Home Stocks Futures Contact Order

TRADING IS A BUSINESS

by Joe Ross


  TABLE OF CONTENTS 1
  ACKNOWLEDGEMENTS 6
  ABOUT THIS REVISION 6
  PREFACE 7
1 BACKGROUND 9
2 LET'S GET ON WITH IT 12
3 MOST TRADERS KNOW HOW TO TRADE 14
3.1 TRADERS ARE EXCELLENT STUDENTS 14
4 MENTAL GRIDLOCK 16
4.1 THE RIGHT ANSWER 16
5 PATTERNS, RULES, AND PROCEDURES 18
5.1 PESO PETE 18
6 EXPECTING MARKETS TO BE LOGICAL 22
6.1 ENGINEERED MARKETS 22
7 BELIEVING YOU ARE NOT INTUITIVE. 24
8 THINKING YOU HAVE TO TRADE 26
9 MAKING A SCIENCE OUT OF AN ART FORM 28
10 TRYING FOR PERFECTION 30
10.1 AFRAID TO BE WRONG 31
11 SELF EXAMINATION 37
12 TRADING IS A BUSINESS 40
13 MISTAKES 46
13.1 OVERTRADING 46
13.2 LACK OF PERSPECTIVE 48
13.3 FEAR 52
13.4 YOU STAY IN TOO LONG 53
13.5 YOU EXPECT TOO MUCH FROM A TRADE 53
13.6 GREATER FOOL 54
13.7 YOU'RE GREEDY 55
13.8 YOU THINK TRADING IS AN INVESTMENT 56
13.9 YOU'RE DESPERATE 56
13.10 YOU LISTEN TO OPINION 56
13.11 YOU'RE LOOKING FOR THE HOLY GRAIL 57
13.12 BOREDOM 59
13.13 YOU DON'T KNOW WHAT IT MEANS TO LET PROFITS RUN 60
13.14 YOU DON'T UNDERSTAND RISK 61
13.15 YOU DON'T UNDERSTAND ABOUT LOSING 61
13.16 YOU TRY TO REINVENT THE WHEEL 62
13.17 YOU SHOOT YOUR MOUTH OFF!! 63
13.18 YOU'RE LYING AND DISHONEST 64
13.19 FAST EDDIE SILVER 64
13.20 STUBBORN 70
13.21 YOU LACK HUMILITY 70
13.22 YOU CONTINUE TO THROW GOOD MONEY AFTER BAD 71
14 WISTFUL WILLIE WHEAT 73
15 LET'S PUT YOU BACK TOGETHER 77
15.1 RESOURCEFULNESS 77
15.2 DILIGENCE 78
15.3 FLEXIBILITY 79
16 KNOWLEDGE 80
16.1 KNOW YOURSELF 80
16.2 KNOW ABOUT TRADING 84
17 TRADING WISDOM 88
18 TRADING RULES 91
18.1 MANAGEMENT 91
18.2 PYRAMIDS 91
18.3 SEASONALITY 92
18.4 STOPS 92
18.5 TRADING PHILOSOPHY 93
18.6 TRADING RULES AND OBSERVATIONS 94
18.7 TRENDS 96
19 PATIENCE 97
20 PERSEVERANCE 99
21 HONESTY AND TRUTH 100
22 BUILDING CHARACTER 102
22.1 THE LIFE INDEX 102
22.2 USING THE LIFE INDEX 104
22.2.1 TRADING LIFE 104
22.2.2 PHYSICAL LIFE 105
22.2.3 RELATIONAL LIFE 106
22.2.4 EMOTIONAL LIFE 107
22.3 CHARTING YOUR LIFE INDEX 107
23 MAKING PROFITS 112
23.1 TAKING PROFITS QUICKLY 112
23.2 COMMISSIONS 114
23.3 MEDIOCRE WINDFALL PROFITS 115
23.4 FANTASTIC WINDFALL PROFITS 115
23.5 LOSSES 116
24 TAKING PROFITS SLOWLY 120
24.1 TOO DEEP POCKETS 121
24.2 SCALE TRADING 122
25 PATTERNS FOR SUCCESS 124
25.1 MAJOR ENTRY SIGNALS 124
25.2 THE BREAKOUT OF A TRADING RANGE 125
25.3 THE BREAKOUT OF A 1-2-3 HIGH OR LOW 127
25.4 THE BREAKOUT OF A LEDGE 128
