Skip to content
CloverTexts Logo šŸ€ CloverTexts Library

The New Trading for a Living

The New Trading for a Living

Author: Alexander Elder
Category: trading
Pages: 303 | Year: 2014
Tags: the_new_trading_for_a_living

šŸ“– Book Chapters & Sections

  1. The New Trading for a Living (The New Trading for a Living)
  2. CONTENTS ix (CONTENTS)
  3. PREFACE (PREFACE)
  4. Introduction (Introduction)
  5. Individual Psychology (PART 1 Individual Psychology)
  6. Mass Psychology (PART 2 Mass Psychology)
  7. Classical Chart Analysis (PART 3 Classical Chart Analysis)
  8. Computerized Technical Analysis (PART 4 Computerized Technical Analysis)
  9. Volume and Time (PART 5 Volume and Time)
  10. General Market Indicators (PART 6 General Market Indicators)
  11. Trading Systems (PART 7 Trading Systems)
  12. Trading Vehicles (PART 8 Trading Vehicles)
  13. Risk Management (PART 9 Risk Management)
  14. Practical Details (PART 10 Practical Details)
  15. Good Record-Keeping (PART 11 Good Record-Keeping)
  16. A Journey without an End: How to Continue Learning (CONCLUSION A Journey without an End - How to Continue Learning)
  17. Sources (Sources)
  18. Acknowledgments (Acknowledgments)
  19. About the Author (About the Author)
  20. INDEX (INDEX)
  21. A (EULA)

