The Complete Trading Course: Price Patterns, Strategies, Setups, and Execution Tactics (Wiley Trading) - Hardcover

Rosenbloom, Corey

Hardcover

ISBN 10: 0470594594 ISBN 13: 9780470594599

Verlag: Wiley, 2011

Inhaltsangabe

A practical guide covering everything the serious trader needs to know

While a variety of approaches can be used to analyze financial market behavior and identify potential trading/investing opportunities, no approach is completely accurate. The challenge for traders is to find a method that they feel comfortable with and are able to implement consistently, through the normal ups and downs of trading.

The Trading Course provides you with a detailed description of the methods used to analyze markets, spot profitable trading opportunities, and properly execute trades. Page by page, this book references different trading methodologies, but focuses specifically on applying them when attempting to identify good trades.

• Discusses the principles of price behavior, trends, trade set ups, trade execution, and intermarket relationships
• Details different trading tools and techniques, including Japanese Candlesticks, Elliott Wave, Dow Theory, momentum indicators, and much more

If you want to become a successful trader, you have to be prepared. This book will show you what it takes to make it in this field and how you can excel without getting overwhelmed.

Über diesen Titel

Über die Autorin bzw. den Autor

COREY ROSENBLOOM, CMT, founded the trading education site www.afraidtotrade.com, where he offers a variety of services and market analysis. A Chartered Market Technician, he speaks regularly at industry trading conferences. Rosenbloom's work appears on a number of trading Web sites, such as greenfaucet.com, traderkingdom.com, moneyshow.com, dailymarkets.com, wallstreetcheatsheet.com, bestwaytoinvest.com, and others. His strategies have also appeared in Dr. Brett Steenbarger's book The Daily Trading Coach. Rosenbloom earned a master's degree in political science and bachelor's degree in psychology from the University of Alabama in Huntsville.

Von der hinteren Coverseite

THE COMPLETE TRADING COURSE
A step-by-step approach to analyzing markets and making informed trading decisions

The Complete Trading Course provides aspiring traders with a detailed description of methods to analyze markets, spot profitable trading opportunities, and execute trades properly. Using a variety of approaches―such as Candlesticks, Elliott Wave, Dow Theory, and others―this book shows you how these methods overlap to identify tradable moments in the markets. Author Corey Rosenbloom skillfully explains how to identify trades based on price trend, momentum, and volatility―and how to make decisions confidently and maintain that confidence throughout the trade.

The Complete Trading Course goes beyond basic strategies to reveal how to assess your edge―the specifics of trade execution tactics geared to your unique personality―and then incorporate your experiences, stage in life, risk-tolerance, and individual psychological make-up into a lifetime of learning. By creating this unique approach, you'll learn to progress month to month and then year to year as a developing trader.

No one book, indicator, or seminar can teach you all you need to know to be a successful trader, but this timely guide lays the foundation upon which to build a lifelong trading career.

Aus dem Klappentext

Where do you start when you first look at a stock chart? How do you classify all the conflicting signals, cut through the noise, and get straight to the point of what matters most? With so much information for the technical analyst to discover, new traders often do not know where to start or what should guide them. And if you should decide it might be a profitable trade, how do you enter, manage, and exit the trade most efficiently?

The Complete Trading Course answers the questions of traders from all experience levels and provides you with a specific pathway for analyzing your chart to find specific trading opportunities.

Built on time-tested price principles that winning traders have used for many years but have been buried under the information overload of today's high-speed, indicator-driven markets, The Complete Trading Course cuts through the theoretical aspects and esoteric information and highlights only the most important insights from a variety of disciplines. Unlike other books, it focuses on the logic behind the pattern, how it fits into the broader context on a price chart, and how to assess the integrated whole of the chart within the context of guiding price principles that underscore all trading decisions.

Perhaps most importantly, the book reveals specifics of trade execution tactics geared to the unique experiences and personality of the trader putting on the position―the "edge" that enables you to combine objective chart information with your own understanding and experience so that you can recognize a proper opportunity, manage it in real time, and exit the position properly without emotion negatively affecting your decision.

With a firm knowledge of foundational price principles, specific trade strategies for today's markets, information on edge and execution, and a clear understanding of trade set-ups, you will be fully equipped to take your trading to the next level and formulate your own personal strategies in a trading plan that will help you continue on your lifelong journey to trading success.

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The Trading Course

Technical Analysis, High-Probability Set Ups, and Execution TacticsBy Corey Rosenbloom

John Wiley & Sons

Copyright © 2011 John Wiley & Sons, Ltd
All right reserved.
ISBN: 978-0-470-59459-9

Chapter One

Supremacy of the Trend

Where do you start when you first look at a stock chart? Are your eyes drawn to the indicators first? Perhaps your chart has too many indicators and you don't know where to start. With so much information for the technical analyst to discover, new traders often do not know where to begin or what should guide them in structuring their price charts. Sometimes it can be helpful to remove the indicators and focus squarely on price itself—after all, you've certainly heard the axioms "Price is King" and "Only price pays."

