Walter Bressert - Tips on Trading




Walter Bressert reads on the market cycles and oscillators

Walter Bressert (Walter Bressert) graduated from college with a degree in economics. It has developed in him the belief that "economists do not know very well what's inside this world." As an active trader for many years, Bressert relies on cycles and oscillators in his intraday futures trading, where the main attention is paid to the contract S & P 500. However, Bressert uses all types of technical analysis, but is characterized by the cycle as "the glue that holds everything together. They are like nothing else, give me a time frame. By studying the cycles, I learn the rhythm, and each market has its own rhythm. "

In the late 80s Bressert felt that the literature on cycles and oscillators written enough. So he decided to write a book and called it "the power of combining oscillators and cycles."

"Cycles show you the time. But looking at the graph, we can not understand, there is overbought or sverhprodazha. Oscillators record these changes. If they are above 80-90, then it is likely to peak, and if below 30, or 20, or 10 - then it is likely to bottom - explains Bressert. - But we need to think of a more general pattern: what is the trend? "For this he refers to the cycles. For example, the trend for the daily chart is determined by the weekly cycle.

Early in his career, when a trader Bressert in stock room, there was the following case: "the old man approached me and said, trading is actually very simple - when the trend is up, buy something that falls when the trend is down, sell it on the demand. I was young and I thought - but what does he know? But ten years later, I realized that he shared with me the most important thing. "

Bressert emphasizes the importance of the trend. "Know the trend and work in line with the trend or trend reversal hunches" - he said. Currently Bressert is active trading S & P contract on an intraday basis, and from time to time goes to other markets. He prefers the contract S & P, because it "liquid and can keep the volume. He is undergoing considerable movement within the day, and many players on the market - this means that the audience can not control the whole market. " Bressert believes that intraday trading suitable only three markets: contract S & P 500, futures on Treasury bonds and Swiss franc.

Using Loops and Oscillators Bressert allowed to develop mechanical option trading, which allows him to remove the emotional element from trading. "The market - it's solid emotions. He clicks on all your instruments of fear and greed, sniffing all your weaknesses. I have to control the emotional part. I made sure that my temperament does not allow me to be a star trading. I found a way to overcome this by using the mechanical laws of entry and exit. " Bressert not ignore the basics. He uses them to "the big picture" and see that the "good news from the market behaved as expected." It also does not take positions on which could affect the publication of final reports. "For me, it's a lottery. The final report takes away all the chances, because the unpredictable can happen. "

Assessing the future of markets, Bressert is in a very "bullish" sentiment in regard to grain. "It must happen a big rally ... the market may move as it was in the 70s. Rally for cereals will continue in the summer, with the possibility of an intermediate peak in April ... Beans will continue to go to $ 8. Now there are very few seeds "- he explained. According to him, "in the next two years, legumes may reach $ 13, and grains - 6-7 USD ... drought cycle will soon come." Bressert believes that the market "bulls" on the stock exchange continues: "The growth will be very significant in April and the summer." As for the precious metals market, gold, in his opinion, will go for the same price or lower in April, which will allow for the purchase of the second half of April.

At the end of Bressert gives the following advice to beginners: "Learn, learn, learn to know what works and what does not, before you invest. 90% of people in the commodity market are losing money. This is because they do not do their homework. "