- 007700 KS (F&F Company), 126
A
- AAPL (Apple Inc.), 127, 157–158
- absolute valuation, 165
- accounts (broker)
- cash, 49–50
- margin, 49–50
- opening, 49–50
- traditional versus retirement, 50
- accounts receivable, 153
- accrual-based accounting, 159
- accumulation phase, 68–69
- Active Trader Pro, 51
- adjusted Fed Model, 176–177
- administrative tasks
- brokers
- account type, 49–50
- choosing, 46–49
- direct access, 47
- discount, 47
- evaluating potential, 48–49
- full service, 47
- searching for prospective, 47–48
- types of, 47
- service providers
- to avoid, 55–57
- fundamental analysis software, 52–55
- message boards, 55–56
- newsletters, 56–57
- overview, 50–51
- selecting, 50–57
- technical software, 51–52
- trading journal, 58–59, 302–303
- winning mindset, 59–60
- adr.com (Web site), 268
- Advance/Decline Line, 174
- ADX (Average Directional Index), 100–101, 125
- AEO (American Eagle), 155, 204–205
- aggregate market cap/net income, 178
- aggregate market cap/trailing net income, 178
- agricultural commodities, 135, 231
- AKAM (Akamai Technology Inc.), 240
- AKS (AK Steel), 67
- AK Steel (symbol: AKS), 67
- algorithmic orders, 247
- Ally Invest, 47, 231
- alpha, 242, 255, 271
- Alphabet (symbol: GOOG), 18, 66–67, 224–225
- Amazon.com (symbol: AMZN), 18, 105, 154–155
- amenities, 48–49
- American Depository Receipts (ADRs), 16, 231, 268
- American Eagle (symbol: AEO), 155, 204–205
- AMZN (Amazon.com), 18, 105, 154–155
- analysis
- fundamental, 52–55
- advantages of, 20, 40
- catalysts, 41–42
- disadvantages of, 27–28, 38–39, 40
- how and why it works, 37–38
- overview, 25–26
- psychology's role in, 39
- questions to ask in, 37
- software providers, 52–55
- industry
- familiar markets, 192
- identifying sectors, 193–194
- overview, 191
- steps in, 191
- intermarket
- commodities, 135–137
- overview, 132–133
- stocks and bonds, 137–138
- U.S. dollar, 133–134
- relative strength
- global scope of, 139–141
- industry group market standards, 141–143
- overview, 36, 139
- stock
- competition, 203–205
- earnings and sales expectations, 201–203
- financial stability, 196–199
- industry analysis, 191–194
- overview, 190–191
- past performance, 199–201
- valuing company's shares, 206–210
- technical
- advantages of, 19–20, 27–28, 33–34
- defined, 25
- disadvantages of, 33–34
- fundamental analysis, compared with, 26–28
- how and why it works, 30–31
- questions to ask in, 31
- reading charts, 34–35
- technical indicators, 35
- validity of, 35
- analysts, 24
- anchoring, 39, 202
- annualized returns, 279–281
- APA (Apache Corporation), 69–70, 71
- Apache Corporation (symbol: APA), 69–70, 71
- APPF (Appfolio), 107
- Appfolio (symbol: APPF), 107
- Apple Inc. (symbol: AAPL), 127, 157–158
- arbitrageurs, 38
- ascending triangles, 80
- assessing
- balance sheets, 153–155
- beta, 218–219
- cash flow statement, 160–162
- charts, 264–267
- charts in candidate selection, 264–267
- financial statements, 151–162
- income statement, 157–159
- industry potential in top-down approach, 178–180
- screening results in bottom-up approach, 186
- assets
- current, 152
- defined, 152
- diversification across classes, 230–231
- long-term, 152
- Average Directional Index (ADX), 100–101, 125
B
- bad tick, 95
- balance sheets
- assets, 152
- components of, 152–153
- defined, 152
- guidelines for assessing, 153–155
- liabilities, 152–153
- banking services, 48
- bar chart, 65, 67
- Barron’s, 319
- basic materials sector, 193
- BBY (Best Buy), 113–114
- Beardstown Ladies, 282–284
- bearish engulfing patterns, 87–88
- benchmarks, 287–291
- Berkshire Hathaway, 163, 191
- Best Buy (symbol: BBY), 113–114
- best fit, 99
- beta, 218–219
- Bitcoin, 42
- BKNG (Booking.Com), 233
- Black Swan: The Impact of the Highly Improbable, The (Taleb), 323–324
- bloomberg.com (Web site), 175
- BMY (Bristol-Myers Squibb), 166
- BNY Mellon, 288
- Body for Life (Phillips), 59
- bonds
- performance relative to commodities, 136–137
- stocks, relationship with, 137–138
- Booking.Com (symbol: BKNG), 233
- books, 24
- bottom fishing, 73–74
- bottom-up approach
- overview, 21, 29, 180–181
- screens
- assessing results, 186
- criteria, 182–183
- filtering information with, 181–182
- growth, 183–185
- value, 185–186
- top-down approach, compared with, 187
- for trending securities, 125
- Bouchentouf, Amine,
- breakaway gaps, 82–83
- Bristol-Myers Squibb (symbol: BMY), 166
- Broadcom, 91–92
- brokers
- account type, 49–50
- choosing, 46–49
- direct access, 47
- discount, 47
- evaluating potential, 48–49
- full service, 47
- searching for prospective, 47–48
- types of, 47
- Buffett, Warren, 163, 191
- bullish engulfing patterns, 86–87
- buy-and-hold investing, , –11
- buy-stop orders, 245
- BVN (Cia de Minas Buenaventura), 79
C
- Callaway Golf (symbol: ELY), 117–118
- candidate selection
