Larry Williams. Long-Term Secrets to Short-Term Trading
Larry Williams. Long-Term Secrets to Short-Term Trading

The concepts of short-term trading, so popular among day traders and positional speculators, have always been of the highest interest for active implementation in trading on financial markets. The main achievement in promoting trading on price fluctuations can be rightly credited to one of the most successful traders in the world, the winner of the leading contest in trading “The Robbins World Cup Championship” - Larry Williams. His best result is the increase of $10,000 initial capital more than hundredfold during one year (to $1.1 bln), when he used the methods of short-term futures trading with S&P 500 and 30-year bonds.

The book of Larry Williams Long-Term Secrets to Short-Term Trading, written under the influence of his victories in various contests on trading, is one of the most detailed and professional guides to short-term trading on futures market. The author dwells upon the main principles and methods of short-term trading, introduces public testing of trading systems, successfully implemented by him in 1980's – 1990's and also touches upon the issues of money management with the help of innovative approach that let the author increase the profit to unbelievable size.

In his book Larry Williams describes numerous trading systems, which can be applied to trading futures and stocks. The most prominent of them are such trading strategies, as “Oops!” which takes into account the presence of gap at the market open; “Dow Favorites”, which allows to get high-probability profit trading shares on the U.S. stock market; and also the strategy based on following price fluctuations grounded on forming new three-day highs and lows, determined with the help of moving averages.

The author pays much attention to the impact of certain markets on the traded asset. Taking the relation ‘S&P500 – 30 year bonds – gold’ as an example, Larry Williams demonstrates how it is possible to employ oscillators of some financial asset for the operating asset.

And still another important method, which is highly recommended by Larry Williams, is cyclic recurrence of price changes and dependence of the successful operations’ quantity on the day of the week, when the trade is opened. Using the examples of testing trading systems on futures contracts, Larry Williams is demonstrating the way the choice of the optimum day (or season) for opening/ closing positions affects the outcome of trading, thus stating that every trader has to clearly define what days suit better for purchases of the operating asset, and when it is better to sell.

Larry Williams is also the author of some technical indicators – oscillators - as well as one of the most interesting signal indicators Will-Spread. With its help Larry Williams demonstrates how it was possible to foresee the US stock market crash in October 1987.

A significant feature of the information represented in the book is that the methods of trading, described as successful and stable, can be not applicable or show lower effectiveness at present time due to the fact, that the markets have changed as compared to the end of the 20th century. However, according to the author's idea, the basic concepts of short-term trading remain unaltered even today.

After careful reading of the book there still remains a taste of incompleteness, which is quite obvious, taking into account the fact that one of the main activities of Larry Williams is delivering seminars on trading around the world, where he discloses the practical principles of trading on the basis of the methods used by him.

Thus, the book Long-Term Secrets to Short-Term Trading is an example, presenting the aims of a trader and describing the work of forming trading schemes, which a trader has to do in order to increase the effectiveness of trading on financial markets.