Think, Trade, and Grow Rich!

Shooting star:

A bearish candlestick reversal pattern consisting of one candle. The shooting
star has a small real body, long upper shadow, and no (or little) lower
shadow. The shooting star can only form at the top of an uptrend.
Short-term trend:

The general direction stock price moved over the past month or so.

Sideways trading/trend:
Horizontal price movement that occurs when buying and selling demands are
nearly equal.

Significant price levels:

Stock prices at whole, round numbers that often act as support or resistance.
Simple moving average (SMA):

A technical indicator measuring average share price of a stock over a set
period of time. SMA measures the average of all price points used.

Small cap:
A company with a market capitalization between $300 million to $2 billion.

Stars:

A neutral candle with a small, real body.

Stochastics/stochastic oscillator:

A momentum indicator used in technical analysis. The stochastic oscillator
compares the closing price of a stock to the range of its prices over a specific
period of time. In layman’s terms, the stochastic oscillator tells you whether a
stock is overbought or oversold.

Stock:

A type of security that signifies ownership in a company and represents a
claim on part of the company’s assets and earnings.

Stock price:

Also known as share price.

Strong buy:

Analysts anticipate a stock’s total return, or profit/performance, significantly
above the market’s long-term historical annual rate (approximately 10%).

Strong sell:

Analysts anticipate a stock’s total return, or profit/performance, significantly
below the market’s long-term historical annual rate (approximately 10%).

Support:

Lines of support are price levels below which, historically, a stock has had
difficulty falling.

Support level:

A price level below which, historically, a stock has had difficulty falling.

T

Technical analysis:

A Western school of thought for trading and investing, primarily based on
chart observation and data analysis. Traders who rely on technical analysis
typically use technical data as guideposts in determining when to enter or exit
a trade.

Technical indicators:

A trading tool of Western traders. Technical indicators help traders analyze
financial data, gauge market sentiment and quiet the emotional component
present in all markets.

Three outside up:

A bullish candlestick reversal pattern consisting of three candles. The first
candle is a bearish extended range or star candle. The second candle is a
bullish, extended range candle whose real body completely envelops the first
candle’s real body. The second candle closes above the first candle’s closing
price. The third candle is a bullish candle that closes above the second
candle’s closing price.

Three white soldiers:

A bullish candlestick reversal pattern consisting of three bullish, extended
range candles. Each candle closes near the previous candle’s high.
Furthermore, each candle’s real body overlaps with the previous candle’s real
body.

Ticker symbol:

An abbreviation used to identify publicly traded shares of a particular stock.

Trading calculator:

A tool that calculates an investor’s profit or loss for each trade they made and
tracks their overall investment performance for the trading year.[73]

Trading platform:

A software that allows traders and investors to place trades and monitor
accounts through financial intermediaries. In other words, a trading platform
is where traders and investors buy and sell stocks.

Trading volume:

A technical indicator that measures the amount (total number) of shares of
stock traded during a given period of time.

Trend:

The general direction of a stock’s price movement. Trends are identified by
trendlines that connect a series of pivot points, specifically, pivot highs and
pivot lows.

Trendline:

A line running through or along the pivot highs and pivot lows, depicting the
general direction of the stock’s price movement.

Trend stages:

A classification method for the types of trends traders may find in stock
charts. Trend stages include such trends as: long-term, short-term, upward,
downward, or sideways.

U

Umbrella lines:

Candle with a long, lower shadow and small, real body with little or no upper
shadow.

Upper shadow:

A thin line that extends above the real body of a candle. The upper shadow is
the high of the session –i.e., the highest point share price reached that session.

Uptrend:

Stock with rising pivot highs and pivot lows, indicating an increase in share
price. Also known as bullish uptrend.

V

Volume:

A technical indicator measuring the number of transactions –i.e., buying and
selling shares of a stock, in a trading session.

W

Watchlist:
A folder used by traders to track stocks and stock performance.

#

52-week high/low range:
A technical indicator expressing the highest and lowest price that a stock
traded over the last 52 weeks –i.e., year.