- assessing charts, 264–267
- overview, 263–264
- ranking filtered securities, 264–267
- screening securities, 264
- candlestick chart. See also charts
- overview, 65–66
- patterns
- bearish engulfing, 87–88
- bullish engulfing, 86–87
- evening stars, 88–89
- hammers, 85–86
- hanging man, 86
- morning stars, 88–89
- overview, 84–85
- real body, 65
- shadows, 66
- capital
- requirements, 306–307
- setting position size by percent of, 222–223
- capital expenditures, 159, 162
- capital gains, 10
- capital goods sector, 193
- cash, 153
- cash accounts, 49–50
- cash flow
- from financing activities, 160
- from investing, 159
- from operating activities, 159
- cash flow statement
- assessing, 160
- components of, 159–160
- overview, 159
- catalysts, 41–42, 163
- CA Technologies, 91
- Catholic compliant investing, 17
- chain-linking, 286
- charting
- candlestick patterns
- bearish engulfing, 87–88
- bullish engulfing, 86–87
- evening stars, 88–89
- hammers, 85–86
- hanging man, 86
- morning stars, 88–89
- overview, 84–85
- intraday, 250–253
- patterns
- cup-and-handle, 78–79
- Darvas box, 75–76
- gaps, 81–84
- head-and-shoulders, 76–78
- triangles, 80–81
- phases
- accumulation, 68–69
- contraction (markdown), 73
- distribution, 71–72
- expansion (markup), 70–71
- price in, 64–65
- psychology, 74–75
- trendlines
- defined, 88
- downtrend lines, 91–92
- drawing, 90
- horizontal, 92
- overview, 89–90
- uptrend lines, 90–91
- validity of, 35
- volume in, 64–65
- chart patterns
- candlestick
- bearish engulfing, 87–88
- bullish engulfing, 86–87
- evening stars, 88–89
- hammers, 85–86
- hanging man, 86
- morning stars, 88–89
- overview, 84–85
- combining with technical indicators, 118–119
- cup-and-handle, 78–79
- head-and-shoulders, 76–78
- overview,
- Relative Strength Index, 81
- triangle
- ascending, 80
- descending, 81
- overview, 80
- symmetrical, 81
- charts
- assessing, 264–267
- bar, 65, 67
- candlestick, 65–66, 67
- daily, 260–261
- intraday, 69
- line, 65, 67
- point and figure (P&F), 66, 68
- reading, 34–35
- types of, 65–68
- weekly, 261–262
- China Mobile Limited (symbol: CHL), 89
- CHL (China Mobile Limited), 89
- Cia de Minas Buenaventura (symbol: BVN), 79
- commissions, 46, 48
- commodities
- as economic moats, 163
- guidelines, 136
- history, 135
- performance relative to bonds, 136–137
- tracking, 135–136
- types, 135
- Commodities for Dummies (Bouchentouf),
- common gaps, 81–82
- company size, 217–218
- competition
- consolidation period, 88
- consumer cyclical sector, 193
- consumer staples sector, 193
- Contango Oil & Gas Company (symbol: MCF), 82–83
- continuation gaps, 83–84
- contraction, 73
- cost-focus strategy, 204
- cost-leadership strategy, 204
- costs of goods sold, 156
- Cramer, Jim, 41
- crossovers, 107–109
- crowd psychology, 31
- cup-and-handle chart pattern, 78–79
- Currency Trading for Dummies (Galant and Dolan),
- current assets, 152
- current liabilities, 153
- current ratio, 197
- curve fitting, 99
- customer service, 48
D
- daily chart, 260–261
- Damodaran, Aswath, 178
- Darvas, Nicholas, 75–76
- data error, 96
- day of strength, 127
- day trading, 11
- debt to shareholders’ equity ratio, 197–198
- deflation, 138
- deposits, accounting for, 281–287
- descending triangles, 81
- developed world, 140
- DexCom (symbol: DXCM), 244
- Diamond Offshore (symbol: DO), 87
- Diana Shipping (symbol: DSX), 82
- differentiator-focus strategy, 204
- differentiator strategy, 204
- direct access brokers, 47
- direct costs, 156
- Directional Movement Index (DMI), 96, 102–104, 125
- DIS (Walt Disney), 254–255
- discount brokers, 47
- discretionary trading style
- advantages of, 29–30
- defined, 26
- disadvantages of, 30
- quantitative trading style, compared with, 29–30
- distribution phase, 71–72
- divergence, 36, 99
- diversification
- of allocations, 228–231
- by asset class and country, 230–231
- capital requirements for, 306
- defined, 228
- by number of securities, 228
- of risk, 22
- rules, 299
- DMI (Directional Movement Index), 96, 102–104, 125
- DO (Diamond Offshore), 87
- Dodd, David, 147
- Dolan, Brian,
- doubling down, 309–310
- downside, 16
- downtrend lines, 91–92
- DSX (Diana Shipping), 82
- dumb money, 32
- DXCM (DexCom), 244
E
- E*Trade Financial, 47, 51
- earnings
- expectations, 201–203
- fundamental analysis, 37–38
- historical, 199–201
- surprise figures, 39
- surprise history, 202
- earnings before interest and taxes (EBIT), 198
- earnings call transcripts,
- earnings dates, 307
- earnings per share (EPS), 194–195
- economic cycle, 193–194
- economic data, 323
- economic moats, 163
- Economist, The, 24
- electronic communication networks (ECNs), 18
- ELY (Callaway Golf), 117–118
- EMA (exponential moving averages), 105
- emerging markets, 140
- emerging market stocks, 16
- emotional trading, 298–299
