Swing and Day Trading Evolution of a Trader

by Bulkowski, Thomas N.

• ISBN13: 9781118464229
• ISBN10: 1118464222
• Edition: 1st
• Format: Hardcover
• Copyright: 2013-01-22
• Publisher: Wiley

Summary

A series of books from trader Tom Bulkowski focused on how you, too, can learn to become a full-time trader. The series is split into three different books, each detailing different fundamental techniques to hone your market knowledge and trading style: Book 1: Trading the Stock Market, ~231 pages. This is the basic introduction to trading the stock market detailing how the market functions, how to view and analyze it, and how to think about it. It ends with specific trades from Tom and anecdotes from other veteran traders that he has compiled into fascinating trading horror stories. Book 2: Value Investing, ~330 pages. This includes both buy-and-hold investing style (think Buffett) and position trading (PT). The author includes positional trading, because it's closer to buy and hold than other shorter-term trading styles. Many value investors these days are really position traders. Book 3: Swing and Day Trading, ~350 pages. This includes strategies for becoming a swing or day trader.

Author Biography

THOMAS N. BULKOWSKI is a successful investor with thirty years of experience in the stock market. He is also the author of the Wiley titles Encyclopedia of Candlestick Charts, Encyclopedia of Chart Patterns, Getting Started in Chart Patterns, Trading Classic Chart Patterns, and Visual Guide to Chart Patterns. Bulkowski is also a contributor to Active Trader, Technical Analysis of Stocks & Commodities, and other publications worldwide. Before earning enough from his investments to retire from his day job at age 36, Bulkowski was a hardware design engineer with Raytheon and a senior software engineer for Tandy Corporation.

Table of Contents

Preface

Acknowledgments

Chapter 1 Introduction to Swing Trading

What is Swing Trading?

Who Should Swing Trade?

A Swinging Example

Looking Ahead

Chapter 2 Swinging Techniques

Quick Review: Support and Resistance

Trendline Trading

Trading Using Channels

The Three-Bar Net Line Setup

First Thrust Pattern for Swing Trading

Chapter 3 Swinging Chart Patterns

Which Chart Patterns Work Best for Swingers?

Trading the High and Tight Flag

HTF Trade in Insteel Industries

Fishing for Inverted and Ascending Scallops

Scallop Trading Tips

Twice is Nice: Eve & Eve Double Bottoms

Trading Eve & Eve

Top 7 Frequently Traded Chart Patterns

My Favorite Chart Patterns

Swinging Throwbacks and Pullbacks

Trading Example

CNO Throwback Entry

Measuring Swings

FTO Trade

Chapter 4 Swing Selling

Selling Ideas

Top 20 Chart Pattern Performers

Diamond Tops and Bottoms

Complex Head-and-Shoulders Tops

My 10 Favorite Sell Signals

Trading Example: The Teradyne Exit

Trading Example: Exiting Forest

Trading Example: Swinging CNO

Chapter 5 Event Pattern Setups

Common Stock Offerings Setup

Surviving a Dead-Cat Bounce

The Inverted Dead-Cat Bounce Setup

Trading Dutch Auction Tender Offers

Earnings Surprise Setup

Earnings Flag Setup

Stock Upgrades and Downgrades

Stock Splits

Setup: Trading Reverse Splits

Chapter 6 Swinging Tools and Setups

The Chart Pattern Indicator

The Swing Rule

Pump Up the Volume or Not

Selecting Winners Using Index Relative Strength

3 Swing Trading Setups

Trading Setup: Simple Moving Average Tests

The Smile and Frown Setup

Trading Smiles and Frowns

Smile and Frown Trading Tips

Chapter 7 Introduction to Day Trading

What is Day Trading?

Why Day Trade?

Is Day Trading For You?

What are the Problems of Day Trading?

Chapter 8 Day Trading Basics

Managing Expectations: How Much Can You Really Make?

Building the Home Office

Office Setup Cost

Pattern Day Trading Rules

Wash Sale Rule

8 Tips for Picking Stocks to Day Trade

Price Reversal Times Revealed!

What Time Sets Intraday High and Low?

Inside Level II Quotes

Heartbeat of the Market: Time-and-Sales Ticker

Pre-Market Checklist

After Market Analysis

Chapter 9 Opening Gap Setup

Opening Gap Test Data

Setup: Fading the Opening Gap

Sample Trade

Chapter 10 Day Trading Chart Patterns

Day Trading Double Tops

Day Trading Triple Tops

Day Trading Symmetrical Triangles

Day Trading Head-and-Shoulders Tops

Day Trading Double Bottoms

Day Trading Head-and-Shoulders Bottoms

Day Trading Triple Bottoms

Other Trading Tips

Chapter 11 Opening Range Breakout

What is Best Range Time?

The ORB Setup

Does the ORB Setup Work?

Chapter 12 Ten Horror Stories

This is a Winner, Mom. Buy It!

Three Newsletter Disasters

Three Option and Warrant Disasters

Two Missed Opportunities

The $1 Million Surprise

Chapter 13 Closing Position

Chapter 14 What We Learned

Visual Appendix of Chart Patterns

Bibliography

About the Author

Index