Financial Freedom Through Electronic Day Trading

Copyright......Page 3
CONTENTS......Page 7
FOREWORD......Page 13
PREFACE......Page 17
ACKNOWLEDGMENTS......Page 23
PART ONE How to Develop a “Laser-Guided Rocket ” to Trading Success......Page 27
THE MIND OF A MASTER TRADER......Page 29
IS A MASTER TRADER INSIDE YOU?......Page 38
THE MOST IMPOR ANT STEPS TO TRADING MASTERY......Page 39
KNOWLEDGE KEYS......Page 43
THE POWER OF COMMITMENT......Page 45
THE TRUTH INSIDE YOU......Page 48
THE MISSION YOU MUST ACCOMPLISH......Page 49
I’M STARTING WITH THE MAN IN THE MIRROR......Page 52
THE MOST POWERFUL TRADING QUESTIONS YOU COULD EVER ASK......Page 53
IF YOU DON’T BELIEVE IT, YOU CAN’T TRADE IT......Page 55
TO GET CLEAR ON YOUR GOALS, LINK YOUR BELIEFS TO YOUR MISSION......Page 57
TURN YOUR GOALS INTO ACTION......Page 60
HOW TO DEVELOP POWERFUL, ACTION-ORIENTED GOALS......Page 62
THE MOST CRITICAL GOAL-SETTING SECRET......Page 64
CALLS TO ACTION......Page 65
NOTES......Page 66
CHAPTER 3 Design a Plan Even Goldman Sachs Might Envy......Page 67
HOW TO CREATE A DYNAMITE PLAN......Page 69
STEPPING THROUGH YOUR OWN BUSINESS PLAN......Page 70
EFFECTIVELY MARSHALING YOUR RESOURCES......Page 106
CALLS TO ACTION......Page 122
NOTES......Page 123
PART TWO Putting the “Laser-Guided Rocket” Together......Page 125
CHAPTER 4 The Trader’s Toolkit......Page 127
HOW MUCH COMPUTER DO YOU NEED?......Page 128
SWEAT THE SMALL STUFF......Page 129
INTERNET CONNECTIVITY —GET A BIG (BROADBAND) PIPE!......Page 132
WHERE CAN YOU RENT THAT BIG PIPE?......Page 135
KEEP THAT CONNECTION CONNECTED!......Page 137
TECHNOLOGY RISKS —THE DIRTY LITTLE SECRET OF TRADING......Page 138
INTEGRATED TRADING SOFTWARE —THE HEART OF YOUR TRADING PLATFORM......Page 139
READING THE GAUGES —THE MOST IMPOR ANT TRADING SCREENS......Page 141
CALLS TO ACTION......Page 157
CHAPTER 5 Understanding the Golden Rule of Trading —R Multiples and Expectancy......Page 159
THE GOLDEN RULE OF TRADING —CUT YOUR LOSSES SHORT AND LET YOUR PROFITS RUN!......Page 160
KNOWING YOUR INITIAL RISK: BEGIN WITH THE END IN MIND......Page 161
DEFINING AND CALCULATING EXPECTANCY (RELAX, THE MATH’S EASY)......Page 164
THE OPPORTUNITY FACTOR......Page 174
CALLS TO ACTION......Page 175
NOTES......Page 176
CHAPTER 6 Position Sizing......Page 177
POSITION-SIZING TECHNIQUES THAT WORK......Page 181
SIMULATING YOUR SYSTEM TO DETERMINE WHAT’S POSSIBLE......Page 184
POSITION-SIZING MISTAKES YOU MUST AVOID......Page 186
ANSWERS TO THE POSITION-SIZING PROBLEMS......Page 189
KNOWLEDGE KEYS......Page 190
NOTES......Page 191
THE POWER OF SIMPLICITY......Page 193
START YOUR DAY THE EVENING BEFORE......Page 194
T MINUS 2 HOURS AND COUNTING......Page 195
APPLIED BEHAVIORAL FINANCE —KNOW THYSELF......Page 197
KNOWLEDGE KEYS......Page 201
NOTES......Page 202
PART THREE Launching Your Trading Rocket......Page 203
NASDAQ LEVEL II —YOUR BOOSTER ROCKET TO TRADING ORBIT......Page 205
THE SUPPLY AND DEMAND MODEL......Page 206
THE AX......Page 207
TO SAVE YOUR ASK, FIND THE AX!......Page 210
WHO’S PLAYING POKER?......Page 212
