Trading For Dummies, 5th Edition
- Length: 400 pages
- Edition: 5
- Language: English
- Publisher: For Dummies
- Publication Date: 2023-03-21
- ISBN-10: 1394161484
- ISBN-13: 9781394161485
- Sales Rank: #2620296 (See Top 100 Books)
Trade your way to a more profitable portfolio
Savvy traders can make money in both up and down markets—and now you can, too! In Trading For Dummies, investors from every walk of life will benefit from sample stock charts, position trading tips and techniques, fresh ways to analyze trends and indicators, and all the latest information on trading stocks wisely in any type of market.
Taking the stress out of the stock market, this no-nonsense guide walks you through all the steps to trade with authority—and takes your portfolio to exciting new heights. Whether you’re an investor looking for a clear guide to successfully trading stocks in any type of market, or an investor who has experience trading and are looking for new, proven methods to enhance the profitability of investments, you’ll find a proven system for eliminating doubt, decreasing risk, and, ultimately, increasing return.
Understand market cycles and choose a great broker Manage your risk exposure Build a balanced portfolio Develop your own custom trading strategy
If you’re in need of basic strategies and stock valuation methodologies that let you make smart trading decisions, this book has it all!
Title Page Copyright Page Table of Contents Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here Part 1 Getting Started with Trading Chapter 1 The Ups and Downs of Trading Stocks Distinguishing Trading from Investing Seeing Why Traders Do What They Do Successful Trading Characteristics Tools of the Trade Taking Time to Trade More Than Just Stocks Position trading Short-term swing trading Day trading Going Long or Short Managing Your Money Understanding Fundamental Analysis Getting a Grip on Technical Analysis Putting Trading Strategy into Practice Trading at Higher Risk Remembering to Have Fun! Chapter 2 Exploring Markets and Stock Exchanges Introducing the Broad Markets Stock markets Futures markets Bond markets Options markets Reviewing Stock Exchanges New York Stock Exchange (NYSE: ICE) The designated market makers The floor brokers Supplemental Liquidity Providers NASDAQ Market makers Over-the-counter and bulletin-board stocks Amex (now NYSE MKT LLC) Electronic communications networks (ECNs) Understanding Order Types Market order Limit order Stop order Stop-limit order Good-’til-canceled order Other order types Chapter 3 Going for Broke(r): Discovering Brokerage Options Why You Need a Broker Exploring Types of Brokers and Brokerage Services Full-service brokers Discount brokers Direct-access brokers Proprietary trading firms Futures brokers Services to Consider When Choosing a Broker Types of orders supported Data tools Charts ECN access Knowing the Types of Brokerage Accounts Cash accounts Margin accounts Options IRAs and other retirement accounts Choosing the Right Broker for You Considering more than price Doing a little research Understanding how you’ll be paying Getting to Know the Rules Margin requirements Settling trades Free riding Chapter 4 Putting Your Key Business Tool to Work: The Computer Making Use of Your Computer Identifying trading candidates Managing your account Improving your trades Finding Price Charts Checking out Internet charts with delayed prices Considering Internet charts with real-time prices Looking into charting software Digging Up Fundamental Data Accessing Analyst Reports Selecting a Trading Platform Browser-based trading environments Pros Cons Integrated trading platforms Pros Cons Features to consider Determining Computer Requirements Weighing Windows versus Mac versus Linux Configuring your computer system Accessing the Internet Picking a browser Securing your computer Part 2 Reading the Fundamentals: Fundamental Analysis Chapter 5 Fundamentals 101: Observing Market Behavior The Basics of the Business Cycle Understanding how periods of economic growth and recession are determined Using economic indicators to determine the strength of the economy Relating bull markets and bear markets to the economy Employing a Sector Rotation Strategy Early recovery Full recovery Early recession Full recession Sector rotation Understanding Economic Indicators Interest rates Money supply Inflation rate Deflation Jobless claims Consumer confidence Business activity Using Data from Economic Indicators Chapter 6 Digging Into Fundamental Analysis Checking Out the Income Statement Revenues Cost of goods sold Gross margins Expenses Interest payments