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The New Trading for a Living: Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management

Book Description

The best-selling trading book of all time—updated for the new era

The New Trading for a Living updates a modern classic, popular worldwide among both private and institutional traders. This revised and expanded edition brings time-tested concepts in gear with today's fast-moving markets, adding new studies and techniques for the modern trader.

This classic guide teaches a calm and disciplined approach to the markets. It emphasizes risk management along with self-management and provides clear rules for both. The New Trading for a Living incudes templates for rating stock picks, creating trade plans, and rating your own readiness to trade. It provides the knowledge, perspective, and tools for developing your own effective trading system.

All charts in this book are new and in full color, with clear comments on rules and techniques. The clarity of this book's language, its practical illustrations and generous sharing of the essential skills have made it a model for the industry—often imitated but never duplicated. Both new and experienced traders will appreciate its insights and the calm, systematic approach to modern markets.

The New Trading for a Living will become an even more valuable resource than the author's previous books:

  • Overcome barriers to success and develop stronger discipline

  • Identify asymmetrical market zones, where rewards are higher and risks lower

  • Master money management as you set entries, targets and stops

  • Use a record-keeping system that will make you into your own teacher

  • Successful trading is based on knowledge, focus, and discipline. The New Trading for a Living will lift your trading to a higher level by sharing classic wisdom along with modern market tools.

    Table of Contents

    1. PREFACE
    2. Introduction
      1. 1. Trading—The Last Frontier
      2. 2. Psychology Is the Key
      3. 3. The Odds against You
    3. PART 1: Individual Psychology
      1. 4. Why Trade?
      2. 5. Reality versus Fantasy
      3. 6. Self-Destructiveness
      4. 7. Trading Psychology
      5. 8. Trading Lessons from AA
      6. 9. Losers Anonymous
      7. 10. Winners and Losers
      8. Notes
    4. PART 2: Mass Psychology
      1. 11. What Is Price?
      2. 12. What Is the Market?
      3. 13. The Trading Scene
      4. 14. The Market Crowd and You
      5. 15. Psychology of Trends
      6. 16. Managing versus Forecasting
      7. Notes
    5. PART 3: Classical Chart Analysis
      1. 17. Charting
      2. 18. Support and Resistance
      3. 19. Trends and Trading Ranges
      4. 20. Kangaroo Tails
      5. Notes
    6. PART 4: Computerized Technical Analysis
      1. 21. Computers in Trading
      2. 22. Moving Averages
      3. 23. Moving Average Convergence-Divergence: MACD Lines and MACD-Histogram
      4. 24. The Directional System
      5. 25. Oscillators
      6. 26. Stochastic
      7. 27. Relative Strength Index
    7. PART 5: Volume and Time
      1. 28. Volume
      2. 29. Volume-Based Indicators
      3. 30. Force Index
      4. 31. Open Interest
      5. 32. Time
      6. 33. Trading Timeframes
      7. Notes
    8. PART 6: General Market Indicators
      1. 34. The New High–New Low Index
      2. 35. Stocks above 50-Day MA
      3. 36. Other Stock Market Indicators
      4. 37. Consensus and Commitment Indicators
      5. Notes
    9. PART 7: Trading Systems
      1. 38. System Testing, Paper Trading, and the Three Key Demands for Every Trade
      2. 39. Triple Screen Trading System
      3. 40. The Impulse System
      4. 41. Channel Trading Systems
      5. Note
    10. PART 8: Trading Vehicles
      1. 42. Stocks
      2. 43. ETFs
      3. 44. Options
      4. 45. CFDs
      5. 46. Futures
      6. 47. Forex
    11. PART 9: Risk Management
      1. 48. Emotions and Probabilities
      2. 49. The Two Main Rules of Risk Control
      3. 50. The Two Percent Rule
      4. 51. The Six Percent Rule
      5. 52. A Comeback from a Drawdown
    12. PART 10: Practical Details
      1. 53. How to Set Profit Targets: “Enough” Is the Power Word
      2. 54. How to Set Stops: Say No to Wishful Thinking
      3. 55. Is This an A-Trade?
      4. 56. Scanning for Possible Trades
      5. Note
    13. PART 11: Good Record-Keeping
      1. 57. Your Daily Homework
      2. 58. Creating and Scoring Trade Plans
      3. 59. Trade Journal
      4. Note
    14. CONCLUSION: A Journey without an End: How to Continue Learning
    15. Sources
    16. Acknowledgments
    17. About the Author
    18. INDEX
    19. End User License Agreement