Trading Secrets E-Book

Louise Bedford

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 454

Veröffentlichungsjahr: 2012

Beschreibung

A practical, informative, and accessible guide to getting started in trading Louise Bedford has been coaching and mentoring traders for almost twenty years, and in Trading Secrets, Third Edition she's back to share what she's learned. Whether you're just starting out in the trading world, or you're an old hand looking for some new tricks, this book is for you. Packed with everything you need to get in on the action and consistently profit from the markets, Trading Secrets is your personal coach to becoming a trading mastermind. Designed to educate, motivate, and guide you through the sometimes confusing world of trading, the book shows you how to set up a trading business and, most importantly, master your number one trading foe; yourself. Known for her witty and entertaining style, Bedford has demystified the world of share trading for thousands of investors and traders, and you're next. * Brings together the processes, careful planning, and risk control techniques that Bedford has used throughout her own successful trading career * Offers fascinating insights into everything from how to handle a windfall profit to why men and women trade differently * Includes end-of-chapter review materials, essential for helping you master the material

Leseprobe

Trading Secrets 3rd Edition: Killer Trading Strategies To Beat The Markets And Finally Achieve The Success You Deserve

Table of Contents

Part I: Business secrets

Chapter 1: Stop trading, start thinking

Tug of war

Fundamental analysis

Technical analysis

Another method of analysis

Strategy

Chapter 2: Trust a broker? Are you crazy?

What do you do?

Are you an investor or a trader?

Data

End of day data

Real-time data

Free data

Software

Computers

Books

Seminars

How to choose a mentor

Newsletters

Stockbrokers

Stingy behaviour

Chapter 3: Get ready for action

Athletes

Breathing

How to breathe

Chapter 4: Got a job? Hang on in there … for a while

The dark side of employment

The positive side of working

Share trading can be lonely

The good times

Going on holidays

What does ‘being a trader’ mean to you?

Part II: It takes all sorts

Chapter 5: It’s all about sex

A brief history lesson

Chemistry

Confidence in decisions

Is trading a male domain?

Reaction to stress

Testosterone

The need to be right

Chapter 6: The best gift you can give your child

Young children

Adolescents

So, why is this important?

Chapter 7: Find a hero — the undervalued success secret

Market gurus

How to spot a guru

Great traders

Why do traders write books?

Three heroes

Darvas

Weinstein

Chapter 8: Trader — know thyself

Balance is important

Know when not to trade

Self-sabotage

Personalities

Focus on more than the current trade

Admit when you’re wrong

Learn from your past results

Stop envying other people

Develop detachment

Fear

Be consistent

Be willing to appear goofy

Five ways to overcome trading barriers

Part III: Trading tools

Chapter 9: History never repeats. Are you sure?

Black box systems

Share behaviour

Bars, lines and candles

Why use candles instead of bars?

Colour

Number of patterns

Psychology

Visual appearance

Interesting names

Candlestick charts

The white candle

The black candle

When to use candlesticks

Some common candlestick patterns

The shooting star

The doji

Spinning top

Hammers and the hanging man

The bearish engulfing pattern

The bullish engulfing pattern

Dark cloud cover

Piercing pattern

Evening star

Morning star

How to use candlesticks

Chapter 10: Stop playing blind archery

Gut feel

Weight of evidence

The line family

The trendline

Uptrends

Downtrends

Sideways trends

Support and resistance

The moving average family

The momentum family

Interpreting momentum indicators

Consolidation and momentum indicators

Divergence

The volume family

The pattern family

The breakout trade

The retracement trade

Gaps

Feel the pulse of the market

The impact of dividends

Share price fall

Entry isn’t everything

Chapter 11: Speed counts. Should you get online?

Types of brokers

The pitfalls of online trading

Overconfidence

Overtrading

Computer skills required

My suggestion

Using human brokers

‘Trust me, I’m a professional’

‘It’s a good stock’

‘Leave some on the table for others’

‘You liked this share when it was $9.00. It’s only $4.50 today, so it must be twice as good now’

‘It can’t go down forever’

‘This one’s a sure thing!’

Finding the right broker

Top 10 broker qualities (for beginners in the sharemarket)

Top five broker qualities (for experienced traders)

Chapter 12: Show me the money!

Rounditis

Entry signals

Entry signals

Exit signals

Exit signals

Back-testing

Chapter 13: Sector analysis — your shortcut

Top-down analysis

Bottom-up analysis

Floats

Part IV: Trade management secrets

Chapter 14: GFC victims didn’t use stops

Risk

Discipline

Types of stops

Initial stops

Break-even stops

Trailing stops

Pattern recognition

When to move your pattern-based stop

Volatility

Volatility-based stops

How to use ATR

When to move your volatility-based stop

Technical indicators

Percentage drawdown

Partial exits versus full exits

Slippage

After-market activity

Chapter 15: Most people suck at money management

The equal-portions model

The market capitalisation model

Market capitalisation

How to use this model

The percentage-risk model

The 2 per cent rule

How to position size

Your risk is held at a constant level

Maximum position size

An advanced view

How much money do I need to start trading?

