Trading—The Last Frontier
How This Learning series Is Organized (1/2)
The three pillars of successful trading are psychology, market analysis, and risk man-
agement. Good record-keeping ties them together. This book will help you learn the
essentials of all these areas.
Part One of this series will show you how to manage emotions in trading. I discov-
ered this method while practicing psychiatry. It greatly improved my trading, and it
can help you too.
Part Two will focus on crowd psychology of the markets. Mass behavior is more
primitive than that of individuals. If you understand how crowds behave, you’ll be
able to profit from their mood swings instead of being swept up in their emotional
tides.
Part Three will show how chart patterns reflect crowd behavior. Classical techni-
cal analysis is applied social psychology, like poll-taking. Support, resistance, break-
outs, and other patterns reflect crowd behavior.
Part Four will teach you modern methods of computerized technical analysis.
Indicators provide a better insight into mass psychology than classical chart patterns.
Trend-following indicators help identify market trends, while oscillators show when
those trends are ready to reverse.
Volume and open interest also reflect crowd behavior. Part Five will focus on
them as well as on the passage of time in the markets. Crowds have short attention
spans, and a trader who relates price changes to time gains a competitive advantage.
Part Six will focus on the best tools for analyzing the stock market as a whole.
They can be especially helpful for stock index futures and options traders.
Part Seven will present several trading systems. We’ll begin with the Triple Screen,
which has become widely accepted, and then review the Impulse and Channel trad-
ing systems.
Part Eight will discuss several classes of trading vehicles. It will outline pluses and
minuses of equities, futures, options, and forex, while blowing away the promotional
fog that clouds some of these markets.
