Trading Basics: Evolution of a Trader - Hardcover

Bulkowski, Thomas N.

Hardcover

ISBN 10: 1118464214 ISBN 13: 9781118464212

Publisher: Wiley, 2012

Synopsis

Comprehensive coverage of the four major trading styles

Evolution of a Trader explores the four trading styles that people use when learning to trade or invest in the stock market. Often, beginners enter the stock market by:

• Buying and holding onto a stock (value investing). That works well until the trend ends or a bear market begins. Then they try
• Position trading. This is the same as buy-and-hold, except the technique sells positions before a significant trend change occurs.
• Swing trading follows when traders increase their frequency of trading, trying to catch the short-term up and down swings. Finally, people try
• Day trading by completing their trades in a single day.

This series provides comprehensive coverage of the four trading styles by offering numerous tips, sharing discoveries, and discussing specific trading setups to help you become a successful trader or investor as you journey through each style.

Trading Basics takes an in-depth look at money management, stops, support and resistance, and offers dozens of tips every trader should know.

Fundamental Analysis and Position Trading discusses when to sell a buy-and-hold position, uncovers which fundamentals work best, and uses them to find stocks that become 10-baggers—stocks that climb by 10 times their original value.

Swing and Day Trading reveals methods to time the market swings, including specific trading setups, but it covers the basics as well, such as setting up a home trading office and how much money you can make day trading.

About this title

From the Inside Flap

How you trade or invest in the stock markets depends on market conditions. Buying and holding on to a stock during a bear market can mean a substantial decline in net worth. Day trading when the markets are soaring can add to stress unnecessarily. Thomas Bulkowski discusses the evolution of a trader from buy-and-hold to position trading, swing trading, and day trading in his hotly anticipated series of how-to guises, Evolution of a Trader.

The first book in the series, Trading Basics, is a practical introduction to the art and science of stock trading. The book discusses money management, a topic so often overlooked in financial works. How do you size a position properly? How many stocks should a portfolio hold for proper diversification? Should you scale into or out of positions? Do dollar-cost-averaging and averaging down works? He answers these questions and more.

Choosing the correct type of stop can mean the difference between success and failure, profit and loss. Learn why stop-loss orders cut profit more than they reduce risk. Sometimes, stops are best left unused because they cash you out of potentially winning trades prematurely.

Bulkowski discusses a half-dozen types of support and resistance, then he measures and compares their effectiveness, If you can determine where a stock is going to reverse because of overhead resistance or underlying support, then the riches on Wall Street can be yours. His research is a gold mine of information waiting to be unearthed.

He discusses forty-five tips that every trader should know. Have you heard of the 2B rule? Or how about trading busted chart patterns? Does divergence in the RSI indicator really work or have today’s markets made it obsolete? Bulkowski offers tips on finding the market direction, determining when the market has bottomed, and over a dozen tips on when to sell.

He wraps it all up by helping you diagnose trading problems. Are you entering or exiting your trades too early or too late? Did you average up? Are you buying out of season?

Bulkowski’s work sets an example of how financial books should be written. He doesn’t just repeat what others have said. Rather, he investigates and researches his facts before teaching the reader in an entertaining and informative style that is accessible to the beginner and the professional. Anyone investing or trading the markets can benefit from this series.

From the Back Cover

The series Evolution of a Trader explores four trading styles that people use when learning to invest in the stock market. Often, beginners enter the stock market by

1. Buying and holding on to a stock. That works well until a bear market begins. Then they try
2. Position trading. This seeks to exit positions before a significant trend change occurs.
3. Swing trading follows when traders try to catch short-term swings. Finally, people try
4. Day trading by completing their trades in a single day.

This series takes a detailed look at each of the four styles by offering numerous tips, sharing discoveries, and discussing specific trading techniques to help the reader be successful as they journey through each style.

The first book, Trading Basics, takes an in-depth look at money management, stops, support, and resistance, and offers dozens of tips every trader should know.

The second book, Fundamental Analysis and Position trading, explains value investing and tests fundamental factors, such as book value, price-to-earnings, and price-to-sales ratios, to see how important they are to stock selection and performance. Chapters such as “How to Double Your Money,” “finding 10-Baggers,” and “Trading 10-Baggers” put the fundamentals to work. Position trading introduces market timing to help remove the risk of buying and holding a stock for years.

The third book in the series, Swing and Day Trading, explains how to use chart patterns to swing and day trade. It reviews the basics, including the home office setup and the cost of day trading, and drills down into specific trading strategies such as the opening range breakout and the opening gap setup. It introduces new research on major reversal times and the time most likely to set the day’s high and low. That is valuable information to a day trader.

Whether you are a novice who has never purchased a stock but wants to, or a professional money manager, these books are a necessary addition to any market enthusiast’s bookshelf.

Edition details

• Publisher: Wiley
• Publication date: 2012
• ISBN 10: 1118464214
• ISBN 13: 9781118464212
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 208