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Tactical Trend Trading: Strategies for Surviving and Thriving in Turbulent Markets

Book Description

"Follow trends and make money, or don't follow trends and don't make money. Robert Robbins wants investors to follow trends. His effort is to be saluted." —Michael W. Covel, bestselling author of Trend Following, The Complete Turtle Trader, and Trend Commandments

"A must-read for both the experienced and newcomers. The student has bypassed his mentor." —Ralph Bloch, consultant at Bulls, Bears, & Bloch

"Rob presents both the new and experienced trader with insights needed for successful trading. As a long-time trend follower, I share many of Rob's thoughts in Tactical Trend Trading. If you are truly interested in learning an investment strategy without the hype from a real trader, then this is the one definitive source." —Andrew Abraham, author of Learn How to Trend Follow

Conventional wisdom has long insisted that the best—if not the only—stock market strategy worth employing is the traditional buy-and-hold model. But buy-and-hold investing is no match for today's turbulent markets, where real change happens every day and companies and entire industries are stamped out in the blink of an eye. Fortunately, there is a better way, one that enables market participants to preserve their capital while increasing their net gains in even the most volatile of markets. That way is trend trading, and with Tactical Trend Trading as your guide, you will be better prepared than ever before to tackle—and profit from—every curveball that today's topsy-turvy markets throw your way.

Written by hedge fund manager and trend trader Robert Robbins, Tactical Trend Trading starts out from the basic premise that if market participants learn to embrace change, they will be better able to harness its ability to unlock profits in every corner of the markets. To that end, Robbins equips you not only with the technical trading tools you need to analyze the market backdrop and identify and trade with market-prevailing trends, but also psychological guidelines that will enable you to blast through the emotional obstacles that stand in the way of profit generation and risk control. Rich in detail yet easy to digest and implement, Tactical Trend Trading covers:

  • The basics of trend trading, including what it is, its primary benefits and drawbacks, what type of commitment it entails, and how you can use it every day to profit from market volatility;

  • How to leverage technical analysis and sentiment indicators to pinpoint profit-generating stocks, sectors, and trends, predict market corrections, and execute perfectly timed trades;

  • Mental strategies for surmounting the ingrained psychological and emotional habits that prevent traders from realizing true financial success;

  • Techniques for developing a systematic approach to the markets that will enable you to survive and thrive in up, down, and sideways markets;

  • And much more.

Along the path to becoming a successful trend trader, your technical acumen and mental fortitude will be tested every step of the way. Prepare yourself for the brave new world of today's ever-changing financial markets with Tactical Trend Trading, which provides you with all the moneymaking insights you need to capture trends, trade with the flow, and pull in profits, regardless of whether market conditions are good or bad.

What you'll learn

  • Why today's turbulent markets have rendered buy-and-hold investing obsolete and how trend trading can help you thrive in even the most volatile of market conditions

  • Techniques for identifying and trading in concert with the primary trend of a market

  • How to select the most profitable bullish and bearish stocks and set your entry and exit prices

  • Specific tactics for profiting from a wide variety of chart patterns, from rectangles and rounding bottoms to flags, wedges, head-and-shoulders formations, and more

  • Why risk control and discipline are the two most important tools in any trend trader's arsenal

  • Psychological guidelines that separating winning traders from the rest of the pack and tips for staying in the trend trading game

Who this book is for

Tactical Trend Trading is a guide to the fast-paced world of trend trading for those with some experience actively trading or investing in the financial markets but who lack the specific technical knowledge or psychological framework that is crucial to trend trading success. Specifically, this book will appeal to investors who are tired of seeing their portfolios decimated by every major move the market makes and want to understand—and profit from—the rapid rate of change and turmoil underlying their assets.

Table of Contents

  1. Titlepage
  2. Dedication
  3. Contents
  4. About the Author
  5. Introduction
  6. Chapter 1: Tactical Trend Trading
    1. Stock Trading vs. Investing
    2. Futures Trading
    3. Trading to Win
    4. Choose Leaders Only: Buy the Best
    5. Risk vs. Reward: A Business Approach
    6. Method and System: You Need an Edge
    7. You Must Commit—Time, Discipline, Thought, Balance
  7. Chapter 2: The Market Backdrop
    1. Stocks
    2. Futures
  8. Chapter 3: Setups and Chart Patterns
    1. What Are We Looking For?
    2. The Ruling Reason
    3. Setting Up Risk vs. Reward
    4. Swing Trading
    5. The Best Patterns
  9. Chapter 4: Technical Tactics
    1. Gaps
    2. Gaps: Examples
    3. Trendlines
    4. Trendlines: Examples
    5. Reversals
    6. Support/Resistance
    7. Support/Resistance: Examples
    8. Moving Averages
    9. Overbought/Oversold Indicators
    10. Putting It All Together
  10. Chapter 5: Market Considerations
    1. Volume
    2. Breadth
    3. Time
    4. News
    5. The Full Stock Market Cycle
    6. Macro Analysis
    7. Relative Strength Is King
    8. Short Selling
    9. Sizing Your Trades
    10. Keep It Simple; Don’t Press
  11. Chapter 6: Systematic Trend Following
    1. Complete System of Best Trading Practices
    2. Not a Black Box
    3. Be Consistent and Unemotional
    4. Diversification and Risk Control
    5. Portfolio Fit
    6. Crisis Alpha and Black Swans
    7. In Sync with Change and Trends
  12. Chapter 7: Discipline and Risk Control
    1. The ONE Thing You Must Do—the Only Absolute Rule
    2. Discipline Trumps Conviction
    3. Constant Change Keeps You in Tune
    4. Heed Warning Signs, and Remember, Market Action Trumps News
    5. It’s Your Capital—Stop Your Losses on Every Trade
    6. Eliminate Fat–Tail Losses
    7. Execute, Use Discipline—and Separate Your Ego from Your Trading Positions
    8. Separate Winners from Washouts, and Stay in the Game
  13. Chapter 8: Pitfalls
    1. We’re Hardwired for Trading Failure
    2. When Your Reason Is Invalid, So Is Your Position
    3. It’s Not 9 to 5
    4. Assuming and Anchoring—the Deadly A’s
    5. Fighting Trends and Outthinking Mr. Market
    6. Guessing and the Big Score
    7. Joining the Crowd, Buying the News
    8. It’s Not Different This Time, Because People Don’t Change
    9. Reality vs. “Should Be”
    10. It’s Not All Fundamentals, Schoolboy
    11. Taxes—Pay the Man
    12. I’m Never Wrong, or the Fallacy of Intelligence
    13. Have a Backstop
  14. Chapter 9: Philosophy
    1. Accept Reality
    2. Flow, Don’t Force
    3. Embrace Change—It Is the Only Constant
    4. Change Leaps—There Is No Equilibrium, No Fair Value
    5. History Repeats
    6. The Logic of Failure
    7. Critical Thinking
    8. Network Effects: Think “System”
    9. The Fractal World We Live In
    10. The Art of War
  15. Chapter 10: Summing It All Up
    1. Trade to Win
    2. Accept and Flow with a Changing Reality
    3. Risk Control
    4. Change and the Margin
    5. Traits of the Winning Trader
    6. Stay with It, Don’t Force It, and Enjoy the Journey
  16. Appendix A: Resources
    1. Investment News and Data
    2. Books
    3. Contact
  17. Index