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Trading Basics: Evolution of a Trader

Book Description

Comprehensive coverage of the four major trading styles

Evolution of a Trader explores the four trading styles that people use when learning to trade or invest in the stock market. Often, beginners enter the stock market by:

  • Buying and holding onto a stock (value investing). That works well until the trend ends or a bear market begins. Then they try

  • Position trading. This is the same as buy-and-hold, except the technique sells positions before a significant trend change occurs.

  • Swing trading follows when traders increase their frequency of trading, trying to catch the short-term up and down swings. Finally, people try

  • Day trading by completing their trades in a single day.

This series provides comprehensive coverage of the four trading styles by offering numerous tips, sharing discoveries, and discussing specific trading setups to help you become a successful trader or investor as you journey through each style.

Trading Basics takes an in-depth look at money management, stops, support and resistance, and offers dozens of tips every trader should know.

Fundamental Analysis and Position Trading discusses when to sell a buy-and-hold position, uncovers which fundamentals work best, and uses them to find stocks that become 10-baggers—stocks that climb by 10 times their original value.

Swing and Day Trading reveals methods to time the market swings, including specific trading setups, but it covers the basics as well, such as setting up a home trading office and how much money you can make day trading.

Table of Contents

  1. Cover
  2. Series Page
  3. Title Page
  4. Copyright Page
  5. Preface
    1. EVOLUTION OF A TRADER
    2. CONTENT OVERVIEW
    3. INTENDED AUDIENCE
  6. Acknowledgments
  7. Chapter 1: How to Retire at 36
    1. CHAPTER CHECKLIST
  8. Chapter 2: Money Management
    1. TRADING: HOW MUCH MONEY, HONEY?
    2. ORDER TYPES: READ THE FINE PRINT!
    3. POSITION SIZING: MY STORY
    4. POSITION SIZING BY MARKET CONDITION: BULL OR BEAR?
    5. HOW MANY STOCKS TO HOLD?
    6. A BETTER WAY? PORTFOLIO COMPOSITION
    7. HOLD TIME: HOW LONG IS LONG ENOUGH?
    8. HOLD TIME: MY TRADES
    9. THE MONEY MANAGEMENT MATRIX
    10. SHOULD YOU SCALE INTO POSITIONS?
    11. AVERAGING DOWN: THROWING AWAY MONEY OR SMART CHOICE?
    12. SCALING OUT OF POSITIONS: A PROFITABLE MISTAKE?
    13. DOLLAR-COST-AVERAGING: GOOD OR BAD?
    14. USING LEVERAGE: AN EXPENSIVE LESSON!
    15. LEVERAGE GUIDELINES CHECKLIST
    16. CHAPTER CHECKLIST
  9. Chapter 3: Do Stops Work?
    1. WHAT IS HOLD TIME LOSS?
    2. MENTAL STOP: FOR PROFESSIONALS ONLY!
    3. MINOR HIGH OR LOW STOP: A GOOD CHOICE
    4. SQUARING OFF ROUND NUMBERS
    5. CHART PATTERN STOP: TOO COSTLY?
    6. STOPPED BY A MOVING AVERAGE
    7. THE TRUTH ABOUT TRENDLINES
    8. TRENDLINE STOP
    9. FIBONACCI RETRACE STOP: DEAL OR DUD?
    10. FIXED PERCENTAGE TRAILING STOP
    11. VOLATILITY STOP
    12. CHANDELIER STOP LEAVES YOU HANGING
    13. TESTING SIX STOP TYPES
    14. WHAT I USE
    15. CHAPTER CHECKLIST
  10. Chapter 4: Support and Resistance
    1. TYPES OF SUPPORT AND RESISTANCE
    2. MEASURED MOVE SUPPORT AND RESISTANCE
    3. MINOR HIGH RESISTANCE
    4. VOLUME AT MINOR HIGH RESISTANCE
    5. MINOR LOW SUPPORT
    6. VOLUME AT MINOR LOW SUPPORT
    7. MINOR HIGH SUPPORT
    8. MINOR LOW RESISTANCE
    9. GAPS SHOWING SUPPORT AND RESISTANCE
    10. MYTH: TALL CANDLE SUPPORT AND RESISTANCE
    11. HORIZONTAL CONSOLIDATION REGIONS
    12. ANOTHER LOOK AT ROUND NUMBERS
    13. SUPPORT IN STRAIGHT-LINE RUNS
    14. RESISTANCE IN STRAIGHT-LINE RUNS
    15. SAR SUMMARY
    16. CHAPTER CHECKLIST
  11. Chapter 5: 45 Tips Every Trader Should Know
    1. DETERMINING STOCK OR MARKET DIRECTION
    2. FINDING THE MARKET BOTTOM
    3. VISUAL TIPS
    4. CHAPTER CHECKLIST
  12. Chapter 6: Finding and Fixing What Is Wrong
    1. WHAT WAS THE MARKET BEHAVIOR?
    2. WAS THE INDUSTRY TRENDING?
    3. HOW IS THE TIMING?
    4. ARE ALL ENTRY CONDITIONS MET?
    5. WAS THE POSITION SIZE PROPER?
    6. WAS AN INITIAL STOP USED?
    7. DID YOU EXIT BEFORE THE STOP?
    8. WHAT WAS THE RISK/REWARD RATIO?
    9. DID YOU AVERAGE UP?
    10. DID YOU AVERAGE DOWN?
    11. ARE YOU BUYING OUT OF SEASON?
    12. TRADING CHECKLIST
    13. CHAPTER CHECKLIST
  13. Chapter 7: What We Learned
    1. CHAPTER 1: HOW TO RETIRE AT 36
    2. CHAPTER 2: MONEY MANAGEMENT
    3. CHAPTER 3: DO STOPS WORK?
    4. CHAPTER 4: SUPPORT AND RESISTANCE
    5. CHAPTER 5: 45 TIPS EVERY TRADER SHOULD KNOW
    6. CHAPTER 6: FINDING AND FIXING WHAT IS WRONG
  14. Visual Appendix of Chart Patterns
  15. Bibliography
    1. OTHER SITES OF INTEREST
  16. About the Author
  17. Index