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Tensile Trading: The 10 Essential Stages of Stock Market Mastery

ISBN: 978-1-119-22433-4
208 pages
April 2016
Tensile Trading: The 10 Essential Stages of Stock Market Mastery (1119224330) cover image

Description

A detailed 10-stage roadmap for investors to achieve stock market mastery with their own consistently profitable, high-probability investment system

Tensile Trading provides a complete, step-by-step roadmap for investors of all levels, and coaches them on how best to organize the routines and strategies necessary to identify the market's strongest trading opportunities. History is proof that true mastery of the market begins with basic money management protocols, asset protection policies, and organized analysis techniques. With these crucial foundations in place, you can embrace a proven investment methodology, execute an effective trading plan, and develop a reliable system for profitable investing. Consistent, long-run investing success is a result of well-defined goals, carefully-constructed routines and an accurate understanding of the psychological challenges that all investors face.

  • Set yourself up for success by implementing prudent money management and asset protection strategies
  • Build a personalized Asset Allocation Profile—your own personalized investment methodology
  • Construct a properly diversified portfolio using tools and techniques tailored for the modern market
  • Learn to take control of your "Investor Self," limiting the impact of mental hurdles and emotional baggage
  • Supercharge your financial analysis by employing proven routines and strategies

A clear and proven approach easily tailored to fit your specific investing style, Tensile Trading distills the vastness of the financial markets into ten essential stages. It is designed to provide a comprehensive structure to your financial management efforts—helping you make smarter investment decisions, trade more efficiently, and consistently earn greater returns.

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Table of Contents

Preface xi

Acknowledgments xvii

About the Authors xxi

Stage 1 Money Management 1

Crafting Your Money Management Plan 5

Becoming a Successful Investor 9

The Importance of Asset Allocation 11

Constructing Your Personal Asset Allocation Profile 15

X-Ray Magic 24

Allocation Maintenance 24

Stage 2 The Business of Investing 29

Ten Invaluable Investing Lessons 29

Staying Committed on the Road 36

The Investor’s Quad 36

Stage 3 The Investor Self 39

The Five Levels of Investor Growth 40

Investor Weaknesses 42

Learn from the Professionals 46

Your Daily Journal 47

Stage 4 Market Analysis 53

Permission to Buy 54

Telescope-to-Microscope Approach 55

Charting Indicators 56

Organizing Your Analysis 60

Common Misunderstandings 62

The Market Stages and Technical Analysis 64

Fundamentals Checklist for Stocks 67

Fifty versus Fifty 68

Stage 5 Routines 71

Choosing Your Time Frame 72

From Salesmen to Stock Traders 74

Personal Peak Performance 75

Daily, Weekly, Monthly, Annually 76

A Day in the Life 79

Stage 6 Stalking Your Trade 87

Where to Look 88

What to Look For 88

How to Look 89

When to Look 89

Filters 91

Human Nature and Overhead Supply 96

Second-Opinion Resources 98

The Sisters Strategy Revisited 98

Mimic Wall Street’s Masters 99

The Base-Hit Investor 101

Stage 7 Buying 103

BATTLE V Methodology 106

Pyramid Trading 106

The Language of the Market 108

Buy Routines 109

Considering Alternatives 111

Perfection Paralysis 111

Commission-Free Mind-Set 112

Invest Like You Drive 113

It’s All about Stress Control 114

Stage 8 Monitoring 117

You Bought It—Now What? 118

Revisiting the Investor Self 119

Market Monitoring 120

Adjusting Stops 121

Tools, Routines, and Charts 123

Fundamentals 126

Allocation Updates 127

What Is Your Motivation? 129

Stage 9 Selling 131

Sell on Technicals, Not Fundamentals 133

The Art of Selling 135

Developing Your Selling System 138

Mutual Fund Sell Signals 146

Selling with the Sisters 148

Sell-Side Pyramid Trading 149

The Endowment Effect 149

The Investor’s Trail 150

Stage 10 Revisit, Retune, Refine 153

Cleanse and Move Forward 154

Personal Data Mining 164

The Investor’s Big Three 165

Thoughts on Transformation 167

About the Website 171

Index 173

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Author Information

GATIS N. ROZE is a veteran stock market investor who has traded his own account full-time since 1989, unburdened by the distraction of clients. He holds an MBA from the Stanford Graduate School of Business, is a Chartered Market Technician (CMT), and is a past president of the Technical Securities Analysts Association (TSAA). After a successful entrepreneurial career, he retired in his early 40s to focus on investing. With consistent success as a stock trader, he began teaching investments at the post-college level in 2000 and continues to do so today. A renowned communicator, he has taught thousands of investors in sold-out seminars for the AAII, the MTA, and more. His weekly investment blog, The Traders Journal, is read by a global audience.

GRAYSON D. ROZE has worked in the financial services industry for StockCharts.com since 2012. He now serves as a Business Manager at the company. He holds a Bachelor's degree from Swarthmore College, where he studied economics and psychology. At a young age, he began pursuing his interest in the financial markets by attending investment classes and starting to trade under the guidance of his father. At the age of 18, Grayson began investing his own account and has since become an accomplished trader in his own right. Tensile Trading was his vision as a vehicle to lay out his father's investment wisdom and convey it to a wider audience.

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