Mastering the Trade : Proven Techniques for Profiting from Intraday and Swing Trading Setups

by Carter, John F.

• ISBN13: 9780071459587
• ISBN10: 0071459588
• Edition: 1st
• Format: Hardcover
• Copyright: 2005-12-07
• Publisher: McGraw-Hill

Summary

Expert tactics to become make the most of every swing trade InMastering the Tradeveteran trader and educator John Carter shares his hard-won five-point technique for successful swing trading. In addition, Carter helps you move to the next level of confidence by explaining how markets really work and detailing behind-the-scenes market mechanics.

Author Biography

John F. Carter is president of Trade the Markets, Inc., and principal of the money management firm Razor Trading.

Table of Contents

Acknowledgments	p. vii
Foreword	p. xvii
Introduction	p. xix
Trader's Boot Camp	p. 1
Markets Don't Move Because They Want To, They Move Because They Have To	p. 3
Average Trader Profile: The Wrong Skills in the Wrong Place at the Wrong Time	p. 3
It's All About Pain and Suffering	p. 4
The Case Study You Won't Read About at the Harvard Business School	p. 6
Trading Rules for Sells/Shorts (Buys Are Reversed)	p. 13
It's Not the Economy, Stupid	p. 15
Psychology 101: What They Didn't Teach About Trading in School	p. 17
Emotions Are Fine at Weddings and Funerals	p. 17
Show Me a Guy with a System, and I'll Show You a Guy Who Is Welcome in My Casino	p. 18
The Right Mental Outlook for the Markets: Don't Turn on Your Computer Without It	p. 19
Phase I Trading: Destined to Lose-Traits That Make a Person a Success in Life Get Them Killed in the Markets	p. 22
Phase II Trading: Fear-Based Trading or, "Everything I Touch Turns to Crap"	p. 25
Phase III Trading: The Search for the Holy Grail: Holding Your Breath Is Not Advised	p. 25
Signs That a Trader Is Stuck in Phases I, II, or III	p. 27
Paper Trading: Why It's More Worthless Than an Iraqi Dinar	p. 30
Hardware and Software-Top Tools for Traders	p. 35
Hardware-It's All About the Ram	p. 35
Taming the Technological Beast: Key Things Every Trader Should Know to Keep Their Computers Alive and Well	p. 39
Turbo Charging the Trading Computer	p. 42
The Back Up Plan: What to Do When Your Computer Crashes or the Power Goes Out-Because They Will	p. 43
Not All Quotes Are Created Equal	p. 45
A Bad Execution Platform Can Inflict Capital Punishment on Your Account	p. 46
Opinions Are Like Bellybuttons; Everybody Has One	p. 51
Establishing Priorities: If You Are Getting Interrupted During the First Two Hours of Trading, It Is Your Fault	p. 52
Why Watching Harry Potter on DVD after 12 Noon Eastern Is Better Than Watching CNBC	p. 53
Markets 101-Understanding the Basic Mechanics of the Markets Discussed in This Book	p. 55
The World Beyond Stocks and Why It's Important	p. 55
Markets are a Reflection of the People Who Trade Them. Is Your Competition Wired on Starbucks or Methodically Filling in a Crossword Puzzle?	p. 57
Futures 101	p. 59
In a Nutshell-What Traders Need to Know	p. 60
The Mini-Sized Dow vs. the E-Mini S&P 500	p. 64
Liquidity Is King	p. 65
Contract Specifications-What a Trader Needs to Know to Trade Key Markets	p. 70
Forex for Newbies	p. 74
This Is How Forex Moves Are Measured	p. 77
How to Hedge Your Own Life in the Forex Markets	p. 79
For Traders, This Is All You Need to Know	p. 81
The Stock Market Is Now Open-Seven Key Internals to Gauge Intraday Market Direction	p. 83
Musicians Know How to Read Music; Traders Must Know How to Read the Markets	p. 83
TICKS-They Can Run but They Can't Hide	p. 84
TIKI-When Only the Fastest Heads Up Will Do	p. 90