- emotions, managing, 23
- energy commodities, 135, 231
- energy sector, 193
- Energy Select Sector SPDR (symbol: XLE)., 231
- entry strategy. See also exit strategy
- full-time swing trading, 250–253
- market mechanics, understanding, 241–242
- part-time swing trading, 248
- trading ranges, 131–132
- trends, 126–128
- environmental, social, and governance (ESG) investing, 17
- equity indexes,
- eSignal, 51
- eTables, 317–318
- etf.com (Web site), 18
- ETFs (exchange-traded funds), 15–16, 230–231
- ethical screening, 18
- etrade.com (Web site), 47, 51
- evening stars, 88–89
- event-driven traders, 27
- Excel (Microsoft), 289–290
- exchange-traded funds (ETFs), 15–16, 230–231
- executing order
- full-time trading
- intraday charting, 250–253
- Nasdaq Level II quotes, 253–258
- order types, 249–250
- order types
- algorithmic orders, 247
- buy-stop orders, 245
- limit orders, 244
- overview, 243
- stop limit orders, 245
- stop orders, 244–245
- part-time trading
- entry strategy, 248
- exit strategy, 249
- overview, 249
- exhaustion gaps, 84
- exit level
- price-level emergency, 129
- technical-indicator emergency exit signal, 129
- time-based, 129
- trading ranges, 131–132
- exit points, determining, 23
- exit strategy. See also entry strategy
- defined, 232
- full-time swing trading, 250–253
- market mechanics, understanding, 241–242
- overview, 21–22, 232
- part-time swing trading, 249
- for profitable trades
- overview, 232
- predetermined price target, 233
- predetermined profit target, 232–233
- swing lows/highs, 233–234
- technical level, 300
- technical signals, 234–235
- stock price rise and fall in, 40
- stop-loss-level based
- overview, 236–237
- support/resistance level, 237
- technical level, 238–239
- timing, 235–236, 272–273
- trading ranges, 131–132
- expansion phase, 70–71
- EXPE (Expedia), 233
- expected growth, 178
- Expedia (symbol: EXPE), 233
- exponential moving averages (EMA), 105
- external catalysts, 42
- Exxon Mobil (symbol: XOM), 234
F
- F&F Company (symbol: 007700 KS), 126
- fair value, 177
- familiarity bias, 311–312
- fear, 31, 73
- Federal Reserve, 133, 323
- Federal Reserve Bank of New York, 76
- Fed Model, 174–175
- fertilizers and agricultural chemicals (symbol: VEGI), 231
- Fidelity Active Trader, 47, 51
- Financial Industry Regulatory Authority,
- financials sector, 193
- financial stability
- current ratio, 197
- debt to shareholders’ equity ratio, 197–198
- interest coverage ratio, 198–199
- overview, 196–197
- financial statements
- assessing
- balance sheet, 152–155
- cash flow statement, 159–162
- income statement, 156–159
- overview, 151–152
- finding, 150–151
- industry terms, 148–149
- overview, 148
- release date, 149–150
- First Solar (symbol: FSLR), 110
- flat ranges, 130
- Flowserve Corp. (symbol: FLS), 83
- FLS (Flowserve Corp.), 83
- fool.com (Web site), 205
- Ford Otomotiv Sanayi (symbol: FROTO), 117
- forward P/E ratio, 178
- FROTO (Ford Otomotiv Sanayi), 117
- FSLR (First Solar), 110
- FTSE Russell return calculator, 288
- FTSE/Xinhua China 25 Index, 141
- full service brokers, 47
- full-time swing traders. See also part-time swing traders
- capital requirements, 307
- entry strategy, 19, 250–253
- exit strategy, 19
- order types for, 248–249
- overview, 12–13
- fundamental analysis
- advantages of, 20, 40
- catalysts, 41–42
- disadvantages of, 27–28, 38–39, 40
- how and why it works, 37–38
- overview, , 25–26
- psychology's role in, 39
- questions to ask in, 37
- software providers, 52–55
- steps in
- competition, 203–205
- earnings and sales expectations, 201–203
- financial stability, 196–199
- industry analysis, 191–194
- overview, 190–191
- past performance, 199–201
- valuing company's shares, 206–210
- technical analysis, compared with, 26–28
- Future for Investors, The (Siegel), 162
G
- Galant, Mark,
- gaps
- breakaway, 82–83
- common, 81–82
- continuation, 83–84
- exhaustion, 84
- overview, 81
- GLD (SPDR Gold), 111, 231
- Global Industry Classification Standard, 229
- GMO, 321
- gmo.com (Web site), 321
- goals, 59
- gold, 231
- good till canceled (GTC), 243, 271
- good until the day (GTD), 243
- GOOG (Alphabet), 66–67, 224–225
- Google Finance, 52, 218
- Google Play, 18
- Graham, Benjamin, 147
- greed, 31, 73
- Greenblatt, Joel, 316
- gross margins, 204–205
- gross profit, 156
- growth, 16
- growth sector, 193
- growth stocks, 42–43, 184–185
- GTC (good till canceled), 243, 271
- GTD (good until the day), 243
H
- hammers, 85–86
- hanging man, 86
- head-and-shoulders chart pattern, 76–78
- healthcare sector, 193
- highgrowthstock.com (Web site), 54, 317
- High Growth Stock Investor (HGSI), 54, 125, 174, 178, 180, 195, 317
- histogram, 109
- historical performance, 178
- hope, 31
- horizontal trendlines, 92
I
- idealratings.com, 18
- idiosyncratic risk, 299
- illiquidity premium, 313
