The Market Maker's Edge

Day trading tactics from a Wall Street insider a groundbreaking work in electronic trading, The Market Maker's Edge gives you the unique point of view of an actual “Ax.” The Ax — usually the day trader for a major Wall Street brokerage firm — is the market maker who controls the movement of a particular stock. Ax Josh Lukeman trades the stock market's blazing hot technology sector for Morgan Stanley. Now, this professional trader gives you an effective, step-by-step trading plan used by Wall Street professionals to minimize risk and maximize profit. You get the latest methods of stock selection...entry and exit points...examples and charts...hair-raising anecdotes of traders who have won and lost millions of dollars, sometimes in minutes...and plenty of sound wisdom for avoiding the pitfalls of greed, fear, attachment and shame from a real pro.

BACK COVER

A Market Maker Reveals How He:

• Times Entry and Exit
• Points for Minimum Risk, Maximum Profit
• Combines Fundamental and Technical Analysis
• Controls His Environment Every Day, with Every Trade!

Hundreds of books, written from the buy-side viewpoint of the successful trader, promise you the secret to day trading success. The Market Maker's Edge is the first book to turn the tables, working from the sell side to explain how the market maker - or "ax" - routinely maintains the upper hand on individual traders, seizing profits while controlling risk in today's volatile, lucrative marketplace.

Written by Josh Lukeman - a Morgan Stanley Dean Witter market maker who has honed his skills for years against other market makers and traders - The Market Maker's Edge reveals little-known tips and traps that include:

• 4 signals for spotting - and profiting from - a developing trend.
• Important risk control concepts every trader must know to protect against losses.
• Advanced trading strategies based on recurring technical patterns.

Today's top market makers operate in an intensely competitive atmosphere, when split second decisions are made with millions of dollars at stake. The Market Maker's Edge is today's only trading book written from inside - deep inside - the market maker's domain. Use it to open the door, and shed valuable light on the trading tactics and mthods used by Wall Street's most powerful market making institutions.

CONTENTS

Part I: Risk Control.

Managing Money to Succeed As a Day Trader.
Five Steps to Determine the Proper Position Size.
Profit by Managing Loss.
Mind Games That Propagate Financial Havoc.

Part II: Underlying Conditions.

Trend Spotting Is the Key to Profits.
Four Trading Signals for Spotting a Trend.

Part III: Fundamentals.

Fundamental Catalysts.
Ratio Power.
Economic Indicators and Their Impact on Day Trading.
Organize Your Information Flow.
The Trade.
Entry.
Exit.
Execution and Control.
Technical Analysis.
Candlestick Charting Techniques.
Support and Resistance.
Basic Chart Patterns.
Oscillators and Reversal Indicators.
Part VI: The Pulse of the Market.
Volume.
The Leading Indicators.
Part VII: Advanced Trading Tactics.
Advanced Chart Patterns.
Trading the Gap.
Event-Driven Trades.

Part VIII: Psychology.

The Trading Mind.