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The Little Book of Trading: Trend Following Strategy for Big Winnings

Book Description

How to get past the crisis and make the market work for you again

The last decade has left people terrified of even the safest investment opportunities. This fear is not helping would-be investors who could be making money if they had a solid plan. The Little Book of Trading teaches the average person rules and philosophies that winners use to beat the market, regardless of the financial climate.

The market has always fluctuated, but savvy traders know how to make money in good times and bad. Drawing on author Michael Covel's own trading experience, as well as insights from legendary traders, the book offers sound, practical advice in an easy to understand, readily digestible way. The Little Book of Trading:

  • Identifies tools, concepts, psychologies, and philosophies that keep people protected and making money when the next market bubble or surprise crisis occurs

  • Features top traders in each chapter that have beaten the market for decades, providing readers with their moneymaking knowledge

  • Shows how traders who beat mutual fund performance make money at different times, not just from stocks alone

Most importantly, The Little Book of Trading explains why mutual funds should not be the investment vehicle of choice for people looking to secure retirement, a radical realization highlighting the changed face of investing today.

Table of Contents

  1. Cover Page
  2. Little Book Big Profits Series
  3. Title Page
  4. Copyright
  5. Dedication
  6. Contents
  7. Foreword
  8. Introduction
  9. Chapter One: Stick to Your Knitting
    1. Night Class
    2. Teaching Friends
    3. The First 17 Trades—Losers—or Don't Ask Around
    4. Friends and Family Plan
    5. Markets Are Not Efficient
    6. Expanding Your Horizons
    7. Knowing What You Don't Know
    8. White Noise
    9. The Big Money
  10. Chapter Two: Someone's Gotta Lose for You to Win
    1. The Chart Doctor Finds A Mentor
    2. The Source of Profits
    3. Keep It Simple and Start Small
    4. “Put your Affection on Portfolio Selection!”
    5. Stick Around for the Dance
  11. Chapter Three: No Guts, No Glory
    1. Numbers Obsession
    2. No Prediction
    3. Sticking With It
    4. Risk and Volatility
  12. Chapter Four: In a Land Far, Far Away from Wall Street
    1. Teach Yourself to Be Great
    2. Focus on the Show!
    3. Playing Games
    4. Risk!
    5. Build on a Foundation of Confidence in Your System and in Yourself
  13. Chapter Five: Think Like a Poker Player and Play the Odds
    1. Irrelevant Information
    2. Hite Gems
    3. Perfect Knowledge
    4. Even Mentors Have Mentors
    5. Dating Game
    6. How Much Can You Lose?
    7. The Backstory
  14. Chapter Six: Stand Up, Dust Yourself Off, and Keep Going
    1. It All Starts with the Tedious Grind
    2. Don't Get Caught Up in Labels
    3. Trader's Kryptonite
    4. Conventional Wisdom
    5. Not the Art, the Science of Trading
    6. Stay Humble
    7. Entrepreneurism
  15. Chapter Seven: Throw Away the Fundamentals and Stick to Your Charts
    1. The Traditional Way
    2. The Switch
    3. Drury's Core Principles
    4. CNBC Interview
    5. Crisis Times
    6. Winners Always Adjust
  16. Chapter Eight: Study Hard and Get an A +
    1. Starting Out
    2. Putting a System in Place
    3. Big Picture Philosophical Points
    4. Piling On
  17. Chapter Nine: You Can't Know Everything
    1. Starting Out
    2. Trim the Fat
    3. You Have to Know Your Strategy
  18. Chapter Ten: Make It Work Across All Markets
    1. No More Suit and Tie
    2. What's the Magic Sauce?
    3. Using a System
    4. Fundamental Folly
    5. Stories Don't Make You Money
    6. Motivation and Drive
    7. Sheep Need Not Apply
  19. Chapter Eleven: Stay in the Moment of Right Now
    1. Take Advice
    2. Responsibility
    3. Human Nature
    4. Old School Is Not New School
    5. Find the Essence
  20. Chapter Twelve: Sing the Whipsaw Song
    1. Step Up or Step Down
  21. Appendix A: Getting Technical
  22. Appendix B: Fund Performance Data
  23. Glossary of Key Terms
  24. Author Disclaimer
  25. Acknowledgments