Art of Trend Trading - Animal Spirits and Your Path to Profits

Trader, CEO and bestselling author Michael Parness has found over the years that the best traders--the ones who make consistent money--are the ones that use instinct and intuition as well as strategy.
 
In this book, Parness will discuss his own journey, from homelessness to making millions in both Bull and Bear markets. He'll explore different animal spirits as a metaphor and tool to help readers understand their own strengths and weaknesses in order to make profits as traders.

List of contents

Foreword ix
Michael Di Gioia
 
Chapter 1: Wishing You a Slow Rise 1
 
Setting Goals 2
 
1 Percent aDay Keeps the Ka-Chingos Comin'! 3
 
Don't Be in Such a Rush to Lose Your Money 4
 
Chapter 2: Bear with Me 5
 
The Achilles Have It 6
 
Identifying Your Achilles' Heel 6
 
Chapter 3: Breakout City and Riding the Horse to Gains 11
 
The 10 a.m. Intraday Break 11
 
The Play 12
 
The Technical Breakout 16
 
The 52-Week-High Breakout 16
 
Buy Low and Sell High? 18
 
The All-Time-High Blue Skies Breakout 24
 
Chapter 4: Power Trading 25
 
Be You...Be Powerful! 26
 
Intraday Primer 26
 
Time Frames 29
 
9:30-10:00 a.m.: Gaps 30
 
10:00-1:00 p.m.: 10 a.m. Rule in Effect 32
 
1:00-2:30 p.m.: Lunchtime Lull/Reversal 33
 
2:30-3:20 p.m.: Post-Lunch Activity 34
 
3:20-3:40 p.m.: Afternoon Lull 34
 
3:40-4:00 p.m.: Market on Close/End of Day 35
 
8:00-9:30 a.m./4:00-8:00 p.m.: After-Hours, News Rules! 35
 
Time Frame Examples 37
 
News Trader 38
 
Swing Trades 40
 
Gap Me, Baby 41
 
Laggards 41
 
Market Close 42
 
After Hours 42
 
Chapter 5: $12,500 to $3.8 Million 45
 
Bull, Bear--I Don't Care! 45
 
Chapter 6: Options (Pretty) Basic Primer 49
 
What Are Options? 50
 
Underlying Assets 51
 
Rights and Obligations 52
 
Weekly Options 55
 
Option Strategies Introduction 60
 
Spreads 62
 
Chapter 7: Trading Options 65
 
Out-of-the-Money Options 65
 
More than One Month Out 69
 
Leveraging and Hedging 71
 
Index Options 73
 
LEAPs 77
 
Straddles 78
 
Strangles 82
 
Bull Spread 83
 
Bear Spread 85
 
Chapter 8: Trading Gaps Animal Spirit Guide (Stalking, Leopard) 87
 
What Are Gaps? 87
 
Planning Your Gap Trade 92
 
Daily Gap Goals! 92
 
Contents vii
 
Objectives 94
 
News/News/News 95
 
Come Out, Come Out, Wherever You Are, Mr. Gap! 96
 
Order Flow 97
 
Managing Risk 98
 
Know When to Hold 'Em or Fold 'Em 100
 
Believe! 102
 
Trading Gap Downs 103
 
Trading Gap Ups 106
 
Chapter 9: My Favorite Animal Spirits 109
 
Gap Fades 110
 
Earnings Runs 113
 
Earnings Straddles 121
 
FOMC Fades 123
 
10:00 a.m. Rule Plays 126
 
Chapter 10: Trading Gaps Using Technical Analysis 133
 
Reversal Bars 134
 
Doji 134
 
When to Enter 136
 
Reversal Bars 141
 
The OOPS Entry 145
 
Gap and Goooooooooo!!! 147
 
Exit Strategies 152
 
Taking Profits 156
 
Know When to Fold 'Em 159
 
Using Stops 161
 
Gaining an Edge 165
 
Chapter 11: News Rules! Trading News 171
 
Laggard News 171
 
Guidelines for Trading News 172
 
News Stories 174
 
Potential News 183
 
Managing Risk 185
 
Chapter 12: Trading Laggards 187
 
What Is a Laggard? 187
 
If It Looks Like a Laggard, and It Smells Like One... 188
 
Watchlists 188
 
Sectors 188
 
News and Laggards 192
 
Chapter 13: Trends Are Your Friends 193
 
Stick with the Trend! 194
 
Window Dressing 196
 
Earnings Runners 199
 
FOMC Runs 206
 
The January Effect 210
 
Chapter 14: Finding Your Own Animal Spirit 215
 
Next

About the author

MICHAEL PARNESS is Chief Trader and Educator at Affinity Trading and CEO of World Series of Trading, the world's first Fantasy Sports for Stocks ­educational platform. He has been featured as an expert on CNBC, FOX News, CNN, Reuters, Bloomberg, and many other programs, and his rags-to-riches life story was optioned by actor and director Dustin Hoffman. He has also been honored at the United Nations for his charity work with abused children, and his best­selling book, Rule The Freakin' Markets!, has provided thousands of individual inves­tors with practical trading tips for reading the markets and trading with confidence-without the help of brokers or analysts. He is the proud father of two beautiful daughters, Emma Grace and Joelle.

Summary

Look inward for the missing piece to your trading strategy The Art of Trend Trading bucks the trend of technicality to show readers how instinct and strategy can unite to bring about consistent investment success.

Product details

• Authors: Michael Parness
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 20.11.2015
• EAN: 9781119028017
• ISBN: 978-1-119-02801-7
• No. of pages: 256
• Subjects: Guides > Law, job, finance > Money, bank, stock market; Social sciences, law, business > Business > Business administration