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for beginning traders, 420 chart for, 444 ES charts for, 234 –235 filtering, 246 –248 five-minute, 230 , 403 , 420 forex charts for, 235 –236 GOOG chart of, 236 –237 monthly gold chart with, 244 RTM and, 216 –218 setups, 115 –116, 221 –222 SI with, 241 –242 signaling for, 116
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in S&P futures, 242 –243 30 Year Bond, 232 –234 waves used in, 254 –256 wealth creation with, 222 , 447 –448 YM charts for, 224 , 226 – 232, 235 SSDs. See Solid-state drives SSFs. See Single stock futures SSL. See Sector sorter list Standard moving average,
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224 Starbucks Corp. (SBUX), 372 –373 Startup costs, 10 –11 Stock indexes, 86 , 89 –90, 122 –123 Stockholm syndrome, 435 Stocks future contracts on, 359 – 360 gapping of, 16 –17, 20 index movements, 122 –123 options, 362 –365
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prices of, 83 radar screen alerts, 390 resting period of, 359 supply and demand of, 92 – 93 TASR, 18 –19, 27 –28 Stop limit order, 16 , 20 Stop losses, 100 –101, 119 Stop market order, 20 , 27 Stop movement, 190 –191 Stops in markets, 215 spreadsheet with, 366
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strategies with, 76 –77 traders failing due to, 44 – 45 Strategies auto-trailing stop, 190 –191 for beginning traders, 415 – 420 for day trading, 3 –4, 401 – 402 gaps best, 160 for options, 109 –110, 121 stop, 76 –77 trading, 40
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Strategy manager screen, 75 – 77 Straun, Dirk, 450 Sucker gap, 169 Supply and demand in markets, 28 –29 of stocks, 92 –93 Swenlin, Carl, 78 Swing trade, 49 , 223 daily and weekly charts in, 355 fade play on, 25 –26 markets for, 401
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scalp trades difference with, 293 wealth created by, 222 , 447 –448 Swiss franc, 213 Taipan (Clavell), 450 Target levels, 366 TASR stock, 18 –19, 27 –28 Technology, 66 –67 Ten-year notes, 84 , 98 Terrorist attacks, 237 –238
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Theta, 120 Thinkorswim software, 66 , 71 –72, 86 , 106 30 Year Bond, 98 , 232 –234, 316 377-tick chart, 262 3:52 play charts for, 289 –296 market reversal point by, 288 –289 trading rules for, 289 Tick fade last half-hour less reliable
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in, 201 rules for, 197 –198 setup examples for, 198 – 205 summing up, 205 YM setups for, 198 –201 Ticks, 129 bond movements in, 86 , 98 day trading using, 262 emotions measured with, 427 ES readings of, 201 –205 in fade play, 125
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GC and minimum, 326 NYSE, 123 , 206 –211 rules used for, 123 –128 valuation of, 298 YM readings not extreme with, 127 –128 Tight stop formula, 166 Tiki, 128 –131 Top tenner, 145 Trade execution software, 74 –75 Traders amateur, 441 –442
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comfortable routine for, 50 computer requirements for, 71 different types of, 83 –84 emotional management of, 22 evolution of, 24 –25 floor, 179 freedom of, 9 –11, 399 –400 health important for, 407 – 413 inflection point decided by, 15 –16
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intervals watched by, 152 – 153 justifications of, 14 –15 market reversals and, 312 money lost by, 12 overtrading causing failure of, 196 –197 part time, 241 , 355 patience for, 37 , 43 , 53 , 59 , 319 pivot plays grounding, 177 pivots for, 172 –173 psychology of, 32 –33, 37 –
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39, 420 –421 risk limited by, 54 , 58 –60 risk to reward ratio increasing for, 16 , 119 , 166 scalper trades used by, 272 –273 software choices of, 72 –77 stops causing failure for, 44 –45 system sought by, 47 –48 technological problems for, 66 –67
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truths for winning as, 1 –2 Traders, beginning, 94 –95, 166 , 237 , 319 , 413 –425 gaps guidelines for, 416 – 418 markets for, 414 –415 pivot plays for, 418 –420 squeeze trade for, 420 strategies for, 415 –420 YM better for, 94 –95 Tradestation software, 70 , 72 , 106 , 125 , 139 –140, 175 Trading. See also Day trading
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cash flow, 14 , 36 categories of, 158 , 449 complex execution skills required in, 434 critical times of day in, 23 – 24, 79 drawdown rules in, 404 – 405, 422 emotion in, 30 –31, 52 –53, 164 –165, 426 emotions causing mistakes in, 74 , 124 –125 everyday tactics not
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working in, 44 –46 exit signal in, 228 exiting early from, 124 – 125 focusing on setups in, 33 – 37 forex opportunities in, 106 –107 gap rules in, 163 –164 impulse dangerous for, 36 – 37 integrity in, 42 –43 larger time frames in, 222
