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How to Beat the Market Makers at Their Own Game: Uncovering the Mysteries of Day Trading

Book Description

The basic skills for becoming a successful trader from a master of the game

Written by Fausto Pugliese (founder and CEO of Cyber Trading University) this must-have resource offers a hands-on guide to learning the ins and outs of active trading. How to Beat the Market Makers at Their Own Game gives professionals, as well as those relatively new to investing, a behind-the-scenes look at the inner workings of the marketplace and a comprehensive overview of basic trading techniques. The book explains how to apply the trading strategies of acclaimed trader Fausto Pugliese. Step by step the author covers the most common market maker setups, shows how to identify market maker traps, and most importantly, reveals how to follow the direction of the lead market maker in an individual stock.

Throughout the book, Pugliese puts the spotlight on Level II quotes to help investors understand how market makers drive prices and manipulate the market. This handy resource is filled with the tools needed to interpret market maker activity so traders can truly understand the market and trade accordingly.

  • Offers an accessible guide for developing the investing skills to trade with confidence

  • Filled with the real-world trading experiences and techniques of Fausto Pugliese

  • Covers simple technical patterns that are important in day trading

  • Includes a website with exercises to help master the book's techniques

  • How to Beat the Market Makers at their Own Game will become your well-thumbed resource for learning what it takes to succeed in short-term stock trading.

    Table of Contents

    1. About the Author
    2. Introduction
    3. Chapter 1: The Direct Connection
      1. Trading Through an Online Broker
      2. Direct Access
    4. Chapter 2: The Stock Markets
      1. Exchanges
      2. Negotiated Markets
    5. Chapter 3: Going to the Next Level
      1. Level I
      2. Level II
    6. Chapter 4: It's a Matter of Execution
      1. ACT Trade
      2. Super Montage
      3. ECNs
      4. Limit and Market Orders
    7. Chapter 5: Picking Tradable Stocks, Part I
      1. Rule #1
      2. Rule #2
      3. Rule #3
      4. Rule #4
      5. Rule #5
      6. Rule #6
      7. Rule #7
      8. Rule #8
      9. Rule #9
    8. Chapter 6: Picking Tradable Stocks, Part II
      1. Example 1: Symantec Corporation
      2. Example 2: Extreme Networks, Inc.
      3. Example 3: Research in Motion Ltd.
      4. Example 4: BroadSoft Inc.
      5. Example 5: Entropic Co.
      6. Example 6: RF Micro Devices, Inc.
      7. Example 7: QUALCOMM, Inc.
      8. Example 8: Applied Materials, Inc.
      9. Example 9: CMGI Inc.
      10. Example 10: Huntington Bancshares, Inc.
    9. Chapter 7: Time and Sales
    10. Chapter 8: Ignorance Is Bliss
      1. The Myth of Value
      2. The True Driving Force
      3. Market Makers
    11. Chapter 9: Finding the Ax
    12. Chapter 10: Charting a Course
      1. The Value of Stock Charts
      2. The Building Method
      3. Types of Charts
    13. Chapter 11: Watching the Trends
    14. Chapter 12: Making a Game Plan
    15. Chapter 13: Your Trading Day
      1. Practice Makes Perfect
      2. Your System
      3. Start Small
    16. Chapter 14: Trading Rules of the Road
    17. Chapter 15: How to Be a Successful Trader
      1. Have a Philosophy for Successful Trading
      2. Be a Patient and Disciplined Trader
      3. Know How the Market Works and the Broker's Role
      4. Understand the Rules of Day Trading
      5. Create a Day Trading Game Plan
      6. Chart a Course for Day Trading
      7. Look for Support and Resistance Levels
      8. Practice, Practice, Practice
      9. Know the Trading Rules of the Road
      10. When It Stops Being Fun, QUIT!
    18. Chapter 16: The Best Trading Tools
      1. Computer Equipment
      2. Trading Platforms and Software
      3. Management Reports
      4. Charts Required
      5. Order Execution Box (or Trading Window)
      6. Level II Trading Window
      7. Time and Sales
      8. Totalview (BookViewer, Level III)
      9. Trading Resources
    19. Afterword
    20. Index
    21. End User License Agreement