Trading Basics: Evolution of a Trader


  • Pages: 200
  • Format: PDF
  • Published Date: 2013


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.


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.


  • 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