Tax payments Dividend payments Profitability Looking at Cash Flow Operating activities Financing activities Investment activities Scouring the Balance Sheet Analyzing assets Looking at debt Reviewing goodwill Determining Stock Valuations Earnings Earnings growth rate Figuring Your Ratios: Comparing One Company’s Stock to Another Price/earnings ratio Price/book ratio Return on assets Chapter 7 Listening to Analyst Calls Getting to Know Your Analysts Buy-side analysts: You won’t see them Sell-side analysts: Watch for conflicts Independent analysts: Where are they? The Importance of Analysts Tracking how a company’s doing Providing access to analyst calls Company-sponsored calls Independent analyst–sponsored calls Pointers for Listening to Analyst Calls Understanding the analysts’ language Developing your listening skills Earnings expectations Revenue growth Analysts’ moods Just the facts, ma’am The future Employee satisfaction Locating Company Calls Identifying Trends in the Stock-Analyst Community Part 3 Reading the Charts: Technical Analysis Chapter 8 Seeing Is Believing: An Introduction to Technical Analysis Understanding the Methodology Finding everything in the price Seeing that price movements are not always random Balancing supply and demand Understanding where you’ve been Understanding where you’re headed Answering the Detractors Walking randomly Trading signals known to all Executing Your Trading Plan Using StockCharts.com Chapter 9 Reading Bar Charts Is Easy (Really) Creating a Price Chart Looking at a single price bar Measuring volume Coloring charts Identifying Simple Single-Day Patterns Single-bar patterns Reversal patterns Recognizing Trends and Trading Ranges Discerning a trading range Spotting a trend Paying attention to time frame Searching for Transitions Support and resistance: The keys to trend transitions Finding a breakout Waiting patiently for winning patterns Fine-tuning your trading-range breakout strategy Sipping from a cup and handle Deciding what to do with a double bottom An alternative double-bottom strategy Looking at other patterns Chapter 10 Following Trends to Boost Your Probability of Success Identifying Trends Supporting and Resisting Trends Drawing trend lines to show support Using channels Trending and channeling strategies Seeing Gaps Common gap Breakout or breakaway gap Continuation gap Exhaustion gap Island gap Waving Flags and Pennants Withstanding Retracements Three-step and five-step retracements Subsequent trading ranges Dealing with Failed Signals Trapping bulls and bears Filling the gaps Deciding whether to reverse directions Chapter 11 Calculating Indicators and Oscillators The Ins and Outs of Moving Averages Simple moving average Exponential moving average Comparing SMAs and EMAs Consistency Reaction time Sensitivity Interpreting and using moving averages Support and resistance factors Deciding the moving average time frame Understanding Buy and Sell Pressure through Stochastic Oscillators Calculating stochastic oscillators Interpreting stochastic oscillators Tracking Momentum with the MACD Calculating the MACD Using the MACD Revealing Relative Strength Calculating relative strength Putting relative strength to work Part 4 Developing Strategies for When to Buy and Sell Stocks Chapter 12 Money Management Techniques: Building a More Robust Portfolio Achieving Your Trading Goals with Smart Money Management Managing Your Portfolio Thinking of trading as a business Recognizing the trader’s dilemma Falling in love Fixating on mistakes Finding a better plan Dealing with seasonal stock Keeping your inventory current Protecting Your Principal Recovering from a large loss: It ain’t easy Setting a target price for handling losses Strategies for managing profitable trades Breaking the pattern of higher highs and higher lows Using trailing stops Tracking market indexes Understanding Your Risks Market risks Investment risks Trading risks Chapter 13 Combining Fundamental and Technical Analyses for Optimum Strategy Seeing the Big Picture Knowing when the Fed is your friend Keeping an eye on industrial production Watching sector rotation Anticipating a new bull market Watching the economy rebound Approaching a market top Weathering a bear market Finding the dominant trend Looking at weekly index charts Using the bullish percent index Selecting Your Trading Stock Trading Strategies Trading the bullish transition Trading in a bull market Trading the bullish pullback Trading the bearish transition Trading in a bear market Trading the bearish pullback A hypothetical trading example Chapter 14 Minimizing Trading Risks