Description
Book SynopsisComprehensive 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.
Trade Review
“The three books in this series were written for people unfamiliar with the inner workings of the stock market, but will still curl the toes of professionals, too. Research is used to prove the ideas discussed, but is presented in an easy to understand and light-hearted manner. You will find the books to be as entertaining as they are informative and packed with moneymaking tips and ideas. Use the ideas presented here to hone your trading style and improve your success. Whether you are a novice who has never purchased a stock but wants to, or a professional money manager who trades daily, these books are a necessary addition to any market enthusiast’s bookshelf.”
—Alan Battista, Stockineer.com Book Review
Table of ContentsPreface ix
Acknowledgments xv
Chapter 1 Introduction to Swing Trading 1
What Is Swing Trading? 1
Who Should Swing Trade? 2
A Swinging Example 3
Looking Ahead 5
Chapter 2 Swinging Techniques 7
Quick Review: Support and Resistance 8
Trendline Trading 9
Trading Using Channels 15
The Three-Bar Net Line Setup 17
First Thrust Pattern for Swing Trading 26
Chapter 3 Swinging Chart Patterns 31
Which Chart Patterns Work Best for Swingers? 32
Trading the High and Tight Flag 33
HTF Trade in Insteel Industries 40
Fishing for Inverted and Ascending Scallops 42
Scallop Trading Tips 43
Twice Is Nice: Eve & Eve Double Bottoms 44
Trading Eve & Eve 46
Top Seven Frequently Traded Chart Patterns 47
My Favorite Chart Patterns 53
Swinging Throwbacks and Pullbacks 56
Trading Example 59
CNO Throwback Entry 60
Measuring Swings 62
FTO Trade 64
Chapter 4 Swing Selling 69
Selling Ideas 70
Top 20 Chart Pattern Performers 71
Diamond Tops and Bottoms 73
Complex Head-and-Shoulders Top 77
The Eight Best Exit Signs 80
Ten Favorite Sell Signals 84
Trading Example: The Teradyne Exit 90
Trading Example: Exiting Forest 92
Trading Example: Swinging CNO 94
Chapter 5 Event Pattern Setups 97
Common Stock Offerings Setup 97
Surviving a Dead-Cat Bounce 102
The Inverted Dead-Cat Bounce Setup 106
Trading Dutch Auction Tender Offers 108
Earnings Surprise Setup 111
Earnings Flag Setup 118
Stock Upgrades and Downgrades 120
Stock Splits 125
Setup: Trading Reverse Splits 129
Chapter 6 Swinging Tools and Setups 133
The Chart Pattern Indicator 133
The Swing Rule 137
Pump Up the Volume or Not 142
Selecting Winners Using Index Relative Strength 145
Three Swing Trading Setups 147
Trading Setup: Simple Moving Average Tests 157
The Smile and Frown Setup 158
Trading Smiles and Frowns 160
Smile and Frown Trading Tips 162
Chapter 7 Introduction to Day Trading 167
What Is Day Trading? 169
Why Day Trade? 169
Is Day Trading for You? 170
What Are the Problems of Day Trading? 172
Chapter 8 Day Trading Basics 177
Managing Expectations: How Much Can You Really Make? 178
Building the Home Office 179
Office Setup Cost 184
Pattern Day Trading Rules 185
Wash Sale Rule 186
Eight Tips for Picking Stocks to Day Trade 187
Price Reversal Times Revealed! 191
What Time Sets Intraday High and Low? 193
Inside Level II Quotes 195
Heartbeat of the Market: Time-and-Sales Ticker 197
Pre-Market Checklist 198
After-Market Analysis 199
Chapter 9 Opening Gap Setup 203
Opening Gap Test Data 204
Setup: Fading the Opening Gap 204
Sample Trade 217
Chapter 10 Day Trading Chart Patterns 221
Day Trading Double Tops 221
Day Trading Triple Tops 225
Day Trading Symmetrical Triangles 226
Day Trading Head-and-Shoulders Tops 228
Day Trading Double Bottoms 229
Day Trading Head-and-Shoulders Bottoms 231
Day Trading Triple Bottoms 232
Other Trading Tips 233
Chapter 11 Opening Range Breakout 237
What Is Best Range Time? 238
The ORB Setup 241
Does the ORB Setup Work? 247
Chapter 12 Ten Horror Stories 251
This is a Winner, Mom. Buy it! 251
Three Newsletter Disasters 252
Three Option and Warrant Disasters 254
Two Missed Opportunities 257
The $1 Million Surprise 260
Chapter 13 closing position 263
Chapter 14 what we learned 265
Visual Appendix of Chart Patterns 277
Bibliography 283
About the Author 287
Index 289
