The Market Guys’ Five Points for Trading Success is a compilation of strategies and practices that we trust will empower you to be successful in the markets. But we want it to be much more than a how-to reference book for trading. Throughout the following chapters, you’ll read stories and examples of real people in real situations. You’ll learn a bit more about our journey in this world of fi nances and how we’ve grown over the years. Of course, you will see that we are laying out for you the accumulated learning and experiences from our minds. More than that, though, we hope you will see that we are also offering you a gift from our hearts.
Introduction:
The book contains 15 chapters, with each of the five points arriving at every third chapter. We begin by discussing the business of trading and the importance of a trading plan. A key benefit of the trading plan is helping you manage your emotions, which is the subject of Chapter 2. Then we move into the tools of technical analysis and some of the common mistakes that people make in the markets. One of the lighter topics is Chapter 7; the seventhinning stretch. Here, we touch on the importance of keeping yourself in shape to enjoy the fruits of your labors.
More strategies and techniques follow in the next two chapters as we review the best ways to find stocks and where to enter a new trade. From there, we introduce you to the exciting world of options and show you that they are not just for the professional trader. Chapter 12 covers the critical topic of managing risk using Point IV, the 1% Rule. The home stretch takes a light-hearted approach to fictional traders who have not quite reached the pinnacle of success. After a short discussion on how to select a broker, we move to the final Point V, which implores us to take action.
Another feature that you’ll find throughout the text is the Chatter Box. We have written this book together, but there are various times when we share personal stories to help explain a point or add some emphasis. These vignettes may talk about people we’ve worked with, life experiences, or other observations and are noted as either Rick’s Chatter Box or AJ’s Chatter Box. In the fi nal chapter, which discusses Point V, you will realize that our admonition to you to take action extends beyond the mere act of executing a trade. We want you to understand the reason we continue to reach out to our audience every day. Wealth really does have a purpose. And that purpose dovetails with our purpose. We trust that our faithfulness will leave the path we walk just a little straighter for the ones who follow.
Contents:
- Blueprint for Success: Creating Your Trading Plan
- Are You Out of Your Mind?: How to Work with Your Emotions
- It Pays to Be Trendy: Putting Your Money with the Money
- The Trader’s Toolbox: How to Pick a Hammer when the Market Gives You a Nail
- Ten Common Mistakes Made by Traders (And How to Avoid Them!)
- The Role Reversal: Working the Buyer/Seller Battle Line
- Seventh-Inning Stretch: Managing Market Stress
- E Pluribus Unum: Out of Many Stocks, One
- Going with the Flow: Don’t Jump in Too Early
- Essential Options, Part 1: Knowing Your Options
- Essential Options, Part 2: Knowing Your Strategies
- Managing Risk: Learning to Lose Money the Right Way
- Trading Hall of Shame: Traders You Don’t Want to Imitate
- Going to the Dance: Finding Your Broker
- The Trade and Beyond: Wealth Has a Purpose