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Day Trading For Canadians For Dummies

Day Trading For Canadians For Dummies provides anyone interested in this quick-action trading for income with the nuts and bolts information and advice and, most importantly, a step-by-step plan of action for getting started in the… (More)

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Sections

Introduction
About This Book
Conventions Used in This Book
Foolish Assumptions
How This Book Is Organized
Part I: Day Trading Fundamentals
Part II: Day Trading Tools
Part III: Day Trading Strategies
Part IV: The Part of Tens
Icons Used in This Book
Where to Go from Here
Chapter 1
It’s All in a Day’s Work
Speculating, not hedging
Understanding zero-sum markets
Keeping the discipline: Closing out each night
Committing to Trading as a Business
Trading part-time: An okay idea if done right
Trading as a hobby: A bad idea
Working with a Small Number of Assets
Managing your positions
Focusing your attention
Personality Traits of Successful Day Traders
Independence
Quick-wittedness
Decisiveness
What Day Trading Is Not
It’s not investing . .
But it’s not gambling . .
It’s hardly guaranteed . .
But it’s not exactly dangerous . .
It’s not easy . .
But then, neither are a lot of other worthwhile activities
Putting day trading success rates in perspective
Planning Your Trading Business
Setting your goals
Picking the markets
Fixing hours, vacation, and sick leave
Getting yourself set up
Investing in your business
Evaluating and revising your plan
Planning Your Trades
What do you want to trade?
How do you want to trade it?
Figuring out when to buy and when to sell
Setting profit goals
Setting limits on your trades
What if the trade goes wrong?
Closing Out Your Position
Swing trading: Holding for days
Position trading: Holding for weeks
Investing: Holding for months or years
Maxims and Clichés That Guide and Mislead Traders
Pigs get fat, hogs get slaughtered
In a bear market, the money returns to its rightful owners
The trend is your friend
Buy the rumour, sell the news
Cut your losses and ride your winners
You’re only as good as your last trade
A Day in the Life of a Trader
What Makes a Good Day Trading Asset?
Liquidity
Volatility, standard deviation, and variance
Capital requirements
Marginability
Securities and How They Trade
Stocks
Bonds
Exchange traded funds (ETFs)
Cash and Currency
Commodities and How They Trade
Derivatives and How They Trade
Types of derivatives
Buying and selling derivatives
Understanding Risk and Return
What is risk, anyway?
Getting rewarded for the risk you take
The magic of market efficiency
Investing
Trading
Gambling
Managing the Risks of Day Trading
Business risk
Personal risk
How Regulations Created Day Trading
Who Regulates What?
Brokerage Basics for Firm and Customer
Are you suitable for day trading?
Staying out of the money Laundromat
Rules for day traders
Tax reporting
Hot Tips and Insider Trading
Taking on Partners
Choosing a Brokerage
Direct access to pricing and trading
Type of platform
How to open an account
Brokers Offering Day Trading Services
Brokers for stocks and a bit of the rest
Brokers for options and futures
Brokers for foreign exchange
Equipping Your Trading Laboratory
Where to sit, where to work
Counting on your computer
See it on the big screen
Connecting to the Internet
The department of redundancy department
Taking a Trip to a Trading Arcade
The Trade of Trading
Freebies from the exchanges
Hitting the road for conferences
Taking training classes
Learning to play at a trading arcade
Getting the Research You Need
(Price) quote me on that
Charting your strategy
Newsletters, gurus, and strategic advice
The power of the printed word
Doing Your Due Diligence
Where to start your research
Questions to ask
First, the Cautionary Tales
Jesse Livermore
Mark Barton
Anecdotal suicides, divorces, alcoholism
Controlling Your Emotions
The big five emotions
Having an outlet
Support systems
Your walk-away money
Importance of a Trading Plan
Problems following direction
Revising and troubleshooting your trading plan
The Follies of Chat Rooms and Social Networks
Support group or groupthink?
Getting angry at nothing
Sabotage
What’s Your Expected Return?
The Probability of Ruin
Why Size Matters
Valuing volatility
Staying in the market
Considering opportunity costs
Money Management Styles
Fixed fractional
Fixed ratio
Gann
Kelly criterion
Martingale
Monte Carlo simulation
Optimal F
How Money Management Affects Your Return
Planning for Your Profits
Compounding interest
Pyramiding power
Regular withdrawals
Are You a Trader or an Investor?
Hiring a Tax Adviser
The many flavours of tax experts
Questions to ask a prospective adviser
You still want to do it yourself?
What Is Income, Anyway?
Earned income
Capital gains and losses
Tracking Your Investment Expenses
Qualified and deductible expenses
Paying Taxes All Year
Using Your RRSP
Trading within a Tax-Free Savings Account
Before You Trade: Testing Your System
