Where to start >>
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Books to read
Where to start your
stock market and option trading?
That depends on what you already know or
don't know. That's what this site and coaching is about.
Information on this site
comes in three flavors...critical - important - useful. Do not conclude that all you need to
do is read about trading and then start trading.
It can't be done without paying the
market it's blood money in the school of hard
knocks. The site is meant to be used by my
in conjunction with full
one-on-one training sessions. You can
study this site and others,
you can buy books,
CDs, videos, and you still will need to learn
how it all comes together allowing you to trade
with the odds in your favor. You will need a
guide, a mentor, a coach. You will need
Stock and options trading requires
knowledge, skills, and
How have all those books, CDs, &
videos helped you so far? I
can tell you this: the books, CDs, etc., are all useful, indeed
necessary, for you to see the many things that make
mechanics and dynamics of the market and moves price;
but it is not what will teach you to trade.
It's all part
of what you need, but it isn't the secret
ingredient. That ingredient comes with
you've just read or
studied in relation to what you see in the
YOU CAN READ AND STUDY WEBSITES, BOOKS, CDs, FOR A LONG, LONG
TIME AND STILL KNOW NOTHING
ABOUT TRADING. YOU WILL NEED A
COACH. THAT'S A FACT OF
Stock market charts
are dynamic, fluid, morphing, living things that upon
observation you can
"see" human behavior therein. That's where you're going to start--
understanding that it's all about
We're talking about trading here, not
investing. So stop thinking like an
investor if you want to trade.
That's what books, CDs,
videos can't teach you that
a trading coach will.
Stop worrying about what
learn to trade what
not to do in order not
money, and you begin to
in order to win. You learn!
Where to start
stock & option trading?
First, let's not quit our day job.
If you plan properly though, you may slide into this business of
stock and option trading for a living over time. Give it a
good while. You need to experience up, down, and sideway
markets. You need to be able to prove consistency under those
different conditions. Be reasonable in your expectations.
I will show you how
you can do that without you losing your mind or a lot of money.
Does that sound reasonable? Secondly, decide now if you
want to make money or if you have a greater fear of losing money
that's stopping you from participating.
and ask for details or
Trading the Stock Market training programs available
If you opened a business, any business, you would want to know
something about the
environment, i.e., your market, your odds, your competition,
etc... Is opening a business taking a risk? Of
course it is. Stock trading is a business. You're
going to be in a business where money, the commodity you will be
working with, is sometimes cash and at other times it will be in
stocks or options or futures or all of them simultaneously. Money
is your inventory, but unlike any other business where we want to
unload inventory, here we want it to pile up.
As a business, some days or weeks are going to be better than
others. If you opened a restaurant and no one came in you
would still have overhead - that is a loss. So, we know that
as a business there will be good days and bad. The net
result at the end of the week or month is what matters most.
Were you, your business, profitable or not? You can't give
up due to losses, but you do have to
learn to accept losses and keep them small.
Accept losses as just a bad day at the business.
There is no one on this planet who can tell you what will happen
in the markets tomorrow or the next minute for that matter.
There are simply too many variables, too many participants
reacting to changes in those variables to make an absolute
prediction, therefore losses are inevitable.
What you will learn is how to put as many
of those positive variables on your side, thereby putting the odds
in your favor, and thus trade with confidence.
We can protect against losses, but we can't
elliminate them, and you will learn how to protect your money.
There are two sides to a trade, a buyer who buys at the ASK price
and a seller who sells at the BID price. Did you ever
consider that you are buying a stock thinking the price is going
up but you're buying it from someone who obviously thinks it's
going down, otherwise he/she wouldn't sell it, would they?
Welcome to the fear and greed
of the market. You need market risk, which is actually
opportunity, and you must accept the risk. You must be in
the market to be able to participate in the big moves. For
every bull there is a bear and vice versa. That's what makes
the risk (along with a dozen or so other variables) and therefore
Understanding that this is a business, where do we find a stock to
trade? We will use two classic approaches, the
or the Bottom Up approach. And these approaches will
bring us to a complete
action picture as show below:
Today's "Trader Thoughts" FREE >>
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You have already started by your association with a trading
coach. You'll use your
software, of course.