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location for, 405 –406, 423 logical plan for, 16 –18, 22 , 55 long and short, 331 –334 markets with sideways, 48 methodology for, 31 missing moves okay in, 80 money’s value and, 41 –42 navigating through rough spots of, 21 –22 pain scale in, 23 personality suited for, 21 – 22, 72 , 84 –85, 324 –
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325, 428 –434 phases of, 43 –54 pivot play rules in, 180 – 181 pivot plays forecasting in, 392 –393 pivots for, 172 –173 professional state of mind maintained in, 437 –442 profit goals for, 421 –422 rationalization in, 39 RAW rules for, 323 –324 reasons for, 10
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risk in, 18 –21, 447 RTM in, 221 rules for, 58 –59, 77 , 423 – 424 setups for, 2 , 158 –159 small losses in, 55 startup costs in, 10 –11 strategies for, 40 tracking in, 403 –404, 424 Trading account blowing up, 49 –50 income generated from, 18 –19
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open gaps and, 168 –169 Trading in the Zone (Douglas), 36 Trading rules for box play, 299 for gaps, 163 –164 for GNG, 329 , 334 for ping pong play, 281 for pivot plays, 180 –181 for propulsion play, 365 – 366 for reversal play, 312 for 3:52 play, 289
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Travelzoo, Inc. (TZOO), 317 –318, 374 –375 Trends choppy markets compared to, 144 , 173 , 188 –190 in forex, 102 –103 in reversal play, 312 of trin, 131 –133 uptrends as, 82 Trigger-reversal play, 349 – 355 Trin action of, 132 –133
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calculating, 131 closing numbers valuable in, 134 trend of, 131 –133 volume measured by, 131 Trinq, 134 –136 TTM momentum/trigger, 343 –344 buy/long charts for, 346 – 356 sell/short charts for, 344 – 346 summing up, 356 –357
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TTM Wave C, 248 , 250 , 342 Tuohy, Tom, 13 233-tick chart, 262 , 263 TZOO. See Travelzoo, Inc. Ugly Americans: The True Story of the Ivy League Cowboys Who Raided the Asian Markets for Millions (Mezrich), 48 Uptrends, 82
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Vertical credit spread, 218 Vertical spread, 120 –121 Video games, 74 Virtualization, 65 Volatility Index (VIX), 147 – 148, 162 VOLSPD. See S&P 500 Up- Down Volume Difference Volume chart, 144 Waves squeeze trade using, 254 –
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256 types of, 251 –253 WCOM. See WorldCom, Inc. Wealth creation, 222 , 447 –448 Weekly charts, 384 –385 Wheat, 99 White-water rafting, 1 WorldCom, Inc. (WCOM), 160 , 311 YM. See Mini-sized Dow
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About the Author John F. Carter grew up as the son of a Morgan Stanley stockbroker, and was introduced into trading as a sophomore in high school. He’s been trading actively ever since. He studied international finance at
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Cambridge, England, before graduating from the University of Texas at Austin. In 1999, he launched the website www.TradeTheMarkets.com to post his daily trade setups in futures and equities markets. More recently he started www.SimplerOptions.com to focus on the equity options markets. Today, his β€œfree nightly trading videos” reach
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hundreds of thousands of people each day. He’s a Commodity Trading Advisor (CTA) with Razor Trading, and while he focuses on only a handful of markets for day trading, he will swing trade β€œjust about anything.” He clears his head running, traveling, and taking Tae Kwon Do. Carter appears regularly on CNBC and Bloomberg, speaks often at Money Shows and other
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trading industry events in the USA, Asia and Europe, and is a regular contributor to SFO Magazine, MSN Money and CME Group Publications. When not trading, he enjoys spending time with his three children, tending to the goats and llamas at his ranch in the Texas Hill Country, and raising money for the charity Dreams for
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Kids, of which he is an executive board member. He is also a founding member of Maverick Business Adventures, which has the aim of training over 100,000 young entrepreneurs by 2020. Events and training have been held at Richard Branson’s Necker Island, as well as schools from Reykjavik to Johannesburg. In 2008 Carter launched a program that teaches inner
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city children how to trade currencies. He can be reached at john@tradethemarkets.com.
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