vi TABLE OF CONTENTS

6 Trading 123
SYSTEM TESTING 125
TRIPLE SCREEN UPDATE 128
DAY-TRADING 138
THE IMPULSE SYSTEM 157
MARKET THERMOMETER 162
EXITING TRADES 165
CHOOSING WHAT TO TRADE 183
7 Money Management Formulas 215
NO MATH ILLITERATES 217
BUSINESSMAN’S RISK VS. LOSS. 218
THE 2% SOLUTION—PROTECTION FROM SHARKS 220
THE 6% RULE—PROTECTION FROM PIRANHAS 223
POSITION SIZING 227
MONEY MANAGEMENT STEPS 230
PART THREE COME INTO MY TRADING ROOM 233
8 The Organized Trader 235
TRADER’S SPREADSHEET 236
THE EQUITY CURVE 238
TRADING DIARY 240
ACTION PLAN 242
9 Trading for a Living 245
DISCIPLINE AND HUMILITY 247
HAVE YOU GOT THE TIME? 251
THE DECISION-MAKING TREE 257
BEGINNER, SEMIPRO, PRO 264
GOING PRO 267
10 Come Into My Trading Room 271
EXCERPTS FROM THE DIARY 273
YOUR NEXT TRADE 298

Acknowledgments 301
Sources 303
Index 307
About the Author 313