Ordinary People, Extraordinary ProfitsHow to Make a Living as an Independent Stock, Options, and Futures Trader
Wiley Trading, Band 237 1. Aufl.
David Nassar delivers a complete and proven system for aggressively and successfully trading in today's markets in Ordinary People, Extraordinary Profits. He explains the fundamentals of technical analysis and risk management, giving you a solid foundation to approach the market, and then describes a variety of trading strategies that will help you make consistently large profits without undue risk. Unlike other trading advisors who advocate a single approach to trading, Nassar provides a variety of strategies you can choose. In addition, he explains how to use new trading instruments such as E-Mini contracts, options, and exchange-traded funds. If you're looking for a complete, proven system for aggressively trading the stock market, this book is an ideal guide.
Preface. Acknowledgments. INTRODUCTION. Trade the Professional Way. Ride the Statistical Edge . . . Like Betting Seven in Craps. Master the Inner Game. CHAPTER 1 Foundational Analysis. Charts. Two Types of Analysis. What Exactly Is Technical Analysis? The Four-Stage Theory. Stage 1: Accumulation. Stage 2: Markup. Stage 3: Distribution. Stage 4: Decline. Support and Resistance. Definitions of Support and Resistance. Once Broken, Support Tends to Act as Resistance. Once Broken, Resistance Tends to Act as Support. The More Often Support or Resistance Is Tested, the More Likely That Level Is to Fail to Hold Back Price Movement. The Longer the Trend Has Been Neutral (Consolidating), the More Significant the Eventual Breakout Becomes. Trends. Trading Volume. Moving Averages. CHAPTER 2 Risk Management. Discipline—The Key to Trading Success. Discipline Perspectives. Avoid Trading with Scared Money. Terra Nova Trade Evaluator. Your Goal: To Trade without Emotion. Plan Your Trade and Trade Your Plan with Risk-Reward Ratios. Setting Stops—Overview. Overall Protective Stop Guidelines. Protective Stops and Trading Time Frames. Percentage of Price Stops. Time Stops. Avoid This Mistake. RealTick® Can Help. Risk Management and Trading with the News. Risk Management and Share Size. Summary. CHAPTER 3 Basic Chart Formations. Time Frames. Weekly Charts. Daily Charts. Intraday Charts. Sixty-Minute Charts. Ten-Minute Charts. Interpreting Chart Patterns. Reversal Patterns. Head and Shoulders Chart Formation. Long Base and Saucer Formations. Saucer Bottoms and Tops. Cup and Handle Formation. Bull and Bear Traps. Continuation Patterns. Rectangle (Box). Flags and Pennants. Triangles. Summary. CHAPTER 4 Going Short. Finding Shorting Opportunities. Price/Earnings Ratio Imbalance. Gap Openings. The Loaded Spring. Day-Trading “Tape Resistance”. The Short Squeeze (Be Cautious). Margin Accounts. The Federal Reserve Board’s Regulation T. Opening a Margin Account. Calculating Initial Requirements. Excess Equity. Calculating Maintenance Requirements. Minimum Maintenance Requirements. Change in Market Value. Short Sales and Margin Requirements. NASD/NYSE Minimum Deposit on Short Sales. Margin Maintenance Calls on Short Sales. Shorting-against-the-Box. Summary. CHAPTER 5 Other Trading Vehicles. What Is an E-Mini S&P 500 Contract? E-Mini Symbols. Initial and Maintenance Margin Requirements. Treatment of Settlement. The E-Mini Contract versus the Pit-Traded Contract. Price and Percentage Limits. Single-Source Liquidity. E-Mini Standard & Poor’s 500 as a Hedge. Tax Advantages with the E-Mini. The E-Mini Nasdaq 100. Chicago Board of Trade Mini-Dow Futures Use $5 Multiplier. Who Regulates Futures Trading? Program Trading and Fair Value. Predicting the Opening. How to Calculate Fair Value. What about Exchange-Traded Funds? The QQQQs. E-Mini Is Hard to Beat. Put and Call Options. A Brief History. Puts and Calls and Standardized Options. Shares per Option. Pricing. Symbology. Settlement. In-the-Money or Out-of-the-Money. Rights versus Obligations. Opening and Closing Transactions. Open Interest. Opening Rotation. Option Positions. Long Stock. Short Stock. Long Call. Short Call. Long Put. Short Put. Conversions, Reversals, and Synthetics. The Greeks and Delta Value. Position Delta. Gamma. Position Gamma. Long/Positive Gamma. Short/Negative Gamma. Omega. Vega. Theta. Summary. CHAPTER 6 Trading Strategies. The Profiler’s-Systems Trading. Pricing Puts/Calls—A Strategy You Can Use. CHAPTER 7 Indicators and Oscillator. Stochastics. Stochastics—Interpretation. Relative Strength Index. ARMS Index. Using the TRIN. Fibonacci Retracements. CHAPTER 8 Traditional Pivot Analysis. The Pivot Formula. The Pivot in Action. Calculating Pivots. Choosing the Right Data for Calculations. The Area between R1 and S1. Illustrating Pivot Lines on RealTick. Archiving Pivot Levels. Pivotal Psychology. Paper Trading. Strategy and Money Management. Lining Up Levels on Multiple Time Frames. Trading a Confluence Zone. Swing Trading with Confluence Areas. Summary. CHAPTER 9 Planning and Staying on Track. What Is Your Time Commitment? How Will You Fund Your Trading Account? What Style of Trading Will You Pursue? What Are Your Profit Objectives? How Will You Manage Your Profits? Do You Evaluate All Your Trades? Are You Keeping a Journal? Summary. CHAPTER 10 Your Path to Success. Where to Next? Summary. Appendix: MarketWise Tools—Routes to Success. MarketWise Web Site Resources. Tuning to the Market Intraday. Glossary. Bibliography and Exchange Contact Information . Exchange Contact Information. Index.
