Table of Contents

Title Page

Copyright

Dedication

Foreword

Acknowledgements

About the Author

Prologue: A Day in the Life of a Successful Trader

A Trader's Work Begins before He Starts to Trade

The End of Trading Isn't the End of His Day

What Can We Learn from This Successful Trader?

Part I: Introduction

Introduction: Riding the Trader's Pendulum

The Futile Search for the “Perfect System”

The Real Transformation Starts within the Trader

How to Benefit from This Book

The Pendulum Scenarios

The Pendulum Factors

Complementary Resources

The Trader's Scorecard

Chapter 1: The Successful Trader versus the Average Trader

The Conversation that Changed Fred's Life

When Reality Kicked in: Paper Trading versus “Real” Trading

The Path Forward

The Struggle of a Young Family

A Perfect Plan Found?

A Typical Afternoon of a Trader

Trader by Chance

Trader by Plan

Dedicated Trader… or Slacker?

The Life of a Trading Mom

The Question You Need to Ask

Chapter 2: The Technical Trader's Trap

Revisiting the Cases of Fred and Stacey

“Technical Junkie” versus Entrepreneurial Trader

The Hobbyist and the Business Owner

Are You in the Technical Trader's Trap?

How to Get Yourself out of the Technical Trader's Trap

Eating an Elephant a Bite at a Time

Chapter 3: Becoming an Entrepreneurial Trader—The Process

Steps to Transform from a “Technical Junkie” into an Entrepreneurial Trader

The Trader's Quadrants: Where Are You Now, and Where Do You Want to Be?

Trading Habit Cultivation

What Kind of Trader Do You Want to Become?

Pendulum Scenario 3.1: Fear versus Greed

Part II: Out of Hobby into Business Mode

Chapter 4: Habit #1: Establish a Trading Business for the Right Reasons

The Negative Motivator

Reasons for His Fight

What Excites Successful Traders (It's Not All about the Money)

The Main Reasons Why Traders Are Traders

What Are the Reasons You're Trading?

Pendulum Scenario 4.1: Get Rich Quick or Go Broke Quick

Pendulum Scenario 4.2: Realistic versus Unrealistic Trader

Chapter 5: Habit #2: Complete a Trader's Business Plan

“Why Do I Need a Business Plan?”

“But What if I Don't Have a Trader's Business Plan?”

“What Should My Business Plan Cover?”

“How Do I Set up My Trader's Business Plan?”

Nine Steps in the Business Planning Process

An Important Research Discovery That Can Help You Achieve Your Goals

Pendulum Scenario 5.1: Clarity versus Muddled Thinking

Pendulum Scenario 5.2: Forgiving versus Angry Trader

Pendulum Scenario 5.3: Courage versus Conformity

Chapter 6: Habit #3: Define Your Goals

“How Did We Do That?”

Tackling the Subjects in Your Trading Life

Do You Plan to Trade Part-time or Full-time?

What Time of Day Will You Set Aside for Trading?

What Specific Goals Do You Have for Daily, Weekly, and Monthly Profits?

What Trading Strategy Will You Employ, and What Are the Rules?

Right and Wrong Goal Setting

Working out the Numbers

Checklist: How Your Profit Goals Give You a Framework for Trading

The “Grading System” in Your Trading Journey

Pendulum Scenario 6.1: Taking Action versus Feeling Remorse

Pendulum Scenario 6.2: Enthusiastic versus Apathetic Trader

Part III: Becoming an Entrepreneurial Trader

Chapter 7: Habit #4: Commit to Your Education with a Trading Coach

What Can a Trading Coach Do for You?

How Do You Find a Trading Coach?

Engaging a Coach Is an Investment, Not an Expense

Pendulum Scenario 7.1: Foresight versus Hindsight

Pendulum Scenario 7.2: The Lucky versus Unlucky Trader

Pendulum Scenario 7.3: Calm versus Nervous Trader

Chapter 8: Habit #5: Understand and Exploit Your Unique Trading Personality

What about a One-Size-Fits-All Trading Style for Traders?

Different Trading Styles

How Do You Choose Your Trading Style?

When Should You Get Help?

Reducing the Dropout Rates of School Kids and Traders

Pendulum Scenario 8.1: Self-Doubting versus Overconfidence

Pendulum Scenario 8.2: Cautious versus Reckless Trading

Chapter 9: Habit #6: Follow a System

What Can You Learn from These Big Corporations?

What Is the Difference between a Trading System, a Trading Strategy, and a Trade Plan?

