Ordinary People, Extraordinary Profits: How to Make a Living as an Independent Stock, Options, and Futures Trader
DescriptionDavid Nassar delivers a complete and proven system for aggressively and successfully trading in today's markets in Ordinary People, Extraordinary Profits. He explains the fundamentals of technical analysis and risk management, giving you a solid foundation to approach the market, and then describes a variety of trading strategies that will help you make consistently large profits without undue risk. Unlike other trading advisors who advocate a single approach to trading, Nassar provides a variety of strategies you can choose. In addition, he explains how to use new trading instruments such as E-Mini contracts, options, and exchange-traded funds. If you're looking for a complete, proven system for aggressively trading the stock market, this book is an ideal guide.
Trade the Professional Way.
Ride the Statistical Edge . . . Like Betting Seven in Craps.
Master the Inner Game.
CHAPTER 1 Foundational Analysis.
Two Types of Analysis.
What Exactly Is Technical Analysis?
The Four-Stage Theory.
Stage 1: Accumulation.
Stage 2: Markup.
Stage 3: Distribution.
Stage 4: Decline.
Support and Resistance.
Definitions of Support and Resistance.
Once Broken, Support Tends to Act as Resistance.
Once Broken, Resistance Tends to Act as Support.
The More Often Support or Resistance Is Tested, the More Likely That Level Is to Fail to Hold Back Price Movement.
The Longer the Trend Has Been Neutral (Consolidating), the More Significant the Eventual Breakout Becomes.
CHAPTER 2 Risk Management.
Discipline—The Key to Trading Success.
Avoid Trading with Scared Money.
Terra Nova Trade Evaluator.
Your Goal: To Trade without Emotion.
Plan Your Trade and Trade Your Plan with Risk-Reward Ratios.
Overall Protective Stop Guidelines.
Protective Stops and Trading Time Frames.
Percentage of Price Stops.
Avoid This Mistake.
RealTick® Can Help.
Risk Management and Trading with the News.
Risk Management and Share Size.
CHAPTER 3 Basic Chart Formations.
Interpreting Chart Patterns.
Head and Shoulders Chart Formation.
Long Base and Saucer Formations.
Saucer Bottoms and Tops.
Cup and Handle Formation.
Bull and Bear Traps.
Flags and Pennants.
CHAPTER 4 Going Short.
Finding Shorting Opportunities.
Price/Earnings Ratio Imbalance.
The Loaded Spring.
Day-Trading “Tape Resistance”.
The Short Squeeze (Be Cautious).
The Federal Reserve Board’s Regulation T.
Opening a Margin Account.
Calculating Initial Requirements.
Calculating Maintenance Requirements.
Minimum Maintenance Requirements.
Change in Market Value.
Short Sales and Margin Requirements.
NASD/NYSE Minimum Deposit on Short Sales.
Margin Maintenance Calls on Short Sales.
CHAPTER 5 Other Trading Vehicles.
What Is an E-Mini S&P 500 Contract?
Initial and Maintenance Margin Requirements.
Treatment of Settlement.
The E-Mini Contract versus the Pit-Traded Contract.
Price and Percentage Limits.
E-Mini Standard & Poor’s 500 as a Hedge.
Tax Advantages with the E-Mini.
The E-Mini Nasdaq 100.
Chicago Board of Trade Mini-Dow Futures Use $5 Multiplier.
Who Regulates Futures Trading?
Program Trading and Fair Value.
Predicting the Opening.
How to Calculate Fair Value.
What about Exchange-Traded Funds?
E-Mini Is Hard to Beat.
Put and Call Options.
A Brief History.
Puts and Calls and Standardized Options.
Shares per Option.
In-the-Money or Out-of-the-Money.
Rights versus Obligations.
Opening and Closing Transactions.
Conversions, Reversals, and Synthetics.
The Greeks and Delta Value.
CHAPTER 6 Trading Strategies.
The Profiler’s-Systems Trading.
Pricing Puts/Calls—A Strategy You Can Use.
CHAPTER 7 Indicators and Oscillator.
Relative Strength Index.
Using the TRIN.
CHAPTER 8 Traditional Pivot Analysis.
The Pivot Formula.
The Pivot in Action.
Choosing the Right Data for Calculations.
The Area between R1 and S1.
Illustrating Pivot Lines on RealTick.
Archiving Pivot Levels.
Strategy and Money Management.
Lining Up Levels on Multiple Time Frames.
Trading a Confluence Zone.
Swing Trading with Confluence Areas.
CHAPTER 9 Planning and Staying on Track.
What Is Your Time Commitment?
How Will You Fund Your Trading Account?
What Style of Trading Will You Pursue?
What Are Your Profit Objectives?
How Will You Manage Your Profits?
Do You Evaluate All Your Trades?
Are You Keeping a Journal?
CHAPTER 10 Your Path to Success.
Where to Next?
Appendix: MarketWise Tools—Routes to Success.
MarketWise Web Site Resources.
Tuning to the Market Intraday.
Bibliography and Exchange Contact Information .
Exchange Contact Information.