Step by Step Trading

The Essentials of Computerized Technical Trading

By: Alexander Elder

Narrated by: Virtual Voice

This brief book will introduce you to self-organization and risk management, but zoom into technical trading tools. We’ll cover indicators, several trading systems, setting profit targets and stops, and much more. What’s unique about this book is that all of its charts, tools, indicators, and systems have been programmed and are waiting for you at www.Stockcharts.com. If you have different software, you can still use this book because its concepts are universal. DO NOT buy this book if you are a paid-up member of StockCharts – they will give this book to you. If, on the other hand, you’re looking for trading software or have another package you like, this book is definitely for you. Most beginners jump into trading unprepared. They remind me of new skiers who hop into a gondola and ride to the top of the mountain without a clue how to ski down its slopes. Even if you already have some experience, you’ll find much that is useful and surprising in this book. On the other hand, if you’re already a professional trader, this may be too basic for you, and I’d refer you instead to my main book, The New Trading for a Living. My goal in writing this book was to help you avoid common pitfalls and master the key principles that will serve you for the rest of your trading life. Thanks to StockCharts.com, you’ll be able to start using my templates and tools without delay. CONTENTS Free updates and the honor code INTRODUCTION Markets are tough Two steps that will put you ahead of the crowd How this book is organized How to control risk Good records make good traders TECHNICAL ANALYSIS Choosing software (Why StockCharts) Let’s create a chart (actually, two charts) Dressing a naked chart: a pair of moving averages Profits from manic-depression (using envelopes) The power of bulls and bears (MACD indicator) May the force be with you (Force Index) Less is more (other indicators) TRADING SYSTEMS The trades to avoid (the Impulse system) Every trade deserves a name (the system you trade) Buying pullbacks in an uptrend Catching reversals (false breakout with a divergence) An end-of-day trend-following system (by Kerry Lovvorn) Trading with fundamentals and technicals (by Philip Wu) TRADE MANAGEMENT The sweet spot (what timeframe will you trade?) Stops, targets, and risk control Your visual diary The road ahead Sources Acknowledgments Dr. Alexander Elder is a professional trader and a teacher of traders. He is the author of 14 books, including The New Trading for a Living and Come into My Trading Room (Barron’s 2002 Book of the Year), considered modern classics among traders. Dr. Elder is the founder of SpikeTrade whose members compete for best stock picks each week. He is an active trader and a sought-after speaker at conferences in the US and abroad.

Basis elements of journaling and importance. Review of indicators.

Excellent book emphasizing the importance of journaling both detailed and log book. Reviewed basis for trading plan by reviewing his developed indicators.