Trend Trading for a Living: Learn the Skills and Gain the Confidence to Trade for a Living
Thomas K. Carr
Format: PDF / Kindle (mobi) / ePub
Trade the trend and you can trade for a living
If you're going to play the stock market, play to win by using a fundamental strategy of most hedge fund managers-trend trading. In Trend Trading for a Living, the trading coach and hedge fund manager known on Wall Street as “Dr. Stoxx” shares his personal strategies for analyzing markets, picking stocks, and knowing when to buy and sell.
This step-by-step book offers a practical road map to get yourself familiarized with the stock market and into the driver's seat of your financial future. In five progressive parts, Trend Trading for a Living helps you:
- Configure your platform: setup your home computer to trade online with the best brokers
- Learn the basics: understand trend trading, select stocks to watch, and interpret market signs
- Get in the game: select the most profitable bullish and bearish stocks and pick your entry and exit prices
- Leverage your portfolio: learn how to trade with options to increase your financial rewards
- Turn pro: with patience, determination, and a strategy grounded in fundamentals, you can “trade for a living”
dent in your profits. Compared to most other home businesses, however, trend trading has as low a set of barriers to entry as any business could possibly have. Profit margins run well over 90 percent. It's hard to beat that! All you really need to trade profitably and comfortably are a good chair, a newer computer with a wide-screen monitor, a high-speed Internet connection, some software, a calculator, and paper and pen. That's it. I'm guessing that many of you reading this will already have
wide or narrow, and it is a general rule that the wider the trading range, the longer price stays within it. Narrower ranges tend to be broken to the upside or downside more easily. What to Look For Range-bound markets are not always easy to spot, but there are rules to follow. Here are the key indicators: The 20 MA spends about as much time above as below the 50 MA. The 50 MA is mostly flat, while the 20 MA varies from rising to falling. The distance between the 20 MA and the 50 MA
spring: You will favor stocks where . . . Volume in the coil is lower than average. The coil is longer than 7 candles but not longer than 15 candles. There is no close in the coil under the 50 MA. There are more green candles (close higher than the open) in the coil than red candles (close lower than the open). At least two of the RSI, CCI and OBV are rising during the coil. The weekly chart shows that price is not trading just under a major weekly moving average (like the 50 MA or 200 MA).
market?" It was a reasonable question, the kind of question one would expect a top-notch journalist like Brokaw to ask. And to this day every bit of the CEO's answer—the tonality, the meter, the syllabification—remains embedded in my brain. "Oh, the process is too expensive right now to make it marketable." "So . . ." Brokaw pressed, "just how long will it take to get the costs down?" "Well, we are 15, maybe 20 years out," replied the CEO. And that was it. There was nothing to be done about it.
closely to their biases. Learn this market mantra: "Let the markets do what they want to do!" If our bias gets us into a trade and it turns out that our bias was wrong, we need to cling loosely enough to it to let it go. Too strong a bias will prevent us from doing what we should be doing with a trade gone bad: taking the quick loss and moving on. Biases can also hurt us with our winners. How many times have we held on to a nice winner, believing in our bias that it would be a big jackpot win