Trading in a Nutshell: Planning for Consistently Profitable Trading

274 Pages·2012·10.379 MB·English

by  Stuart McPhee

Trading
IN A NUTSHELL
Planning
for consistently
profi table trading
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10TH
ANENDIVITEIROSNARY
Trading
IN A NUTSHELL
Planning
for consistently
profi table trading
STUART
McPHEE
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Th is fourth edition fi rst published in 2012 by Wrightbooks
an imprint of John Wiley & Sons Australia, Ltd
42 McDougall St, Milton Qld 4064
Office also in Melbourne
Typeset in Chaparral Pro 11.5/13.5
First edition published by Wrightbooks 2001
Second edition published by Wrightbooks 2005 and reprinted in December 2007
Th ird edition published by Wrightbooks 2008 and reprinted in September 2009
© Stuart McPhee 2012
Th e moral rights of the author have been asserted
National Library of Australia Cataloguing-in-Publication data:
Author: McPhee, Stuart.
Title: Trading in a Nutshell: Planning for Consistently Profi table
Trading/Stuart McPhee.
Edition: 4th ed.
ISBN: 9780730378150 (pbk.)
Subjects: Stocks.
Investments.
Stock exchanges.
Dewey Number: 332.6322
All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for
example, a fair dealing for the purposes of study, research, criticism or review), no
part of this book may be reproduced, stored in a retrieval system, communicated
or transmitted in any form or by any means without prior written permission. All
inquiries should be made to the publisher at the address above.
Cover design by punch bowl design
Cover images © Dalibor Sevaljevic/Shutterstock.com
Charts by MetaStock
Printed in China by Printplus Limited
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Disclaimer
Th e material in this publication is of the nature of general comment only, and does
not represent professional advice. It is not intended to provide specifi c guidance for
particular circumstances and it should not be relied on as the basis for any decision
to take action or not take action on any matter which it covers. Readers should
obtain professional advice where appropriate, before making any such decision.
To the maximum extent permitted by law, the author and publisher disclaim all
responsibility and liability to any person, arising directly or indirectly from any
person taking or not taking action based on the information in this publication.
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Acknowledgements vii
Preface ix
1 An introduction to trading 1
2 Financial markets 11
3 Technical analysis and charts 27
4 Chart patterns and indicators 53
5 Developing a trading strategy 73
6 Th e exit decision 95
7 Trade execution 117
8 Money management and risk 123
9 Developing your trading plan 143
10 Developing your mindset 159
11 Rules of trading 185
12 Th e experts 191
13 Getting started 233
Glossary 247
Index 253
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Acknowledgements
I dedicate this book to my late mother, whose devotion and guidance
has inspired me throughout my life.
I would like to thank my wife Lindy and my beautiful children, Sarah,
Jenna and Jessica. Th e four of them make every day worth living and
my children regularly provide great perspective on what is and is not
important in life. Also, thank you to my father and brother for all
their support and love.
I am also thankful to the tens of thousands of people who have
purchased the fi rst, second or third (or all) editions of this book. I am
humbled by the support it has received and by the many encouraging
comments I have received from readers. Th ank you — it means a lot
to me.
Finally, a further thanks to fellow Australian authors Christopher
Tate and Louise Bedford. Th ey gave me the encouragement to begin
the task of writing the fi rst edition of this book back in 2001.
vii
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