David S. Nassar is founder and CEO of MarketWise.com, LLC, and a pioneer in electronic trading. He has been seen on CNBC, NBC Nightly News, and CNN, and interviewed in numerous national publications, including the Wall Street Journal, BusinessWeek, and Forbes. Nassar is also a New York Times bestselling author.
No one cares more about your money than you do. Even when using qualified investment advisors, mutual funds, and stockbrokers, having the skills to manage and monitor your assets is vital. Therefore, whether you take complete responsibility for your trading and investing decisions or oversee professionals you hire to do it for you, understanding the market is one of the wisest decisions you can make. As founder and CEO of the highly acclaimed MarketWise.com, bestselling author David Nassar has educated and mentored thousands of traders and investors from around the world to achieve financial freedom and success. Filled with valuable trading insights drawn from Nassar's renowned MarketWise Foundational Analysis course, Ordinary People, Extraordinary Profits shares the lessons of his success and that of Wall Street pros—who have prospered in nearly every conceivable stock market environment—and reveals the ideas, methods, and techniques needed for successfully trading in any market. So whether you are, or want to be, a short-term stock trader or long-term investor, the in-depth insights and proven tools contained within this book can give you the statistical and psychological edge to beat the Street—consistently! Ordinary People, Extraordinary Profits provides you with a solid trading and investing foundation by explaining the key aspects of fundamental and technical analysis—including risk management. Unlike other trading guides that advocate a single approach to trading, Ordinary People, Extraordinary Profits offers a wide variety of trading strategies and instruments, and lets you tailor your strategy to any trading time horizon. From the basics to the complex, Nassar reveals what you need to make it as an independent trader and investor, including: The discipline of foundational analysis, a proprietary method that holds that only a few key variables—price, volume, time, and velocity—are needed to fully comprehend the essence of stock (options and futures) price fluctuations Chart patterns that measure market psychology—that few people ever see Proven proprietary technical indicators—using the MarketWise "Profiler" techniques, scanning the market for "honest" trends will immediately highlight your trading while also eliminating market noise Profitable trading strategies and concepts—algorithmic trading with technology, pairs trading, hedging using options, momentum trading, swing trading, and short selling like a pro Important trading vehicles other than stocks— E-Mini contracts, options, and exchange-traded funds (ETFs) As you progress through Ordinary People, Extraordinary Profits, not only will you discover how to trade more profitably, you will also gain the confidence to make the right decisions at the right time to reduce risks and maximize gains—and ultimately, this is what will make you a better trader and investor.
Praise for Ordinary People, Extraordinary Profits "Traders who want to take years off their learning curve and harness the latest technological advances will greatly benefit from the market insights provided by this comprehensive study guide." —Stuart Townsend, founder/President, Townsend Analytics, Ltd., developers of RealTick® "Dave Nassar lays out a clear road map for those who commit themselves to the road to trading success. He clearly explains the variety of tradeable equities and derivatives, then goes on to show the reader how to interpret charts and technical indicators. It's not just a pile of numbers and graphs though—Nassar delves into the psychology of trading as well as the nuts and bolts." —Theresa Carey, Barron's "Ordinary People, Extraordinary Profits is a pretty ambitious title, but Nassar carries it off. Easy to read and easy to follow, this book covers the waterfront from the emotional demons of trading to charts and strategies. A must-read for the serious trader and trader-to-be." —Gail Osten, Executive Editor, SFO magazine "Ordinary People, Extraordinary Profits is an easy-to-read compilation of how to make money in the stock market. I have known David for many years, and this is a rare opportunity for anyone interested in making money in the stock market!" —Bill Lupien, professional trader, specialist, and market maker for more than forty years, former chairman/CEO, Instinet "As founder of Traders' Library, I have spent my career analyzing traders, authors, and quality educational products for the trading and investing space, and I can tell you that the content of this course book is worth far more than the cover price. This book affords the rare opportunity to gain a unique edge in the market." —Chris Myers, President, Traders' Library