Study Guide for Come Into My Trading Room - Forex Factory

More documents

Recommendations

Info

DAY-TRADING 117 Give yourself a point for each correct answer (half a point if you missed one of several occurrences). Add two points if you got the bonus question right, or a point for getting it partly right. When a downward gap first appears, it is hard to tell whether it is a continuation of the downtrend or an exhaustion move prior to an upside reversal. The downside breakout from the opening range confirms the downtrend and gives the first good shorting signal of the day. The deepening bottoms of MACD-Histogram show that the bears are growing stronger and lead one to expect lower prices ahead. Rallies to the EMA create shorting opportunities throughout the day. During the last hour of trading prices dip to a new low, while MACD-Histogram traces a higher bottom. This bullish divergence gives a buy signal—time to take profits on shorts. At the right edge of the chart—bearish. The trend is down, and prices closed near the lows; expect a lower opening tomorrow. The beauty of day-trading is that there is no overnight risk. We can wait for the opening, monitor the opening range, and then trade the breakout. Answer 53 C. 1, 2, and 3. Give yourself four points for choosing the right answer. The best time to make strategic decisions is before the opening—if the stock does this, I will trade this way, and so on. Then, as you review your stocks throughout the day, you are ready to act fast whenever your conditions are met. There is no harm listening to tips, as long as you put them through the same screens as your regular stocks; perhaps they should be added to the regular list. Trading in a room full of people is much more likely to lead to emotional decisions. Successful traders almost always sit at the edge of the trading room, isolating themselves from the masses.
118 ANSWERS AND RATING SCALES Rating Yourself Below 21 Poor. With grades like this, you should steer clear of daytrading. If you are intent on day-trading, please return to the recommended materials and study them carefully before retaking this test. 21–24 Fairly good. You understand the key concepts of day-trading. Do yourself a favor, and review the questions that you missed. This topic is too important to leave out a few blanks! 25–28 Excellent. You have a good grasp of the essential concepts. Just keep in mind that the Advanced Concepts, described in the next chapter, also can be applied to day-trading. Required Reading Elder, Alexander. Come into My Trading Room (New York: John Wiley & Sons, 2002). See “Day-Trading” in Chapter 6 (pages 134–153). Additional Materials Appel, Gerald. Day-Trading with Gerald Appel (video) (New York: Financial Trading, Inc., 1989).
Page 2:
STUDY GUIDE FOR COME INTO MY TRADIN
Page 5 and 6:
BOOKS BY DR. ALEXANDER ELDER Tradin
Page 7 and 8:
Copyright © 2002 by Dr. Alexander
Page 9 and 10:
vi CONTENTS Part Two Answers and Ra
Page 12 and 13:
HOW THIS BOOK IS ORGANIZED The firs
Page 14:
QUESTIONS P A R T O N E
Page 17 and 18:
8 QUESTIONS Questions Trial 1 Trial
Page 19 and 20:
10 QUESTIONS Question 4—Stocks, O
Page 21 and 22:
12 QUESTIONS Question 8—Types of
Page 23 and 24:
14 QUESTIONS Questions 9 10 11 12 1
Page 25 and 26:
16 QUESTIONS Question 12—Alcoholi
Page 27 and 28:
18 QUESTIONS Question 16—Discipli
Page 30 and 31:
BASIC CHARTING T H R E E Trading wi
Page 32 and 33:
BASIC CHARTING 23 Question 20—A B
Page 34 and 35:
BASIC CHARTING 25 Question 22—Bas
Page 36 and 37:
F O U R INDICATORS— FIVE BULLETS
Page 38 and 39:
INDICATORS—FIVE BULLETS TO A CLIP