- illiquid securities, 17, 312
- implementation shortfall, 247
- income
- net, 156
- operating, 156
- swing trading as primary source of, 12–13
- income statement
- components of, 156
- defined, 156
- guidelines to assessing, 157–158
- indicators. See technical indicators
- indirect costs, 156
- industry analysis
- familiar markets, 192
- identifying sectors, 193–194
- overview, 191
- steps in, 191
- industry fundamentals, 178
- industry groups
- defined, 230
- following, 297–298
- identifying, 262–263
- market standard, 141–143
- inflation, 323
- information technology sector, 193
- institutional investors, 32
- Interactive Brokers, 48
- interactivebrokers.com (Web site), 48
- interest coverage ratio, 198–199
- interest expense, 198
- intermarket analysis
- commodities, 135–137
- overview, 132–133
- stocks and bonds, 137–138
- U.S. dollar, 133–134
- international markets, 48
- intraday charting
- balancing trading signals, 253
- entry criteria, 252–253
- overlay, 250–252
- overview, 69
- selecting time frames, 252
- to time entries and exits, 250–253
- intraday trading, ups and downs of, 256
- intramarket analysis. See relative strength analysis
- intrinsic value, , 37
- Intuitive Surgical (symbol: ISRG)., 103
- inventory levels, 153
- Invesco QQQ Trust, 141
- investment returns,
- Investor’s Business Daily (IBD), 54, 125, 141–142, 195, 317–318
- investors.com (Web site), 54, 317
- Iradimed Corp (symbol: IRMD), 266–267, 269
- IRMD (Iradimed Corp), 266–267, 269
- iShares FTSE/Xinhua China 25 Index, 140
- iShares MSCI Australia Index, 140
- iShares MSCI China ETF, 140
- iShares MSCI Japan Index, 140
- iShares S&P 350 Index, 140
- iShares S&P Latin American 40 Index, 140
- iShares Silver Trust (symbol: SLV), 231
- ISRG (Intuitive Surgical), 103
J
- journals, , 57–59, 302–303
K
- Karate Kid, The (film), 208
L
- large capitalization (large cap) stocks, 218
- Latam Airlines Group (symbol: LFL)., 78
- LEN (Lennar), 77
- Lennar (symbol: LEN)., 77
- leverage, 198
- LFL (Latam Airlines Group), 78
- liabilities
- limit orders, 244, 301
- line chart, 65, 67.See also charts
- liquidity
- Little Book That Beats the Market, The (Greenblatt), 316
- livestock and meat commodities, 135
- long-term assets, 152
- long-term capital gains tax rate,
- Long Term Capital Management (LTCM), 214–215
- long-term liabilities, 153
- long-term P/E ratio, 172–174
- losses
- admitting to, 24
- deducting amount of losses from income, 10
- exiting for, 21
- experiencing, 239–240
- failure to act, 239–240
- limiting
- to certain percentage, 269–270
- overview, 220
- setting position size, 221–225
- willingness to lose, 220–221
- position, 226–228
- responding to, 239–240
- trailing stops, 91
- low-priced shares, avoiding, 219–220
- LTCM (Long Term Capital Management), 214–215
- LULU (Lululemon), 142
- Lululemon (symbol: LULU), 142
- Lynch, Peter, 191
M
- MACD (Moving Average Convergence/Divergence)
- crossover of nine-day moving average, 111–112
- examples of, 110–111
- overview, 109
- positive and negative divergences, 110–111
- Mad Money, 41
- MagicFormulaInvesting.com, 316
- MagicFormulaInvesting.com (Web site), 316
- margin accounts, 49–50
- margins
- gross, 204–205
- net profit, 205
- operating, 205
- markdown phase, 73–74
- market capitalization, 105, 218
- market depth, 242
- market makers, 242
- market mechanics, 241–242
- market noise, 36, 98, 313
- market orders, 243–244
- market participants
- memory of, 31–32
- reaction to major news, 31
- market research
- daily chart, 260–261
- GMO, 321
- overview, 260
- Real Vision TV, 320
- weekly chart, 261–262
- MarketSmith, 125, 180
- market value, 37
- markup phase, 70–71
- maturities, 177
- MCF (Contango Oil & Gas Company), 82–83
- mean reversion, 93
- MEMC Electronics Materials, 130–131
- mental stop-loss level, 236, 271
- Merck (symbol: MRK), 166
- Merck Company (symbol: MRK), 203
- Merrill Lynch, 47, 167
- message boards, 24, 55–56
- metal commodities, 135
- metals, 231
- MetaStock, 51
- Microsoft Excel, 289–290
- mistakes
- changing trading destinations midflight, 308–309
- doubling down, 309–310
- familiarity bias, 311–312
- gambling on earnings dates, 307
- illiquid securities, 312
- keeping open positions while travelling, 310
- overconfidence, 310–311
- overtrading, 312–313
- speculating on penny stocks, 308
- starting with too little capital, 306–307
- violating trading plan, 305–306
- monetary policy, 133
- money
- money-weighted return method, 282, 284
- monitoring motion of shares, 272–273
- Morgan Stanley, 167
- morning stars, 88–89
- MOS (Mosaic Company), 128
- Mosaic Company (symbol: MOS), 128
- Motley Fool, 205
- Motley Fool (Web site), 205
- Moving Average Convergence/Divergence (MACD)
- crossover of nine-day moving average, 111–112
- examples of, 110–111
- overview, 109