Backtesting
Simulation trading
Backtesting and simulation software
During the Day: Tracking Your Trades
Setting up your spreadsheet
Profit and loss statements
The trading diary
After You Trade: Calculating Overall Performance
Types of return
Calculating returns
The risk to your return
Using benchmarks to evaluate your performance
Research Techniques Used in Day Trading
What direction is your research?
Fundamental research
Technical analysis
How to Use Technical Analysis
Finding trends
Those ever-changing trends
Reading the Charts
Waving your pennants and flags
Not just for the shower: Head and shoulders
Drinking from a cup and handle
Mind the gap
Grab your pitchforks!
Different Approaches to Technical Analysis
Dow Theory
Fibonacci numbers and the Elliott Wave
Japanese candlestick charting
The Gann system
Pitfalls of Technical Analysis
If it’s obvious, no opportunity exists
Reverse-reverse psychology
The random walk with an upward bias
The Psychology of the Markets
Betting on the buy side
The projection trap
Measuring the Mood of the Market
Pinpointing with price indicators
Volume
Volatility
Measuring Money Flows
Accumulation/distribution index
Money flow ratio and money flow index
Short interest ratios
Information Cropping Up During the Trading Day
Price, time, and sales
Order book
Anomalies and Traps
Bear traps and bull traps
Calendar effects
Taking Other People’s Money to Make Money
Why leverage is important in short-term trading
The fine print on margin agreements
Managing margin calls
Margin bargains for day traders only
Short Selling
How to sell short
Choosing shorts
Short squeezes and other risks
Lots to Discover about Leverage
In stock and bond markets
In options markets
In futures trading
In foreign exchange
Borrowing in Your Trading Business
Margin loans for cash flow
Borrowing for trading capital
Assessing Risks and Returns from Short Selling and Leverage
Losing your money
Losing your nerve
Obeying the Law of One Price
Punishing violators of the law
Understanding arbitrage and market efficiency
Scalping for Profits
Those Pesky Transaction Costs
Risk Arbitrage and Its Tools
Derivatives
Levering with leverage
Short selling
Synthetic securities
An Array of Arbitrages
Capital structure arbitrage
Convertible arbitrage
Fixed income and interest rate arbitrage
Index arbitrage
Merger arbitrage
Option arbitrage
Pairs trading
For Propeller-Heads Only: Statistical Arbitrage
The Trader’s Discipline
Applying Momentum
Earnings momentum
Price momentum
For investors only: Momentum research systems
Breaking News and Breaking Markets
Setting Targets and Limits
When an Investor Should Go Short Term
The idea proves to have a short shelf life
Your research shows you some trading opportunities
You see some great short opportunities
Judging Execution Quality
You Love Being Independent
You Want to Work Anywhere You Like
You Are Comfortable with Technology
You Want to Eat What You Kill
You Love the Markets
You Have Investing Experience
You Have Studied Trading Systems and Know What Works for You
You Are Decisive and Persistent
You Can Afford to Lose Money
You can afford to commit to your trading
You can stay in the market through the rough times
You can handle the stress of losses
You Have a Support System
You Want to Learn Investing by Day Trading
You Love Fundamental Research
You’re Short on Time and Capital
You Like Working as Part of a Group
You Can’t Be Bothered with the Details of Running a Business
You Crave Excitement
You’re Impulsive
You Love Going to the Casino
You Have Trouble Setting Boundaries
You Want to Get Rich Quick
You Trust the Guy on the Infomercial Who Said It Would Work
Starting with Unrealistic Expectations
Starting without a Business Plan
Starting without a Trading Plan
Failing to Manage Risk
Not Committing the Time and Money to Do It Right
Chasing the Herd
Switching among Research Systems
Overtrading
Sticking Too Long with Losing Trades
Getting Too Emotionally Involved
Proprietary Trading for an Investment Company or Hedge Fund
Trading for an Agricultural, Energy, or Commodities Company
Joining a Market Making Firm
Traditional Investing for Your Own Account
Taking a Swing at Swing Trading
Gambling for the Fun of It
Play Day Trading Video Games
Trade in Demo Accounts
Sign Up for a Trading Contest
Great Books for Great Trading
Basic trading guides
Technical analysis guides
Schools of price theory
Trading psychology
History and memoir
Organizations for Day Traders
Canadian Society of Technical Analysts
Meetups
The Trader’s Internet
Bill Cara
Zen Trader
IndexArb.com
MyPivots.com
TraderInterviews.com
Trader Mike
Traders Laboratory
Facebook Pages and Groups
Day Trading–Options Trading
Twitter
Index

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Category:	Uncategorized.
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Upload Date:	07/07/2011
ISBN	9780470951989
Copyright:	Traditional Copyright: All rights reserved
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