Trend Trading For Dummies E-Book

Barry Burns

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

Seitenzahl: 414

Veröffentlichungsjahr: 2014

Beschreibung

Trend trading lets the market do the work for you

Is your portfolio doing all it should? Are you looking for a market-focused way to increase returns? Try your hand at trend trading. Instead of analyzing the performance of a company, analyze the performance of the market as a whole. When you spot a trend, jump on it and let it ride until it's time to move. Whether your strategy is short-term, intermediate-term, or long-term, trend trading can help you capitalize on the action of market and get the most out of every move you make.

Trend Trading For Dummies will get you up to speed on the ins and outs of this unique technique. You'll learn how to spot the trends and just how heavily market analysis figures into your success. You can get as complex as you like with the data for long-term predictions or just go for quick rides that pump up your gains. Before you jump in, you need to know the basics that can help ensure your success.

• Learn the rules of trend trading and why you need a solid system
• Understand technical analysis to make accurate predictions
• Analyze the market and learn what to look for before you trade
• Use leverage to your advantage to make better moves

Trend Trading For Dummies includes trading strategies that you can use as-is, or customize to suit your needs. Thorough preparation is the key to any good trading plan, and it's no different with trend trading. Trend Trading For Dummies allows you to trade using every angle, and will get you out of or into the market in a flash.

Leseprobe

Trend Trading For Dummies®

Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2014 by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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Library of Congress Control Number: 2014931921

ISBN 978-1-118-87128-7 (pbk); ISBN 978-1-118-87136-2 (ebk); ISBN 978-1-118-87140-9 (ebk)

Manufactured in the United States of America

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Trend Trading For Dummies

Visit www.dummies.com/cheatsheet/trendtrading to view this book's cheat sheet.

Table of Contents

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part I: Getting Started with Trend Trading

Chapter 1: What Is Trend Trading?

Figuring Out What the Trend Is in the First Place

Knowing Why the Trend Works

Being a follower by nature

Following the leader

Understanding Why You Should Trade with the Trend

Trends make your life easier

Trends can make you more money

Trend Trading as Part of a Complete System: The Five-Energy Methodology

Chapter 2: Gathering What You Need to Get Started

Creating Your Trend Trading Toolbox

Choosing the right broker

Picking the right trading hardware

Exploring trading software options

Deciding on your Internet access

Getting the best connection to the exchange

Always Preparing for an Emergency

Using a battery backup

Keeping that cellphone handy

Having a non-AC-powered landline

Chapter 3: Considering the Risks of Trading

Acknowledging the Ugly Truth about Trading

Being Aware of Leverage and Margin

Leverage: A double-edged sword in the battle for wealth

Margin: The requirements for the privilege of using leverage

Going Broke While You Sleep: Overnight Gaps

Dealing with Technology Errors

Trading Halts, Suspensions, and Curbs

Knowing What to Do When (Not If) a Crisis Occurs

Economic disasters

Broker problems

Fat-finger trades

Chaos unleashing on the markets

Chapter 4: Understanding the Advantages and Disadvantages of Trend Trading

Discovering the Advantages of Trading with the Trend

Getting big, winning trades

Avoiding choppy, chaotic market movement

Having confirmation before entering

Realizing the Disadvantages of Trend Trading

Having more losers than winners

Getting bored

Not getting the earliest entry

Part II: Essential Trend Trading Strategies

Chapter 5: Price Waves You Can Surf to Profits

Grasping the Basics of Wave Theory

Elliott waves for fun and profit

Fibonacci levels – trading the golden mean

Looking at the Limitations of Subjective Wave Counting

Objectifying Waves for Trading Clarity and Confidence

Measuring cycles

Measuring waves

Chapter 6: Looking at Chart Indicator Tools

ADX Indicator: Finding Strong Trends

Staying on the right side of the market with the ADX

Trading the ADX indicator

Bollinger Bands: Seeing Both Trend and Volatility in One Tool

Getting a clear signal

Trading Bollinger Bands the right way

Moving Averages: Charting the Markets

Following the closing price

Trading moving averages

Chapter 7: Understanding Broad-Based Market Indicators

Seeing What Others Can’t: Volume Patterns

Going up with the buying volume index

Coming down with the selling volume index

Focusing on the difference between the up/down volume indexes

Looking Behind the Scenes: The Advance/Decline Line

Advancing issues versus declining issues

The difference between the advancing and declining signals

TRIN: Combining Price Action and Volume

Trading with Market Consensus

Sector consensus

Industry consensus

Creating and analyzing your own list of sectors and industries

Getting a “Feel” for the Market: Market Sentiment Indicators

Mood swings don’t always result in market swings

Sentiment indicators as contrarian indicators

VIX: Watching for the Volatility Outliers

Chapter 8: Knowing What Time You Want to Trade

Trading Is All Relative to Time

Understanding time intervals

Discovering the importance of time when trading

Day Trading: Taking It One Day at a Time

Advantages of day trading

Disadvantages of day trading

Swing Trading: Holding On a Little Longer

Advantages of swing trading

Disadvantages of swing trading

Investing: Staying in for the Long Term

Advantages of investing

Disadvantages of investing

Chapter 9: How to Make Money When the Market Goes Up or Down

Trend Trading to the Short Side

Discovering what makes short trading so exciting

Understanding the challenges of shorting the market

Trend Trading to the Long Side

Exploring the advantages of going long

Being aware of the disadvantages of trading to the long side

Part III: Becoming a Top Trader with the Five-Energy Method

Chapter 10: Cycle Timing Tools: Finding the Best Time to Enter a Trend

Trading the “Wiggle” of the Trend

Exploring the Stochastic Indicator as Your Cycle Timing Tool

Realizing the best timing tool isn’t a timing tool

Optimizing the timing tool for optimal entries