How to Set up Your Trading System

Words of Caution for Traders in the Technical Trader's Trap

Pendulum Scenario 9.1: Optimistic versus Pessimistic Trader

Pendulum Scenario 9.2: Flexible versus Stubborn Trader

Pendulum Scenario 9.3: Accepting versus Willful

Chapter 10: Habit #7: Plan the Trade and Trade the Plan

The Clichéd Wisdom

Before You Construct Your Trade Plan

How to Construct a Trade Plan

About Losing Money

Constructing a Trade Plan Based on a Trading System and Money Management Strategy

Pendulum Scenario 10.1: Pragmatic versus Idealistic Trader

Pendulum Scenario 10.2: Pulling the Trigger versus Having Regrets

Pendulum Scenario 10.3: Conservative versus Impulsive Trader

Part IV: The Transformed Trader

Chapter 11: Habit #8: Measure Your Performance

The Trading Journal

The Daily Trading Blotter

Profit and Loss (P&L) Statement

Setting Realistic Expectations

Some Important Performance Metrics

Pendulum Scenario 11.1: Organized versus Disorganized Trader

Pendulum Scenario 11.2: Proactive versus Reactive Trader

Chapter 12: Habit #9: Learn the Secrets of Successful Traders

Learning by Modeling Success

A Day in the Life of a Successful Trader

Winning Qualities of Successful Traders

Where Do You Find Successful Traders to Model?

Learning the Success Secrets by Reading

Pendulum Scenario 12.1: I Can versus I Can't

Pendulum Scenario 12.2: Patient versus Impatient Trader

The Wisdom of Taking No Action

Going from Patience to Impatience, Well-to-Do to Broke

How to Temper Impatience

Chapter 13: Habit #10: Add Balance to Your Life

Symptoms of Trader Burnout

Getting out of the Trap

How to Achieve Balance in Trading Life and Maintain Motivation

Your Life Plan

Outline for Developing Your “Life Plan”

Pendulum Scenario 13.1: Relaxed versus Stressed Trader

Pendulum Scenario 13.2: Clear-headed versus Sorrowful Trader

Pendulum Scenario 13.3: Good Mood versus Bad Mood Trading

Chapter 14: The “10 Habits” Checklist

21 Days to Form a Habit?

The “10 Habits” of Successful Traders

“Where Are You Now, and Where Do You Aim to Be?”

The Path of Transformation

More than Theory

How the Magic Number Came About

Why It Does Not Matter

Part V: The Trader's Tools

Chapter 15: Analysis Toolbox—Your First Mentoring Session

Trends and Market Cycles

Trend Indicators

Trend Lines and Channels

End-of-Trend Market Reversals

End-of-Trend Confirmations

Support and Resistance

Market Cycles and Elliott Wave Analysis

Trend Wave Characteristics

Corrective Wave Characteristics

Chapter 16: Sample Trading System—Your BONUS Mentoring Session

Fibonacci Filter Trading System Overview

A. Chart Setup

B. Trading Strategies

C. Trading Rules

D. Trade Plan

E. Daily and Weekly Preparation

F. Checklist

Resources

The FX Trader's EDGE Scorecard and Your FREE Coaching Session

What's Covered in the Free Coaching Session?

FX Trader's EDGE Coaching Process

Other Valuable Resources

Bibliography

About the Companion Website

Bonus Videos

Index

End User License Agreement

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Guide

Cover

Table of Contents

Part I: Introduction

Begin Reading

List of Illustrations

Chapter 2: The Technical Trader's Trap

Figure 2.1 “Technical Junkie” versus Entrepreneurial Trader

Chapter 4: Habit #1: Establish a Trading Business for the Right Reasons

Figure 4.1 Six main reasons why traders get into the trading business

Chapter 5: Habit #2: Complete a Trader's Business Plan

Figure 5.1 What should a trader's business plan cover?

Chapter 7: Habit #4: Commit to Your Education with a Trading Coach

Figure 7.1 Wave counts on the 1-hour time frame

Figure 7.2 Wave counts on the 15-minute time frame

Figure 7.3 MACD complementing Elliott Wave analysis as a trigger for a buy/sell signal

Figure 7.4 A trade that happened months ago

Figure 7.5 Trading opportunities revealed by analysis

Figure 7.6 Market still in a downtrend so traders look to sell

Figure 7.7 Trade entry opportunities revealed with Elliott Wave analysis and trading strategy

Chapter 8: Habit #5: Understand and Exploit Your Unique Trading Personality

Figure 8.1 A momentum trader will look at the 5- or 15-minute chart to gain context, and take trades off a smaller time frame chart to fine-tune entries

Figure 8.2 A day trader will look at the hourly chart to gain context and then go down to a smaller time frame for trade entry

Figure 8.3 A swing trader will look at the daily chart to gain context and take trades off the 4-hour chart to fine-tune entries

Figure 8.4 A position trader will look at the daily chart to fine-tune entries after planning the trade on the weekly chart

Figure 8.5 Patience is required of a position trader to wait for the patterns to emerge on the weekly chart

Chapter 9: Habit #6: Follow a System

Figure 9.1 The market moves in a repeating and rhythmic manner

Chapter 10: Habit #7: Plan the Trade and Trade the Plan

Figure 10.1 Trend correction spotted in the daily chart

Figure 10.2 Trend confirmation on a 1-hour chart

Figure 10.3 15-minute chart for trend confirmation

Figure 10.4 5-minute chart for trade entry

Figure 10.5 Three Profiteers on the 15-minute chart: PPA and take-profit levels

Figure 10.6 Three Profiteers: TP1, TP2, and TP3 calculated

Chapter 11: Habit #8: Measure Your Performance

Figure 11.1 A sample trading journal page: screenshots before and after entering a trade

