Trading on Momentum explains how to take advantage of these new market dynamics by trading stocks based on market momentum rather than traditional valuation methods. The resulting model shows traders how to recognize when the market is changing, determine what is changing and why, then instantly adapt their methods accordingly.
Trading on Momentum is divided into three main parts. Chapters 1 through 3 cover the basic concepts of the market as well as the tools of the trading game that you must be familiar with to level the playing field with seasoned professionals. You will learn about Market Makers, online teaching forums, and order-routing methods.
The next section, Chapters 4 through 8, is an in-depth look at momentum, its root causes, and key factors in identifying who the market players are behind it. By understanding who is responsible for the momentum and the psychology behind the forces that push and pull on the market, you will then be able to spot predictable momentum patterns.
This section explores several niche patterns that tend to repeat themselves over and over again in certain market conditions. You will also learn to spot certain stocks, called indicator stocks, that tend to lead the movement of the general market and give you an edge on what the market is about to do.
Chapters 9 through 14 examine specific methods, rules, and mindsets that are an absolute necessity for every successful and profitable trader. It explores how the time of day you trade is just as important as how you trade and how to create the proper mindset to ensure you do not fall for the most common pitfalls that take most traders out of the game.
- Tools of the Trade
- The New Market Momentum
- Predictable Momentum
- Predictable Patterns
- Market Dynamics
- Time of Day
- Identifying Trading Opportunities
- Rules of a Trader
- Personal Accountability and Trading Attitude
- Momentum Investing
Trading on Momentum: Advanced Techniques for High-percentage Day Trading By Ken Wolff pdf