Trading 102 Getting Down to Business

This unique guide is for individual investors who are thinking about taking the big leap into professional fund management. The first start-up guide pitched specifically to the concerns of professional traders, it covers all the bases, from regulations and taxes, to systems development and money management techniques.

SUNNY J. HARRIS is a professional trader and President of Sunny Harris & Associates Inc. of Carlsbad, California. A member of the Market Technicians Association, she is also publisher of the widely popular Trader's Catalog and Resource Guide (TC&RG).

PREFACE

XV

CHAPTER 1 PLAN YOUR WORK, THEN WORK YOUR PLAN

1

(4)

CHAPTER 2 TECHNICAL ANALYSIS REVIEW

5

(14)

Technical Analysis vs. Fundamental Analysis

6

(1)

Curve Fitting

7

(2)

What Is Your Goal?

9

(1)

Predicting the Future

10

(1)

Necessary and Sufficient Tools

10

(2)

How Do You Prove Something?

12

(1)

Dancing with the Market

12

(4)

Is That All There Is?

16

(3)

CHAPTER 3 MECHANICAL TRADING SYSTEMS

19

(18)

Systematic Trading

19

(2)

Mechanical Systems

21

(1)

Do You Even Need a System?

21

(6)

Steps to Mechanization

27

(3)

Setting and Following the Rules

30

(4)

Automation

34

(1)

Data Collection

34

(3)

Chapter 4 Calculating Your Potential Hourly Wage^TM (PHW)

37

(20)

Introduction

37

(1)

How Much Can I Risk?

37

(1)

Inflation Rears Its Ugly Head

38

(3)

How Much Money Can You Make?

41

(2)

Step 1--Marking the Ideal Trades

43

(6)

Step 2--Overview Analysis

49

(5)

Step 3--Accounting for Reality

54

(3)

CHAPTER 5 BRAINSTORMING A NEW SYSTEM

57

(12)

Introduction

57

(1)

Chalkboards and Whiteboards

57

(2)

Overlays

59

(1)

What Is True?

60

(2)

Looks Like a Duck, Walks Like a Duck

62

(7)

CHAPTER 6 BUILDING A DATABASE

69

(6)

Introduction

69

(1)

Data Sources

70

(1)

How Much Is Enough?

71

(2)

Synthetic Contracts

73

(2)

CHAPTER 7 SOFTWARE FOR SYSTEMS TRADING

75

(10)

Introduction

75

(2)

What's Available and What Does It Do?

77

(8)

CHAPTER 8 DESIGNING YOUR SYSTEM

85

(12)

Introduction

85

(1)

Profits Swept Under

85

(1)

Design of Experiments

86

(1)

Putting Your Ideas on Paper

86

(1)

Accepting the Results

87

(10)

CHAPTER 9 FORMULAE FOR SYSTEMS DEVELOPMENT

97

(14)

The Proof Is in the Pudding

97

(1)

Getting from Here to There

98

(1)

Cardinal Profitability Constructs (CPC)

98

(9)

More Measures of Success

107

(3)

Conclusion

110

(1)

CHAPTER 10 BACKTESTING AND OPTIMIZING YOUR SYSTEM

111

(14)

Introduction

111

(2)

Your Lab Book

113

(3)

Am I Done Yet?

116

(4)

Comfort Zones

120

(4)

Branching Off

124

(1)

CHAPTER 11 SYSTEM PERFORMANCE ASSESSMENT

125

(8)

Introduction

125

(1)

Keeping Track

125

(1)

Measurements

126

(5)

Conclusion

131

(2)

CHAPTER 12 FOLLOWING YOUR SYSTEM

133

(4)

Introduction

133

(1)

Post-it Notes

133

(1)

Buckle Up for Safety

134

(1)

Conclusion

135

(2)

CHAPTER 13 THE SCIENCE OF ORGANIZING YOURSELF

137

(10)

Time Management Tools

137

(2)

Keeping Track of the Days

139

(1)

Your Hourly Wage

140

(1)

Sorting

141

(1)

More Sticky Notes (Usually Post-it Notes)

141

(1)

Keep All of Your Organizing Tools in One Place

142

(1)

Color Schemes

143

(1)

Organizing Your Trading Ideas

143

(1)

Space Planning

144

(1)

Computer Power

144

(1)

Quick Reference

144

(1)

Your Trading Records

145

(1)

Income and Outgo

146

(1)

Taxes

146

(1)

Summary

146

(1)

CHAPTER 14 THE SCIENCE OF THE BUSINESS

147

(20)

Introduction

147

(1)

Getting Down to Business

148

(1)

Setting Goals

149

(3)

Planning Your Business

152

(4)

Your Trading Business Plan

156

(8)

That's It

164

(3)

CHAPTER 15 DEALING WITH PSYCHOLOGICAL ISSUES

167

(26)

Adrienne Laris Toghraie

Self-Evaluation for Sabotage Traps in Your Trading

169

(3)

The Eight Major Psychological Traps for Traders and the Strategies for Overcoming Them

172

(19)

Summary

191

(2)

APPENDIX A COMPONENTS OF THE DOW JONES INDUSTRIAL AVERAGE

193

(2)

APPENDIX B EXCHANGES

195

(8)

APPENDIX C ANNUAL CLOSING VALUES OF THE DOW JONES INDUSTRIAL AVERAGE AND YEAR OVER YEAR INCREASE

203

(2)

APPENDIX D MARGIN REQUIREMENTS AS OF FEBRUARY 1, 1997--ARRANGED ALPHABETICALLY BY COMMODITY

205

(2)

APPENDIX E MARGIN REQUIREMENTS AS OF FEBRUARY 1, 1997--ARRANGED IN ASCENDING ORDER BY INITIAL MARGIN

207

(2)

APPENDIX F WHO'S WHO IN TRADING

209

(2)

BIBLIOGRAPHY

211

(2)

INDEX

213

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

FREE SHIPPING

Rent More, Save More! Use code: BBRENTAL

5% off 1 book, 7% off 2 books, 10% off 3+ books

Trading 102 Getting Down to Business

Summary

Author Biography

Table of Contents

Supplemental Materials

FREE SHIPPING

Rent More, Save More! Use code: BBRENTAL

5% off 1 book, 7% off 2 books, 10% off 3+ books

Trading 102 Getting Down to Business

Summary

Author Biography

Table of Contents

Supplemental Materials

Digital License