Table of Contents

Introduction

Disclaimer

Financial Notes

Chapter 1 – Entering the Stock Market Field

What Makes Stocks and Options Different?

What About Dividend Stocks?

Who Could Benefit from Day-Trading?

What Problems Persist With Day-Trading?

What Does it Take to be a Great Day-Trader?

What You Need for Trading

Chapter 2 – How to Tell What Stock is Right for You

Choose Stocks in a Field You Understand

The National Market

Do You Know the Company?

Review Price Trends

Work With Moving Averages

The Relationship between Revenue and Debt

Compare the Performance of a Stock With Other Similar Choices

What is Best for Short or Long-Term Needs?

Signs a Stock is Better for Day-Trading

Signs a Stock Works for Long-Term Investing

Chapter 3 – Reviewing an SEC Report

Background of a Report

10-K Report

10-Q Report

8-k Report

Internal Functions

Added Tips

What If a New Version of a Report Is Issued?

What About the Chairman’s Letter?

Chapter 4 – Understanding the True Value of a Stock

P/E Ratio

Price/Earnings Growth Ratio

Price/Sales Ratio

Analyze the Book Value

Chapter 5: Using a Stock Screener

How to Use a Screener

A Quantitative Approach

The Best Choices

Chapter 6: Working With a Great Trading Platform

Analytics Points

Can This Work In Lieu of a Stock Screener?

What Are the Best Trading Platforms?

Don’t Forget Simulators

Chapter 7: Trading the Same Stocks – A Good Idea?

Find Patterns

How Volatile Is the Stock?

Focus on One Stock for the Day

Time Between Trades

Check the Long-Term Report

Chapter 8: Identifying Patterns in a Stock

Reversal or Continuation?

Pennant

Wedge

Cup and Handle

Head and Shoulders

Triangles

Double Top or Bottom

Pocket Pivot

Chapter 9 – Using a Stochastic Oscillator

An Important Note

A Stochastic Oscillator

The Formula Used

Identifying the Value

When It Reaches the Value

Can You Change the Timing?

Strategies For Trading Using the Oscillator

Can the Rate Be Negative?

Chapter 10 – Identifying Trades During the First Hour

Significant Losses or Gains After the First Hour

Should You Trade During This Time Period?

If You Wish to Trade Here...

Chapter 11 – When to Buy Long and When to Sell Short

Investing In a Long-Trade

Investing in Short-Trades

A Warning About Selling Short

Works With Patterns

Chapter 12 – Planning Limit or Stop Orders

Stop Orders

Trailing Stops

Stop and Reverse

Limit Orders

Concerns About the Limit and Stop Orders

What About Commissions?

Is There is a Chance An Order Might Not Be Executed?

Watch for Volatility

Chapter 13 – Other Types of Stock Orders

Conditional Orders

Duration Order

Chapter 14 – Buying Stocks on Margin

Examples

For Which Stocks Can You Use Margins?

Margin Calls

Strategies for Margin Trading

Chapter 15 – How to Identify Bad Stock News

Social Media Is Risky

Avoid Anonymous Sources

Who Else Is Reporting?

Review the Fine Print

Where to Find News

Chapter 16 – Signs that You Should Avoid a Stock

The Debt to Equity Ratio is Too High

The Cash Flow is Negative

Profit Warnings

Insider Trading Is Prominent

A High-Level Resignation

SEC Investigations

Other Commonplace Points

Can’t You Just Place a Put Order On These Stocks?

Chapter 17 – False Signals and How to Recognize Them

What Causes False Signals?

How Can You Avoid a False Signal?

Chapter 18 – Understanding Penny Stocks

What Is a Penny Stock?

Serious Risks

What if You Do Want to Invest?

Chapter 19 – Strategies for IPOs

Be Cautious When Reading a Prospectus

Review the Underwriters

Watch the Lock-Up Period

Is the First Day a Good Time?

Chapter 20 – What Determines the Values of Options?

Intrinsic Value

Is the Equity Good?

Look at Market Conditions

Time Value

Time Decay

Supply and Demand

Chapter 21 – Planning an Options Trade

American or European?

Review the Option Premium

How Long Can an Option Keep Its Value?

How Long Should Your Option Last?

