find out what that substance truly is and adapt to it.

Market reality must be something so completely unpalatable or unacceptable to most people that they would rather fail at trading than embrace it. Of course, that is exactly the case. The true reality of trading and the markets as a whole is something that most people would rather die than accept. Market reality only functions one way, but we bring a personal definition to the table when we trade. We are trying to make sense of what we perceive, and the only basis we have to do that with is our previous world and life view, perspectives, and belief structures.

So the true state of trading reality is in conflict with what we personally think it is. We can choose to define it any way we want. What do you see in any mirror? That which is put in front of it. Only what you want to see by what you put in front of it.

The mirror itself is nothing. The market is only what you bring to it. It is not a how-to book on trading. Before you throw this out, I would encourage you to consider this basic and very deep concept and let it roll around in your head: What is everyone else looking at in the mirror?

At its most basic level the desire for profit in any financial endeavor is based on the ability to observe some kind of inequality somewhere and feed that inequality with some kind of effort designed to push that inequality in your favor.

We call this a profit. But what really is the market? A constant inequality that we, all of us who participate, wish to see push in our favor. What is our effort? Executing a trade. What is our profit? Buying low and selling high. Discovering that, my friend, is the dance, the art of trading. The price I paid for that knowledge is my unique experience and the nature of my reality. There was no other way for me to discover that except the way I did. No other way was possible given the state of mind that I had brought to the table.

How could it be? Until I was able to understand it was impossible to understand. Until all the mitigating factors in my life positioned me to ask myself the right questions, it was completely impossible for me to observe my thinking and perspectives for what they were: Closed to the true nature of the reality I was immersed in. Please think this through: Can you see that your personal concept of reality may not be the actual reality the markets really function under?

Looking back, all the pain I endured was completely self-created, as was my ability to get through it. Your trading and your results are created only by you and you alone. There is nothing else involved in any trading of any kind. My understanding came once I was willing to accept that the entire market and all price action are a perfect reflection of my own thoughts.

The true study of the markets is the study of your own thoughts. By someone, I mean anyone. No one is better equipped than anyone else is. I chose to accept that my personal choices were responsible for every one of the agonizing disappointments, all the pain, all the losses, all the bad business partners, the bankruptcy, and all the mistakes.

It was all the result of my personal choices—made through the lens of my personal perspective of reality—and nothing else. I put myself here through ignorance. There are worse things. I decided to discover the truth about the markets at any cost. Without any doubt I can stake all I am or could ever hope to be on this one fact: The only way to consistent trading profits is through self-study.

By that I mean real self-study. The kind that confronts the deepest part of who you are or think you are. The kind that causes you to change your behavior, how you spend your time, the ones you associate with; even those you love and why.

That takes guts. Blood, sweat, and tears if you have any pride in yourself. I chose to go to the wall with this. This process continues every day, through every minute of every trade.

Even when I am not currently in a position, this process continues. Every part of my life contributes to this process. Every thought, action, motive, or activity contributes and, at the same time, has the potential to detract from my results. This takes a level of commitment, not lip service. This is the hard edge. Dividing between the individual parts of yourself and constantly re-integrating what you find. It means a constant change knowing that the change is the only permanent part of you.

It is the journey and not the destination. The destination is always someplace new, yet always the same: To take out money. If a client opened an account hoping to make a gain, I needed to be in a position to give him a fair shot. Only a true trader could do this. I was absolutely convinced that you could profit from price action.

I became a student of how, in the deepest sense, the markets actually worked and what created them. Only by doing so could I ever hope to give a client the best possible opportunity for a gain. Even though I would continue to raise equity for the purpose of trading I could no longer see the business of commodities as only that. As time went on, the amount of time I spent raising funds became less and less and the time invested in understanding the real nature of price action and myself became more and more.

This new attitude created all kinds of conflict with brokerage houses. They want brokers on the phone selling, not trading. Trading is simply the messy little necessary evil that generates commissions. They want brokers to spend those 30 seconds writing a ticket for a 50 lot meaning 50 commissions instead of a five lot.

Great, how many round-turns4? Well, get back on the phone. I had the smallest book of equity as well. What was I going to do with them, line my bird cage? I had taken a small office downtown to concentrate my efforts. He assumed all this was leading up to me leaving to start my own company, and it was his blood that was going to get me there. He figured he would beat me c When I asked him to look at my trading equity, my sales, and commission history from the time we began working together, he refused.

