Best Stock Trading Book

 

Profit From Prices

A book on stock market trading
By Jayesh Patel, CFA

 

Table of Contents

Introduction.. v

ACKnowledgments. v

Trading: Some thoughts. 1

Be Serious. 1

 

Trading is a Business. 1

The Goal is to Make Money.. 2

Trade for Big Profit and Small Losses. 2

Be Rational when you trade.. 2

THE Market is Forward-Looking.. 3

Trading Needs Training.. 3

Take Responsibility For Your Outcomes (Don’t Blame Others) 3

Trading basics- Risk Versus Reward.. 4

Trade STOCKs with a business-like approach.. 5

Trading Capital.. 6

Trading Objective.. 6

Plan Your Trades and Trade as per your Plans. 7

Trading Strategy- What to Trade and When.. 10

Day-to-Day Monitoring of Trading Activities. 10

Some Tips About Trading Rules. 11

A Sample Trading Plan.. 12

Stock price TRENDS. 13

Main (Primary) Trends. 13

Reactionary Trends. 13

Tops and Bottoms. 15

Daily Price Trends. 17

OPENING Price Trends. 17

 

Stop-loss: how to use it in stock trading.. 19

Introduction to Stop-loss. 19

Cost and benefit of using Stop-loss. 20

How to Effectively Use Stop-loss. 21

Progressive Stop-loss. 22

Introduction TO SIGNALS. 24

Market Economy- Heart Of The Capitalist System... 24

Stock Prices- Heart Of The Stock Market.. 24

Stock Prices- Daily And Weekly.. 25

Foundation Of PROFIT FROM PRICES Signals. 26

PROFIT FROM PRICES Trading Signals- An Introduction.. 28

How Good Is Our Signal?. 29

How To Act On A Signal.. 31

How to Track Prices/Generate PFP Signals. 34

PFP Signal Terminology.. 37

trend reversal signals. 41

TREND REVERSALS. 41

How TO Find Trend Reversals. 41

Types Of Trend Reversals. 43

SIGNAL R1: U-TURN.. 43

SIGNAL R2: JUMP-START.. 52

SIGNAL R3: FULL STOP. 60

SIGNAL R4: TURN AROUND.. 66

SIGNAL R5: REVERSE.. 72

TREND REVERSAL SIGNALS BASED ON WEEKLY PRICES. 80

SIGNAL R6: WEEKLY-REVERSAL.. 80

SIGNAL R7: 3-WEEK REVERSAL.. 85

trend CONTINUATION signals. 91

SIGNAL C1: GAP. 92

SIGNAL C2: RESTART.. 97

MiscellanEous trading signals. 104

SIGNAL M1: MONDAY MORNING Signal.. 104

SIGNAL M2: SIGNIFICANT DAY Signal.. 108

SIGNAL M3: DERIVATIVES EXPIRATION Signal.. 110

SIGNAL M4: VOLUME SPIKE.. 114

How to trade in Side-ways?. 121

TYPES OF SIDE-WAYS MOVEMENTS. 121

SIGNAL S1: TURN BACK.. 124

SIGNAL S2: NEXT TOP/BOTTOM... 128

SIDE-WAYS BREAK-OUT SIGNALS. 130

CHART-BASED SIGNALS. 131

CHART-BASED TREND REVERSAL SIGNALS. 131

CH-TR1: ISLAND REVERSALS: 131

CH-TR2: TREND-LINES. 135

CHART-BASED TREND CONTINUATION SIGNALS. 140

CH-TC1: FLAGS AND PENNANTS. 140

INVERTED FLAG (IF) AND INVERTED PENNANT (IP) IN A SUDDEN DOWNTREND.. 144

SUMMARY.. 146

TREND REVERSAL SIGNALS. 146

TREND CONTINUATION SIGNALS. 150

MISCELLANEOUS TRADING SIGNALS. 151

TRADING IN SIDE-WAYS. 153

CHART-BASED TREND REVERSALS. 154

Backtest Summary.. 157

Backtest Summary: U TURN (BUY) 157

Backtest Summary: U TURN (SELL) 161

Glossary.. 166

 

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