Stock Market Strategies That Work

by Bernstein, Elliott

• ISBN13: 9780071381949
• ISBN10: 0071381945
• Edition: 1st
• Format: Paperback
• Copyright: 2001-12-20
• Publisher: McGraw-Hill

Summary

How to tradeshy;shy;andmake moneyshy;shy;in today's volatile marketMaking significant money in the stock market isn't a given. However, investors can greatly increase their odds of success by knowing the basics of how the market works andshy;shy;more importantshy;shy;how to trade profitablyin the market.Stock Market Strategies That Workgoes far beyond other introductory books on the market, explaining in step-by-step detail the specific techniques, systems, methods, and indicators that veteran investors have used for years to prey on the unsuspecting average investor and fatten their own trading accounts. Jake and Elliott Bernstein use numerous charts and graphs to emphasize timing, entry and exit methods, trend analysis, risk management, and other higher-level topics.Methods covered in this unique introduction to profitable investing include: Risk management in today's volatile market Charting techniques to track the consistent big movers Finding key entry and exit points using technical analysis

Author Biography

Jacob Bernstein is one of today's most popular and respected market analysts in futures and stocks. Bernstein is cofounder of the popular 2chimps.com stock market advisory website and the author of over 32 books on trading, including Momentum Stock Selection and The Compleat Day Trader. His research and trading methods are used by savvy traders all over the world.

Elliot Bernstein is cofounder of 2chimps.com, plus assistant market strategist and a regular contributor to the website. His areas of expertise include technical analysis, timing, mutual fund investment strategies, stock sector analysis, and alternative energy stocks. He has been a quest on Internet business television and a contributor to the Bernstein on Stocks newsletter.

Table of Contents

List of Illustrations	p. ix
Preface	p. xiii
Acknowledgments	p. xv
Beginnings	p. 1
The Big Lie	p. 2
The Experts Failed	p. 3
Risk Capital: The Bottom Line	p. 4
Can You Make Money in the Market without a Computer?	p. 9
Summary	p. 9
Playing The Game	p. 11
A Share of What?	p. 11
How Charts Help You Play the Game for Big Money	p. 13
Keeping Things Simple and Effective	p. 18
Trading on Margin	p. 20
Buy Low and Sell High or Buy High and Sell Higher? Two Ways to Play the Game	p. 22
Summary	p. 24
The Dos And Don'ts of Picking Winning Stocks	p. 27
A Few Basic Keys That Will Help You Pick Winning Stocks	p. 27
What's a Tech Stock?	p. 33
What's a Medical Stock?	p. 34
What's an IPO?	p. 34
Summary	p. 36
Picking a Stockbroker	p. 37
If You're Ready to Trade	p. 38
Why Are Commission Costs So Important?	p. 39
Do You Need All the Free Stuff?	p. 39
What's the Difference?	p. 39
Summary	p. 41
Trading The Cheapies	p. 43
Volume	p. 44
Who Are They?	p. 45
Number of Outstanding Shares	p. 46
Institutional Ownership: Trading with the Gorillas	p. 47
Insider Activity	p. 48
Low-Priced Stocks with High Short Interest	p. 48
Sex Appeal	p. 49
How to Buy and Sell Stocks Under $10	p. 50
Penny Stocks	p. 51
Too Many Choices for One Investor!	p. 52
Low-Priced Mutual Funds	p. 52
Summary	p. 53
The Technical Approach to Stock Market Strategies	p. 55
Timing Indicators, Systems, and Methods	p. 55
Types of Timing Indicators	p. 57
An Examination of Basic Timing Indicators	p. 60
Elements of an Effective Stock Trading System	p. 82
Support and Resistance Concepts	p. 83
The Value of Day Trading with Support and Resistance	p. 85
Summary	p. 87
Dollar Cost Averaging	p. 89
About DCA	p. 90
How Dollar Cost Averaging Works	p. 90
Summary	p. 91
Support and Resistance: The Mac	p. 93
Determining Support and Resistance	p. 95
The Moving Average Channel	p. 95
How Support and Resistance Develop	p. 97
Five Successive Bars	p. 107
Exiting Positions, Right or Wrong	p. 107
Channel Surfing	p. 113
A Few Precautions and Suggestions	p. 113
Summary	p. 119
Two Real-Time Examples	p. 121
Doing My Homework	p. 122
Why Fuel Cell?	p. 123
Timing the Trade	p. 124
Safety First	p. 125
Another Example	p. 126
Summary	p. 128
Implementing Market Strategies	p. 129
Using MOMMA	p. 129
Dollar Cost Averaging with Mutual Fund Investments	p. 135
A Comparison of Strategies	p. 137
Wrap Up	p. 140
Summary	p. 140
The Importance of Discipline: Maximizing Profits, Minimizing Losses, Following the Rules	p. 141
Trading Discipline: A Working Definition	p. 142
The Three Levels of Investing Discipline	p. 144
Closing Out Losers	p. 145
A Closer Look at Fear	p. 147
Overcoming the Fear of Investing	p. 149
A Few Closing Thoughts about Discipline	p. 149
Conclusion	p. 150
Summary	p. 151
Computerized Trading Systems	p. 153
Buy into the Myth	p. 154
Defining the Reality	p. 155
Let the Buyer Beware!	p. 155
Why Test a Trading System?	p. 156
Summary	p. 167
Glossary of Trading Terms	p. 173
Index	p. 181
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