- positive and negative divergences, 110–111
- moving averages
- crossovers, 107–109
- defined, 104
- exponential, 105
- length, 106
- simple, 105
- slope changes, 106–107
- MRK (Merck), 166
- MRK (Merck Company), 203
N
- NASDAQ, 18
- Nasdaq 100 Index, 141
- Nasdaq Level II quotes
- evaluating, 256
- Level I quotes, compared with, 254–255
- overview, 253
- Time & Sales report, 257–258
- verifying accuracy of, 256–258
- neckline, 77
- net income, 156
- net profit margins, 205
- NEU (NewMarket), 87
- new economy, 135
- New High/New Low Index, 174
- NewMarket (symbol: NEU), 87
- newsletters, 56–57
- New York Stock Exchange (NYSE), 18
- Niederhoffer, Victor, 214
- noise, 36, 98, 313
- non-trending indicators, 36
- overview, 112
- Relative Strength Index (RSI), 115–118
- stochastics, 112–115
- Norwegian Sovereign Wealth Fund, 18
- Nvidia, 42
O
- ODFL (Old Dominion Freight Line), 101
- OHLC bar chart, 65
- Old Dominion Freight Line (symbol: ODFL), 101
- O'Neil, William J., 141, 195, 229
- operating income, 156
- operating margins, 205
- order book, 217
- orders
- algorithmic, 247
- buy-stop, 245
- executing, 270–271
- good till canceled (GTC), 243
- good until the day (GTD), 243
- limit, 244
- market, 243–244
- sell-stop, 245
- stop, 244–245
- stop limit, 245
- oscillators. See non-trending indicators
- overbought, 36, 114–115, 118
- overconfidence, 310–311
- oversold, 36, 114–115, 118
- overtrading, 312–313
- owners' equity, 153
P
- part-time swing traders. See also full-time swing traders
- capital requirements, 307
- entry strategy, 248
- exit strategy, 240
- overview, 13–14
- pattern day traders, –10
- PAYC (Paycom Software), 208
- Paycom Software (symbol: PAYC), 208
- penny stocks, 308
- performance evaluation
- annualizing returns, 279–281
- benchmarking, 287–291
- overview, 277–278
- return calculation, 278–279
- time-weighted return method
- calculating return for time periods, 285
- chain-linking, 286–287
- defined, 282
- money-weighted return method, compared with, 283–284
- overview, 281–282
- time period breakdown, 282–284
- PFE (Pfizer), 166
- Pfizer (symbol: PFE), 166
- PHI (Philippine Long Distance), 75–76
- Philippine Long Distance (symbol: PHI), 75–76
- Phillips, Bill, 59
- point and figure (P&F) chart, 66, 68.See also charts
- portfolio management tools
- Yahoo! Economic Calendar, 322–323
- Yahoo! Finance portfolio tool, 322
- position size
- determining, 268–270
- limiting losses, 269–270
- setting by percent of capital, 222–223
- setting by risk level, 224–225
- setting stop-loss level, 269
- Power E*Trade, 51
- precious metals, 231
- price
- during accumulation phase, 68–69
- in bearish engulfing patterns, 87–88
- in bullish engulfing patterns, 86–87
- during contraction (markdown) phase, 73
- in cup-and-handle pattern, 78–79
- in Darvas box chart pattens, 75–76
- during distribution phase, 71–72
- during expansion (markup) phase, 70–71
- gaps in, 81–84
- in hammer, 85–86
- in head-and-shoulders chart pattern, 76–78
- incorrect (bad tick), 95
- role in charting, 64–65
- swings related to technical indicator, 94–96
- in triangle chart pattern, 80–81
- and volume, 96
- price/earnings to growth (PEG) ratio, 178–179, 207
- price return, 288
- price to cash flow, 207
- price to earnings ratio (P/E)
- calculating, 207
- forward, 178
- long-term, 172–174
- market evaluation with, 164–165, 166, 172–174
- predetermined price target with, 233
- profitable trades
- overview, 232
- predetermined price target, 233
- predetermined profit target, 232–233
- swing lows/highs, 233–234
- technical signals, 234–235
- profits
- exiting for, 21
- setting target, 300–301
- P/S ratio, 207
- psychology, role in fundamental analysis, 39
- public equity. See also stock
- American Depository Receipts (ADRs), 16
- overview, 15
Q
- qualitative data, 162–164
- quantitative trading style, 26
- advantages of, 30
- disadvantages of, 30
- discretionary trading style, compared with, 29–30
R
- range, 121.See also trading ranges
- ranking filtered securities, 264–267
- real body (candlestick chart), 65
- real estate investment trusts (REITs), 231
- Real Vision, 320, 323–324
- recording trade, 271–272
- Reddit, 24, 55–57
- regression, 98
- REITs (real estate investment trusts), 231
- relative strength analysis
- global scope of, 139–141
- industry group market standards, 141–143
- overview, 36, 139
- Relative Strength Index (RSI)
- chart patterns, 117
- defined, 115–116
- overbought and oversold zones, 118
- positive and negative divergences, 116–117
- relative valuation, 164–165
- religious-based investing, 17
- resistance levels
- during accumulation phase, 69
- defined, 21, 32
- horizontal trendlines, 92
- identifying, 35
- stop loss based on, 237
- trading, 121
- resources
- portfolio management
- Yahoo! Economic Calendar, 322–323
- Yahoo! Finance portfolio tool, 322
