file:///C:/DOCUME%7E1/yzhu/LOCALS%7E1/Temp/moz-screenshot.pngfile:///C:/DOCUME%7E1/yzhu/LOCALS%7E1/Temp/moz-screenshot-1.pngTable of Contents
PREFACE........................................................................................................ IX
INTRODUCTION:WHY DAY TRADING? ....................................................... XIII
HOW TO GET THE MOST OUT OF THIS BOOK.............................................. XIX
PART 1: DAY TRADING BASICS – WHAT YOU SHOULD KNOW.......1
WHAT IS DAY TRADING?................................................................................. 3
WHO SHOULD BE DAY TRADING? ................................................................... 5
IS IT REALLY POSSIBLE TO MAKE A LIVING AS A DAY TRADER?.................... 9
HOW TO GET STARTED - DEFINE YOUR GOALS AND MAKE A PLAN.............. 17
1.) Define Your SMART Goal.................................................................. 18
2.) Make a Plan....................................................................................... 19
3.) Execute the Plan ................................................................................ 20
HOW MUCH MONEY DO YOU NEED TO GET STARTED? ................................ 23
DETERMINING YOUR RISK TOLERANCE......................................................... 27
WHAT YOU NEED TO BEGIN TRADING .......................................................... 29
A Computer .............................................................................................. 29
An Internet Connection ............................................................................ 30
A Charting Software................................................................................. 30
A Broker ................................................................................................... 39
A Properly Funded Trading Account ....................................................... 42
A Trading Strategy ................................................................................... 43
PART 2: YOUR TRADING STRATEGY –
THE CORNERSTONE TO YOUR TRADING SUCCESS ..........................47
HOW TO DEVELOP YOUR OWN PROFITABLE DAY TRADING STRATEGY........ 49
STEP 1: SELECTING A MARKET ...................................................................... 51
Trading Stocks.......................................................................................... 52
Trading Forex .......................................................................................... 57
Trading Futures ....................................................................................... 65
Trading Stock Options.............................................................................. 80
STEP 2: SELECTING A TIMEFRAME................................................................. 85
STEP 3: SELECTING A TRADING APPROACH ................................................... 87
Fundamental Analysis .............................................................................. 87
Technical Analysis ................................................................................... 90
Day Trading Charts ................................................................................. 93
Technical Indicators............................................................................... 103
Popular Trading Approaches................................................................. 135
STEP 4: DEFINING ENTRY POINTS ................................................................ 149
STEP 5: DEFINING EXIT POINTS ................................................................... 151
Stop Losses ............................................................................................. 152
Profit-Taking Exits ................................................................................. 160
Trailing Stops ......................................................................................... 167
Taking Partial Profits............................................................................. 169
Time-Stops.............................................................................................. 169
STEP 6: EVALUATING YOUR STRATEGY....................................................... 171
How to Read and Understand a Performance Report............................ 176
STEP 7: IMPROVING YOUR STRATEGY ......................................................... 183
THE 10 POWER PRINCIPLES –
MAKING SURE THAT YOUR TRADING PLAN WORKS ................................... 191
Principle #1: Use Few Rules – Make It Easy to Understand................. 192
Principle #2: Trade Electronic and Liquid Markets .............................. 193
Principle #3: Have Realistic Expectations............................................. 193
Principle #4: Maintain a Healthy Balance Between Risk and Reward.. 194
Principle #5: Find a System That Produces
at Least Five Trades per Week ......................... 195
Principle #6: Start Small - Grow Big..................................................... 195
Principle #7: Automate Your Exits......................................................... 197
Principle #8: Have a High Percentage of Winning Trades.................... 198
Principle #9: Test Your Strategy on at Least 200 Trades ...................... 198
Principle #10: Choose a Valid Back-Testing Period ............................. 199
PART 3: THE SECRETS TO DAY TRADING SUCCESS.......................203
THERE’S MORE TO TRADING THAN JUST HAVING A STRATEGY.................. 205
THE SEVEN MISTAKES OF TRADERS AND HOW TO AVOID THEM................. 209
Mistake #1: Struggling To Identify the Direction of the Market ............ 212
Mistake #2: Not Taking Profits .............................................................. 213
Mistake #3: Not Limiting Your Losses ................................................... 214
Mistake #4: Trading the Wrong Market................................................. 215
Mistake #5: Lack of a Trading Strategy ................................................. 216
Mistake #6: Not Controlling Your Emotions.......................................... 217
Mistake #7: Overtrading ........................................................................ 218
THE TRADER’S PSYCHE ............................................................................... 221
THE THREE “SECRETS” TO DAY TRADING SUCCESS .................................... 227
THE TENETS OF DAY TRADING.................................................................... 231
HOW TO START TRADING WITHOUT RISKING A SINGLE PENNY .................. 235
BONUS MATERIALS ...................................................................................241
APPENDICES.................................................................................................243
APPENDIX A – TRADING PLAN TEMPLATE................................................... 245
APPENDIX B – BROKER CHECKLIST............................................................. 249
APPENDIX C – ADDITIONAL RESOURCES ..................................................... 251
APPENDIX D – READING RESOURCES .......................................................... 253
APPENDIX E – GLOSSARY............................................................................ 257
APPENDIX F – ABOUT MARKUS HEITKOETTER............................................ 271
APPENDIX G – COACHING PROGRAMS......................................................... 273