CANDLESTICK PATTERNS

B

Bearish engulfing

Bearish harami

Bullish engulfing

Bullish hammer

Bullish harami

Bullish separating lines

D

Dark cloud cover

Doji star

E

Evening star

Extended range candles

H

Hammer

Hanging man

M

Morning star

P

Piercing line

S

Shooting star

Stars

Stick sandwich

T

Three outside up

Three white soldiers

KAHRIMAN VENTURES’

TRADING CHECKLIST

I. Trend ​ ​[#/5]
a. Short-term ​ ​1
b. Primary ​ 2​
c. Long-term ​ ​2
d. Score ​

II. Candlestick ​ [​ #/8]
a. Performance ​ 5​
b. Frequency ​ ​3
c. Score ​

III. Volume ​ ​[#/8]
a. Average ​ 1​
b. Above Average ​ 6​
c. Increasing​ ​1
d. Decreasing ​
e. Score

IV. Moving Averages ​ [​ #/2.25]
a. SMA 5-day ​ ½​
b. EMA 8-day​ ¼​
c. SMA 20-day ​ ​¼
d. EMA 34-day ​ ​¼
e. SMA 50-day ​ ½​
f. SMA 200-day ​ ​¼
g. Bonus Point ​ ​¼
h. Score

V. Stochastics ​ ​[#/2]
a. Overbought ​ ​0
b. Oversold ​ ​2
c. Score

VI. Money Flow ​ [​ #/3]
a. Value

VII. Relative Strength Index[#/2]
a. Value

VIII. Sector Performance ​ ​[#/4]
a. Day​ ​1
IX. b. Week ​ ​1
X. c. Month ​ ​1
d. Quarter ​ 1​
XI. e. Score
XII.
XIII. Analyst Rating/$ Target [​ #/3]
a. Rating ​ ​2
b. Price Target ​ 1​
c. Score

Stock Performance ​ ​[#/6.5]
a. Week ​ ​½
b. Month ​ ​2
c. Quarter ​ 2​
d. YTD ​ 2​
e. Score

Support & Resistance ​ ​[#/4]
a. Resistance Levels 2​
b. Support Levels ​ ​2
c. Score

News ​ ​[#/2]
a. Insider Buying/Selling ​1
b. News ​ ​1
c. Score

Earnings Report ​ ​[#/1.5]
a. Earnings Date ​ ½​
b. Expected Earnings ​½
c. Expected Revenue​½
d. Score

XIV. Final Score & Comments ​[#/52]
a. Bonus ​ ​/ .75
b. Score ​ ​[ X / 52]
c. Rating ​ [​ A+, A, A-, etc.,]

Letter Grade Point Range
A+ 52 - 48
A 47.99 - 44
A- 43.99 - 40
B+ 39.99 - 36
B 35.99 - 32
B- 31.99 - 28
C+ 27.99 - 24
C 23.99 - 20
C- 19.99 - 16
D+ 15.99 - 12
D 11.99 - 8
D- 7.99 - 4
F 3.99 - 0

d. Comments
e. Strategy

BIBLIOGRAPHY

Arora, Nigam. “Ride the Bitcoin Wave with These 11 Cryptocurrency-
Related Stocks.” MarketWatch, MarketWatch, 18 Dec. 2017,
www.marketwatch.com/story/ride-the-bitcoin-wave-with-these-11-
cryptocurrency-related-stocks-2017-12-08.

Bulkowski, Thomas N. “The Pattern Site.” Bulkowski's Stocks That Double,
2018, thepatternsite.com/StocksDoubling.html.

Charts, Stock. “The Charting Tools and Resources You Need to Invest.”
StockCharts.com, 2018, www.stockcharts.com/.

.com, Schwab. “Trading Near the Bells.” Schwab Brokerage, 2018,
www.schwab.com/resource-center/insights/content/trading-near-bells.

De, Nikhilesh. “AMD: GPU Business Could Take Hit If Crypto Miners Stop
Buying.” CoinDesk, CoinDesk, 1 Mar. 2018,
www.coindesk.com/amd-gpu-cryptocurrency-miners-hit/.

Duggan, Wayne. “Never Invest In Something You Don't Understand.” U.S.
News & World Report, U.S. News & World Report, 2018,
money.usnews.com/investing/articles/2017-05-11/never-invest-in-
something-you-dont-understand.

Elite, Finviz. “NVIDIA Corporation.” NVDA NVIDIA Corporation Stock
Quote, 2018, elite.finviz.com/quote.ashx?t=NVDA.