25.5 THE BREAKOUT OF A HOOK 132
25.6 SUMMARY: MAJOR ENTRY SIGNALS 133
25.7 ADDITIONAL ENTRY SIGNALS 134
26 THE TRADING CYCLE 141
27 THE TRADER'S TRICK 143
27.1 THE TRICK 143
28 FLEXIBILITY 145
29 MANAGEMENT 147
29.1 PLANNING 147
29.2 ORGANIZING 147
29.3 DELEGATING 148
29.4 DIRECTING 148
29.5 CONTROLLING 149
29.6 TRADE MANAGEMENT 149
29.7 RISK MANAGEMENT 150
29.8 MONEY MANAGEMENT 153
29.9 BUSINESS MANAGEMENT 154
30 ORDERING 155
30.1 TYPES OF ORDERS 155
30.2 RECORDING 155
30.3 ORDER TICKET 156
30.4 BE CONCISE 158
30.5 USE RESTING ORDERS 158
30.6 CANCEL ORDERS NO LONGER IN EFFECT 158
30.7 USE ACCEPTABLE ORDERS 159
30.8 TYPES OF ORDERS 159
30.8.1 MARKET ORDERS 160
30.8.2 MIT ORDERS 160
30.8.3 STOP ORDERS 161
30.8.4 LIMITING ORDERS 162
30.8.5 TIME LIMIT ORDERS 162
30.8.6 LENGTH-OF-LIFE LIMIT ORDERS 163
30.8.7 PRICE LIMIT ORDERS 164
30.8.8 PRICE LIMIT MARKET ORDERS 164
30.8.9 PRICE LIMIT MIT ORDERS 164
30.8.10 PRICE LIMIT STOP ORDERS 164
30.8.11 OTHER ORDERS 165
30.8.11.1 OCO 165
30.8.11.2 CONTINGENCY ORDERS 165
30.9 OTHER CONSIDERATIONS 165
30.9.1 SPECIAL SITUATION ORDERS 166
31 TECHNICAL ANALYSIS 168
31.1 TECHNICAL INDICATORS 168
32 SOME VERY BASIC TRADING 169
33 STAY WITH THE TREND 184
34 TRADE SELEcTION 199
34.1 3 X 3 MOVING AVERAGE 201
34.2 DAILY TRADER'S TRICK 202
34.3 B-POUND 204
35 FINDING AND STAYING WITH THE TREND 216
35.1 KEEPING LOSSES SMALL 220
35.2 STAYING WITH WINNERS 221
35.3 TRAPPING TECHNIQUE 224
35.4 AN ESTABLISHED TREND 224
35.5 MY ENTRY TECHNIQUE 226
36 GET REAL 235
37 ANTICIPATORY TRADING 239
38 TRADING PLAN 243
38.1 TRADING PLAN LIST 243
38.1.1 TRADE ENTRY 243
38.1.2 COST COVERING LIQUIDATION 244
38.1.3 CONTINUATION AND CLOSE-OUT 244
38.2 AUDITING THE PLAN 245
38.2.1 TRADE ENTRY 245
38.2.2 COST COVERING LIQUIDATION 246
38.2.3 CONTINUATION AND CLOSE-OUT 246
39 THE REAL PROBLEM IN THE MARKET 248
40 WRAP-UP 254
  APPENDIX A 256
  A COMPOSITE 256
  THE MARKETS 257
  FUNDAMENTAL VERSUS TECHNICAL 258
  PREDICTING THE FUTURE 259
  SELF CONTROL 260
  LEARN THE BASICS 262
  CAPITAL AND COMMITMENT 262
  HOW MUCH CAN YOU AFFORD TO LOSE? 262
  COMMITMENT 263
  LOSSES AND MARGIN CALLS 263
  OPINION 264
  APPENDIX B 265
  GEMS OF WISDOM 265
  PURPOSE 265
  DON'T BE ENTICED 265
  BENEFITS OF WISDOM 266
  WISDOM IN FINANCIAL SITUATIONS 266
  CONCERNING LAZINESS 266
  WISDOM AND FOOLISHNESS CONTRASTED 267
  WEALTH AND POVERTY CONTRASTED 268
  PRIDE AND HUMILITY CONTRASTED 268
  THOUGHT PROVOKERS 268