Technical Trading Online (Wiley Online Trading for a Living) - Hardcover

Roth, Robert

Hardcover

ISBN 10: 0471394211 ISBN 13: 9780471394211

Verlag: Wiley & Sons, 2000

Inhaltsangabe

The four golden rules of trading in one invaluable book

Here is the first online trading book to present a detailed approach to using technical analysis online in the real world of stock trading for any trader, regardless of his or her strategy. Using a comprehensive trading model that can be modified to meet the individual trader s needs, this professionally crafted advice will make a pro out of anyone. Also included is a reference to the next online resources for charting.

Über diesen Titel

Über die Autorin bzw. den Autor

JEROLD ROTH helped make possible the completion of Trader X’s vision. He has worked extensively in the publishing industry and holds a BA in journalism from the University of Florida.

TRADER X is a battle-hardened veteran of twenty years of Wall Street acquisitions and mergers. He now holds a position of senior responsibility at one of the country’s most prestigious trading firms. Technical Trading Online is the result of his longtime desire to teach others the hard-earned, and sometimes costly, lessons he has learned. His nom de plume, Trader X, is the result of his distaste for publicity and desire for privacy.

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Praise for Technical Trading Online

"Roth and Trader X s sure-handed advice and engaging wit enliven this welcome guide to online trading and technical analysis."
Nelson Freeburg, Editor, Formula Research

"New traders will find the arduous task of learning the finer points of trading transformed into a delightful learning experience in Technical Trading Online. It accomplishes what precious few other investment-related titles have been able to do by both teaching and entertaining at the same time. Even old hands will enjoy the wry wit and dry humor."
Edward D. Dobson, President, Traders Press, Inc.

"This book will contribute greatly to one s knowledge of why markets move based on supply/demand concepts. Roth and Trader X present simple techniques for capturing these movements. It is obvious that Trader X is a seasoned trader. Highly recommended!"
John Hill, Founder and Coeditor, Futures Truth, Author, The Ultimate Trading Guide

Aus dem Klappentext

Technical Trading Online is the first online trading book to present a detailed yet easy-to-understand approach to the use of technical analysis while remaining firmly grounded in the real world of stock trading. It presents a comprehensive trading model that can be modified to meet your needs, one that will guide you in the analysis of stock movement, using both raw data and detailed charts. Conclusions so derived, combined with good judgment, can result in trading success irrespective of your particular trading strategies.

This concise, enjoyable book is filled with hard-earned, hard-to-come-by wisdom that will teach you not only how best to avoid mistakes but also how to minimize the cost of inevitable mistakes. Among many other things, it will teach you:
* The virtually infallible Four Golden Rules of Stock Trading
* How to take advantage of the countless sources of data now available online
* Numerous strategies, techniques-and even tricks-that will prove invaluable when applied to today's stock markets

Also included is a reference to the best online resources for charting and software, plus instructions on how to set up a trading screen.

If your overriding goal in playing the stock market is to make money, as it certainly should be, then Technical Trading Online is the book for you.

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1. The Golden Rules of Day Trading

Tempting as it is to be cleverly innovative, let's start this book at the basic, solid, ground floor beginning. If you are determined not to learn anything valuable from Technical Trading Online, even by accident, the most important things not to learn are the Four Golden Rules of Stock Trading. Fair warning now: If you do learn them, and subsequently fail to follow them, they will come back to haunt you after every disastrous trading day. There you will be, trying to blame your losses on bad luck, bad advice, bad information, bad fate, bad food, bad coffee, bad influences, bad digestion, bad karma, bad weather, bad genes, bad service, bad air, bad circulation, bad company, perhaps even bad breath. Yet deep down you will know that the critical condition of your still-bleeding balance sheet is the result of disobeying one or more of the Four Golden Rules of Stock Trading. You will refuse to admit this at first, even to yourself. Yet, deep down, you will know.

Learning how to trade stocks effectively takes more than books, advice, and practice. It takes time-the more the better. Much of this time will be spent losing money. Yet I strongly believe that if you follow the Four Golden Rules of Stock Trading, you should be able to stretch your capital far enough to start turning some profits.

The Four Golden Rules of Stock Trading are:

1. Cut your losses. 2. Let your profits run. 3. Trade with the trend. 4. Never average down your losing positions.

There is not one of these rules you should find surprising or suspect. In fact, you are probably thinking that they are pretty much commonsense rules that you would follow naturally. You may be right, but I doubt it. Next time you have a bad day at the market, think about these rules again. I can just about guarantee that you broke at least one of them.

rule 1 cut your losses

Trading stocks is a profession that encompasses the making of mistakes, if not by definition, at least by the law of averages. I've never met a trader who didn't make mistakes. Please forgive my skepticism that you will be the first.

You will make mistakes because trading is not a science. It is an art-an art that is based on judgment, and this judgment is based on knowledge, and this knowledge can never be perfect. Fortunately, it doesn't have to be. Think about this discouraging fact: When trading stocks, you can be right 90 percent of the time and go broke. Conversely, think about another all too encouraging little fact: When trading stocks, you can make mistakes 90 percent of the time and still amass a fortune. Sounds like a great business to be in, doesn't it? Well, unfortunately, the latter is not a business strategy I can wholeheartedly recommend. Still, odd and amazing as this second fact may seem, there is a very important lesson in it. Not only must you immediately admit your mistakes, you must then strive to minimize the cost of these mistakes. Unfortunately, many would-be traders never even learn the first part of this lesson.

The inability to admit mistakes is no rare malady among prospective stock traders. It is a virulent, deadly plague. I hope you noticed that I said "among prospective" stock traders. I did not say "among successful stock traders," or even "long-term stock traders" because prospective stock traders who do not learn to admit to their mistakes, do not stay solvent long enough to become successful or long-term traders. The simple cure for this malady is to force yourself to look at the numbers, figure out their effect on your balance sheet, and then, if necessary, reign in your ego long enough to admit to your mistakes. The next and final step is to act as quickly as possible to cut your losses.

Minimizing the cost of subsequent mistakes is, for many people, much easier than admitting them after the fact. The surest way to do so is to devise an exit strategy even before you enter a position on a stock. For example, you are sure the stock Helium Balloons Unlimited is going to go up. If you weren't sure, I choose to believe you would not buy it. In any case, if you are so sure, at the same time you buy it long, make up your mind to sell it if the stock price drops even '/a below your cost. Sure, you may lose this 4% in the blink of an eye, but you won't lose any more than 4%. An automatic stop loss order would be even better. Not only does this make it unnecessary to depend on your attention span and reflexes, it guards against a far more serious threat, interference from your ego.

Details zur Ausgabe

• Verlag: Wiley & Sons
• Erscheinungsdatum: 2000
• Sprache: Englisch
• ISBN 10: 0471394211
• ISBN 13: 9780471394211
• Einband: Gebundene Ausgabe
• Auflage: 1
• Anzahl der Seiten: 214
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Nicht verfügbar