This introductory chapter will examine why trend analysis is so important to formulating your trading plan. Using your assessment of the current trend structure as guidance for which indicators to use and which to ignore, you will then be able to envision a clearer pathway ahead for the next swing or directional move in price, and thus be better equipped to take advantage by trading the expected move.

After all, you must start your decision-making process somewhere and you must be as objective as possible, as opposed to subjective analysis which is prone to opinion, bias, and error. While technical analysis is more of an art than a science—which leaves the chart open to interpretation—you build your foundation from time-tested principles that guide your analysis each time you review a chart and seek opportunities for profit. This chapter lays the foundation for successful analysis and trading, starting with the underlying principle of technical analysis—the trend.

WHAT IS A TREND? Before making any decisions about buying or selling a particular stock or market, you must first assess the current price trend as a backdrop to further analysis. Afterward, you will be better able to assess the longevity, magnitude, and probabilities of the current trend continuing. Before applying any intermediate or advanced analysis methods, you should always start with a firm understanding of the basic concepts of supply and demand, as revealed through the price charts. The best way to begin your analysis is by simply quantifying the current trend objectively, be it up, down, or sideways. While it seems so simple, many traders skip this step and jump right to the indicator signals, not understanding that some popular indicators work well when a trend is established but then fail when a sideways trend occurs. By objectively assessing the trend in place, you will then be prepared to take the next step in your analysis. Let's start with the basic question, "What is a trend?"

Breaking it down into simplest terms, a trend is a series of price swings traveling in the same direction over time. Most traders assess the strength of up-trends in order to find buying opportunities in a prevailing trend that has been confirmed. In the context of a prevailing up-trend, traders will be looking to put on new positions on pullbacks to expected support levels.

TREND

Trend is the prevailing tendency of the price of a security or market to move in the same direction over time. In the stock market, trends are often divided into long-term or secular trends, intermediate term trends, and short-term trends.

Up-trend: A series of higher price swing highs and higher price swing lows over a given period of time. Down-trend: A series of lower price swing highs and lower price swing lows over a given period of time.

In his book Technical Analysis Explained, Martin Pring gave us the best definition of technical analysis—the method of making decisions to the likely future price movement of a stock based on the past and current chart—with the following definition, which underscores all of our efforts as traders:

The technical approach to investments is essentially a reflection of the idea that prices move in trends which are determined by the changing attitudes of investors towards a variety of economic, monetary, political, and psychological forces. The art of technical analysis is to identify trend changes at an early stage and to maintain an investment posture until the weight of the evidence indicates that the trend has reversed.

For traders, the most important parts of the definition are the "identify trend changes at the earliest stage" statement as well as the "weight of the evidence" portion. These two concepts underscore all of the decisions you make as a trader or an investor. Let's break them apart individually.

Identifying Trend Changes Early

One of the most commonly accepted principles of technical analysis states that the trend, once established, has greater odds of continuing than of reversing. If we accept this principle as true, then the most profitable, lowest risk opportunities will come by trading retracement-style set-ups in the direction of a confirmed, prevailing trend. Many new traders try to call tops and bottoms in a stock and thus fight established trends, which often results in monetary losses and psychological frustration. While all traders want to be the first to call reversals in markets, and indeed traders can make a public name for themselves by accurately calling major turns in a market, it is important to realize that for every correctly called market top or bottom, there are dozens if not hundreds of inaccurate calls of tops or bottoms that lie scattered in the graveyard of market analysis and in personal trading accounts. Some traders destroy their accounts by stubbornly fighting a trend, clinging to their opinions of what the market should be doing as opposed to what the market is actually doing. Traders lose money when they try to force their will on a market, and traders who fight prevailing trends can suffer major losses as they trade against the probabilities from the onset.

On the other hand, a trend cannot persist forever; as such, downtrends evolve over time into up-trends, and then mature up-trends must devolve again into down-trends as the market cycle continues throughout history. Chapter 7 describes the typical lifecycle of a price move from bottom, to top, to bottom again. Those who do well over their trading careers are the ones who understand this principle and act accordingly when the weight of the evidence has shifted, rather than remaining committed to a losing position. The majority of this book will be dedicated to identifying trend reversals as early as possible as you assess the weight of the chart evidence, which implies never looking at one indicator or variable in isolation, but as a composite whole to the best of your ability. While your goal should always be to determine trend structure, you must simultaneously be aware of potential signals that a trend in its mature stage might be reversing. No matter what your emotions or other anecdotal evidence suggest, you must be able to change your expectations once the price chart gives a trend reversal signal, and not stubbornly assume that the current trend will continue forever. Sometimes traders learn this lesson with one painful experience, as a child learns not to touch a hot stove, though other traders may need to be reminded throughout their career that the best trades often come in the direction of the prevailing trend, rather than against it....

Details zur Ausgabe

• Verlag: Wiley
• Erscheinungsdatum: 2011
• Sprache: Englisch
• ISBN 10: 0470594594
• ISBN 13: 9780470594599
• Einband: Gebundene Ausgabe
• Auflage: 1
• Anzahl der Seiten: 320
• Kontakt zum Hersteller: Wiley-VCH GmbH; product_safety@wiley.com; ; Boschstrasse 12; Weinheim; 69469; Deutschland