TRADING STRATEGIES 101
Course Outline
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General Market Theory:
What is technical analysis?
Comparison of technical and fundamental analysis
Basic premises of technical analysis
Advantages of using technical analysis
Criticism of technical analysis
The Dow theory
Trading mania
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Charting Fundamentals:
Types of charts
Daily bar chart
Using daily bar charts
Support and resistance levels
Identifying support and resistance levels
Trend lines
Retracements
Reversal days
Price gaps
Point and figure charts
The Elliot Wave theory
Fibonacci numbers
Cycle Theory
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Chart patterns:
Types of patterns
Reversal Patterns: Head and shoulders
Double top and bottom
Rounded top and bottom
V-formation or spike
Continuous Patterns
Symmetric triangle
Ascending and declining triangles
Flag and pennant
Wedge
Rectangle
Continuation head & shoulders
Candlestick Patterns
Confirmation of the analysis
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Technical Indicators:
Introduction
Moving Averages
Moving Averages Difference Oscillator
Relative Strength Index
Momentum
Stochastics
Bollinger Bands
Pivot Point Analysis
Volume and open interest
Historic volatility
Advance/Decline Line
Overbought/Oversold Indicator
Advance/Decline Volume Line
TRIN - Short-term Trading Index
Comparative Strength Index
Call/Put Ratio
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Trading System Development:
Introduction
Basic Examples of a Rule-Based Trading System
Trading Systems and The Computer
Developing the Trading System
Setting Entry and Exit Rules
Slippage, Commissions and Bad Luck
Optimization and Curve-Fitted Trading Patterns
Trading System Example
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Money Management:
Introduction
Investing vs. Trading
Futures vs. Stock Trading
Leverage
Realistic Expectations
How Much To Trade With
With How Much To Allocate Per Trade
How Much To Risk On Each Trade
Correlation and Diversification
Using Stop Orders To Protect Against A Loss
Stop Placement
Risk Reward Ratio
Ride Your Winners / Cut Your Losses
Psychological Factors
Margin Calls
Pyramiding
Equity Curves
Mock Trading
Cautions About Trading the Markets