Financial Freedom Through Electronic Day Trading / Edition 1

Financial Freedom Through Electronic Day Trading / Edition 1

by Van K. Tharp, Brian June
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McGraw-Hill Professional Publishing

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Financial Freedom Through Electronic Day Trading / Edition 1

An increasing number of investors are entering the high-risk world of electronic day trading—often before they’ve learned the basic principles and safeguards. Financial Freedom Through Electronic Day Trading combines Van Tharp’s mastery of trading psychology with Brian June’s nuts-and-bolts expertise to give day traders the proven strategies and information they need to survive and succeed.

From little-known day trading entries and exits to techniques that foster winning attitudes and styles, these practical ideas will help readers develop their own personalized trading systems. The perfect combination of psychological preparation and hands-on practice, it discusses:

*Market analysis from a day trading perspective

*Techniques for determining a market maker’s position

*The best day trading software

Product Details

ISBN-13: 9780071362955
Publisher: McGraw-Hill Professional Publishing
Publication date: 12/18/2000
Pages: 388
Sales rank: 1,076,484
Product dimensions: 6.40(w) x 9.10(h) x 1.20(d)

Table of Contents

Part 1How to Develop a "Laser-Guided Rocket" to Trading Success1
Chapter 1The Journey to Trading Mastery3
The Mind of a Master Trader3
Is a Master Trader inside You?12
The Most Important Steps to Trading Mastery13
Knowledge Keys17
Chapter 2Prepare Yourself for Trading Heights19
The Power of Commitment19
The Truth inside You22
The Mission You Must Accomplish23
I'm Starting with the Man in the Mirror26
The Most Powerful Trading Questions You Could Ever Ask27
The Belief Dynamic29
If You Don't Believe It, You Can't Trade It29
To Get Clear on Your Goals, Link Your Beliefs to Your Mission31
Turn Your Goals into Action34
How to Develop Powerful, Action-Oriented Goals36
The Most Critical Goal-Setting Secret38
Knowledge Keys39
Calls to Action39
Chapter 3Design a Plan Even Goldman Sachs Might Envy41
How to Create a Dynamite Plan43
Stepping through Your Own Business Plan44
Show Me the Money or Why Have a Trading Plan?54
Make an Inventory of Your Market and Trading Beliefs55
Ya Gotta Have an Edge57
Choose Your Trading Styles and Time Frames58
Does Size Really Matter?66
The More Tools the Merrier68
Final Countdown69
Effectively Marshaling Your Resources80
Sample Business Plan85
Sample Trading Plan91
Knowledge Keys96
Calls to Action96
Part 2Putting the "Laser-Guided Rocket" Together99
Chapter 4The Trader's Toolkit: Essential Secrets for Getting the Most from Your Hardware and Software101
How Much Computer Do You Need?102
Sweat the Small Stuff103
Internet Connectivity--Get a Big (Broadband) Pipe!106
Where Can You Rent That Big Pipe?109
Keep That Connection Connected!111
Technology Risks--The Dirty Little Secret of Trading112
Integrated Trading Software--The Heart of Your Trading Platform113
Reading the Gauges--The Most Important Trading Screens115
Knowledge Keys131
Calls to Action131
Chapter 5Understanding the Golden Rule of Trading--R Multiples and Expectancy133
The Golden Rule of Trading--Cut Your Losses Short and Let Your Profits Run!134
Knowing Your Initial Risk: Begin with the End in Mind135
Knowing the Expectancy of Your System--Will This Dog Hunt? Or What Kind of Return Can You Expect for Your Risk?138
Defining and Calculating Expectancy (Relax, the Math's Easy)138
The Opportunity Factor148
Knowledge Keys149
Calls to Action149
Chapter 6Position Sizing: The Key That Makes It All Work for You151
Positioning-Sizing Techniques That Work155
Simulating Your System to Determine What's Possible158
Position-Sizing Mistakes You Must Avoid160
Answers to the Position-Sizing Problems163
Knowledge Keys164
Calls to Action165
Chapter 7Prelaunch Preparation--Your Daily Routine167
The Power of Simplicity167
Start Your Day the Evening Before168
T Minus 2 Hours and Counting169
Applied Behavioral Finance--Know Thyself171
Knowledge Keys175
Calls to Action176
Part 3Launching Your Trading Rocket177
Chapter 8The Trading Day Liftoff: Navigating Trade by Trade179
NASDAQ Level II--Your Booster Rocket to Trading Orbit179
The Supply and Demand Model180
The Ax181
Other Market Makers Know the Ax184
To Save Your Ask, Find the Ax!184
Who's Playing Poker?186
Chippies on the Bid--What Does It Mean?188
The Secret of Collapsing Tiers189
Understanding ECNs and Order Routing-- Getting Filled When It Counts!193
Execution Strategies--When to Use Each Route203
Some Finals Words on Order Routing205
How to Get Filled in a Fast Market: He Who Hesitates Is Lost205
The Mystery of Hidden and Reserve Orders207
ARCA Reserve Orders209
Speaking of Edges211
Develop Expectations for Your Trading Day211
The Art of Interpreting News213
Stock Selection at a Glance217
Directional Bias218
Deciding to Enter221
Pulling the Trigger222
The Weight of Your Decision222
Getting Your Fill224
Never Enter a Trade Without Knowing Your Stop!224
A Secret for Keeping Your Stop225
Profit-Taking Exits226
Don't Forget to Reenter230
Position Sizing230
To Make Maximum Profits, Remain Flexible230
Defending Against Whipsaw231
Trading Day Quick View232
Knowledge Keys232
Calls to Action234
Chapter 9Market-Making Strategies237
You Can't Trade What You Don't Believe238
Strategies and Tactics238
Market Making--The Stealth Specialist240
Profit Potential246
NASDAQ Market-Making System249
Price and Trading Levels250
The Ax Revisited252
Understanding the Market Makers253
Differences between Market Makers and Specialists254
Recapping Market Makers and Specialists255
Market Making--The Channel Feeder255
Knowledge Keys263
Calls to Action267
Chapter 10Momentum Strategies269
Momentum Philosophy269
Momentum Patterns271
Market Makers during the Open275
Market-Maker Manipulation277
Detecting Market-Maker Manipulation279
Possible Interpretations of the MM's Activities279
Illustration of Fading the Trend282
Key Momentum Concepts288
Momentum Strategies--The Sonic Boom Dive291
Knowledge Keys307
Calls to Action307
Part 4Feedback and Maintenance309
Chapter 11Common Mistakes Everyone Makes--And How You Can Avoid Them311
Knowledge Keys335
Calls to Action335
Chapter 12Getting Feedback and Refining the Process337
Review Your Trades: Live and Learn338
Debriefing the Trades: Rules Are Not Made to Be Broken340
Correcting Mistakes on the Spot: Do It Now or Forget It Later343
Take the 30,000-Foot View for Loftier Profits344
Refining the Process: If It Ain't Broke, Fix It (a Little) Anyway346
Knowledge Keys348
Calls to Action349
Chapter 13Peak Performance Trading--The Keys to Gaining Control of Your Trading351
Commitment to Yourself and Trading354
Psychological Awareness (Soul-Searching)354
Overcoming Psychological Biases357
Emotions and Trading360
Knowing and Stating What Fits You362
Knowing Your Objectives and Using Position Sizing to Meet Those Objectives364
Rules and Knowing What to Expect from Your System366
How to Correct Mistakes367
Checklist for Peak Performance Trading369
Knowledge Keys370