- sourcing/charting
- High Growth Stock (HGS) Investor software, 317
- Investor’s Business Daily, 317–318
- MagicFormulaInvesting.com, 316
- StockCharts.com, 319–320
- TradeStation, 319
- trading techniques
- Black Swan: The Impact of the Highly Improbable, The (Taleb), 323–324
- Real Vision, 323–324
- Technical Analysis of Stocks & Commodities magazine, 324–325
- returns
- annualizing, 279–281
- calculating, 278–279
- chain-linking, 286–287
- comparing over different time periods, 279–281
- price, 288
- risk adjusted, 291
- time-weighted, 281–287
- total, 288, 290
- Reuters, 52
- reuters.com (Web site), 51, 199
- Reuters-CRB Index, 136, 141
- revenues, 156
- risk
- company size, 217–218
- idiosyncratic, 299
- measuring, 216
- assessing beta, 218–219
- liquidity, 216–217
- low-priced shares, 219–220
- risk adjusted return, 291
- risk level
- setting, 299–300
- setting position size by, 224–225
- risk management
- building portfolios
- diversifying allocation, 228–231
- limiting position losses, 226–228
- overview, 226
- defined, 215
- exit strategies, 232–240
- limiting losses
- level willing to lose, 220–221
- overview, 220
- setting position size, 221–225
- round numbers, 132
- RSI (Relative Strength Index)
- chart patterns, 117
- defined, 115–116
- overbought and oversold zones, 118
- positive and negative divergences, 116–117
- rules
- avoid emotional trading, 298–299
- diversify, 299
- follow industry groups, 297–298
- have fun, 303
- set profit target/technical exit, 300–301
- set risk level, 299–300
- trade your plan, 295–297
- trading journal, 302–303
- use limit orders, 300–301
- use stop-loss orders, 301–302
S
- S&P 500 Index, 120, 140, 141, 175
- S&P Retail ETF Index (symbol: XRT), 143
- sales
- defined, 156
- expectations, 201–203
- sales growth, 199–201
- Sandisk (symbol: SNDK), 72–73, 74, 91
- Sanofi (symbol: SNY), 166
- SBUX (Starbucks), 254
- screens
- assessing results, 186
- criteria, 182–183
- defined, 21
- growth, 183–185
- overview, 181–182
- securities, 264
- value, 185–186
- sectors
- Global Industry Classification Standard, 229
- growth, 193
- identifying, 193–194
- performance related to economic cycle, 193–194
- value, 193
- securities
- American Depository Receipts (ADRs), 16, 231
- exchange-traded funds (ETFs), 15–16, 230–231
- public equity (stock), 15
- ranking filtered, 264–267
- real estate investment trusts (REITs), 231
- screening, 264
- Securities and Exchange Commission (SEC), 150
- Security Analysis (Graham and Dodd), 147
- sell-stop orders, 245
- service providers
- to avoid, 55–57
- fundamental analysis software, 52–55
- message boards, 55–56
- newsletters, 56–57
- overview, 50–51
- selecting, 50–57
- technical software, 51–52
- shadows (candlestick chart), 66
- shareholder's equity, 153
- Shariah compliant investing, 17
- shorting, 29, 108, 117, 221, 249
- short-term capital gains tax rate,
- short-term trends,
- sideways movement, 88
- Siegel, Jeremy, 35, 162
- SIGM (Sigma Designs Inc.), 84, 234–235
- Sigma Designs, Inc. (symbol: SIGM), 84, 234–235
- silver, 231
- simple moving averages, 105
- Six Steps Dance analysis method
- competition, 203–205
- earnings and sales expectations, 201–203
- financial stability
- current ratio, 197
- debt to shareholders’ equity ratio, 197–198
- interest coverage ratio, 198–199
- overview, 196–197
- industry analysis
- familiar markets, 192
- identifying sectors, 193–194
- overview, 191
- steps in, 191
- overview, 190–191
- past performance, 199–201
- valuing company's shares, 206–210
- skills, improving, 274–275
- SLV (iShares Silver Trust), 231
- smart money, 32, 68–69
- SNDK (Sandisk), 72–73, 74, 91
- SNE (Sony Corp.), 266–267, 269, 272, 273–274
- SNY (Sanofi), 166
- socially responsible investing (SRI), 17–18
- Sony Corp. (symbol: SNE), 266–267, 269, 272, 273–274
- Southwestern Energy (symbol: SWN), 256
- SPDR Gold (symbol: GLD), 111, 231
- SPDR S&P Emerging Asia Pacific, 140
- speculation, 308
- spindices.com (Web site), 172
- spread, 217
- SPXC (SPX Corporation), 95
- SPX Corporation (symbol: SPXC), 95
- Standard & Poor’s 500 Index, 261
- standard deviation, 291
- Starbucks (symbol: SBUX), 254
- stochastics
- %D plot, 113
- %K plot, 113
- components of, 113
- crossovers from overbought and oversold levels, 114–115
- overview, 112–113
- positive and negative divergences, 113–114
- stock
- analyzing
- competition, 203–205
- earnings and sales expectations, 201–203
- financial stability, 196–199
- industry analysis, 191–194
- overview, 190–191
- past performance, 199–201
- valuing company's shares, 206–210
- beta, 218–219
- bonds, relationship with, 137–138
- emerging market, 16
- exchange traded funds (ETFs), 15–16
- growth, 42–43, 184–185
- high management ownership, 163
- large capitalization (large cap), 218
- overview, 15
- penny, 308
- value, 42–43, 185–186