Note: If you are just getting involved in the markets you
will feel, at some point, like there is just an overwhelming
amount of material to know before you trade. The amount of
information out there is endless. However, there is
a difference between what you actually need to know in order to
trade and all the 'background noise' available to you in the
markets. Just don't panic, you can learn this. The
way you learn it is to follow the instructions and allow things
to fall in place. In its simplest terms you can trade
using only the charts. My perspective is that the charts
are affected by the
environment that you plan to trade in.
1. Determine your
True Risk Capital. Is this capital you can truly
afford to place at risk? It is preferable to start with
less and have a greater comfort level than to commit too much
right away and be uneasy from the start.
2. Determine your
trading style. Become familiar with common styles, day
trader, swing trader, buy and hold, aggressive, conservative,
and determine your focus timeframe and style. How much
time can you devote to trading? How patient are you?
Let this process evolve
rather than dictating to yourself in advance of practical
experience. You will find a style that fits over time.
3. Acquire a solid trading foundation.
You have taken this step already.
4. Learn specific tactics. This
course includes a multitude of advanced tactics with examples
taken from the market itself.
5. Learn how to
read the market internals. Learning how to read the
market indexes and market internals like a professional helps
you avoid being one of the herd, and assists in anticipating
potential market moves yet to come.
6. Know how to
prepare. Upon finishing this material, you will be
equipped not only with countless tactics but with suggested
routines to help you prepare for the market long before the
Paper trading. Learning by paper trading before ever
committing real funds is essential. Keep a log of your
paper trades. Until consistency and a positive expectancy
is developed, it is best to stick with paper trading.
patience! The knowledge and information contained in these pages
is enormous, so you should not expect to be able to apply this
knowledge in a day, week or month. Like anything
worthwhile, it does take time to learn and apply.
9. The most effective
way to manage the risk associated with margined trading is to
diligently follow a
disciplined trading style that consistently utilizes stop
and limit orders. Devise and adhere to a system
where your controls kick in when emotion might otherwise take
Now we are ready to start looking
specifically for something to trade,
either the stock, an option, a futures contract, and we will use
Bottom Up Approach.
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Book Recommendations below.
Reading Recommendations Use the Amazon link at the bottom of page.
Enroll by 2/8/13 and pick any 3 books shown below.
"Trading for a Living"
... learn about the psychology of
trading. Yes, it's important
- by Dr. Alex Elders
Excellent! Get this book - it will help you to make
sense of it all...highly recommended
"Technical Analysis for Dummies"
- by Barbara Rockefeller
"Candlestick Charting Explained"
authoritative abbreviated version (cheaper) of Steve Nison's classic on
by Greg Morris
"The Market Makers Edge"
- A great overview of tying it all together - by Josh Lukeman
"A Beginner's Guide To Day Trading Online"
Probably the most popular such book -
by Toni Turner
"The Options Workbook"
Get ready for your option trading - by Anthony Saliba
"Reminiscences of a Stock Operator"
This book was written in 1923 and it will still teach you about
trading psychology and emotions - by Edwin Lefevre
Master Swing Trader"..
Not for beginners!
Tools and techniques for short-term trade opportunities.
This is advanced technical regarding charts, setups, entry,
exits, but excellent if you are serious in the long term - by
Demise of the Dollar"
..learn about strong dollar vs. weak dollar consequences and
investing alternatives - by Addison Wiggin.
"Predicting Market Trends" ... (only available
in DVD format).. if the trend is your
friend then it would be nice to be able to identify them early -
by Alan Farley
"Fundamental Analysis for Dummies" ... we talk about
fundamental analysis, maybe we should really understand it...
by Matt Krantz
"Economics For Dummies" ... you'll hear and read about
economic developments every single day in the market, wouldn't
it be nice to appreciate the implications of what you just heard
on CNBC or Bloomberg? - by Sean Flynn
"Market Indicators" ... using indicators - from put/call
ratios to COT reports - that pros use every day... not
for absolute beginners but certainly something
that belongs in your trading library - by Richard Sipley
"Intermarket Analysis - Profiting from global market
relationships"... markets just don't go up and down on their own
in a vacuum. They act and react to forces greater than
themselves... to catch big trends you need to know how this
works. This is written in plain English, not economics-talk, with
simple charts to understand... Excellent resource - by John J.
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