The Compleat Day Trader, Second Edition

Preface<br/>Acknowledgments<br/>1. Where We Have Been and Where We Are Going<br/>What Follows<br/>The Forces and Factors behind Record-Breaking Volatility<br/>The Electronic Revolution and Trading<br/>Day Trading Is More Viable than Ever<br/>2. The Basics: Definitions, Tools, and Considerations<br/>Does a Day Trader Trade “Anything That Moves”?<br/>Why Day-Trade?<br/>What You Will Need<br/>3. The Trading Model: Setup, Trigger, and Follow-Through<br/>Market Structure<br/>A Closer Look at the STF Structure<br/>Conclusion<br/>4. Trading System Development and Testing<br/>System Development<br/>What Is a Trading System?<br/>Taking a Random Walk<br/>What’s Left?<br/>Markets Change; Market Participants Change<br/>Striving for Solutions<br/>The Role of Artificial Intelligence<br/>Implications for the Future<br/>5. Day Trading with Moving Averages<br/>Moving Average Basics<br/>Traditional Moving Systems: Assets and Liabilities<br/>The Final Analysis<br/>6. Day Trading with Support and Resistance: The Moving Average Channel<br/>Overview of the Moving Average Channel<br/>Step-by-Step Procedures for Day Trading with My MAC<br/>Opportunities: Conservative and Aggressive<br/>Profit-Maximizing Strategies with the MAC Method<br/>A Few Precautions and Suggestions<br/>Is the MAC Totally Objective?<br/>Using the Channel Technique with Other Methods<br/>Evaluation of the MAC<br/>7. The Media Day Trade<br/>A Typical Media Day Trade Scenario<br/>Typical Behavior<br/>Procedure for Making Media Day Trade<br/>A Closer Look at Exit Strategies<br/>8. Day Trading with Momentum and MACD<br/>What Is Momentum?<br/>What Momentum Can Do for You<br/>General Characteristics of Momentum<br/>Momentum Divergence<br/>Momentum Is a Leading Indicator<br/>Momentum Timing: Signals<br/>Identification of Momentum Buy Signals<br/>Choosing the Sell Point after Bearish Momentum Divergence<br/>Moving Average Convergence-Divergence as Trigger<br/>Stop Loss and Profit-Maximizing Strategy<br/>9. Day Trading with Gaps<br/>Opening Gaps<br/>Frequency of Opening Gaps<br/>Gap Open Signals<br/>Observations about Gap Day-Trade Rules<br/>Psychology of the Gap Higher Opening and Sell Trade<br/>Stop Losses and Follow-Up Stop Losses on Gap Trades<br/>Alternate Gap Trade Exit Method<br/>Delayed Gap Open Signals<br/>Some Observations about the Gap Technique<br/>Overview of Effective Rules and Procedures for Gap Trades<br/>Get Some Experience<br/>Gap Size and Penetration Size<br/>What You Can Realistically Expect from Gap Trading<br/>A Few Last Words about Stop Orders<br/>Takeaway Points<br/>10. Using the Eight Open, Eight Close Method<br/>How the Eight Open, Eight Close Method Works<br/>Another Application of the Eight OC Method<br/>11. Profit-Maximizing Strategies<br/>The Importance of Sufficiently Large Stop Losses<br/>Increasing Profits through Position Size Management<br/>Trade Management through Equity Filter Application<br/>Some Salient Points<br/>The Danger Zone Concept<br/>Using a Moving Average as a Tailing Stop<br/>Gap Trade Profit-Maximizing Strategies<br/>Conclusions and Summary of Profit-Maximizing Strategies<br/>12. The Psychology of Day Trading<br/>Discipline: The Essential Ingredient<br/>Persistence<br/>Willingness to Accept Losses<br/>The Ability to Avoid Overtrading<br/>The Ability to Specialize<br/>What Should the New Day Trader Trade?<br/>Beginning with Sufficient Capital<br/>The Ability to Use News to Your Advantage<br/>Taking Advantage of Brief Price Surges<br/>Sticking to Your Daily Goal<br/>Using Market Sentiment to Find Day Trades<br/>Conclusions<br/>13. Losing Mistakes and Winning Behaviors<br/>Losing Mistakes<br/>Winning Behaviors<br/>14. Putting It All Together<br/>Organization<br/>Concluding Remarks<br/>Index