The ART of Trading Combining the Science of Technical Analysis with the Art of Reality-Based Trading

by McDowell, Bennett A.; McMillan, Lawrence G.

• ISBN13: 9780470187722
• ISBN10: 0470187727
• Edition: DVD
• Format: Hardcover
• Copyright: 2008-04-25
• Publisher: Wiley

Summary

Topics covered in the text include: the theory of Reality Based trading and investing; the importance of simplicity in designing a financial approach and why less is more; how trading indicators like MACD and Stochastic create distracting noise and take you away from the reality of the markets; why EVERYONE should use a technical analysis system as part of their trading and investing approach; using reality to develop The Trader's Mindset and how important that is in your profitability; keeping your broker honest with technical analysis; using money management to evaluate the reality of your performance and manage risk; and ART? Basics a section on how to use the Applied Reality Trading? technical analysis software. The text will be written in plain English so that even the novice trader or investor will understand how to apply these techniques and profit from them. Yet, the book will also appeal to the seasoned advanced trader since the ART? methodology and software is currently used by sophisticated hedge fund managers around the world.

Author Biography

Bennett A. McDowell is the founder of TradersCoach.com® and an expert in both technical analysis and complex trading platforms. As a financial advisor and broker, McDowell used his own proprietary trading system to serve a community of high-net-worth clients. This system later became known as Applied Reality Trading® or ART, and today is used by traders and investors in more than forty countries around the world. McDowell lectures frequently and writes articles for many leading trading publications, including Technical Analysis of Stocks & Commodities magazine. He is a recognized leader in trading education and is honored to be a member of the eSignal "Trading with the Masters" team.

Table of Contents

Foreword	p. ix
Preface	p. xi
Acknowledgments	p. xiii
Diclaimer	p. xv
Introduction	p. xvii
Reality	p. 1
It's All About Reality	p. 3
The Reality of Price and Volume	p. 7
Managing Risk: Always Set a Stop-Loss Exit	p. 13
If It Sounds Too Good to Be True...	p. 19
Personal Methods to Increase Trading Success	p. 23
Identify Your Personal ART Profile	p. 27
Art	p. 39
Design Your Business Plan	p. 41
Selecting a Financial Market	p. 47
Selecting a Time Frame	p. 55
Selecting an ART Platform, Broker, and Data Feed	p. 59
Psychology and the Trader's Mind-Set	p. 63
Artistic Simplicity	p. 67
The Art of Paper-Trading	p. 71
Science and Math	p. 75
Calculating Proper Trade Size	p. 77
Other Formulas and Recipes	p. 83
The Human Brain	p. 87
ART System Basics	p. 91
ART Is the Total Solution	p. 93
Pyramid Trading Points (P and MP)	p. 97
Market Truths: Price Bars and Volume	p. 115
ART Reversal Bar Signals (1B and 2B)	p. 121
Trend-Trading Rules	p. 135
Countertrend-Trading Rules	p. 141
Scalping Rules	p. 147
Advanced Techniques	p. 155
When to Use Advanced Techniques	p. 157
Scaling Out and Scaling In	p. 161
How to Trade Bracketed Markets	p. 167
Software Optimization and Average True Range (ATR)	p. 179
Stop and Reverse (SAR)	p. 183
Higher-Time-Frame Filter	p. 187
Other Filter Techniques	p. 205
Elliott Wave-Ungrounded Assessment	p. 215
Other Ungrounded Assessments	p. 223
Epilogue	p. 231
About the DVD	p. 233
ART Software Quick-Start	p. 237
ART Tips	p. 241
ART Software Technical Support	p. 243
Resources	p. 247
Glossary	p. 263
About the Author	p. 285
Index	p. 287
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