Using Exchange-Traded Funds What Is an ETF? Examining the advantages Avoiding the flaws Does Family Matter? Market-weighted ETFs Equal-weighted ETFs Fundamentally weighted ETFs Sector Rotation Strategies Early recovery Full recovery Early recession Full recession Analyzing ETFs Portfolio Construction International trading with ETFs Commodities and ETFs Currency trading and ETFs Leveraged ETFs Inverse ETFs Actively Managed ETFs Chapter 15 Executing Your Trades Entering and Exiting Your Trade Keeping straight the bid and the ask Understanding the spread Devising an effective order-entry strategy Using limit orders Using stop orders and stop-limit orders to enter a trade Using stop orders to exit positions Timing your trades: Entering orders after the market closes Reviewing a week in the life of a trader Selling Stocks Short Avoiding Regulatory Pitfalls Understanding trade-settlement dates Avoiding free riding Avoiding margin calls and forced sales Understanding margin fees Understanding margin collateral Avoiding pattern-day-trader restrictions The Tax Man Cometh Chapter 16 Developing Your Own Powerful Trading System Understanding Trading Systems Discretionary systems Mechanical systems Trend-following systems Countertrend systems Selecting System-Development Tools Choosing system-development hardware Deciding on system-development software Trading system–development and testing software Spreadsheet software Finding historical data for system testing Developing and Testing Trading Systems Working with trend-following systems Identifying system-optimization pitfalls Testing with blind simulation Using breakout trading systems Accounting for slippage Keeping a Trading Journal Evaluating Trading Systems for Hire Part 5 Risk-Taker’s Paradise Chapter 17 The Basics of Swing Trading Selecting Stocks Carefully Looking at Swing-Trading Strategies Trading trending stocks Trading pullbacks Surfing channels Trading range-bound stocks Trading volatility Money management issues Using Options for Swing Trading Getting a Grip on Swing-Trading Risks Taxes (of course) Pattern-day-trading rules apply Chapter 18 The Basics of Day Trading What Day Trading Is All About Institutional day traders (market makers) Retail day traders It’s all about access Day-trading firms Understanding Account Restrictions The Fed’s Regulation T: Margin requirements Settlement: No free rides Strategies for Successful Day Trading Technical needs Trading patterns Scalping Trend traders Recognizing That Risks Are High Liquidity Slippage Trading costs Taxes (of course) Avoiding the Most Common Mistakes Chapter 19 Doing It by Derivatives Types of Derivatives: Futures and Options Buy now, pay later: Futures What’s your position? Making money using futures Commodities futures Index futures Bond futures Stock futures Foreign currency futures Wait and see: Options Options lingo Option pricing Buying Options and Futures Contracts Opening an account Calculating the price and making a buy Options for Getting Out of Options Offsetting the option Holding the option Exercising the option The Risks of Trading Options and Futures Minimizing Risks Chapter 20 Going Foreign (Forex) Exploring the World of Forex Types of currency traders Why currency changes in value What traders do Understanding Money Jargon Spot transactions Forward transactions Options Looking at How Money Markets Work Different countries, different rules The almighty (U.S.) dollar Organized exchanges Taking Necessary Risks in the World Money Market Understanding the types of risks Market risk Exchange risk Interest rate risk Counterparty risk Volatility risk Liquidity risk Country risk Seeking risk protection Getting Ready to Trade Money Part 6 The Part of Tens Chapter 21 More Than Ten Huge Trading Mistakes Fishing for Bottoms Timing the Top Trading against the Dominant Trend Winging It Taking Trading Personally Falling in Love Using After-Hours Market Orders Chasing a Runaway Trend Averaging Down Ignoring Your Stops Diversifying Badly Enduring Large Losses Chapter 22 Ten Trading Survival Techniques Build Your Trading Tool Chest Choose and Use Your Favorite Tools Wisely Use Both Technical and Fundamental Analyses Count on the Averages to Make Your Moves Develop and Manage Your Trading System Know Your Costs Have an Exit Strategy Watch for Signals, Don’t Anticipate Them Buy on Strength, Sell on Weakness Keep a Trading Journal and Review It Often Index EULA
Donate to keep this site alive
1. Disable the AdBlock plugin. Otherwise, you may not get any links.
2. Solve the CAPTCHA.
3. Click download link.
4. Lead to download server to download.