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Financial Freedom Through Electronic Day Trading 5 out of 5 based on 0 ratings. 5 reviews.
Guest More than 1 year ago
This book contains a wealth of information - I strongly recommend it! The content is excellent, and the writing style is understandable and candid. Brian June not only discusses the nuts-and-bolts of day-trading (Level II screens, time-and-sales data, 'ax' market makers, direct-access systems, trading strategies) but covers in detail how one should prepare prior to the market opening and how one needs to debrief trading after the close. Dr. Van Tharp covers two of the most important concepts of trading: risk management (i.e., capital preservation) and money management (i.e., position sizing). If you have not internalized these concepts into your belief system already read these chapters, memorize them. They are key disciplines as they will keep you in the game. Four days ago I recommended the book to another full-time trader, and he just wrote back saying, 'I wanted to thank you for recommending the Tharp/June book. It is full of mandatory knowledge one needs, but also they make it clear what the requirements are to be successful. I am finding the book extremely enlightening - thanks again.' I have been a student of the markets for over ten years having proceeded through the study of fundamental analysis, technical analysis, and trading psychology (in that order). I wish I had this information at the start of my journey.
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Guest More than 1 year ago
This is a good book but I think a day trader needs to focus on more especific trading tactics. The most succesful day traders will focus most of the time on a limited number of stocks and on a limited number of factors. To reduce those numbers even more, many top traders will concentrate only on stocks with momentum. One of the most important aspects one must grasp when trading a stock with momentum is how to approach the rally. Knowing how to trade the rally makes all the difference in the world. Not many books cover this aspect in a simple yet detailed manner. The other day I visited a place on the web called ChatHotStocks dotcom. They provide a practical approach for searching and trading stocks poised for a rally in a very simple way. I suggest you visit them, because in the end it's all about the rally. Anyways, a trader must always read and consider as many trading strategies as he can. There are a lot of good trading strategies outhere. The trick is to test them as much as you can -at least on paper- and stick to the one that fits you best and brings you profits consistently.