Trading Basics: Evolution of a Trader

preface ixacknowledgments xvChapter 1 how to retire at 36 1Chapter Checklist 4Chapter 2 Money Management 7Trading: How Much Money, Honey? 8Order Types: Read the Fine Print! 10Position Sizing: My Story 12Position Sizing by Market Condition: Bull or Bear? 13How Many Stocks to Hold? 15A Better Way? Portfolio Composition 16Hold Time: How Long Is Long Enough? 18Hold Time: My Trades 19The Money Management Matrix 19Should You Scale into Positions? 21Averaging Down: Throwing AwayMoney or Smart Choice? 28Scaling Out of Positions: A Profitable Mistake? 31Dollar ]Cost ]Averaging: Good or Bad? 34Using Leverage: An Expensive Lesson! 35Leverage Guidelines Checklist 36Chapter Checklist 37Chapter 3 Do Stops Work? 41What Is Hold Time Loss? 42Mental Stop: For Professionals Only! 44Minor High or Low Stop: A Good Choice 45Squaring Off Round Numbers 46Chart Pattern Stop: Too Costly? 47Stopped by a Moving Average 47The Truth about Trendlines 48Trendline Stop 49Fibonacci Retrace Stop: Deal or Dud? 50Fixed Percentage Trailing Stop 53Volatility Stop 53Chandelier Stop Leaves You Hanging 55Testing Six Stop Types 55What I Use 59Chapter Checklist 61Chapter 4 Support and Resistance 63Types of Support and Resistance 64Measured Move Support and Resistance 65Minor High Resistance 66Volume at Minor High Resistance 67Minor Low Support 67Volume at Minor Low Support 68Minor High Support 68Minor Low Resistance 69Gaps Showing Support and Resistance 70Myth: Tall Candle Support and Resistance 70Horizontal Consolidation Regions 71Another Look at Round Numbers 72Support in Straight ]Line Runs 72Resistance in Straight ]Line Runs 74SAR Summary 75Chapter Checklist 76Chapter 5 45 Tips Every Trader Should Know 79Determining Stock or Market Direction 97Finding the Market Bottom 102Visual Tips 122Chapter Checklist 130Chapter 6 Finding and Fixing What Is Wrong 135What Was the Market Behavior? 136Was the Industry Trending? 137How Is the Timing? 139Are All Entry Conditions Met? 142Was the Position Size Proper? 144Was an Initial Stop Used? 144Did You Exit Before the Stop? 145What Was the Risk/Reward Ratio? 146Did You Average Up? 147Did You Average Down? 147Are You Buying Out of Season? 148Trading Checklist 149Chapter Checklist 151Chapter 7 What We Learned 153Chapter 1: How to Retire at 36 153Chapter 2: Money Management 153Chapter 3: Do Stops Work? 155Chapter 4: Support and Resistance 156Chapter 5: 45 Tips Every Trader Should Know 157Chapter 6: Finding and Fixing| What Is Wrong 161Visual Appendix of Chart Patterns 163Bibliography 169Other Sites of Interest 171About the Author 173Index 175