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
TRADING F I V E Beginning traders t
Page 50 and 51:
TRADING 41 Question 41—System Tes
Page 52 and 53:
TRADING 43 A. Trend-following B. Os
Page 54:
TRADING 45 Question 47—Taking Pro
Page 57 and 58:
48 QUESTIONS Questions 48 49 50 51
Page 59 and 60:
50 QUESTIONS Question 51—Opening
Page 61 and 62:
52 QUESTIONS Question 53—The Dail
Page 63 and 64:
Page 65 and 66:
56 QUESTIONS Question 56—The Impu
Page 67 and 68:
58 QUESTIONS Question 59—Exits Fi
Page 69 and 70:
60 QUESTIONS Question 62—Trading
Page 71 and 72:
62 QUESTIONS Question 66—Options
Page 73 and 74:
Page 75 and 76: 66 QUESTIONS Question 71—The 2% R
Page 77 and 78: 68 QUESTIONS Question 77—The 6% R
Page 80 and 81: N I N E THE ORGANIZED TRADER If you
Page 82 and 83: THE ORGANIZED TRADER 73 Question 83
Page 90: THE ORGANIZED TRADER 81 Question 99
Page 94 and 95: O N E FINANCIAL TRADING FOR BABES I
Page 96 and 97: FINANCIAL TRADING FOR BABES IN THE
Page 98: FINANCIAL TRADING FOR BABES IN THE
Page 101 and 102: 92 ANSWERS AND RATING SCALES ings w
Page 103 and 104: 94 ANSWERS AND RATING SCALES ten re
Page 106 and 107: BASIC CHARTING Answer 19 T H R E E
Page 108 and 109: BASIC CHARTING 99 Give yourself a p
Page 110 and 111: F O U R INDICATORS— FIVE BULLETS
Page 112 and 113: INDICATORS—FIVE BULLETS TO A CLIP
Page 120 and 121: TRADING Answer 40 F I V E D. 1, 2,
Page 122 and 123: TRADING 113 Answer 44 D. 1, 2, 3, a
Page 124 and 125: DAY-TRADING Answer 48 S I X D. 1, 2
Page 128 and 129: ADVANCED CONCEPTS Answer 54 1. E 2.
Page 130 and 131: ADVANCED CONCEPTS 121 At the right
Page 132 and 133: ADVANCED CONCEPTS 123 Answer 61 1.
Page 134 and 135: ADVANCED CONCEPTS 125 Give yourself
Page 136 and 137: MONEY MANAGEMENT Answer 68 E I G H
Page 138 and 139: MONEY MANAGEMENT 129 staring at a l
Page 140 and 141: MONEY MANAGEMENT 131 Six precent of
Page 142 and 143: N I N E THE ORGANIZED TRADER Answer
Page 144 and 145: THE ORGANIZED TRADER 135 daily, and
Page 146 and 147: THE ORGANIZED TRADER 137 Answer 93
Page 148 and 149: THE ORGANIZED TRADER 139 Answer 98
Page 150: LET’S TRADE: S E C T I O N CASE S
Page 153 and 154: 144 CASE STUDIES disciplined and ga
Page 155 and 156: 146 CASE STUDIES Technical analysis
Page 157 and 158: 148 CASE STUDIES Trade 1: Oracle Co
Page 159 and 160: 150 CASE STUDIES Trade 2: Sun Micro
Page 161 and 162: 152 CASE STUDIES Trade 3: Kroll Inc
Page 163 and 164: 154 CASE STUDIES Trade 4: Imclone S
Page 165 and 166: 156 CASE STUDIES Trade 5: Wheat—E
Page 167 and 168: 158 CASE STUDIES Trade 6: Vimpel Co
Page 169 and 170: 160 CASE STUDIES Trade 7: Internati
Page 171 and 172: 162 CASE STUDIES Trade 8: Biovail C
Page 177 and 178:
168 CASE STUDIES Trade 2: Sun Micro
Page 179 and 180:
170 CASE STUDIES Trade 2: Sun Micro
Page 181 and 182:
172 CASE STUDIES Trade 3: Kroll Inc
Page 183 and 184:
174 CASE STUDIES Trade 3: Kroll Inc
Page 185 and 186:
176 CASE STUDIES Trade 4: Imclone S
Page 187 and 188:
178 CASE STUDIES Trade 4: Imclone S
Page 189 and 190:
180 CASE STUDIES Trade 5: Wheat—E
Page 191 and 192:
182 CASE STUDIES Trade 5: Wheat—E
Page 193 and 194:
184 CASE STUDIES Trade 6: Vimpel Co
Page 195 and 196:
186 CASE STUDIES Trade 6: Vimpel Co
Page 197 and 198:
188 CASE STUDIES Trade 7: Internati
Page 199 and 200:
190 CASE STUDIES Trade 7: Internati
Page 201 and 202:
192 CASE STUDIES Trade 8: Biovail C
Page 203 and 204:
194 CASE STUDIES Trade 8: Biovail C
Page 206 and 207:
THE ROAD AHEAD You can learn to tra
Page 208:
SOURCES Appel, Gerald. Day-Trading
show all

Study Guide for Come Into My Trading Room - Forex Factory

Create successful ePaper yourself

Delete template?

Save as template?