TRIN: Like High School, It's All About Pressure	p. 92
TRINQ-The TRIN for the Nasdaq	p. 96
Put/Call Ratio-The Keys to the Kingdom	p. 97
Sector Sorter List-Beauty Is Not Only Skin Deep	p. 104
This Is How You Know It's Going to Be a Choppy Day	p. 104
Putting It All Together-Sizing Up the Trading Day from the Opening Bell	p. 107
Listening In on the Floor-The Value of Pit Noise	p. 110
Specific Intraday and Swing Trading Setups for Futures, Stocks, and Options, and Forex	p. 113
The Opening Gap: The First and Highest Probability Play of the Day	p. 115
Trading Without a Specific Setup in Mind is Like Hiking in the Amazon Without a Compass	p. 115
Not All Gaps Are Created Equal	p. 117
Trading Rules for Gap Down Buys (Gap Up Sells Are Reversed)	p. 120
Who Is Getting a Spanking and Why?	p. 121
Specific Examples of Trading the Gap	p. 122
What to Do with Unfilled Gaps	p. 128
Strategies for Those Who Can't Trade Full Time	p. 131
Position Sizing with a $100,000 Account	p. 131
Summing up the Gaps	p. 131
Pivot Points-Great for Trending Days and Even Better for Choppy Days	p. 133
Beating Indicator-Based Traders to the Punch	p. 133
Not All Pivots Are Created Equal	p. 134
Here's Exactly How I Set Them Up on My Charts	p. 135
The Psychology Behind the Pivots-Who Is Getting Burned	p. 140
Trading Rules for Pivot Buys on Trending Days (Sells Are Reversed)	p. 142
Trading Rules for Pivot Buys on Choppy Days (Sells Are Reversed)	p. 143
Trailing Stops in This Fashion Is the key	p. 157
Tips and Tricks for Using the Pivots	p. 158
What about Fibonacci Numbers?	p. 159
Summing Up the Pivots	p. 162
Scalper Buys and Scalper Sells-When Only a Quick Confirmation Will Do	p. 165
Identifying and Profiting from Changes in Trend without Catching a Falling Knife or Stepping in Front of a Freight Train	p. 165
Tick Charts Are Best for Scalping	p. 166
Trading Rules for Buys (Sells Are Reversed)	p. 167
Specific Examples of Scalper Buy and Sell Setups	p. 167
Summing Up the Scalper Buys and Sells	p. 184
Increase Probabilities of Success through Multi-Setup Combinations	p. 184
Tick Fades: Taking the Opposite Side of the Newbies	p. 185
The Number One Action Alert Available Today	p. 185
Trading Rules for Sell Fades (Buys Are Reversed)	p. 186
Specific Examples of Tick Fade Setups	p. 187
Summing Up the Tick Fades	p. 198
The Squeeze: Getting Positioned for the Big Market Moves	p. 199
Day Trading Versus Swing Trading	p. 199
Redefining Volatility-How Narrow Is Narrow?	p. 200
Getting the Heads Up for a Potentially Larger Move Before It Occurs	p. 201
Trading Rules for Buys (Sells Are Reversed)	p. 202
Summing Up the Squeezes	p. 221
The Key to Getting Positioned before a Market Crash	p. 222
Strategies for Those Who Can't Trade Full Time	p. 225
A Note on the Squeeze Indicator for TradeStation and eSignal	p. 226
Brick Plays-Letting the Markets Stack Up	p. 227
Using Bricks to Capture Intraday Reversals in the Mini-Sized Dow	p. 227
Trading Rules for Buys (Sells are Reversed)	p. 228
Summing Up the Bricks	p. 236
The Ping Pong Play-Batting the Markets Back and Forth... All Day Long	p. 237
A Trading Channel That Moves and Adapts to the Markets in Real Time	p. 237
Trading Rules for Buys (Sells Are Reversed)	p. 238
When You're Dancing with the Market, It's a Good Idea to Let It Lead	p. 248
The 3:52 Play: Capping off the Day with a Fine Cigar	p. 249
This Is Where the Other People Start to Panic	p. 249
Trading Rules for Buys (Sells Are Reversed)	p. 250
Summing Up the 3:52 Play	p. 261
Box Plays-On Days When the Stock Market Is Dead in the Water, Look to Currencies	p. 263
Measuring the Length of the Move Before It Occurs	p. 263