Engines, Financial. “Market Capitalization: Large Cap, Mid Cap & Small
Cap Stocks.” Financial Engines Education Center, 15 May 2018,
financialengines.com/education-center/small-large-mid-caps-market-
capitalization/.

Freeman, Philip. “Oh My Gods.” Google Books, 3 Jan. 2012,
books.google.com/books?id=umsythkvbmMC.

Grant, Charles. “Relationship Between Earnings & Stock Market Value.”
Finance - Zacks, 7 May 2018, finance.zacks.com/relationship-
between-earnings-stock-market-value-4890.html.

Investing, Answers. “Shares Outstanding.” Investing Answers Building and
Protecting Your Wealth through Education Publisher of The Next
Banks That Could Fail, 2018, www.investinganswers.com/financial-
dictionary/stock-market/shares-outstanding-3594.

Kuepper, Justin. “Day Trading: An Introduction.” Investopedia, Investopedia,
6 June 2018, www.investopedia.com/articles/trading/05/011705.asp.

Lewis, Christopher. “Swing Trading: Advantages and
Disadvantages.” DailyForex, www.dailyforex.com/forex-
articles/2011/06/swing-trading-advantages-and-disadvantages/8182.

Murphy, Casey. “Support and Resistance Basics.” Investopedia,
Investopedia, 10 July 2018, www.investopedia.com/trading/support-

and-resistance-basics/.
Murphy, John J. Technical Analysis of the Financial Markets: a

Comprehensive Guide to Trading Methods and Applications. New
York Institute of Finance, 1999.
Nison, Steve. Japanese Candlestick Charting Techniques: a Contemporary
Guide to the Ancient Investment Techniques of the Far East. Pearson
Professional Education, 2001.
Picardo, CFA Elvis. “Moving Average - MA.” Investopedia, Investopedia, 9
May 2018, www.investopedia.com/terms/m/movingaverage.asp.
Roberts, Jeff John. “Square's Bitcoin Business Is Struggling to Make
Money.” Fortune, Fortune, 2 May 2018,
fortune.com/2018/05/02/square-bitcoin-earnings/.
Roberts, Jeff John. “Square's Bitcoin Business Is Struggling to Make
Money.” Fortune, Fortune, 2 May 2018,
fortune.com/2018/05/02/square-bitcoin-earnings/.
Rooney, Kate. “Struggling Cryptohedge Fund Says It Will Still Do Well
Even If Bitcoin Becomes 'Pets.com'.” CNBC, CNBC, 16 Mar. 2018,
www.cnbc.com/2018/03/16/struggling-crypto-hedge-fund-says-it-
will-still-do-well-even-if-bitcoin-becomes-pets-com.html.
Rouse, Margaret. “What Is Risk-Reward Ratio? - Definition from

WhatIs.com.” WhatIs.com, 2018,
whatis.techtarget.com/definition/risk-reward-ratio.
Russo, Camila. “Who's Hot, Who's Not on Bitcoin.” Bloomberg.com,
Bloomberg, 28 Nov. 2017, www.bloomberg.com/features/bitcoin-
bulls-bears/.
Staff, Investopedia. “Industry Group.” Investopedia, Investopedia, 2 Mar.
2018, www.investopedia.com/terms/i/industrygroup.asp.
Staff, Investopedia. “Penny Stock.” Investopedia, Investopedia, 27 June
2018, www.investopedia.com/terms/p/pennystock.asp.
Staff, Investopedia. “Price Target.” Investopedia, Investopedia, 10 July 2018,
www.investopedia.com/terms/p/pricetarget.asp.
Staff, Investopedia. “Resistance (Resistance Level).” Investopedia,
Investopedia, 27 Apr. 2018,
www.investopedia.com/terms/r/resistance.asp?ad=dirN.
Staff, Investopedia. “Sector.” Investopedia, Investopedia, 12 June 2018,
www.investopedia.com/terms/s/sector.asp.
Staff, Investopedia. “Sideways Trend.” Investopedia, Investopedia, 10 June
2018, www.investopedia.com/terms/s/sidewaystrend.asp.
Staff, Investopedia. “Small Cap.” Investopedia, Investopedia, 15 Mar. 2015,
www.investopedia.com/terms/s/small-cap.asp.