šŸ“‹ Original Table of Contents

  • The New Trading for a Living (p. 3)
  • CONTENTS (p. 9)
  • PREFACE (p. 13)
  • Introduction (p. 17)
      1. Tradingā€”The Last Frontier (p. 17)
      • How I Began to Trade (p. 17)
      • Do You Really Want to Succeed? (p. 18)
      1. Psychology Is the Key (p. 19)
      • Getting Off the Roller Coaster (p. 19)
      • A Manā€™s Game? (p. 19)
      • How This Book Is Organized (p. 20)
      1. The Odds against You (p. 21)
      • A Minus-Sum Game (p. 21)
      • Commissions (p. 22)
      • Slippage (p. 23)
      • Bid-Ask Spreads (p. 24)
      • The Barriers to Success (p. 24)
  • PART 1 Individual Psychology (p. 25)
    • 4. Why Trade? (p. 25)
      • Self-Fulfillment (p. 25)
      1. Reality versus Fantasy (p. 26)
      • The Brain Myth (p. 27)
      • The Undercapitalization Myth (p. 27)
      • The Autopilot Myth (p. 28)
      • The Cult of Personality (p. 29)
      • Trade with Your Eyes Open (p. 32)
      1. Self-Destructiveness (p. 32)
      • Gambling (p. 33)
      • Self-Sabotage (p. 33)
      • The Demolition Derby (p. 34)
      • Controlling Self-Destructiveness (p. 35)
      1. Trading Psychology (p. 35)
      • Bending the Rules (p. 35)
      • The Insight That Changed My Trading (p. 36)
      1. Trading Lessons from AA (p. 37)
      • Denial (p. 37)
      • Rock Bottom (p. 38)
      • The First Step (p. 38)
      • One Day at a Time (p. 38)
      • An AA Meeting (p. 39)
      1. Losers Anonymous (p. 39)
      • The Urge to Trade (p. 39)
      • Into the Hole (p. 40)
      • Traderā€™s Rock Bottom (p. 40)
      • Traderā€™s First Step (p. 41)
      • A Meeting for One (p. 42)
      1. Winners and Losers (p. 43)
      • Like an Ocean (p. 43)
      • Emotional Trading (p. 44)
      • In Charge of Your Life (p. 45)
  • PART 2 Mass Psychology (p. 47)
    • 11. What Is Price? (p. 48)
      • A Consensus of Value (p. 48)
      • Behavior Patterns (p. 48)
      1. What Is the Market? (p. 49)
      • Worldwide Crowds (p. 50)
      • Groups, Not Individuals (p. 50)
      • The Source of Money (p. 50)
      • Inside Information (p. 51)
      1. The Trading Scene (p. 52)
      • Individual Traders (p. 52)
      • Institutional Traders (p. 53)
      • The Sword Makers (p. 54)
      • Advisors (p. 55)
      1. The Market Crowd and You (p. 55)
      • Experts on Crowds (p. 56)
      • Why Join? (p. 56)
      • Crowd Mentality (p. 57)
      • Who Leads? (p. 57)
      • Independence (p. 58)
      • A Positive Group (p. 58)
      1. Psychology of Trends (p. 59)
      • Strong Feelings (p. 59)
      • Rallies and Declines (p. 60)
      • Price Shocks (p. 60)
      • Social Psychology (p. 61)
      1. Managing versus Forecasting (p. 62)
      • Poll-Taking (p. 63)
      • A Crystal Ball (p. 63)
      • Read the Market, Manage Yourself (p. 64)
  • PART 3 Classical Chart Analysis (p. 65)
    • 17. Charting (p. 66)
      • Brief History (p. 66)
      • The Meaning of a Bar Chart (p. 67)
      • Japanese Candlesticks (p. 69)
      • Efficient Markets, Random Walk, Chaos Theory, and ā€œNatureā€™s Lawā€ (p. 70)
      1. Support and Resistance (p. 71)
      • Memories, Pain, and Regret (p. 72)
      • Strength of Support and Resistance (p. 74)
      • Trading Rules (p. 74)
      • True and False Breakouts (p. 75)
      1. Trends and Trading Ranges (p. 76)
      • Mass Psychology (p. 78)
      • The Hard Right Edge (p. 78)
      • Methods and Techniques (p. 78)
      • Trade or Wait (p. 80)
      • Conflicting Timeframes (p. 80)
      1. Kangaroo Tails (p. 81)
  • PART 4 Computerized Technical Analysis (p. 85)
    • 21. Computers in Trading (p. 85)
      • Toolboxes (p. 86)
      • Black Boxes and Gray Boxes (p. 87)
      • Computers (p. 87)
      • Market Data (p. 88)
      • Three Major Groups of Indicators (p. 89)
      1. Moving Averages (p. 90)
      • Twice as Much Bark (p. 91)
      • Market Psychology (p. 91)
      • Exponential Moving Averages (p. 92)
      • Choosing the Length of a Moving Average (p. 92)
      • Trading Rules (p. 93)
      • More on Moving Averages (p. 94)
      • Dual EMAs (p. 94)
      • Moving Averages and Channels (p. 95)
      • Prices, Values, and the Value Zone (p. 95)
      1. Moving Average Convergence-Divergence: MACD Lines and MACD-Histogram (p. 96)
      • How to Create MACD (p. 97)
      • Market Psychology (p. 97)
      • Trading Rules for MACD Lines (p. 97)
      • More on MACD Lines (p. 98)
      • MACD-Histogram (p. 99)
      • Market Psychology (p. 100)
      • Trading Rules (p. 100)
      • When to Expect a New Peak or Valley (p. 101)
      • More on MACD-Histogram (p. 101)
      • Divergences (p. 102)
      • The Hound of the Baskervilles (p. 105)
      1. The Directional System (p. 105)
      • How to Construct the Directional System (p. 105)
      • Crowd Behavior (p. 107)
      • Trading Rules (p. 109)
      • Average True Rangeā€”Help from Volatility (p. 109)
      1. Oscillators (p. 111)
      • Overbought and Oversold (p. 111)
      1. Stochastic (p. 111)
      • Crowd Psychology (p. 112)
      • Trading Rules (p. 113)
      • More on Stochastic (p. 115)
      1. Relative Strength Index (p. 115)
      • Mass Psychology (p. 116)
      • Trading Rules (p. 117)
