The New Trading for a Living

The best-selling trading book of all time--updated for the new eraThe New Trading for a Living updates a modern classic, popular worldwide among both private and institutional traders. This revised and expanded edition brings time-tested concepts in gear with today's fast-moving markets, adding new studies and techniques for the modern trader.This classic guide teaches a calm and disciplined approach to the markets. It emphasizes risk management along with self-management and provides clear rules for both. The New Trading for a Living incudes templates for rating stock picks, creating trade plans, and rating your own readiness to trade. It provides the knowledge, perspective, and tools for developing your own effective trading system.All charts in this book are new and in full color, with clear comments on rules and techniques. The clarity of this book's language, its practical illustrations and generous sharing of the essential skills have made it a model for the industry--often imitated but never duplicated. Both new and experienced traders will appreciate its insights and the calm, systematic approach to modern markets.The New Trading for a Living will become an even more valuable resource than the author's previous books:* Overcome barriers to success and develop stronger discipline* Identify asymmetrical market zones, where rewards are higher and risks lower* Master money management as you set entries, targets and stops* Use a record-keeping system that will make you into your own teacherSuccessful trading is based on knowledge, focus, and discipline. The New Trading for a Living will lift your trading to a higher level by sharing classic wisdom along with modern market tools.

Preface xiiiIntroduction 11. Trading--The Last Frontier 12. Psychology Is the Key 33. The Odds against You 5ONE Individual Psychology 94. Why Trade? 95. Reality versus Fantasy 106. Self-Destructiveness 167. Trading Psychology 198. Trading Lessons from AA 219. Losers Anonymous 2310. Winners and Losers 27TWO Mass Psychology 3111. What Is Price? 3212. What Is the Market? 3313. The Trading Scene 3614. The Market Crowd and You 3915. Psychology of Trends 4316. Managing versus Forecasting 46THREE Classical Chart Analysis 4917. Charting 5018. Support and Resistance 5519. Trends and Trading Ranges 6020. Kangaroo Tails 65FOUR Computerized Technical Analysis 6921. Computers in Trading 6922. Moving Averages 7423. Moving Average Convergence-Divergence: MACD Lines and MACD-Histogram 8024. The Directional System 8925. Oscillators 9526. Stochastic 9527. Relative Strength Index 99FIVE Volume and Time 10328. Volume 10329. Volume-Based Indicators 10730. Force Index 11231. Open Interest 11732. Time 12133. Trading Timeframes 126SIX General Market Indicators 13334. The New High-New Low Index 13335. Stocks above 50-Day MA 13936. Other Stock Market Indicators 14037. Consensus and Commitment Indicators 142SEVEN Trading Systems 14938. System Testing, Paper Trading, and theThree Key Demands for Every Trade 15139. Triple Screen Trading System 15440. The Impulse System 16241. Channel Trading Systems 166EIGHT Trading Vehicles 17342. Stocks 17543. ETFs 17644. Options 17845. CFDs 18646. Futures 18747. Forex 194NINE Risk Management 19748. Emotions and Probabilities 19749. The Two Main Rules of Risk Control 20250. The Two Percent Rule 20351. The Six Percent Rule 20852. A Comeback from a Drawdown 210TEN Practical Details 21553. How to Set Profit Targets: "Enough" Is the Power Word 21554. How to Set Stops: Say No to Wishful Thinking 21955. Is This an A-trade? 22556. Scanning for Possible Trades 230ELEVEN Good Record-Keeping 23357. Your Daily Homework 23458. Creating and Scoring Trade Plans 23859. Trade Journal 243A Journey without an End:How to Continue Learning 249Sources 253Acknowledgments 257About the Author 259Index 261