332 Day Trading For Dummies
stress management TradeLog software, 164
controlling emotions, 129–135 trader versus investor, 157–158
having an outlet, 132–133 TD AMERITRADE, 105
overview, 127–129 technical analysis. See also technical
support systems, 133–134
trading plan, 135–137 research
approaches, 210–213
strike price, 245 changing trends, 204–206
strips, 60 defined, 34, 308
success rates, 23–24 Dow Theory, 210–211
support level, 201 Elliott Wave, 211
support systems Fibonacci numbers, 211
finding trends, 200–204
overview, 287 Gann System, 212–213
stress management, 133–134 guides, 308–309
swing trading Japanese Candlestick charting, 212
as an alternative to day trading, 304 overview, 197–200
defined, 10, 197 pitfalls, 213–215
overview, 39 technical research. See also technical
switching, research systems, 298–299
synthetic securities, risk arbitrage, analysis
functional research versus, 195–196
258–259 technology, importance, 282
system testing, 173–178 teeny, 35
Terra Nova Financial, 105
•T• testing, your system, 173–178
theta, volatility, 145
Tape Reading and Market Tactics thinkorswim, 107
(Humphrey), 309 Thomas, Kaye A., Capital Gains, Minimal
targets, setting, 273–275 Taxes, 307
Tax Guide for Traders, The (Green), 308 tick
tax preparation center, 159
TaxCut Premium, 161 defined, 35, 222
taxes indicator calculations, 222
trading on the, 222
advisers, 158–161 ticker symbols, 56
attorneys, 159 time
estimated, 171–172 committing, 297–298
income, 161–164 updates, 230–231
investment expenses, 164–169, 171 value of money, 75–76
IRS-Qualified traders, 169–170 time-weighted rate of return, 185–186
paying, 171–172 tools, arbitrage, 259–265
reporting, 91 top-down research, 196
self-directed IRAs, 172 TotalView quotes, 100
software preparation, 161
tax adviser, 158–161
Index 333
tracking insider, 92
investment expenses, 164–169 leverage and short–term, 238
stock, 260 overview, 78–79
trades, 178–181 pairs, 264–265
the trin, 222–223 part-time, 13–14
position, 40
Trade-Ideas, charting service, 122 problems, 37–38
Tradecision, simulation software, 178 proprietary, 301–302
TradeKing, 105 psychology books, 310–311
TradeLog, tax software package, 164 resources, 114–116
Trader Mike, 314 rules, 40–44
TraderInterviews.com, 314 short-term, 284
traders simulation, 176–177
in the spot market, 64
categories, 10–11 swing, 39, 197, 304
investors versus, 157–158 on the tick, 222
prop, 301 trading arcade
Traders Laboratory, 46, 314 defined, 17–18, 97, 249
trades learning, 118
losing, 299–300 overview, 111–112
planning, 31–39 Trading Forum, conference, 116
tracking, 178–181 trading plan
TradeStation importance, 296–297
charting software, 46 sample, 38
overview, 105 stress management, 135–137
simulation software, 178 troubleshooting, 137
trading. See also day trading Trading Profits of SOES Bandits (Schultz
as a hobby, 14–15
for agricultural, energy, or commodities & Harris), 22
trading room. See trading arcade
companies, 302 Trading Rules that Work: The 28
bonds, 61–63
capital, 248–249 Lessons Every Trader Must
cash and currency, 64–65 Master (Jankovsky), 308
commodities, 65 TradingSchool.com, training class, 118
contests, 306 traditional investing, 303
defined, 78 training classes, 117–118
in demo accounts, 305–306 transaction costs, 255–256
derivatives, 65–69 traps
diary, 179–181 contrarian, 233
discipline, 268 defined, 232
futures, 245–246 types, 232–235
gambling versus, 292–293 treasury bond
guides, 307–308 futures trading, 27
indicator, 222 market regulation, 85
334 Day Trading For Dummies
treasury dealers, bonds, 62–63 VIX (Chicago Board Options Exchange
Treasury Department Volatility Index), 226–227
Financial Crimes Informant Network, 90 volatility. See also risk
Web site, 62–63 asset, 51–52
Trending 123 (newsletter), 123 average true range, 225–226
trendlines Beta, 226
defined, 201 defined, 74, 182
drawing, 201 measuring, 225–227
trends overview, 225
changing, 204–206 valuing, 144–145
finding, 200–204 VIX, 226–227
phases, 204 volatility ratio, 227
trin
defined, 222 volume
tracking the, 222–223 changes, 199
troubleshooting, trading plans, 137 defined, 223