Staff, Investopedia. “Support (Support Level).” Investopedia, Investopedia,
26 Nov. 2003, www.investopedia.com/terms/s/support.asp?ad=dirN.

Staff, Investopedia. “Support (Support Level).” Investopedia, Investopedia,
26 Nov. 2003, www.investopedia.com/terms/s/support.asp?ad=dirN.

Staff, Investopedia. “Swing Trading.” Investopedia, Investopedia, 6 July
2018, www.investopedia.com/terms/s/swingtrading.asp.

Staff, Investopedia. “Trading Session.” Investopedia, Investopedia, 19 Mar.
2018, www.investopedia.com/terms/t/tradingsession.asp.

Staff, Investopedia. “Understanding Order Execution.” Investopedia,
Investopedia, 25 Apr. 2018,
www.investopedia.com/articles/01/022801.asp.

StockTwits Inc, StockTwits. “Search.” StockTwits, 2018,
stocktwits.com/search?q=aapl.

Swedroe, Larry. “How Investor Sentiment Affects Returns.” CBS News, CBS
Interactive, 22 June 2012, www.cbsnews.com/news/how-investor-
sentiment-affects-returns/.

“What Is Bitcoin?” CNNMoney, Cable News Network, 2018,
money.cnn.com/infographic/technology/what-is-bitcoin/.

ABOUT THE AUTHOR

Benjamin Kahriman is a stock market investor, trader, author, and
entrepreneur. A refugee of the Yugoslavian War, Benjamin and his family
landed in the San Francisco Bay Area. There, Benjamin excelled in the
classroom and on the football field. He received a scholarship to play
collegiate football, earned the President’s Scholar Award at the University of
British Columbia, graduated Magma Cum Laude from the University of
California, Berkeley, and attained his law degree by the time he turned
twenty-six. With the same drive and determination that led to his academic
and athletic success, he studied the stock market. In Think, Trade, & Grow
Rich! Benjamin outlines and shares his powerful trading and investing
formula forged from years of research and trading experience. He explains
how you too can realize your dreams and reap the bountiful financial
opportunities present in the stock market. Best of all, Benjamin demystifies
the technical, hard to understand, and complicated aspects of trading and
investing. Think, Trade, and Grow Rich! is concise, practical, and written for
everyone, in effect, a true and complete beginner’s guide to not only trading,
but a better life.

As a purchaser of Think, Trade, & Grow Rich!, you will receive one
FREE stock to get you started on your path to financial freedom. You will
also receive an invite to Kahriman’s community of traders and investors at
www.kahrimanventures.com and www.kahrimanpublishing.com. You can
follow Kahriman’s trades and investments, learn more about the trading and
investing system, and access insider reports and market news.

Finally, you will have access to Kahriman himself. Directly introduce
yourself to Kahriman at [email protected] and claim your
welcome package.

Learn more about Benjamin at https://www.amazon.com/Benjamin-
Kahriman/e/B07G23PSGL/ref=dbs_p_ebk_rwt_abau

ONE LAST THING...

If you enjoyed this book or found it useful I’d be very grateful if
you’d post a short review on Amazon. Your support really does make a
difference and I read all the reviews personally so I can provide feedback and
make this book even better.

If you’d like to leave a review then all you need to do is click the
review link on the Think, Trade, & Grow Rich! page on Amazon:
http://amzn.to/yourlink (direct link to the “Create a review” page on Amazon
for your book – you can’t get the link until you upload your book first. Then,
when your book is live, go get the link, insert it, and re-upload your book.)

Thank you for your support!

[1]

