Index

  • 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, 3
  • 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, 1, 8–11
  • 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, 2
    • 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), 3
  • common gaps, 81–82
  • company size, 217–218
  • competition
    • overview, 203
    • strategies, 204
  • 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), 3
  • 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, 3
  • 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, 8
  • 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, 8
  • 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, 9
  • 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, 2, 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, 3
  • 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, 8, 37
  • Intuitive Surgical (symbol: ISRG)., 103
  • inventory levels, 153
  • Invesco QQQ Trust, 141
  • investment returns, 2
  • 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, 2, 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, 9
  • 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, 9–10
  • 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
    • trading plan, 291–292
  • 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
    • market research
      • GMO, 321
      • Real Vision TV, 320
    • 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
    • overview, 2
  • 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
    • overview, 213, 215
    • plan, 22–23
    • real stories of, 214
    • setting exit level, 129, 232–240
  • 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
  • 7 percent rule, 23
  • shadows (candlestick chart), 66
  • shareholder's equity, 153
  • Shariah compliant investing, 17
  • shorting, 29, 108, 117, 221, 249
  • short-term capital gains tax rate, 9
  • short-term trends, 8
  • 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, 8–11
    • capital requirements for, 306–307
    • day trading, compared with, 11
    • defined, 8
    • earning prospect from, 7
    • full-time, 12–13
    • for fun, 14
    • goal of, 1
    • to improve investment returns, 13–14
    • overview, 2
    • part-time, 13–14, 248–249
    • personality fit for, 8
    • 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, 9–10
  • 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, 2, 57–59, 302–303
  • trading plan
    • overview, 2
    • 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
    • volatility, 259
  • 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, 8
  • turnover, 156
  • turnover rate, 8
  • 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
  • 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, 9–10
  • 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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