When to Use a Shorter Option

When to Use a Longer Option

Use an Options Simulator

Chapter 22 – When and When Not to Exercise An Option Early

How Deep In the Money Are You?

A Dividend Might Be Issued

Review Commissions

What Is the Risk?

Chapter 23 – Covered or Uncovered Options Calls

Understanding the Covered Call

Is the Covered Call Ideal For Day-Traders?

Looking At the Uncovered Call

Which Is Best?

Chapter 24 – Bull and Bear Spreads For Options

The Bull Spread

The Bear Spread

Can These Work for Any Investment?

Chapter 25 – Other Options Trading Strategies

Long Straddle

Long Strangle

Married Put

Protective Collar

Butterfly

Condor

Synthetic Long

Synthetic Short

Chapter 26 – Analyzing the History of a Dividend Stock

Review the Values

Watch if the Stock Value Goes Down

Check When Dividends Are Paid

Look At the Various Dates

How Are Dividends Increasing?

Can One-Time Dividends Work?

Chapter 27 – Understanding the Dividend Totals In Stocks

How to Calculate the Dividend Yield

Review the Price-Dividend Ratio

Forward Dividend Yield

Chapter 28 – Added Strategies for Dividend Stocks

How Does a Stock Manage Its Earnings?

Focus on Stocks You Will Hold For a While

Watch for Taxes

Should You Buy a Stock Solely for the Dividend?

How This Works

Does the International Market Play a Part?

Watch For the News Stories

Analyze Closing Prices and Volume Totals

Watch for Share Totals

Avoid Options at This Time

Use Proper Screeners

Keep Your Research Going

Avoid Late-Day-Trading

Does Early Trading Really Make a Difference?

Chapter 30 – Analyzing the Doji

Analyze the Volume Line

Continuation or Reversal?

Types of Doji

Watch When the Doji Candle Closes

Analyze How Much of a Change Happens

Watch for Stop-Loss Orders

Exit and Enter Quickly

How Many Doji in a Row?

Chapter 31 – Advanced Points on How Candlesticks Are Positioned

Star

Harami

Hammer

Inverted Hammer

Hanging Man

Shooting Star

Marubozu

Spinning Tops

Abandoned Baby

Dark Cloud Cover

Engulfing Pattern

Stick Sandwich

Three White Soldiers

Three Black Crows

Two-Crow Gap

Chapter 32 – Stock Repair Strategy

What Stocks Should You Work With?

Why Two Traditional Strategies Won’t Work

How Long Does the Strategy Take?

How to Use the Strategy

Determining Strike Prices

Can You Buy More Shares When the Long Call Is Exercised?

Chapter 33 – Bid and Ask Prices

Recent Changes Make a Big Difference

Is it Better to Work With More Shares?

Analyze the Size of the Spread

Analyze Bid-Ask Spread Changes In a Day

Check on What a Broker Offers

Chapter 34 – High-Frequency Trading

How Does It Work?

How Long Does It Take?

How Big of a Change Is There?

Can This Work the Other Way Around?

Is This Profitable?

Review Latency

Chapter 35 – Strategies to Avoid When Investing

Not Having a Sensible Plan

Using Long-Trades on Non-Volatile Stocks

Switching Strategies Too Quickly

Being Too Dependent on Analysts

Investing in Just Any Business

Not Having a Stop-Loss Plan

Chapter 36 – What To Do With Stock During a Merger

Will You Have a Voice?

Stock-For-Stock

Combination

Reverse Merger

Should You Sell During a Merger?

Watch for Premiums

When Do You Have to Enter?

Chapter 37 – When to Sell a Stock

Look at Dividend Changes

Review Your Price Target

When the Volume Slows

When a Business Is About to Go Bankrupt

Tax Considerations for Losing Stocks

Avoid Emotional Concerns

Chapter 37 – How Much Money Should You Spend At One Time?

Plan a Percentage Limit

Review the Cents Per Risk

How Big of a Position Should You Have?

A Sense of Balance

Chapter 38 – What About Preferred Stock Shares?

How Are Preferred Shares Different from Common Shares?

How Can You Buy Preferred Shares?

What About Maturity?

Why Would a Business Issue Preferred Shares?

The Three Types of Preferred Shares

Important Concerns

Chapter 39 – Will These Strategies Work For Other Types of Investments?

Should You Move On?

Conclusion