You are previewing The Business of Trading: 101 steps to trading success.
O'Reilly logo
The Business of Trading: 101 steps to trading success

Book Description

John Piper has been trading successfully since the 1980s. To him it is a business, and one that he runs from all over the world. He would not swap the lifestyle - the freedom, the financial rewards, the barbecued seafood - for anything. And in this course he reveals how others can enjoy it for themselves too. Over 101 short and easily digestible chapters, this eBook takes readers behind the scenes of the life of a professional trader: from how to get started all the way through to staying in the game for the long term. Find out what a profitable strategy looks like. Discover the cardinal rules of effective risk management. Get a true handle on the kind of mindset you need to succeed. And watch some of Piper's own trades in action with exclusive links to online videos. Collecting his acclaimed 'Trading Intelligence 101' emails together for the first time, this is one of the most candid guides to making a living in the markets that you will ever read.

Table of Contents

  1. About the Author
  2. A Note on the Text
  3. 1. Welcome
    1. Welcome to Trading Intelligence 101!
    2. What you can do to get ready for the next module – The Very Basics of Trading
  4. 2. The Very Basics of Trading
    1. What you can do to get ready for the next module – An Edge
  5. 3. An Edge
    1. What you can do to get ready for the next module – Profits and Cutting Losses
  6. 4. Profits and Cutting Losses
    1. What you can do to get ready for the next module – Risk Control
  7. 5. Risk Control
    1. What you can do to get ready for the next module – Manic Depression – the Market Mirror
  8. 6. Manic Depression – The Market Mirror
    1. What you can do to get ready for the next module – From Extreme to Extreme
  9. 7. From Extreme to Extreme
    1. What you can do to get ready for the next module – A Simple Trading Approach
  10. 8. A Simple Trading Approach
    1. What you can do to get ready for the next module – Trade What You See
  11. 9. Trade What You See
    1. What you can do to get ready for the next module – A recap of modules 1 – 9
  12. 10. A recap of modules 1 – 9
    1. What you can do to get ready for the next module – The Trading and Psychology Questionnaire
  13. 11. Trading and Psychology Questionnaire
    1. Appendix V – Trading and Psychology Questionnaire
    2. What you can do to get ready for the next module – Winners and Losers
  14. 12. Winners and Losers
    1. What you can do to get ready for the next module – The Internet
  15. 13. The Internet
    1. What you can do to get ready for the next module – The Evolution of a Trader
  16. 14. The Evolution of a Trader
    1. What you can do to get ready for the next module – The Risk-Orientated Trader
  17. 15. The Risk-Orientated Trader
    1. Risk
    2. An edge
    3. Elimination of bad habits
    4. What you can do to get ready for the next module – An Understanding of the Market
  18. 16. An Understanding of the Market
    1. What you can do to get ready for the next module – An Understanding of How You Work
  19. 17. An Understanding of How You Work
    1. What you can do to get ready for the next module – An Understanding of How Your System Works
  20. 18. An Understanding of How Your System Works
    1. What you can do to get ready for the next module – Risk Control and Stops
  21. 19. Risk Control and Stops
    1. What you can do to get ready for the next module – A recap of modules 1 – 19
  22. 20. A recap of modules 1 – 19
    1. What you can do to get ready for the next module – A Look at Spread Betting (aka Futures Trading)
  23. 21. A Look at Spread Betting (aka Futures Trading)
    1. Example: Spread Betting
    2. What you can do to get ready for the next module – A Look at Binary Betting
  24. 22. A Look at Binary Betting
    1. What you can do to get ready for the next module – A Look at Option Trading
  25. 23. A Look at Option Trading
    1. What you can do to get ready for the next module – A Look at Share Trading
  26. 24. A Look at Share Trading
    1. What you can do to get ready for the next module – You
  27. 25. You
    1. What you can do to get ready for the next module – Commitment
  28. 26. Commitment
    1. What you can do to get ready for the next module – A Day in the Life of a Trader
  29. 27. A Day in the Life of a Trader
    1. Trading FTSE on 26 November 2007
    2. What you can do to get ready for the next module – Discipline
  30. 28. Discipline
    1. What you can do to get ready for the next module – Money Management (1)
  31. 29. Money Management (1)
    1. Starting Out with PDS – Money and Psychology
    2. What you can do to get ready for the next module – A recap of modules 1 – 29
  32. 30. A recap of modules 1 – 29
    1. What you can do to get ready for the next module – Fundamental vs. Technical Analysis
  33. 31. Fundamental vs. Technical Analysis
    1. What you can do to get ready for the next module – Analysts and Traders
  34. 32. Analysts and Traders
    1. Analysts make predictions but traders make money
    2. Analysing the Analyst
    3. What you can do to get ready for the next module – Risk Control (2)
  35. 33. Risk Control (2)