- StockCharts.com, 51, 125, 319–320
- stockcharts.com (Web site), 51, 74, 319–320
- stock reports, 24
- stock symbols
- 007700 KS (F&F Company), 126
- AAPL (Apple Inc.), 127, 157–158
- AEO (American Eagle), 155, 204–205
- AKAM (Akamai Technology Inc.), 240
- AKS (AK Steel), 67
- AMZN (Amazon.com), 18, 105, 154–155
- APA (Apache Corporation), 69–70, 71
- APPF (Appfolio), 107
- BBY (Best Buy), 113–114
- BKNG (Booking.Com), 233
- BMY (Bristol-Myers Squibb), 166
- BVN (Cia de Minas Buenaventura), 79
- CHL (China Mobile Limited), 89
- DIS (Walt Disney), 254–255
- DO (Diamond Offshore), 87
- DSX (Diana Shipping), 82
- DXCM (DexCom), 244
- ELY (Callaway Golf), 117–118
- EXPE (Expedia), 233
- FLS (Flowserve Corp.), 83
- FROTO (Ford Otomotiv Sanayi), 117
- FSLR (First Solar), 110
- GLD (SPDR Gold), 111
- GLD (SPDR Gold Shares Gold), 231
- GOOG (Alphabet), 18, 66–67, 224–225
- IRMD (Iradimed Corp), 266–267, 269
- ISRG (Intuitive Surgical), 103
- LEN (Lennar), 77
- LFL (Latam Airlines Group), 78
- LULU (Lululemon), 142
- MCF (Contango Oil & Gas Company), 82–83
- MOS (Mosaic Company), 128
- MRK (Merck), 166
- MRK (Merck Company), 203
- NEU (NewMarket), 87
- ODFL (Old Dominion Freight Line), 101
- PAYC (Paycom Software), 208
- PFE (Pfizer), 166
- PHI (Philippine Long Distance), 75–76
- SBUX (Starbucks), 254
- SIGM (Sigma Designs), 84
- SIGM (Sigma Designs Inc.), 234–235
- SLV (iShares Silver Trust), 231
- SNDK (Sandisk), 72–73, 74, 91
- SNE (Sony Corp.), 266–267, 269, 272, 273–274
- SNY (Sanofi), 166
- SPXC (SPX Corporation), 95
- SWN (Southwestern Energy), 256
- TOL (Toll Brothers), 199
- ULTA (Ulta Beauty Inc.), 114–115
- VEGI (fertilizers and agricultural chemicals), 231
- VG (Vonage), 201
- WDC (Western Digital), 85, 108–109
- WOOD (timber), 231
- WTI (W&T Offshore), 235–236
- XLE (Energy Select Sector SPDR), 231
- XOM (Exxon Mobil), 234
- XRT (S&P Retail ETF Index), 143
- YHOO (Yahoo!), 238
- stop limit orders, 245
- stop-loss level
- stop-loss orders
- good until canceled, 271
- physical, 236
- rules, 301–302
- using, 301–302
- stop orders, 244–245
- strategic plan
- deciding where to trade, 18
- overview, 14–15
- securities to trade, 15–17
- trading stocks consistent with your values, 17–18
- trading style and strategy, 18–23
- support levels
- during accumulation phase, 69
- defined, 21, 32
- horizontal trendlines, 92
- identifying, 35
- stop loss based on, 237
- trading ranges, 121
- swing trading
- actions items, 24
- advantages of, 10–11
- buy-and-hold investing, compared with, –11
- capital requirements for, 306–307
- day trading, compared with, 11
- defined,
- earning prospect from,
- full-time, 12–13
- for fun, 14
- goal of,
- to improve investment returns, 13–14
- overview,
- part-time, 13–14, 248–249
- personality fit for,
- as primary source of income, 12–13
- to supplement income, 13–14
- ten simple rules for, 295–303
- time commitment, 11–14
- SWN (Southwestern Energy), 256
- symmetrical triangles, 81
- systematic trading style, 26
T
- Taleb, Nassim Nicholas, 214, 323–324
- TD Ameritrade, 47, 48
- technical analysis
- advantages of, 19–20, 27–28, 33–34
- defined, 25
- disadvantages of, 33–34
- fundamental analysis, compared with, 26–28
- how and why it works, 30–31
- questions to ask in, 31
- reading charts, 34–35
- technical indicators, 35
- validity of, 35
- Technical Analysis of Stocks & Commodities magazine, 319, 324–325
- technical exit, 300–301
- technical indicators. See also trending indicators
- accuracy value of, 97–98
- applying, 36, 93
- defined, 36
- determining whether to be in or out of the market, 119–120
- divergences, 99
- emergency exit signal, 129
- limiting number of, 98
- non-trending indicators, 112–118
- overview, 93
- price and volume, 96
- price swings related to, 94–96
- selling strategies using, 234–235
- settings, 98–99
- stop loss based on, 238–239
- trending indicators, 100–112
- technical software providers, 51–52
- telecommunications sector, 193
- Theory of Investment Value, The (Williams), 147
- thinkorswim.com (Web site), 48
- Think Tank, 324
- ticker tape, 27
- tiddlers, 217
- timber (symbol: WOOD), 231
- time commitment, determining, 11–14
- time frames, –10
- time-weighted return method
- calculating return for time periods, 285
- chain-linking, 286–287
- defined, 282
- money-weighted return method, compared with, 283–284
- overview, 281–282
- time period breakdown, 282–284
- TOL (Toll Brothers), 199
- Toll Brothers (symbol: TOL), 199
- top-down approach
- bottom-up approach, compared with, 187
- industry assessment, 178–180
- market evaluation
- adjusted Fed Model, 176–177
- Fed Model, 174–175
- long-term P/E ratio, 172–174
- overview, 171–172
- overview, 21, 29, 169–171
- steps of, 171
- for trending securities, 125–126
- total return, 288, 290
- trade execution
- full-time