[2] Find more resources at kahrimanventures.com
[3] Staff, Investopedia. “Small Cap.” Investopedia, Investopedia, 15 Mar. 2015,
www.investopedia.com/terms/s/small-cap.asp.
[4] Staff, Investopedia. “Penny Stock.” Investopedia, Investopedia, 27 June 2018,
www.investopedia.com/terms/p/pennystock.asp.
[5] Kuepper, Justin. “Day Trading: An Introduction.” Investopedia, Investopedia, 6 June 2018,
www.investopedia.com/articles/trading/05/011705.asp.
[6] Staff, Investopedia. “Swing Trading.” Investopedia, Investopedia, 6 July 2018,
www.investopedia.com/terms/s/swingtrading.asp.
[7] Lewis, Christopher. “Swing Trading: Advantages and Disadvantages.” DailyForex,
www.dailyforex.com/forex-articles/2011/06/swing-trading-advantages-and-disadvantages/8182.
[8] (Staff, Investopedia)
[9] (Staff, Investopedia)
[10] Nison, Steve. Japanese Candlestick Charting Techniques: a Contemporary Guide to the Ancient
Investment Techniques of the Far East. Pearson Professional Education, 2001
[11] Swedroe, Larry. “How Investor Sentiment Affects Returns.” CBS News, CBS Interactive, 22 June
2012, www.cbsnews.com/news/how-investor-sentiment-affects-returns/.
[12] Swedroe, Larry. “How Investor Sentiment Affects Returns.” CBS News, CBS Interactive, 22 June
2012, www.cbsnews.com/news/how-investor-sentiment-affects-returns/.
[13] Nison 1
[14] Nison 11
[15] Neither the NASDAQ nor NYSE is closed on Veterans’ Day and Columbus Day. Unlike federal
government offices, the NASDAQ and NYSE are closed on Good Friday.

[16] Staff, Investopedia. “Trading Session.” Investopedia, Investopedia, 19 Mar. 2018,
www.investopedia.com/terms/t/tradingsession.asp.
[17] Investopedia, “Trading Session.”
[18] Schwab.com. “Trading Near the Bells.” Schwab Brokerage, 2018, www.schwab.com/resource-
center/insights/content/trading-near-bells.
[19] A ticker symbol or stock symbol is an abbreviation used to uniquely identify publicly traded shares
of a particular stock in a particular stock market.
[20] Staff, Investopedia. “Understanding Order Execution.” Investopedia, Investopedia, 25 Apr. 2018,
www.investopedia.com/articles/01/022801.asp.
[21] Staff, Investopedia. “Sector.” Investopedia, Investopedia, 12 June 2018,
www.investopedia.com/terms/s/sector.asp.
[22] Staff, Investopedia. “Industry Group.” Investopedia, Investopedia, 2 Mar. 2018,
www.investopedia.com/terms/i/industrygroup.asp.
[23] Staff, Investopedia. “Support (Support Level).” Investopedia, Investopedia, 26 Nov. 2003,
www.investopedia.com/terms/s/support.asp?ad=dirN.
[24] Staff, Investopedia. “Resistance (Resistance Level).” Investopedia, Investopedia, 27 Apr. 2018,
www.investopedia.com/terms/r/resistance.asp?ad=dirN.
[25] Grant, Charles. “Relationship Between Earnings & Stock Market Value.” Finance - Zacks, 7 May
2018, finance.zacks.com/relationship-between-earnings-stock-market-value-4890.html.
[26] Murphy, John J. Technical Analysis of the Financial Markets: a Comprehensive Guide to Trading
Methods and Applications. New York Institute of Finance, 1999.
[27] Murphy 15
[28] Staff, Investopedia. “Sideways Trend.” Investopedia, Investopedia, 10 June 2018,
www.investopedia.com/terms/s/sidewaystrend.asp.
[29] Investopedia, “Sideways Trend.”
[30] Murphy 73
[31] Charts, Stock. “The Charting Tools and Resources You Need to Invest.” StockCharts.com, 2018,
www.stockcharts.com/.
[32] Charts, Stock. “The Charting Tools and Resources You Need to Invest.” StockCharts.com, 2018,
www.stockcharts.com/.
[33] Engines, Financial. “Market Capitalization: Large Cap, Mid Cap & Small Cap Stocks.” Financial
Engines Education Center, 15 May 2018, financialengines.com/education-center/small-large-mid-caps-
market-capitalization/.
[34] Shares outstanding refers to all shares currently owned by stockholders, company officials, and
investors in the public domain, but does not include shares repurchased by a company. (Investing,
Answers. “Shares Outstanding.” Investing Answers Building and Protecting Your Wealth through
Education Publisher of The Next Banks That Could Fail, 2018, www.investinganswers.com/financial-
dictionary/stock-market/shares-outstanding-3594.)
[35] Bulkowski, Thomas N. “The Pattern Site.” Bulkowski's Stocks That Double, 2018,
thepatternsite.com/StocksDoubling.html.
[36] Bulkowski, “The Pattern Site.”