True Range, 225–226 force index, 223–224
TurboTax Premier Investments, 161 liquidity measure, 50
two-percent limit, 169 measuring, 223–225
Tyson, Eric on-balance volume, 224
Investing For Dummies, 3, 289, 303 open interest, 225
Mutual Funds For Dummies, 3
Tzu, Sun, Art of War, The, 310 •W•
•U• walk-away money, 135
Wall Street Journal, 190, 210, 309
uncertainty, 232 want-to-make number, 131
The University of Trading, training warrant, 67
wash-sale rule, 159, 163–164
classes, 118 web-based, platforms, 100
uptick rule, 242 Web sites (asset management)
upward bias, 27
iShare, 63
•V• Pink Sheets, 59
Treasury Department, 62–63
Value Line, investment research service, Web sites (brokerage firms)
271 Charles Schwab Active Trader, 103
ChoiceTrade, 103
valuing, volatility, 144–145 CyberTrader, 103
variance, volatility, 52 E*TRADE, 103
vega, volatility, 145 Fidelity Active Trader Pro, 104
video games, day trading, 305 Fimat PreferredTrade, 104
Vince, Ralph, New Money Management: Interactive Brokers, 104
Just2Trade, 104
A Framework for Asset Allocation, MasterTrader.com, 104
The, 308
ScottradeELITE, 105 Index 335
TD AMERITRADE, 105
Terra Nova Financial, 105 Institute for Financial Markets, 115
TradeKing, 105 Investor’s Business Daily, 315
TradeStation, 105 IRS, 157, 160
Zecco, 106 The Marlin Newsletter, 123
Web sites (contests) MarketDelta, 121
Beat the Street Contest, 306 Marketwise, 117
Forbes Stock Game, 306 Metastock, 121
Million Dollar Portfolio Challenge, 306 Money Show, 116
Web sites (day trader organizations) MyPivots.com, 314
Market Technicians Association, NASD BrokerCheck, 125
NASDAQ, 115
312–313 National Association of Investors
Meetup, 313
Security Traders Association, 312 Corporation, 304
Web sites (forex brokers) National Futures Association BASIC,
CMC Markets, 107
Gain Capital Group’s FOREX.com, 108 125
GTForex, 65, 108 National Futures Association Investor
InterbankFX, 108
MG Financial Group, 108 Learning Center, 115
Web sites (information research) New York Stock Exchange, 116
Barron’s, 314–315 news announcements, 33
Broadband Reports, 110 NinjaTrader, 122
Cara, Bill, 313 OmniTrader, 122
Chicago Board of Trade O’Neil, William, 271
Pristine, 117
Classes/Training, 114 RealTick, 122
Chicago Board Options Exchange, 66 Schneider Tradercourse, 117
Chicago Board Options Exchange School of Gann, 123
SEC, 125
Learning Center, 114 Secrets of Traders, 117
Chicago Board Options Exchange Securities and Exchange Commission,
Volatility Index (VIX), 226 125
Chicago Mercantile Exchange Social Security Administration, 162
Trade-Ideas, 122
Education Center, 114 TradeLog, 164
CNBC, 315 Trader Mike, 314
CQG, 120 TraderInterviews.com, 314
DTN, 120 Traders Laboratory, 46, 314
Elliott Wave, 123 Trading Forum, 116
eSignal, 120 TradingSchool.com, 118
IndexArb.com, 313 Trending, 123, 123
InstaQuote, 121 The University of Trading, 118
Value Line, 271
336 Day Trading For Dummies
Web sites (options and futures brokers) TaxCut Premium, 161
Infinity Brokerage, 106 Tradecision, 178
Man Futures, 106 TradeStation, 178
MB Trading, 106 TurboTax Premier Investments, 161
OptionsHouse, 107 Web sites (stress management)
optionsXpress, 107 Buddhist mindfulness meditation
thinkorswim, 107
practice, 133
Web sites (regulation) International Coach Federation, 134
Commodity Futures Trading Psychology Today, 134
Commission, 124 West, George, Electronic Day Trader:
Commodity Futures Trading
Commission (CFTC), 86 Successful Strategies for On–line
National Association of Securities Trading, The, 308
Dealers (NASD), 84 wick, 212
National Futures Association (NFA), 86 win-loss percentage, calculating, 188
SEC, 35, 84 win ratio, calculating, 188
Securities and Exchange Commission, withdrawals, regular, 155
35, 84 wrote, 11
Treasury Department Financial Crimes
Informant Network, 90 •Z•
Web sites (software) Zecco, 106
AmiBroker, 177 zero-coupon bond, 60
AnalyCorp, 150 zero-sum
CompleteTax, 161
CyberTrader, 177 defined, 27
Decisioneering, 150 games, 74
RapidSP Day Trading Simulator, 305 markets, 11–12
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