A comprehensive, all-in-one resource for building a successful trading system
In the newly revised second edition of The ART of Trading: A Complete Approach for Traders and Investors in the Financial Markets, veteran trader and bestselling author Bennett McDowell delivers an intuitive and comprehensive system for trading success. In the book, you'll learn the trading rules, risk management techniques, mindsets, and trade debriefing strategies you need to master the markets and enjoy market-beating returns.
The author explains how to identify intelligent entry and exit opportunities, as well as trade management strategies, trading psychology insights, and more. He also outlines:
- How to design, test, and apply your own custom system of trading rules
- How to avoid the twin traps of fear and greed that poison the returns of so many unwary traders
- How to create a sound and effective risk control system that protects you against catastrophic losses without limiting your ability to find profitable opportunities
An outstanding, all-in-one resource for day traders, retail investors, and fund managers, The ART of Trading walks you through every relevant aspect of building a winning trading strategy.
Table of Contents
Introduction ix
Acknowledgments xxv
Disclaimer xxvii
Epigraph xxix
Step I: Focus on Reality 1
Chapter 1: Reality Check 3
Chapter 2: Perception Versus Reality 9
Chapter 3: Too Good to Be True? 25
Chapter 4: Price, Volume, and Momentum 31
Chapter 5: Get Down to Business 39
Step II: Develop the Trader’s Mindset 49
Chapter 6: Your Mindset 51
Chapter 7: Brain Power 61
Chapter 8: Stress Reduction 73
Chapter 9: Fitness 85
Chapter 10: Nothing to Fear 103
Step III: Implement Risk Management 119
Chapter 11: Risk Management Essentials 121
Chapter 12: Win Ratio and Payoff Ratio 129
Chapter 13: Trade Size Matters 139
Chapter 14: Stop-loss Exit Strategies 149
Chapter 15: Trader’s Recordkeeping Forms 157
Step IV: Design Your Trading Rules 169
Chapter 16 The Hardest Rule to Follow 171
Chapter 17 Understanding Financial Markets 181
Chapter 18 Customize Your Rules to You 237
Chapter 19 Your 10 Rules Trading Template 253
Chapter 20 Testing and Proving Your Edge 297
Step V: Scan for Opportunities 305
Chapter 21 Needle in the Haystack 307
Chapter 22 Scanning Strategies 313
Chapter 23 Building Your Watch List 331
Step VI: Manage the Trade 339
Chapter 24: It Ain’t Over Till It’s Over 341
Chapter 25: Trade Management Strategies 349
Step VII: Debrief the Trade 363
Chapter 26: Learn from History 365
Chapter 27: Debriefing Strategies 375
Epilogue: Trading Is the Perfect Business 389
Appendix A: Advanced Techniques 413
Technique 1: Elliott Wave and Fibonacci 415
Technique 2: Multiple Time Frame Analysis 457
Technique 3: Scaling Out of and Into Trades 475
Appendix B: Resources 483
Resources 1: Brokers, Data Feeds, and More 485
Resources 2: Technology Tips 505
Resources 3: Books, Movies, and Websites 513
About The Website: Online Information Portal 535
Glossary 539
About the Author 565
Index 567