    1. Chapter 8 – Risk Control
    2. What you can do to get ready for the next module – Futures and Fair Value
  36. 34. Futures and Fair Value
    1. What you can do to get ready for the next module – The Three Simple Rules
  37. 35. The Three Simple Rules
    1. What you can do to get ready for the next module – Control Your Losses
  38. 36. Control Your Losses
    1. Simple Rule 1 – Control your losses
    2. What you can do to get ready for the next module – Run Your Profits
  39. 37. Run Your Profits
    1. Simple Rule 2 – Let your profits run
    2. What you can do to get ready for the next module – Trade Selectively
  40. 38. Trade Selectively
    1. Simple Rule 3 – Be selective – just trade ten times each year!
    2. What you can do to get ready for the next module – System Parameters
  41. 39. System Parameters
    1. What you can do to get ready for the next module – A recap of modules 1 – 39
  42. 40. A recap of modules 1 – 39
    1. What you can do to get ready for the next module – Entry vs. Exit
  43. 41. Entry vs. Exit
    1. What you can do to get ready for the next module – Your System/Approach
  44. 42. Your System/Approach
    1. What you can do to get ready for the next module – Operation
  45. 43. Operation
    1. What you can do to get ready for the next module – Let There be No Illusions
  46. 44. Let There be No Illusions
    1. What you can do to get ready for the next module – Profit/Loss
  47. 45. Profit/Loss
    1. A Question of Balance
    2. What you can do to get ready for the next module – How Many Brains Do You Think You Have?
  48. 46. How Many Brains Do You Think You Have?
    1. What you can do to get ready for the next module – Who is Going to Bail You Out?
  49. 47. Who is Going to Bail You Out?
    1. What you can do to get ready for the next module – Winning Trades
  50. 48. Winning Trades
    1. What you can do to get ready for the next module – Trapping Your Prey with Moving Averages
  51. 49. Trapping Your Prey with Moving Averages
    1. What you can do to get ready for the next module – A recap of modules 1 – 49
  52. 50. A recap of modules 1 – 49
    1. What you can do to get ready for the next module – Testing Out Your System
  53. 51. Testing Out Your System
    1. How do you maximise your profits?
    2. Developing the system
    3. Step one – Back-test your idea
    4. Step two – paper-trade your idea
    5. Step three – risk
    6. Step four – you trade for real (but use small sums to do so)
    7. Step five – increase your trading size
    8. Step six – Further increase trading size as profits grow and start to trade other markets
    9. Conclusion
    10. Addendum: Lessons from The Black Swan
    11. Summary
    12. What you can do to get ready for the next module – Trapping Your Prey More Quickly
  54. 52. Trapping Your Prey More Quickly
    1. What you can do to get ready for the next module – Milestones
  55. 53. Milestones
    1. Trading initiation
    2. Summary
    3. What you can do to get ready for the next module – Five Characteristics of Successful Traders
  56. 54. Five Characteristics of Successful Traders
    1. What you can do to get ready for the next module – Elliott Wave Theory
  57. 55. The Elliott Wave Theory
    1. What you can do to get ready for the next module – Price Spikes
  58. 56. Price Spikes
    1. What you can do to get ready for the next module – The Evolution of a Trader (I)
  59. 57. The Evolution of a Trader (I)
    1. The 55 steps (a personal journey to success)
    2. Summary
    3. What you can do to get ready for the next module – Failed Breaks and Failed Re-Tests
  60. 58. Failed Breaks and Failed Re-tests
    1. What you can do to get ready for the next module – Focus
  61. 59. Focus
    1. What you can do to get ready for the next module – A recap of modules 1 – 59
  62. 60. A recap of modules 1 – 59
    1. What you can do to get ready for the next module – Trendlines and Moving Averages
  63. 61. Trendlines and Moving Averages
    1. What you can do to get ready for the next module – The Mind of the Markets
  64. 62. The Mind of the Markets
    1. What you can do to get ready for the next module – Acceptance and Rejection
  65. 63. Acceptance and Rejection
    1. Stop approaches
    2. Acceptance
    3. What you can do to get ready for the next module – What Do We Really Have Control Over?
  66. 64. What Do We Really Have Control Over?
