Set yourself up for success by implementing prudent money manageme
Trade Review
No base is left uncovered by the 10-stage Tensile Trading approach. It effectively lays out a comprehensive, easy-to-follow methodology that promotes stable, balanced, high-probability investing. A refreshingly-honest and engaging book brimming with practical investing wisdom that will leave you inspired to take action and confident in your ability to succeed in the stock market. John Murphy, author of Technical Analysis of the Financial Markets and Trading with Intermarket Analysis; Chief Technical Analyst, StockCharts.com; former technical analyst, CNBC It is rare to find a book that presents such a thorough and authentic look into the strategies, routines and processes of a successful individual investor. It is clear that the Tensile Trading methodology has been shaped by many years of real-world investing experience, the lessons of which shine brightly through the pages of this powerful book. Dr. Henry Pruden, Professor of Business Administration and Executive Director, Institute of Technical Market Analysis, Golden Gate University; former editor, Market Technicians Association Journal Gatis and Grayson have penned a very thoughtful and personal approach to investing in the stock market. As you read this, you will hear a voice of experience. The book is broken into stages for you to go through to accelerate your own development of investing skills and to avoid learning things the hard way . A nice touch is a bullet point style summary of the important points of each chapter called Key Takeaways . This is the kind of book you will read more than once. Thom Hartle, Director of Product Trading, CQG, Inc.; former editor, Stocks & Commodities Magazine I have been investing for many years, but it was not until I studied under Gatis Roze and learned the Tensile Trading concepts that I became truly knowledgeable about how to succeed as an individual investor. Tensile Trading has helped me to gain clarity of thought, become well organized and better understand my Investor Self . This is an insightful book that investors should read closely and then review on a regular basis. It is an invaluable resource. Roger Shantz, individual investor; former mechanical engineer and naval aviator
Table of Contents
Preface xi
Acknowledgments xvii
About the Authors xxi
Stage 1 Money Management 1
Crafting Your Money Management Plan 5
Becoming a Successful Investor 9
The Importance of Asset Allocation 11
Constructing Your Personal Asset Allocation Profile 15
X-Ray Magic 24
Allocation Maintenance 24
Stage 2 The Business of Investing 29
Ten Invaluable Investing Lessons 29
Staying Committed on the Road 36
The Investor’s Quad 36
Stage 3 The Investor Self 39
The Five Levels of Investor Growth 40
Investor Weaknesses 42
Learn from the Professionals 46
Your Daily Journal 47
Stage 4 Market Analysis 53
Permission to Buy 54
Telescope-to-Microscope Approach 55
Charting Indicators 56
Organizing Your Analysis 60
Common Misunderstandings 62
The Market Stages and Technical Analysis 64
Fundamentals Checklist for Stocks 67
Fifty versus Fifty 68
Stage 5 Routines 71
Choosing Your Time Frame 72
From Salesmen to Stock Traders 74
Personal Peak Performance 75
Daily, Weekly, Monthly, Annually 76
A Day in the Life 79
Stage 6 Stalking Your Trade 87
Where to Look 88
What to Look For 88
How to Look 89
When to Look 89
Filters 91
Human Nature and Overhead Supply 96
Second-Opinion Resources 98
The Sisters Strategy Revisited 98
Mimic Wall Street’s Masters 99
The Base-Hit Investor 101
Stage 7 Buying 103
BATTLE V Methodology 106
Pyramid Trading 106
The Language of the Market 108
Buy Routines 109
Considering Alternatives 111
Perfection Paralysis 111
Commission-Free Mind-Set 112
Invest Like You Drive 113
It’s All about Stress Control 114
Stage 8 Monitoring 117
You Bought It—Now What? 118
Revisiting the Investor Self 119
Market Monitoring 120
Adjusting Stops 121
Tools, Routines, and Charts 123
Fundamentals 126
Allocation Updates 127
What is your Motivation? 129
Stage 9 Selling 131
Sell on Technicals, Not Fundamentals 133
The Art of Selling 135
Developing Your Selling System 138
Mutual Fund Sell Signals 146
Selling with the Sisters 148
Sell-Side Pyramid Trading 149
The Endowment Effect 149
The Investor’s Trail 150
Stage 10 Revisit, Retune, Refine 153
Cleanse and Move Forward 154
Personal Data Mining 164
The Investor’s Big Three 165
Thoughts on Transformation 167
About the Website 171
Index 173