  • PART 5 Volume and Time (p. 119)
    • 28. Volume (p. 119)
      • Crowd Psychology (p. 121)
      • Trading Pointers (p. 122)
      1. Volume-Based Indicators (p. 123)
      • On-Balance Volume (p. 123)
      • Crowd Psychology (p. 124)
      • Trading Signals (p. 124)
      • More on OBV (p. 124)
      • Accumulation/Distribution (p. 126)
      • Crowd Behavior (p. 126)
      • Trading Rules (p. 127)
      • More on Accumulation/Distribution (p. 128)
      1. Force Index (p. 128)
      • How to Construct Force Index (p. 128)
      • Trading Psychology (p. 129)
      • Trading Rules (p. 129)
      1. Open Interest (p. 133)
      • Crowd Psychology (p. 134)
      • Trading Rules (p. 136)
      • More on Open Interest (p. 137)
      1. Time (p. 137)
      • Cycles (p. 138)
      • Indicator Seasons (p. 138)
      • Market Time (p. 140)
      • The Factor of Five (p. 141)
      1. Trading Timeframes (p. 142)
      • Investing (p. 142)
      • Swing Trading (p. 144)
      • Day-Trading (p. 147)
  • PART 6 General Market Indicators (p. 149)
    • 34. The New Highā€“New Low Index (p. 149)
      • How to Construct NH-NL (p. 150)
      • Crowd Psychology (p. 150)
      • Trading Rules for NH-NL (p. 151)
      • NH-NL in Multiple Timeframes and Look-Back Periods (p. 153)
      1. Stocks above 50-Day MA (p. 155)
      1. Other Stock Market Indicators (p. 156)
      • Advance/Decline (p. 156)
      1. Consensus and Commitment Indicators (p. 158)
      • Tracking Advisory Opinion (p. 159)
      • Signals from the Press (p. 160)
      • Signals from Advertisers (p. 160)
      • Commitments of Futures Traders (p. 161)
      • Legal Insider Trading (p. 163)
      • Short Interest (p. 163)
  • PART 7 Trading Systems (p. 165)
    • 38. System Testing, Paper Trading, and the Three Key Demands for Every Trade (p. 167)
      • Paper Trading (p. 168)
      • Three Key Demands for Every Trade (p. 169)
      1. Triple Screen Trading System (p. 170)
      • Trend-Following Indicators and Oscillators (p. 171)
      • Choosing Timeframesā€”the Factor of Five (p. 171)
      • First Screenā€”Market Tide (p. 172)
      • Second Screenā€”Market Wave (p. 174)
      • Third Screenā€”Entry Technique (p. 174)
      • Triple Screen Summary (p. 176)
      • Triple Screen in Day-Trading (p. 177)
      • Stops and Profit Targets (p. 178)
      1. The Impulse System (p. 178)
      • Entries (p. 180)
      • Exits (p. 182)
      1. Channel Trading Systems (p. 182)
      • Two Ways to Construct a Channel (p. 183)
      • Symmetrical Channels (p. 183)
      • Mass Psychology (p. 184)
      • Trading Rules (p. 186)
      • Standard Deviation Channels (Bollinger Bands) (p. 188)
  • PART 8 Trading Vehicles (p. 189)
    • 42. Stocks (p. 191)
      1. ETFs (p. 192)
      1. Options (p. 194)
      • Buying Options (p. 196)
      • Writing Options (p. 197)
      • Writerā€™s Choice (p. 198)
      • Limiting Risk (p. 199)
      • Can Option Buying Be Intelligent? (p. 201)
      1. CFDs (p. 202)
      1. Futures (p. 203)
      • Futures and Cash Trades (p. 204)
      • Hedging (p. 205)
      • Supply, Demand, and Seasonality (p. 206)
      • Floors and Ceilings (p. 207)
      • Contango, Inversion, and Spreads (p. 207)
      • Commitments of Traders (p. 208)
      • Margins and Risk Control (p. 209)
      1. Forex (p. 210)
  • PART 9 Risk Management (p. 213)
    • 48. Emotions and Probabilities (p. 213)
      • Why Johnny Canā€™t Sell (p. 214)
      • Probability and Innumeracy (p. 216)
      • A Positive Expectation (p. 217)
      • Businessmanā€™s Risk or Loss (p. 217)
      1. The Two Main Rules of Risk Control (p. 218)
      • The Two Worst Mistakes (p. 218)
      1. The Two Percent Rule (p. 219)
      • The Iron Triangle of Risk Control (p. 220)
      • The 2% Rule in the Futures Markets (p. 221)
      1. The Six Percent Rule (p. 224)
      • The Concept of Available Risk (p. 224)
      1. A Comeback from a Drawdown (p. 226)
      • A Trading Manager (p. 228)
  • PART 10 Practical Details (p. 231)
    • 53. How to Set Profit Targets: ā€œEnoughā€ Is the Power Word (p. 231)
      1. How to Set Stops: Say No to Wishful Thinking (p. 235)
      • Place Stops outside the Zone of ā€œMarket Noiseā€ (p. 236)
      • Donā€™t Place Your Stops at Obvious Levels (p. 236)
      • Donā€™t Let a Winning Trade Turn into a Loss (p. 239)
      • Move Your Stop Only in the Direction of Your Trade (p. 240)
      • Catastrophic Stops: A Professionalā€™s Life Jacket (p. 240)
      • Stops and Overnight Gaps: Only for the Pros (p. 241)
      1. Is This an A-Trade? (p. 241)
      1. Scanning for Possible Trades (p. 246)
  • PART 11 Good Record-Keeping (p. 249)
    • 57. Your Daily Homework (p. 250)
      • Are You Ready to Trade Today? (p. 252)
      1. Creating and Scoring Trade Plans (p. 254)
      • Scoring Your Trade Plans (a Trade Apgar) (p. 254)
      • Using a Tradebill (p. 256)
      1. Trade Journal (p. 259)
      • Three Benefits (p. 261)
  • CONCLUSION A Journey without an End: How to Continue Learning (p. 265)
  • Sources (p. 269)
  • Acknowledgments (p. 273)
  • About the Author (p. 275)
  • INDEX (p. 277)
  • EULA (p. 303)

šŸ“‚ Browse chapters using the links above or via the sidebar navigation.