    1. What you can do to get ready for the next module – Selling the Dow at the Top (I)
  67. 65. Selling the Dow at the Top (I)
    1. What you can do to get ready for the next module – Selling the Dow at the Top (II)
  68. 66. Selling the Dow at the Top II
    1. What you can do to get ready for the next module – Selling the Dow at the Top (III)
  69. 67. Selling the Dow at the Top (III)
    1. What you can do to get ready for the next module – Putting it all Together
  70. 68. Putting it all Together
    1. What you can do to get ready for the next module – The Next Step
  71. 69. The Next Step
    1. What you can do to get ready for the next module – A recap of modules 1 – 69
  72. 70. A recap of modules 1 – 69
    1. What you can do to get ready for the next module – Using Your System (I)
  73. 71. Using Your System (I)
    1. What you can do to get ready for the next module – Using Trading Systems (II)
  74. 72. Using Your System (II)
    1. What you can do to get ready for the next module – Trading FTSE on 26th November 2007 (I)
  75. 73. Trading FTSE on 26th November 2007 (I)
    1. What you can do to get ready for the next module – Trading FTSE on 26th November 2007 (II)
  76. 74. Trading FTSE on 26th November 2007 (II)
    1. What you can do to get ready for the next module – Trading FTSE on 26th November 2007 (III)
  77. 75. Trading FTSE on 26th November 2007 (III)
    1. What you can do to get ready for the next module – Trading the News
  78. 76. Trading the News
    1. What you can do to get ready for the next module – Trading the £ with Options
  79. 77. Trading the £ with Options
    1. What you can do to get ready for the next module – Trading FTSE Triangles
  80. 78. Trading FTSE Triangles
    1. What you can do to get ready for the next module – Trading Dow Binaries
  81. 79. Trading Dow Binaries
    1. What you can do to get ready for the next module – A recap of modules 1 – 79
  82. 80. A recap of modules 1 – 79
    1. What you can do to get ready for the next module – Q&As (I)
  83. 81. Q&As (I)
    1. What you can do to get ready for the next module – Q&As (II)
  84. 82. Q&As (II)
    1. What you can do to get ready for the next module – Why Your Stop Policy May be a Big Mistake
  85. 83. Why Your Stop Policy May be a Big Mistake
    1. What you can do to get ready for the next module – Where to Trade
  86. 84. Where to Trade
    1. What you can do to get ready for the next module – Making a System Your Own
  87. 85. Making a System Your Own (I)
    1. What you can do to get ready for the next module – What Next?
  88. 86. What Next?
  89. 87. 24 Hour Markets
  90. 88. Making a System Your Own (II)
  91. 89. Trading and Life
    1. What you can do to get ready for the next module – Your Q&As
  92. 90. Your Q&As
    1. A meaty question
    2. What you can do to get ready for the next module
  93. 91. More Q&As
    1. 1. Binary bets
    2. 2. Markets
    3. What you can do to get ready for the next module
  94. 92. One Use of a Track Record
    1. What you can do to get ready for the next module
  95. 93. Wealth Creation
    1. What you can do to get ready for the next module
  96. 94. Webinar One
    1. What you can do to get ready for the next module
  97. 95. Trading Vehicles and ETFs
    1. What you can do to get ready for the next module
  98. 96. Work
    1. What you can do to get ready for the next module
  99. 97. Webinar Two
    1. What you can do to get ready for the next module
  100. 98. Even More Q&AS
    1. What you can do to get ready for the next module
  101. 99. ETFs
    1. What you can do to get ready for the next module
  102. 100. Clarity of Vision
    1. What you can do to get ready for the next module
  103. 101. You’ve Made It!
    1. A Winner’s View of the “Secrets” of Success
  104. Extra Modules
  105. 102. Trading is a Business
  106. 103. Panic to Complacency
  107. 104. Fibonacci Targets and Freebies
  108. Publishing details