Book description
Now updated — your guide to trading success regardless of the market!
Want to make smarter trading decisions? This strategy-packed, no-nonsense guide presents a proven system for analyzing stocks, trends, and indicators and setting a buy-and-sell range beforehand to decrease your risk in both up and down markets. You'll discover the benefits of position trading, conduct technical analysis, and research your entry and exit points before you even purchase your stock.
Build your trading toolbox — know the markets and exchanges, find a broker, set up your brokerage account, and determine your computer/Internet needs
Explore position trading — discover the benefit of executing trades in and out of positions and holding positions for various lengths of time, depending on trends
Find value in fundamental analysis — observe market behavior, understand economic indicators, find critical information in financial statements, and make the most of analysts
Take on technical analysis — build and read charts, identify trends, recognize bull and bear patterns, and differentiate between stocks that are range bound and ones that are trending
Develop strategies for buying and selling — know your risks, gather key info through analysis to build your optimum trading strategy, and develop your own powerful trading system
Jump into the deep end — from swing and day trading to derivatives and foreign currency, get the basics of these riskier forms of trading
Open the book and find:
The ins and outs of trading stocks
Fresh ways to analyze trends and indicators
Updated stock charts and Web sites
Position trading tips and techniques
Step-by-step instructions for building and reading charts
Key money management techniques
Warnings about frauds and scams
Top ten trading survival techniques
Huge trading mistakes to avoid at all costs
Table of contents
- Copyright
- About the Authors
- Acknowledgments
- Publisher's Acknowledgments
- Introduction
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I. So You Want to Be a Trader: Gathering Your Tools
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1. The Ups and Downs of Trading Stocks
- 1.1. Trading versus Investing
- 1.2. Why Trade?
- 1.3. Successful Trading Characteristics
- 1.4. Tools of the Trade
- 1.5. Taking Time to Trade More than Just Stocks
- 1.6. Going Long or Short
- 1.7. Managing Your Money
- 1.8. Understanding Fundamental Analysis
- 1.9. Getting a Grip on Technical Analysis
- 1.10. Putting Trading Strategy into Practice
- 1.11. Trading at Higher Risk
- 1.12. Remember: Have Fun!
- 2. Exploring the Markets and the Stock Exchanges
- 3. Going for Broke(r): Discovering Your Brokerage Options
- 4. Putting Your Computer to Work: Your Key Business Tool
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1. The Ups and Downs of Trading Stocks
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II. Reading the Fundamentals: Fundamental Analysis
- 5. Fundamentals 101: Observing Market Behavior
- 6. Digging Into the Critical Parts of Fundamental Analysis
- 7. Listening to Analyst Calls
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III. Reading the Charts: Technical Analysis
- 8. Reading the Tea Leaves: Does Technical Analysis Work?
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9. Reading Bar Charts Is Easy (Really)
- 9.1. Creating a Price Chart
- 9.2. Identifying Simple Single-Day Patterns
- 9.3. Identifying Trends and Trading Ranges
- 9.4. Searching for Transitions
- 10. Following Trends for Fun and Profit
- 11. Calculating Indicators and Oscillators
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IV. Developing Strategies for When to Buy and Sell Stocks
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12. Money Management Techniques: When to Hold 'em, When to Fold 'em
- 12.1. Identifying Important Characteristics of a Successful Trader
- 12.2. Opening the Door to Successful Trading
- 12.3. Managing Your Inventory
- 12.4. Protecting Your Principal
- 12.5. Understanding Your Risks
- 13. Using Fundamental and Technical Analyses for Optimum Strategy
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14. Executing Your Trades
- 14.1. Entering and Exiting Your Trade
- 14.2. Selling Stocks Short
- 14.3. Avoiding Regulatory Pitfalls
- 14.4. The Tax Man Cometh
- 15. Developing Your Own Powerful Trading System
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12. Money Management Techniques: When to Hold 'em, When to Fold 'em
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V. Risk-Taker's Paradise
- 16. The Basics of Swing Trading
- 17. The Basics of Day Trading
- 18. Doing It by Derivatives
- 19. Going Foreign (Forex)
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20. Trading for Others: Obtaining Trading Licenses and Certifications
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20.1. Getting to Know the FINRA Series
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20.1.1. Becoming a registered representative
- 20.1.1.1. Series 3: National Commodity Futures
- 20.1.1.2. Series 6: Investment Co./Variable Contract Representative
- 20.1.1.3. Series 7: General Securities Representative
- 20.1.1.4. Series 9 and 10: General Securities Sales Supervisor
- 20.1.1.5. Series 22: Direct Participation Programs Limited Representative
- 20.1.1.6. Series 42: Registered Options Representative
- 20.1.1.7. Series 55: Limited Representative Equity Trader
- 20.1.1.8. Series 62: Corporate Securities Limited Representative
- 20.1.1.9. Series 63: Uniform Securities Agent State Law Examination
- 20.1.1.10. Series 82: Limited Representative/Private Securities Offerings
- 20.1.2. Becoming a registered principal
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20.1.1. Becoming a registered representative
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20.2. The ABCs of Financial Advisors
- 20.2.1. Accredited Asset Management Specialist
- 20.2.2. Chartered Financial Analyst
- 20.2.3. Certified Financial Planner
- 20.2.4. Certified Fund Specialist
- 20.2.5. Chartered Financial Consultant
- 20.2.6. Chartered Life Underwriter
- 20.2.7. Chartered Market Technician
- 20.2.8. Chartered Mutual Fund Counselor
- 20.2.9. Personal Financial Specialist
- 20.2.10. Registered Financial Consultant
- 20.3. The Licenses and Certifications You Need When Trading for Others
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20.1. Getting to Know the FINRA Series
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VI. The Part of Tens
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21. Ten (Or More) Huge Trading Mistakes
- 21.1. Fishing for Bottoms
- 21.2. Timing the Top
- 21.3. Trading Against the Dominant Trend
- 21.4. Winging It
- 21.5. Taking Trading Personally
- 21.6. Falling In Love
- 21.7. Using After-Hours Market Orders
- 21.8. Chasing a Runaway Trend
- 21.9. Averaging Down
- 21.10. Ignoring Your Stops
- 21.11. Diversifying Badly
- 21.12. Enduring Large Losses
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22. Top Ten Trading Survival Techniques
- 22.1. Build Your Trading Tool Chest
- 22.2. Use Both Technical and Fundamental Analyses
- 22.3. Choose and Use Your Favorite Tools Wisely
- 22.4. Count on the Averages to Make Your Moves
- 22.5. Develop and Manage Your Trading System
- 22.6. Know Your Costs
- 22.7. Know When to Hold 'Em and When to Fold 'Em
- 22.8. Watch for Signals, Don't Anticipate Them
- 22.9. Buy on Strength, Sell on Weakness
- 22.10. Keep a Trading Journal and Review It Often
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21. Ten (Or More) Huge Trading Mistakes
Product information
- Title: Trading for Dummies® 2nd Edition
- Author(s):
- Release date: June 2009
- Publisher(s): For Dummies
- ISBN: 9780470438404
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