Figure 11.2 The Daily Trading Blotter

Chapter 12: Habit #9: Learn the Secrets of Successful Traders

Figure 12.1 The roadmap: A Day in the Life of a Successful Trader

Figure 12.2 The routine for “A Day in the Life of a Successful Trader”

Figure 12.3 Steps in a day in a successful trader's life

Chapter 15: Analysis Toolbox—Your First Mentoring Session

Figure 15.1 Looking at different time frames for trending vs. sideways markets

Figure 15.2 Using moving averages to define the trend

Figure 15.3 Drawing trend lines to confirm the trend

Figure 15.4 Drawing channels to capture the trend

Figure 15.5 Major channels to highlight major trends

Figure 15.6 End-of-trend confirmations

Figure 15.7 Manual support and resistance

Figure 15.8 Complete eight-wave market cycle

Figure 15.9 Waves 1 and 2 personalities

Figure 15.10 Waves 3, 4, and 5 personalities

Figure 15.11 Waves A, B, and C personalities

Chapter 16: Sample Trading System—Your BONUS Mentoring Session

Figure 16.1 Chart setup for the Fibonacci Filter Trading System

Figure 16.2 Requirements for a trend trade

Figure 16.3 The areas to enter long positions

Figure 16.4 Fibonacci Filter end-of-trend trade

Figure 16.5 123 reversal pattern

Figure 16.6 Range-bound market

Figure 16.7 Four components for planning the trade

Figure 16.8 Chart setup and analysis for planning the end-of-trend trade

Figure 16.9 Sell on candle close below the trend-line break

List of Tables

Introduction: Riding the Trader's Pendulum

Table I.1 The Trader's Scorecard

Chapter 2: The Technical Trader's Trap

Table 2.1 Common Pitfalls in the Technical Trader's Trap

Chapter 3: Becoming an Entrepreneurial Trader—The Process

Table 3.1 The Trader's Quadrant

Chapter 4: Habit #1: Establish a Trading Business for the Right Reasons

Table 4.1 Fred's Milestones to Replace His Income

Chapter 6: Habit #3: Define Your Goals

Table 6.1 Profit Goal Calculations

Chapter 8: Habit #5: Understand and Exploit Your Unique Trading Personality

Table 8.1 Matrix to Help You to Determine the Trading Style That Suits You

Chapter 10: Habit #7: Plan the Trade and Trade the Plan

Table 10.1 Down the Rabbit Hole

Table 10.2 Capital at Risk Summary

Table 10.3 A Trade Plan Based on the Three Profiteers

Chapter 11: Habit #8: Measure Your Performance

Table 11.1 A Sample Profit and Loss Statement

Chapter 14: The “10 Habits” Checklist

Table 14.1 The Trader's Quadrant

Chapter 15: Analysis Toolbox—Your First Mentoring Session

Table 15.1 Analysis Toolbox

Chapter 16: Sample Trading System—Your BONUS Mentoring Session

Table 16.1 Trade Plan

Table 16.2 Trading Rules Checklist

The Trader's Pendulum

The 10 Habits of Highly Successful Traders

Jody Samuels

The Wiley Trading series features books by traders who have survived the market's ever-changing temperament and have prospered—some by reinventing systems, others by getting back to basics. Whether a novice trader, professional, or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future. For more on this series, visit our website at www.WileyTrading.com.

Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers' professional and personal knowledge and understanding.

Copyright © 2015 by Jody Samuels. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

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Library of Congress Cataloging-in-Publication Data:

Samuels, Jody, 1957–

The trader's pendulum + website : the 10 habits of highly successful traders / Jody Samuels.

pages cm. – (The Wiley trading series)

Includes bibliographical references and index.

ISBN 978-1-118-99557-0 (paper/website) – ISBN 978-1-118-99644-7 (ePDF) – ISBN 978-1-118-99658-4 (ePub) 1. Investments. 2. Investment analysis. 3. Speculation. I. Title.

HG4521.S3314 2015

332.64—dc23

2015017700

Cover Design: Wiley

Cover Images: Newton's cradle © iStock.com/gl0ck;

Foucault pendulum © iStock.com/M_MUC1968

This book is dedicated to my loving family: my husband, Malcolm, and daughters, Jackie and Rebecca

Foreword

The Trader's Pendulum – The Ten Habits of Highly Successful Traders is an honest, educational and most importantly, an enjoyable book to read. Jody Samuels' style makes concepts understandable. She writes as she speaks: with simplicity and clarity; this comes from her many years of experience turning willing traders into consummate professionals.

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!

Lesen Sie weiter in der vollständigen Ausgabe!