Comprehensive coverage of the four major trading styles Evolution of a Trader explores the four trading styles that people use when learning to trade or invest in the stock market. Often, beginners enter the stock market by:
- Buying and holding onto a stock (value investing). That works well until the trend ends or a bear market begins. Then they try
- Position trading. This is the same as buy-and-hold, except the technique sells positions before a significant trend change occurs.
- Swing trading follows when traders increase their frequency of trading, trying to catch the short-term up and down swings. Finally, people try
- Day trading by completing their trades in a single day.
This series provides comprehensive coverage of the four trading styles by offering numerous tips, sharing discoveries, and discussing specific trading setups to help you become a successful trader or investor as you journey through each style.
Trading Basics takes an in-depth look at money management, stops, support and resistance, and offers dozens of tips every trader should know.
Fundamental Analysis and Position Trading discusses when to sell a buy-and-hold position, uncovers which fundamentals work best, and uses them to find stocks that become 10-baggers-stocks that climb by 10 times their original value.
Swing and Day Trading reveals methods to time the market swings, including specific trading setups, but it covers the basics as well, such as setting up a home trading office and how much money you can make day trading.
This final installment of Evolution of a Trader introduces the two most popular short-term trading approaches: swing trading and day trading.
The first part of Swing and Day Trading pioneers swing trading using trendlines, channels, and two patterns, the three-bar net line and first thrust. Following that, Bulkowski offers step-by-step coverage of an array of swing trading strategies, tools, and techniques. You'll learn the basics of how to time your entries and exits, how to calculate price targets, how to read and profit from event patterns (including Bulkowski's favorite, the "inverted dead cat bounce"), and several trading setups, detailed, and tested.
In the remaining chapters, Bulkowski digs into the white-knuckle world of day trading. He starts by exploring the psychology of day trading and helps you decide if you're temperamentally and financially suited for it. He discusses what's involved in setting up a day-trading home office, reviews the rules for day traders (pattern day trading and wash sales), how to pick stocks to trade, and discusses new research on the most common reversal times of the day including discoveries of when stocks reach their intraday highs and lows. A pre-market checklist serves as guidance for trading plans.
He researches the opening gap setup, discusses common intraday chart patterns and how to profit from them, describes the opening range breakout setup, and completes the book with ten horror stories that will make you think twice about using leverage.
Bulkowski's work sets an example for how financial books should be written. He doesn't just repeat what others have said. Rather, he investigates and researches his facts before teaching the reader in an entertaining and informative style that is accessible for beginners and professionals.
Whether you're just dipping a toe in the swing or day trading waters or you're a veteran of a thousand trades, Swing and Day Trading: Evolution of a Trader is one resource you cannot afford to be without.