Trading For Dummies

Submitted by Book Library on 4 March, 2010 - 19:51

Making informed trading decisions regardless of the market's condition. Savvy traders can make money in both up and down markets. Trading For Dummies , Second Edition is for investors at all levels who are looking for a clear guide to successfully trading stocks in any type of market. It is also for investors who have experience trading and who are looking for new, proven methods to enhance the profitability of their investments.

This no-nonsense guide presents a proven system for analyzing stocks, trends, and indicators and setting a buy-and-sell range beforehand to decrease risk in any type of market. It stresses the practice of position trading, conducting technical analysis on a company and its performance, and research methods that enable the trader to strategically select both an entry and exit point before a stock is even purchased. This updated Trading For Dummies guide features updated stock charts, position trading tips and techniques, and fresh ways to analyze trends and indicators.

Now updated your guide to trading success regardless of the market! Want to make smarter trading decisions? This strategy-packed, no-nonsense guide presents a proven system for analyzing stocks, trends, and indicators and setting a buy-and-sell range beforehand to decrease your risk in both up and down markets. You'll discover the benefits of position trading, conduct technical analysis, and research your entry and exit points before you even purchase your stock.

Positive Review of Book Trading For Dummies

Let me first state this is not a book for day traders! Although there are chapters on both swing and day trading, the authors concentrate on position trading. Hence, they include several chapters on fundamental analysis and focus on slower signaling indicators. Now, that's out of the way.

The book is well-written, with the not-too-serious yet informative style that hallmarks a good "Dummies" book. The organization is top notch, and the authors re-iterate tactics they have previously covered when doing so provides a good learning example. There is a limited amount of technical analysis, with the primary focus on patterns (breakout and continuation) and simple indicators--moving averages, MACD, relative strength, e.g.

As with most "Dummies" books, you are not by any means an expert on the topic when you finish. However, I believe the reader, having paid close attention, will have a good grasp of the concepts he or she will need to trade, and that this book provides a good introduction and foundation for further research in the field.

I give the book 5 stars for well accomplishing the authors' stated purpose, but caution that, if you are looking for a book on short-term trading, you could be disappointed. That having been said, I think it makes a fine base for further reading into such trading. Your mileage may vary.

Negative Review of Book Trading For Dummies

I had hoped that, since this book discusses both fundamental and technical analysis, it would be a balanced blend of the two. However, it is almost entirely a technical analysis book that acknowledges the existence of fundamentals and not much else.

The fact that the book doesn't match my investment style isn't enough on its own to earn a two-star rating from me. Unfortunately, it is also poorly written, and poorly edited. It is wordy, jargony, confusing, vague, and occasionally (as near as I can tell) inaccurate. Most significantly, it is missing the spark that made the reputation of the Dummies books - the inspired organization and careful choice of topics that allow a single book to provide a useful foundation in a complicated subject.

That said, I did (laboriously) read the whole thing. It added some polish to my chart-reading abilities. It also helped me to understand some previously inexplicable aspects of market behavior. I am not likely to become a technical analyst anytime soon, but I now feel slightly better prepared to share the marketplace with them.

Author Biography

Michael Griffis, MBA, is an active stock broker. He writes extensively about investing and marketing, benefiting clients in the banking, and brokerage industries. Lita Epstein, MBA, has written more than 25 books to help readers understand the complex worlds of money and finance, including Bookkeeping For Dummies and Reading Financial Reports For Dummies.

Table of Contents

  1. Part I: So You Want to Be a Trader: Gathering Your Tools.
    • Chapter 1: The Ups and Downs of Trading Stocks.
    • Chapter 2: Exploring the Markets and the Stock Exchanges.
    • Chapter 3: Going for Broke(r): Discovering Your Brokerage Options.
    • Chapter 4: Putting Your Computer to Work: Your Key Business Tool.
  2. Part II: Reading the Fundamentals: Fundamental Analysis.
    • Chapter 5: Fundamentals 101: Observing Market Behavior.
    • Chapter 6: Digging Into the Critical Parts of Fundamental Analysis.
    • Chapter 7: Listening to Analyst Calls.
  3. Part III: Reading the Charts: Technical Analysis.
    • Chapter 8: Reading the Tea Leaves: Does Technical Analysis Work.
    • Chapter 9: Reading Bar Charts Is Easy (Really).
    • Chapter 10: Following Trends for Fun and Profit.
    • Chapter 11: Calculating Indicators and Oscillators.
  4. Part IV: Developing Strategies for When to Buy and Sell Stocks.
    • Chapter 12: Money Management Techniques: When to Hold ’em, When to Fold ’em.
    • Chapter 13: Using Fundamental and Technical Analyses for Optimum Strategy.
    • Chapter 14: Executing Your Trades.
    • Chapter 15: Developing Your Own Powerful Trading System.
  5. Part V: Risk-Taker’s Paradise.
    • Chapter 16: The Basics of Swing Trading.
    • Chapter 17: The Basics of Day Trading.
    • Chapter 18: Doing It by Derivatives.
    • Chapter 19: Going Foreign (Forex).
    • Chapter 20: Trading for Others: Obtaining Trading Licenses and Certifications.
  6. Part VI: The Part of Tens.
    • Chapter 21: Ten (Or More) Huge Trading Mistakes.
    • Chapter 22: Top Ten Trading Survival Techniques.

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