Swing and Day Trading – Evolution of a Trader

<p>Preface ix</p>
<p>Acknowledgments xv</p>
<p>CHAPTER 1 INTRODUCTION TO SWING TRADING 1</p>
<p>What Is Swing Trading? 1</p>
<p>Who Should Swing Trade? 2</p>
<p>A Swinging Example 3</p>
<p>Looking Ahead 5</p>
<p>CHAPTER 2 SWINGING TECHNIQUES 7</p>
<p>Quick Review: Support and Resistance 8</p>
<p>Trendline Trading 9</p>
<p>Trading Using Channels 15</p>
<p>The Three–Bar Net Line Setup 17</p>
<p>First Thrust Pattern for Swing Trading 26</p>
<p>CHAPTER 3 SWINGING CHART PATTERNS 31</p>
<p>Which Chart Patterns Work Best for Swingers? 32</p>
<p>Trading the High and Tight Flag 33</p>
<p>HTF Trade in Insteel Industries 40</p>
<p>Fishing for Inverted and Ascending Scallops 42</p>
<p>Scallop Trading Tips 43</p>
<p>Twice Is Nice: Eve &amp; Eve Double Bottoms 44</p>
<p>Trading Eve &amp; Eve 46</p>
<p>Top Seven Frequently Traded Chart Patterns 47</p>
<p>My Favorite Chart Patterns 53</p>
<p>Swinging Throwbacks and Pullbacks 56</p>
<p>Trading Example 59</p>
<p>CNO Throwback Entry 60</p>
<p>Measuring Swings 62</p>
<p>FTO Trade 64</p>
<p>CHAPTER 4 SWING SELLING 69</p>
<p>Selling Ideas 70</p>
<p>Top 20 Chart Pattern Performers 71</p>
<p>Diamond Tops and Bottoms 73</p>
<p>Complex Head–and–Shoulders Top 77</p>
<p>The Eight Best Exit Signs 80</p>
<p>Ten Favorite Sell Signals 84</p>
<p>Trading Example: The Teradyne Exit 90</p>
<p>Trading Example: Exiting Forest 92</p>
<p>Trading Example: Swinging CNO 94</p>
<p>CHAPTER 5 EVENT PATTERN SETUPS 97</p>
<p>Common Stock Offerings Setup 97</p>
<p>Surviving a Dead–Cat Bounce 102</p>
<p>The Inverted Dead–Cat Bounce Setup 106</p>
<p>Trading Dutch Auction Tender Offers 108</p>
<p>Earnings Surprise Setup 111</p>
<p>Earnings Flag Setup 118</p>
<p>Stock Upgrades and Downgrades 120</p>
<p>Stock Splits 125</p>
<p>Setup: Trading Reverse Splits 129</p>
<p>CHAPTER 6 SWINGING TOOLS AND SETUPS 133</p>
<p>The Chart Pattern Indicator 133</p>
<p>The Swing Rule 137</p>
<p>Pump Up the Volume or Not 142</p>
<p>Selecting Winners Using Index Relative Strength 145</p>
<p>Three Swing Trading Setups 147</p>
<p>Trading Setup: Simple Moving Average Tests 157</p>
<p>The Smile and Frown Setup 158</p>
<p>Trading Smiles and Frowns 160</p>
<p>Smile and Frown Trading Tips 162</p>
<p>CHAPTER 7 INTRODUCTION TO DAY TRADING 167</p>
<p>What Is Day Trading? 169</p>
<p>Why Day Trade? 169</p>
<p>Is Day Trading for You? 170</p>
<p>What Are the Problems of Day Trading? 172</p>
<p>CHAPTER 8 DAY TRADING BASICS 177</p>
<p>Managing Expectations: How Much Can You Really Make? 178</p>
<p>Building the Home Office 179</p>
<p>Office Setup Cost 184</p>
<p>Pattern Day Trading Rules 185</p>
<p>Wash Sale Rule 186</p>
<p>Eight Tips for Picking Stocks to Day Trade 187</p>
<p>Price Reversal Times Revealed! 191</p>
<p>What Time Sets Intraday High and Low? 193</p>
<p>Inside Level II Quotes 195</p>
<p>Heartbeat of the Market: Time–and–Sales Ticker 197</p>
<p>Pre–Market Checklist 198</p>
<p>After–Market Analysis 199</p>
<p>CHAPTER 9 OPENING GAP SETUP 203</p>
<p>Opening Gap Test Data 204</p>
<p>Setup: Fading the Opening Gap 204</p>
<p>Sample Trade 217</p>
<p>CHAPTER 10 DAY TRADING CHART PATTERNS 221</p>
<p>Day Trading Double Tops 221</p>
<p>Day Trading Triple Tops 225</p>
<p>Day Trading Symmetrical Triangles 226</p>
<p>Day Trading Head–and–Shoulders Tops 228</p>
<p>Day Trading Double Bottoms 229</p>
<p>Day Trading Head–and–Shoulders Bottoms 231</p>
<p>Day Trading Triple Bottoms 232</p>
<p>Other Trading Tips 233</p>
<p>CHAPTER 11 OPENING RANGE BREAKOUT 237</p>
<p>What Is Best Range Time? 238</p>
<p>The ORB Setup 241</p>
<p>Does the ORB Setup Work? 247</p>
<p>CHAPTER 12 TEN HORROR STORIES 251</p>
<p>This is a Winner, Mom. Buy it! 251</p>
<p>Three Newsletter Disasters 252</p>
<p>Three Option and Warrant Disasters 254</p>
<p>Two Missed Opportunities 257</p>
<p>The $1 Million Surprise 260</p>
<p>CHAPTER 13 CLOSING POSITION 263</p>
<p>CHAPTER 14 WHAT WE LEARNED 265</p>
<p>Visual Appendix of Chart Patterns 277</p>
<p>Bibliography 283</p>
<p>About the Author 287</p>
<p>Index 289</p>