How much money will I make?

Summary

Step 1

Step 2

Step 3

Step 4

Chapter 16: More bang for your buck

Pyramids and inverted pyramids

Staged entry

Resetting stops

Average up, never average down

An example

Setting profit targets

Martingale versus anti-martingale systems

Chapter 17: It’s TattsLotto time

Mania

Reward yourself

Beware of overconfidence

Chapter 18: Warning! Measure or go broke

Win to loss probabilities

Dollars made compared with dollars lost

Frequency of trades

Expectancy

An example of positive expectancy

Negative expectancy

Record-keeping

Part V: Recession-smashing strategies

Chapter 19: Make the bear your friend

Act on your stops

Learn how to handle volatility

Don’t guess at the next market leaders

Short selling

The US market versus the Australian market

Broker considerations

CFDs

Entry strategies

Volume

Exit strategies

Position sizing

An example

The implications of dividends

Chapter 20: Options multiply your results

Definition of a call option

Writing call options

The covered call

The naked call

Buying call options

Definition of a put option

Writing put options

Buying put options

Option strategies

Chapter 21: New trading products

Part VI: Words of wisdom

Chapter 22: Associate with success

Your friends

Trainers

Corporate professionals

Authority figures

Forums and chat rooms

Your partner/spouse

Share-trading clubs

So who should you hang out with?

Are you ready to take charge?

Chapter 23: Write it down or suffer the consequences

Keep a trading diary

Monitoring your positions

Developing a trading system

Entry/exit methodology

Risk management

Money management

Your trading plan

Trading plan questions

Develop urgency

Chapter 24: Habits determine your success

Trading with the trend

Setting stop losses

Utilising a written trading plan

Developing money management skills

Remaining detached

Using an appropriate instrument

Persisting in the face of adversity

Standing on your own two feet

You are worthy of success

Chapter 25: The real secret

Your carrot and your stick

Also by Louise BedfordCharting Secrets The Secret of Candlestick Charting The Secret of Writing Options

This third edition first published in 2012 by Wrightbooks an imprint of John Wiley & Sons Australia, Ltd 42 McDougall St, Milton Qld 4064

Office also in Melbourne

Typeset in Perpetua Std Regular 12.5/14pt

First edition published by Wrightbooks 2001

Second edition published by Wrightbooks 2005

© Louise Bedford 2012

The moral rights of the author have been asserted

National Library of Australia Cataloguing-in-Publication data:

Author: Bedford, Louise.

Title: Trading Secrets: Killer Trading Strategies to Beat the Markets and Finally Achieve the Success You Deserve/Louise Bedford.

Edition: 3rd ed.

ISBN: 9781118319260 (pbk.)

Notes: Includes index.

Subjects: Stocks – Australia.

Speculation – Australia.

Stock exchanges – Australia.

Investments – Australia.

Dewey Number: 332.632280994

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.

Cover design by David Riedy

SuperCharts version 4 © TradeStation Technologies, Inc. Reproduced with permission. All rights reserved.

Printed in China by Printplus Limited

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Disclaimer

The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

Preface

Many years have passed since I wrote the first edition of Trading Secrets. When it came time to review the information I’d written all those years ago, I realised the old adage, ‘Markets stay the same more than they change,’ is still as true today as it has ever been. Sure, there are a few whiz-bang new tools, such as CFDs, and some new ways that I’ve learned to approach trading psychology, but, in essence, very little has changed since I first wrote Trading Secrets.

If you’ve read the previous editions, you’ll notice the differences I’m sure. I’ve added extra information in several chapters to bring you the latest and greatest concepts and tools that the share trading world has to offer. I have also interwoven relevant concepts into the very fabric of each chapter to update and refresh the information previously presented. The structure of this book reflects the way I believe you should approach the market to maximise your chances of success. Setting your enterprise up as a professional business and understanding the role of trading psychology are two of the most important things you can do. For this reason, I have placed these topics at the very beginning of the book.

This book is separated into six separate parts, as detailed below.

Part I — Business secrets

This introduces you to some of the most important aspects of establishing your trading career. It discusses data and software requirements, some techniques to help you handle trading pressure and the more functional issue of when to quit your day job.

Part II — It takes all sorts

This section shows you that all types of people can succeed at the trading game. The market does not discriminate. It rewards people who have skill, regardless of their gender, age or experience.

Part III — Trading tools

You’ll get into the meat of trading in this part of the book. By the end of this section, you’ll be comfortable with charts, indicators and trend analysis.