I implored him to use his common sense and realize I had no intention of hurting him in any way. He absolutely refused to listen or change his mind, but I was on to something.

Every client of mine on the books had nice gains, after fees and commissions during that time. Every other client on the books at the same company was losing. The ratio of fees generated as a percent of total equity was only average, but the average size of my positions never committed more than 30 percent of total equity on deposit. In other words, I was trading smaller but more often and realizing consistent commissions while making gains for the client.

In addition, every trade was discussed with the client and the client gave permission to do each trade. I followed every NFA rule. No client was ever in a position to wake up one morning with all his equity gone. Furthermore, trade size would have also geometrically increased, and the clients would all be profitable, or at least still in the game. All this would be accomplished while taking on less risk to do it. Not to mention that those clients might all send referrals and continue to invest more free cash.

If this idiot really had thought it through, he could have had every client under management at the company in the same position. Instead he killed the golden goose. In this business this happens every day. Shortsighted owners screwing themselves and everyone who trusted them because they think this business is only about commissions.

This is one of the realities that I had to accept. Brokerage houses just want commissions. To continue being a broker would only continue the problem. I would become a trader. This was really the beginning of my career. Everything had lead up to this point. In the process I became bulletproof. During my odyssey to discover my success as a commodities trader, I had opened an account with a very well-known discount brokerage firm in Chicago. If I told you who it was, you would instantly recognize the name.

At the time, they had a small room on the ground floor of their offices that was available for local customers. The room was full of quote screens, tables, and telephones wired directly to the trading desks of this company.

The idea was that if you were a customer, you could come into the office and trade your own account right there, every day if you wanted to.

It was similar 29 c The whole idea was a really good one for business. You had good access to the markets at a reasonable discount rate. The rest was up to you.

The room was always full of people who were trading. There were constant practical jokes, things like unplugging a screen when someone was trying to execute a trade, someone urinating in the coffeepot; that kind of thing. It was sort of like an adult Romper Room. It still blows my mind that these people have money or are entrusted with it. Once I became accustomed to the whole scene and began trading there every day, I began to feel more comfortable about what I was doing.

I would let people see my charts with all the lines drawn on them. I would explain what I thought and listen to what they said. After some time I began to realize these people had no idea what they were really doing.

In fact, the real shock came when I began working at a brokerage company shortly after losing my stake in the playpen. One of the brokers in that office was someone I had originally met in the playpen.

After blowing out all his own money, this nut-bag went into the business as a broker. He was doing the exact same thing he had done before, but c He had absolutely no clue. Believe it or not, this kind of thing happens regularly. So does the public. Would you want that guy trading your money? Both groups of people look at the same stuff and decide to buy or sell simply by interpreting what they think they see on it.

It reminded me of having your palm read. Another amazing thing I noticed in both places was how many people would stand around watching a screen of some market and constantly talk. After the market would move to a certain point all the discussion would go quiet and then someone would break the silence by announcing to everyone that he intends to buy or sell if the market moves to such and such price. A spirited discussion would follow, and then like lemmings, everyone, or at least those with enough courage, would also execute a similar trade at or around the same point.

Some guys would take a small loss; some guys bigger losses. Some guys just held on. Some guys would wait to execute at that price. Some would add to the losing position and hope for the best. Then the market would reverse and trade back to where it started. Eventually, the market would close. Then it was time to hit the bar. This same pattern happened day after day, over and over again.

In the end, the group in either place kept changing as one by one the losers eventually were replaced by new potential losers. Subsequently, the winners turned into losers and were replaced by new potential losers. Then all joined the party of losers in transition and winners in training to become losers. Looking back I wish somebody would have slapped me. I was that guy for years. What a complete waste of time. While I was in the phase of lunacy—called studying the markets—an amazing thing happened that started me down the road to true understanding.

I share it with you in as much detail as I can remember. I swear to God this actually happened. To the best of my knowledge, the shabby guy in this story still trades in the playpen. For all I know he was an alien making a pit stop on earth and had a little extra time to kill. It was a Monday morning around a.

I remember it was Monday because the discussions after the weekend in both the playpen and the brokerage office were always the same: Who got laid? Who got trashed? Who got arrested? Who saw some great movie? The playpen got real quiet. I thought that maybe he was the owner or something. So I did. Now remember; in order to be in that room you had to have a trading account open at the firm.