- intraday charting, 250–253
- Nasdaq Level II quotes, 253–258
- order types, 249–250
- order types
- algorithmic orders, 247
- buy-stop orders, 245
- limit orders, 244
- overview, 243
- stop limit orders, 245
- stop orders, 244–245
- part-time
- entry strategy, 248
- exit strategy, 249
- overview, 249
- trade record, 271–272
- traders.com (Web site), 325
- TradeStation, 48, 51, 174, 271, 319
- tradestation.com (Web site), 48, 319
- trading journal, , 57–59, 302–303
- trading plan
- overview,
- performance evaluation, 291–292
- rules, 295–297
- violating, 305–306
- trading process
- determining position size
- limiting losses, 269–270
- overview, 268–269
- setting stop-loss level, 269
- executing order, 270–271
- identifying top industry groups, 262–263
- improving skills, 274–275
- market research
- daily chart, 260–261
- overview, 260
- weekly chart, 261–262
- monitoring motion of shares, 272–273
- recording trade, 271–272
- selecting candidates
- assessing charts, 264–267
- occupational activities, 263–264
- overview, 263–264
- ranking filtered securities, 264–267
- screening securities, 264
- trading ranges
- conception of, 123
- entering/exiting, 131–132
- finding security in wide, 130
- flat, 130
- overview, 129–130
- strength of, 130
- trading, 122–124
- trading trends, compared with, 122–124
- trading style and strategy
- analysis techniques, 19–20
- being in or out of the market, 22
- choosing, 18–23
- choosing candidates to buy, 20–21
- entering orders, 19
- exit strategy, 21–22
- risk management plan, 22–23
- trading trends
- entering, 126–128
- finding strong, 124–126
- risk management, 129
- trading ranges, compared with, 122–124
- traditional brokerage accounts, 50
- trailing stop loss, 91
- trailing twelve months (TTM), 166
- trending indicators. See also technical indicators
- Directional Movement Index (DMI), 102–104
- limits of, 100
- Moving Average Convergence/Divergence (MACD), 109–111
- moving averages, 104–109
- overview, 36, 100
- trendlines
- defined, 88
- downtrend lines, 91–92
- drawing, 90
- horizontal, 92
- overview, 89–90
- uptrend lines, 90–91
- trends
- bearish engulfing pattern, 87–88
- bullish engulfing pattern, 86–87
- defined, 121
- evening stars, 88–89
- hammers, 85–86
- hanging man, 86
- morning stars, 88–89
- trading, 122–124
- triangle chart patterns
- ascending, 80
- descending, 81
- overview, 80
- symmetrical, 81
- true worth,
- turnover, 156
- turnover rate,
- Twitter, 24, 55–57, 161–162
U
- ULTA (Ulta Beauty Inc.), 114–115
- Ulta Beauty Inc. (symbol: ULTA), 114–115
- unearned revenue, 155
- uptrend lines, 90–91
- usability, 48
- U.S. dollar, 133–134, 268
- use limit orders, 300–301
- use stop-loss orders, 301–302
- U.S. Treasury bond, 136–137
- U.S. Treasury Note, 175
- utilities sector, 193
V
- valuation
- absolute, 165
- defined, 148
- preferred model, 165–168
- relative, 164–165
- value
- fair, 177
- intrinsic, , 37
- market, 37
- value sector, 193
- value stocks, 42–43, 185–186
- valuing shares
- overview, 206
- relative to competitors, 206–207
- share-price justification, 207–210
- VectorVest, 57
- VEGI (fertilizers and agricultural chemicals), 231
- VG (Vonage), 201
- volume
- heavy, 64
- and price, 96
- role in charting, 64–65
- trader commitment in, 35
- volume weighted average price (VWAP), 247
- Vonage (symbol: VG), 201
W
- W&T Offshore (symbol: WTI), 235–236
- Wall Street, 24
- Walt Disney (symbol: DIS), 254–255
- wash sale rule, –10
- WDC (Western Digital), 85, 108–109
- Web sites
- adrbnymellon.com, 268
- adr.com, 231, 268
- ally.com, 47
- bloomberg.com, 175
- esignal.com, 51
- etf.com, 18
- etrade.com, 47, 51
- fidelity.com, 47, 51
- fool.com, 205
- ftserussell.com, 288
- gmo.com, 321
- Google Finance, 52, 218
- highgrowthstock.com, 54, 317
- idealratings.com, 18
- interactivebrokers.com, 48
- investors.com, 54, 317
- MagicFormulaInvesting.com, 316
- metastock.com, 51
- Motley Fool, 205
- realvisionresearch.com, 324
- reuters.com, 52, 199
- spindices.com, 172
- stockcharts.com, 51, 74, 319–320
- tdameritrade.com, 47
- thinkorswim.com, 48
- traders.com, 325
- tradestation.com, 48, 319
- Yahoo! Economic Calendar, 322
- Yahoo! Finance, 52, 150, 178, 218, 322
- zacks.com, 54
- weekly chart, 261–262
- Western Digital (symbol: WDC), 85, 108–109
- Wharton School of Business, 35
- Williams, John Burr, 147
- winning mindset, 59–60
- withdrawals, accounting for, 281–287
- WOOD (timber), 231
- WTI (W&T Offshore), 235–236
X
- XLE (Energy Select Sector SPDR), 231
- XOM (Exxon Mobil), 234
- XRT (S&P Retail ETF Index), 143
Y
- Yahoo! (symbol: YHOO), 238
- Yahoo! Economic Calendar, 322–323
- Yahoo! Finance, 52, 150, 178, 218, 322
- Yahoo! Finance portfolio tool, 322
- YHOO (Yahoo!), 238
Z
- zacks.com (Web site), 54
- Zacks Investor Software, 55
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