CHIPPIES ON THE BID —WHAT DOES IT MEAN?......Page 214
THE SECRET OF COLLAPSING TIERS......Page 215
UNDERSTANDING ECNs AND ORDER ROUTING — GETTING FILLED WHEN IT COUNTS!......Page 219
EXECUTION STRATEGIES —WHEN TO USE EACH ROUTE......Page 229
HOW TO GET FILLED IN A FAST MARKET: HE WHO HESITATES IS LOST......Page 231
THE MYSTERY OF HIDDEN AND RESERVE ORDERS......Page 233
ARCA RESERVE ORDERS......Page 235
DEVELOP EXPECTATIONS FOR YOUR TRADING DAY......Page 237
THE ART OF INTERPRETING NEWS......Page 239
STOCK SELECTION AT A GLANCE......Page 243
DIRECTIONAL BIAS......Page 244
DECIDING TO ENTER......Page 247
THE WEIGHT OF YOUR DECISION......Page 248
NEVER ENTER A TRADE WITHOUT KNOWING YOUR STOP!......Page 250
A SECRET FOR KEEPING YOUR STOP......Page 251
PROFIT-TAKING EXITS......Page 252
TO MAKE MAXIMUM PROFITS, REMAIN FLEXIBLE......Page 256
DEFENDING AGAINST WHIPSAW......Page 257
KNOWLEDGE KEYS......Page 258
CALLS TO ACTION......Page 260
NOTES......Page 261
CHAPTER 9 Market-Making Strategies......Page 263
STRATEGIES AND TACTICS......Page 264
MARKET MAKING —THE STEALTH SPECIALIST......Page 266
PROFIT POTENTIAL......Page 272
NASDAQ MARKET-MAKING SYSTEM......Page 275
PRICE AND TRADING LEVELS......Page 276
THE AX REVISITED......Page 278
UNDERSTANDING THE MARKET MAKERS......Page 279
DIFFERENCES BETWEEN MARKET MAKERS AND SPECIALISTS......Page 280
MARKET MAKING —THE CHANNEL FEEDER......Page 281
KNOWLEDGE KEYS......Page 289
NOTES......Page 293
MOMENTUM PHILOSOPHY......Page 295
MOMENTUM PATTERNS......Page 297
MARKET MAKERS DURING THE OPEN......Page 301
MARKET-MAKER MANIPULATION......Page 303
POSSIBLE INTERPRETATIONS OF THE MM’S ACTIVITIES......Page 305
ILLUSTRATION OF FADING THE TREND......Page 308
KEY MOMENTUM CONCEPTS......Page 314
MOMENTUM STRATEGIES —THE SONIC BOOM DIVE......Page 317
CALLS TO ACTION......Page 333
PART F OUR Feedback and Maintenance......Page 335
CHAPTER 11 Common Mistakes Everyone Makes — And How You Can Avoid Them......Page 337
NOTES......Page 361
CHAPTER 12 Getting Feedback and Refining the Process......Page 363
REVIEW YOUR TRADES: LIVE AND LEARN......Page 364
DEBRIEFING THE TRADES: RULES ARE NOT MADE TO BE BROKEN......Page 366
CORRECTING MISTAKES ON THE SPOT: DO IT NOW OR FORGET IT LATER......Page 369
AKE THE 30,000-FOOT VIEW FOR LOFTIER PROFITS......Page 370
REFINING THE PROCESS: IF IT AIN’T BROKE, FIX IT (A LITTLE) ANYWAY......Page 372
KNOWLEDGE KEYS......Page 374
NOTES......Page 375
CHAPTER 13 Peak Performance Trading —The Keys to Gaining Control of Your Trading......Page 377
PSYCHOLOGICAL AWARENESS (SOUL-SEARCHING)......Page 380
OVERCOMING PSYCHOLOGICAL BIASES......Page 383
EMOTIONS AND TRADING......Page 386
KNOWING AND STATING WHAT FITS YOU......Page 388
KNOWING YOUR OBJECTIVES AND USING POSITION SIZING TO MEET THOSE OBJECTIVES......Page 390
RULES AND KNOWING WHAT TO EXPECT FROM YOUR SYSTEM......Page 392
HOW TO CORRECT MISTAKES......Page 393
CHECKLIST FOR PEAK PERFORMANCE TRADING......Page 395
KNOWLEDGE KEYS......Page 396
NOTES......Page 397
Glossary......Page 399
Bibliography......Page 407
Index......Page 409