He almost c He calmly sat down in front of a screen and everyone gave him a wide berth. He just sat there for a moment with his eyes closed, collecting his thoughts. He let out a long sigh and went to work on the keyboard. He would stop, think a little, and tap away some more. He must have done this for a while because eventually everyone else went back to what they were doing. I kept watching.

He picked up the phone and asked for the back office. He very calmly asked what the balance was in his trading account. He pulled a pencil and notepad from his pocket and wrote that down, then put the pencil and notepad back in his pocket. He pulled an empty, green glass Coke bottle from his other pocket and put it on the desk next to him. I thought he was just getting rid of his trash.

I had no idea that act was so significant. The shabby guy sat for awhile, and then his eyes got real wide. He grabbed the Coke bottle and put it to his ear exactly the way you would put a telephone to your ear. You gotta! Be quick about it. Right, got it; new order. Sell my at whatever the price was stop. This shabby guy walked in, traded a hundred-lot of something, did it while yelling at everybody in the room, and did it all, by my assessment, because someone called him on the Coke bottle.

Twenty minutes or so later the shabby guy did the same thing. His eyes darted to the Coke bottle. He then proceeded to calculate something on the notepad for a moment. Then the shabby guy very calmly got c Everyone basically ignored him and once he left the conversation started about what a whacko this guy was.

While they are all talking, I walked over to the screen that he was using to look at the market he was trading. There on the screen is the five-minute May pork belly chart. Ask anyone what trading pork bellies is all about, on a five-minute time frame no less. I saw his entry point and his exit point. I then figured what that meant if you had a hundred-lot on.

The Fly told me this guy comes in every now and then with no set pattern. He does the same thing every time; talks to the Coke bottle, trades, and then leaves.

Maybe the guys at the desk feel sorry for him. They probably held his orders. They never placed them. No one trades like that. I asked the Fly if anyone looked at his other trades. And that was the end of the discussion. The Fly was not the first person I met in this business who would ignore reality when it stared him in the face.

What made such an impression on me was this: If it was a real trade and I believe it was , this guy, crazy or not, had executed both sides of his trade at precisely the right time, however he chose to do it, and he took the most amount of money in the least amount of time that particular market had to offer on that particular trading day.

It was simply amazing to me. All of the people in that room were attempting to do the very same thing every day. All the people in that room had every tool the industry could provide you to do it with except the magic Coke bottle.

As time went on and my losses eventually put me back on the phone at a brokerage office, my thoughts were constantly on how to improve my trading for my clients and myself.

But that whole experience kept coming to the front of my mind. Was that guy just lucky? Did he have some secret? Then the big question: How do I learn to do that? If you stop to look at the real implications of what had happened and start thinking it through, the conclusions are simply beyond the acceptance of nearly everyone in the business. This takes its form as the huge business of technical analysis. Add to it the additional information such as books, tapes, seminars, and so on, that also is a huge business designed to help you make sense of the voluminous amount of market information.

The business of commodity trading grows larger every year, and the fact still remains that about 80 to 90 percent of the people who execute both sides of at least one trade during their lifetime will remain net losers.

Every one of these losers has access to the same information as everybody else. But the people who do know, and buy this stuff, are still in this losing group. What is still striking is that the shabby guy in this story apparently never uses any of the technical analysis information. One so-called expert, the guy I mentioned in the introduction, fills his marketing material with scores of testimonials. He is the consummate professional opinion gabber.

You would be amazed at the crowds that draw around him. He owns a discount brokerage house. He even does television commercials. People really believe this guy has some secret. When I was going through my period of delusion, I bought his books too. I assumed that he traded. Chapter 6 Make Money Now!

Get a free chapter. About the author. Are you ready to change your business? Order your copy Now. Than you, Your pre-order booked successfully. Forex trading strategies are of profound importance to see profits in these competitive markets. A number of trade plans have been drafted by the experts in the game; however, there are some that stand out incredibly. Scalping Trading Strategies: What makes this Forex trading strategy so wonderful is its smallscale nature.

While traders are out there trying to milk the markets with a long-term strategy with lower win-rate, smart scalpers spend their time winning small trades with more chances of a win!

Scalping is a short-scale strategy that puts you in a trade with the maximum of a few minutes as the timeframe.