Details

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

<p>“The three books in this series were written for people unfamiliar with the inner workings of the stock market, but will still curl the toes of professionals, too. Research is used to prove the ideas discussed, but is presented in an easy to understand and light-hearted manner. You will find the books to be as entertaining as they are informative and packed with moneymaking tips and ideas. Use the ideas presented here to hone your trading style and improve your success. Whether you are a novice who has never purchased a stock but wants to, or a professional money manager who trades daily, these books are a necessary addition to any market enthusiast’s bookshelf.”<br /> —<b>Alan Battista</b>, Stockineer.com Book Review</p>

<p><b>THOMAS N. BULKOWSKI</b> is a successful investor with thirty years of experience in the stock market. He is also the author of the Wiley titles <i>Encyclopedia of Candlestick Charts, Encyclopedia of Chart Patterns, Getting Started in Chart Patterns, Trading Classic Chart Patterns,</i> and <i>Visual Guide to Chart Patterns</i>. Bulkowski is also a contributor to <i>Active Trader</i>, <i>Technical Analysis of Stocks & Commodities</i>, and other publications worldwide. Before earning enough from his investments to retire from his day job at age 36, Bulkowski was a hardware design engineer with Raytheon and a senior software engineer for Tandy Corporation.

<p>How you trade or invest in the stock markets depends on market conditions. Buying and holding on to a stock during a bear market can mean a substantial decline in net worth. Day trading when the markets are soaring can add to stress unnecessarily. Thomas Bulkowski discusses the evolution of a trader from buy-and-hold to position trading, swing trading, and day trading in his hotly anticipated series of how-to guides, <i>Evolution of a Trader.</i> <p>The first book in the series,<i> Trading Basics,</i> is a practical introduction to the art and science of stock trading. The book discusses money management, a topic so often overlooked in financial works. How do you size a position properly? How many stocks should a portfolio hold for proper diversification? Should you scale into or out of positions? Do dollar-cost-averaging and averaging down work? He answers these questions and more. <p>Choosing the correct type of stop can mean the difference between success and failure, profit and loss. Learn why stop-loss orders cut profit more than they reduce risk. Sometimes, stops are best left unused because they cash you out of potentially winning trades prematurely. <p>Bulkowski discusses a half-dozen types of support and resistance, then he measures and compares their effectiveness. If you can determine where a stock is going to reverse because of overhead resistance or underlying support, then the riches on Wall Street can be yours. His research is a gold mine of information waiting to be unearthed. <p>He discusses forty-five tips that every trader should know. Have you heard of the 2B rule? Or how about trading busted chart patterns? Does divergence in the RSI indicator really work or have today's markets made it obsolete? Bulkowski offers tips on finding the market direction, determining when the market has bottomed, and over a dozen tips on when to sell. <p>He wraps it all up by helping you diagnose trading problems. Are you entering or exiting your trades too early or too late? Did you average up? Are you buying out of season? <p>Bulkowski's work sets an example of how financial books should be written. He doesn't just repeat what others have said. Rather, he investigates and researches his facts before teaching the reader in an entertaining and informative style that is accessible to the beginner and the professional. Anyone investing or trading the markets can benefit from this series<i>.</i>

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