Trading Rules for Buys (Sells Are Reversed)	p. 265
Summing Up the Currency Box Play	p. 280
HOLP & LOHP-Catching Trend Reversals without Getting Smashed	p. 283
Buying a Market Just Because It Is Cheap, or Shorting a Stock Just Because It Is Expensive Is Dangerous-Unless It's Done Like This	p. 283
Trading Rules for Sells (Buys Are Reversed)	p. 284
Summing up the HOLP and LOHP Plays	p. 297
Propulsion Plays-Swing Plays Using Stocks, Single Stock Futures, and Stock Options	p. 299
Setting Up for the Bigger Moves in Individual Stocks	p. 299
The Trader's Guide to Single Stock Futures	p. 300
The Only Way to Play Individual Stock Options	p. 303
Trading Rules for Buy Fades (Sells Are Reversed)	p. 307
Summing Up the Propulsion Plays	p. 321
Market Profile-Removing the Mystery	p. 323
Following in the Footsteps of Elephants	p. 323
Specific Examples of Market Profile in Action	p. 324
Summing Up Market Profile	p. 330
Heading Back Into the Real World of Trading	p. 333
The Premarket Checklist-Creating a Game Plan for the Next Trading Day	p. 335
Like Running a Credit Check, to Understand What the Market is Going to Do in the Future, It Helps to Understand Its Past	p. 335
Monthly Chart Analysis	p. 336
Weekly Chart Analysis	p. 338
Daily Chart Analysis	p. 340
60-Minute Chart Analysis	p. 341
Daily RSI Chart Analysis	p. 342
60-Minute RSI Chart Analysis	p. 343
Index Radar Screen Alert	p. 344
Sectors and Key Stocks Radar Screen Alert	p. 344
The Key to Reading Daily Volume	p. 346
The Key Price Levels to Know Each and Every Trading Day	p. 346
Pivot Numbers, of Course	p. 348
Key Sentiment Readings	p. 348
It's a Good Idea to Know What These People Are Doing	p. 352
Miscellaneous Items	p. 353
What Does Your Mother Think?	p. 353
Summing Up the Premarket Checklist	p. 354
The Trader's Business Plan	p. 355
Who Gets to the World Series-the Team with a Plan or the Team That Decides to Wing It?	p. 355
Why Am I Trading Again This Year?	p. 356
Happy Wife, Happy Life	p. 357
What Markets Am I Going to Trade?	p. 358
Why These Markets? What Specific Trading Strategies Am I Going to Use?	p. 358
How Much Money Am I Going to Allocate to Each Trading Strategy and Setup?	p. 359
What Execution Methods Will I Be Using? What Parameters?	p. 359
How Am I Going to Track and Rank My Trades?	p. 360
What Are My Drawdown Rules?	p. 361
What Are My Profit Rules?	p. 362
What Is My Office Setup Going to Be Like?	p. 362
What Are My Rewards If My Trading Is Going Well?	p. 362
Are There Any Groups, People, or Organizations I'd Like to Help Out This Year?	p. 363
What are My Specific Plans for Staying "On Plan" Throughout the Year?	p. 363
What Am I Doing About my Physical Health?	p. 364
Concluding Thoughts on My Plan	p. 367
A Sample Plan from a Beginning Trader	p. 368
Summing up the Trading Plan	p. 378
When It's Not Working for You, No Matter What You Do	p. 381
Will Cry for Food-Using Your Emotions to Make Money	p. 381
The Four Seasons Hotel Trade	p. 382
Thank You, Sir, May I Have Another?	p. 382
When I Tick, You Tick, We Tick	p. 382
Dive, Captain, Dive	p. 383
High Five, Baby	p. 383
Discover Your Personality Type and Find Out If It's Holding You Back	p. 383
Personality Types and Trading-What You Don't Know about Yourself Can Hurt Your Trading	p. 386
Trading Really Isn't For Everyone-Alternatives to Consider	p. 388
Mastering the Trade	p. 391
Amateurs Hope; Professionals Steal	p. 391
40 Trading Tips for Maintaining a Professional State of Mind	p. 392
Surviving the Trader's Journey	p. 396
Conclusion and Final Thoughts	p. 396
Index	p. 399
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