Come In To My Trading Room

PART ONE FINANCIAL TRADING FOR BABES IN THE WOODS 5

1 Invest? Trade? Gamble? 7

AN INTELLIGENT INVESTOR 7

AN INTELLIGENT TRADER 8

AN INTELLIGENT GAMBLER? 12

2 What Markets to Trade? 15

STOCKS 16

FUTURES 18

OPTIONS 20

3 The First Steps 25

THE EXTERNAL BARRIERS TO SUCCESS 25

GETTING YOUR GEAR 32

ANALYSIS AND TRADING 39

PART TWO THE THREE M’S OF SUCCESSFUL TRADING 45

4 Mind—The Disciplined Trader 47

SLEEPWALKING THROUGH THE MARKET 49

A REMEDY FOR SELF-DESTRUCTIVENESS 54

THE MATURE TRADER 61

5 Method—Technical Analysis 67

BASIC CHARTING 68

INDICATORS—FIVE BULLETS TO A CLIP 84

6 Trading 123

SYSTEM TESTING 125

TRIPLE SCREEN UPDATE 128

DAY-TRADING 138

THE IMPULSE SYSTEM 157

MARKET THERMOMETER 162

EXITING TRADES 165

CHOOSING WHAT TO TRADE 183

7 Money Management Formulas 215

NO MATH ILLITERATES 217

BUSINESSMAN’S RISK VS. LOSS. 218

THE 2% SOLUTION—PROTECTION FROM SHARKS 220

THE 6% RULE—PROTECTION FROM PIRANHAS 223

POSITION SIZING 227

MONEY MANAGEMENT STEPS 230

PART THREE COME INTO MY TRADING ROOM 233

8 The Organized Trader 235

TRADER’S SPREADSHEET 236

THE EQUITY CURVE 238

TRADING DIARY 240

ACTION PLAN 242

9 Trading for a Living 245

DISCIPLINE AND HUMILITY 247

HAVE YOU GOT THE TIME? 251

THE DECISION-MAKING TREE 257

BEGINNER, SEMIPRO, PRO 264

GOING PRO 267

10 Come Into My Trading Room 271

EXCERPTS FROM THE DIARY 273

YOUR NEXT TRADE 298