[37] Investopedia, “Support.”
[38] E.g., If the 52-week low is $10, you would want the bullish separating lines pattern to form at or
above $13.
[39] Staff, Investopedia. “Price Target.” Investopedia, Investopedia, 10 July 2018,
www.investopedia.com/terms/p/pricetarget.asp.
[40] Nison 82
[41] Nison 11
[42] Nison 12
[43] Investopedia
[44] If a stock’s volume is NOT decreasing, write “0” in the decreasing category.
[45] Picardo, CFA Elvis. “Moving Average - MA.” Investopedia, Investopedia, 9 May 2018,
www.investopedia.com/terms/m/movingaverage.asp.
[46] Nison 219
[47] If the stock is not overbought, simply write “0” in the overbought category.
[48] Investopedia, “Price Targets.”
[49] Murphy, Casey. “Support and Resistance Basics.” Investopedia, Investopedia, 10 July 2018,
www.investopedia.com/trading/support-and-resistance-basics/.
[50] Investopedia, “Support and Resistance.”
[51] Please recall we use the terms primary and intermediate interchangeably.
[52] “What Is Bitcoin?” CNNMoney, Cable News Network, 2018,
money.cnn.com/infographic/technology/what-is-bitcoin/.
[53] CNNMoney, “What is Bitcoin?”
[54] Russo, Camila. “Who's Hot, Who's Not on Bitcoin.” Bloomberg.com, Bloomberg, 28 Nov. 2017,
www.bloomberg.com/features/bitcoin-bulls-bears/.
[55] Bloomberg, “Bitcoin Bulls Bears.”
[56] Rooney, Kate. “Struggling Cryptohedge Fund Says It Will Still Do Well Even If Bitcoin Becomes
'Pets.com'.” CNBC, CNBC, 16 Mar. 2018, www.cnbc.com/2018/03/16/struggling-crypto-hedge-fund-
says-it-will-still-do-well-even-if-bitcoin-becomes-pets-com.html.
[57] Bloomberg, “Bitcoin Bulls Bears.”
[58] Bloomberg, “Bitcoin Bulls Bears.”
[59] Elite, Finviz. “NVIDIA Corporation.” NVDA NVIDIA Corporation Stock Quote, 2018,
elite.finviz.com/quote.ashx?t=NVDA.
[60] De, Nikhilesh. “AMD: GPU Business Could Take Hit If Crypto Miners Stop Buying.” CoinDesk,
CoinDesk, 1 Mar. 2018, www.coindesk.com/amd-gpu-cryptocurrency-miners-hit/.
[61] De, Nikhilesh. “AMD: GPU Business Could Take Hit,.”
[62] Finviz, “Square, Inc..”
[63] Roberts, Jeff John. “Square's Bitcoin Business Is Struggling to Make Money.” Fortune, Fortune, 2
May 2018, fortune.com/2018/05/02/square-bitcoin-earnings/.
[64] Roberts, “Square’s Bitcoin Business is Struggling to Make Money.”

[65] Arora, Nigam. “Ride the Bitcoin Wave with These 11 Cryptocurrency-Related
Stocks.” MarketWatch, MarketWatch, 18 Dec. 2017, www.marketwatch.com/story/ride-the-bitcoin-
wave-with-these-11-cryptocurrency-related-stocks-2017-12-08.
[66] Duggan, Wayne. “Never Invest In Something You Don't Understand.” U.S. News & World Report,
U.S. News & World Report, 2018, money.usnews.com/investing/articles/2017-05-11/never-invest-in-
something-you-dont-understand.
[67] Duggan, “Never Invest In Something You Don’t Understand.”
[68] Freeman, Philip. “Oh My Gods.” Google Books, 3 Jan. 2012, books.google.com/books?
id=umsythkvbmMC.
[69] StockTwits Inc, StockTwits. “Search.” StockTwits, 2018, stocktwits.com/search?q=aapl.
[70] A dividend is a sum of money paid regularly (typically quarterly) by a company to its shareholders
out of its profits (or reserves).
[71] Investopedia, “Price Targets.”
[72] Rouse, Margaret. “What Is Risk-Reward Ratio? - Definition from WhatIs.com.” WhatIs.com, 2018,
whatis.techtarget.com/definition/risk-reward-ratio.
[73] Available at www.kahrimanventures.com or send a request to [email protected].