Trading Basics: Evolution of a Trader

Trading Basics: Evolution of a Trader begins with the basics, creating a solid foundation of terms and techniques. Although you may understand market basics, you will learn from this book. Trading Basics takes an in-depth look at money management, stops, support and resistance, and offers dozens of tips every trader should know.

Introduction:

Here are some facts that you will discover by reading this book:

• Trading a constant position size can have disastrous results.
• A market order to cancel a buy can be denied if it is within two minutes of the Nasdaq’s open.
• Dollar cost averaging underperforms
• Fibonacci retracements offer no advantage over any other number as a turning point.
• A chandelier stop hangs off the high price.
• Stops cut profit more than they limit risk.
• Peaks with below average volume show more resistance.
• The middle of a tall candle is no more likely to show support or resistance than any other part.
• Fibonacci extensions are no more accurate than any other tool for determining where price might reverse.
• Only bullish divergence (in the RSI indicator) works and only in a bull market.
• Bullish divergence (in the RSI indicator) fails to beat the market more often than it works.
• Price drops faster than it rises.
• The industry trend is more important than the market trend.
• Holding a trade too long is worse than selling too early.
• Sell in May and go away.

Contents:

• How to Retire at 36
• Money Management
• Do Stops Work?
• Support and Resistance
• 45 Tips Every Trader Should Know
• Finding and Fixing What Is Wrong
• What We Learned

Trading Basics: Evolution of a Trader By Thomas N. Bulkowski pdf