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Chapter 1: The Crucible: Black Monday (October 19, 1987)

• ● Being persistent and studying the game.

• ● Focusing on today and not worrying about yesterday.

• ● The importance of trading education.

• ● Risk management as your first priority and not risking money you cannot afford to lose.

● Learning from every trade, analyzing and critiquing yourself continuously, but always trading in the present.

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Chapter 2: Time is Central

• ● Why patience pays.

• ● Trading during the times of greatest liquidity and volatility.

• ● Using a 24-hour trading clock.

• ● Avoiding overtrading.

● Importance and use of the yearly opening price of the markets that you plan to trade.

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Chapter 3: Trading is a Numbers Game

• ● Using key numbers to get the big picture.

• ● Recording and remembering yearly opening prices.

• ● Using yearly, monthly, and weekly opening prices to form a trend line and determine whether the market has a long-term bias.

• ● Importance of learning and using certain numbers that hold significance in a particular market.

● Using key numbers to determine points of entry and exit and to establish profit targets.

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Chapter 4: Read the Tape

• ● Tape reading as an art not a science.

• ● Moving with the unique rhythm of the market.

• ● Reading an index or stock price in the context of the market rather than in isolation.

• ● Trusting indicators over your preconceived notions.

● Watching key numbers and time of day when reading the tape.

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Chapter 5: There’s No Crying in Trading

• ● Importance of preparation.

• ● Taking reasonable profits and avoiding greed.

• ● Taming fear and not letting it take your profits.

• ● Admitting when you’re wrong and exiting the trade.

● Avoiding wasting time and energy with regret, not demanding perfection of yourself, analyzing your mistakes, learning from them, and moving on.

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Chapter 6: Riding the Rail

• ● Having a proven strategy and knowing how you will approach the market.

• ● Executing your strategy skillfully.

• ● Risk Management, including knowing where you will take profits and place protective stops.

• ● Using a trading method that acknowledges both fear and greed and manages both.

● Dynamic nature of markets and adjusting your strategy when necessary.

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Chapter 7: Worry About Risk the Rewards Will Come

• ● Considering the risk of a trade first.

• ● Knowing and liking the risk of every trade before taking it.

• ● Determining your personal tilt number and not exceeding it.

• ● Managing every trade to limit risk and control losses.

● Making preservation of capital your primary goal.

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Chapter 8: Respect the News

• ● Preparing for breaking news events using protective stops.

• ● Checking each day, before trading, the releases of scheduled economic reports.

• ● Staying out of the market when scheduled news is breaking and letting the market settle down before risking your money.

● Avoiding trying to predict the news or its effect or being lured into a market that is responding to news.

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Chapter 9: Getting Down to Brass Tacks

• ● Importance of the S&P Futures Index and using it to help trade other securities.

• ● Importance of recording yearly opening prices of stocks, bonds, and commodities and using this information throughout the year.

• ● Continuously monitoring your mutual fund portfolio and adjusting your holdings quarterly as needed.

• ● Using a 65-day moving average to help you when trading gold futures.

● Doing your homework and studying a market before trading it. Knowing how it moves, identifying its key numbers, and locating support and resistance.

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Chapter 10: Preparation Pays

• ● Being prepared to trade and taking advantage of the opportunities presented.

• ● Studying the past but trading in the present.

• ● Recording a detailed trading diary each and every day.

• ● Holding yourself accountable for violating your rules or not exercising discipline and patting yourself on the back for following the rules.

● Visiting your diary often and reminding yourself of your strengths and limiting your weaknesses.

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Chapter 11: Study in Contrast

• ● Using the weekend to get informed about financial events.

• ● Studying charts of the past week’s trading and identifying key numbers that may be reached in the week ahead.

• ● Learning about upcoming scheduled news events.

• ● Visualizing the big picture of the market.

● Planning a weekly strategy and getting ready to take calculated aim.

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Chapter 12: Recap the Essentials

• ● Beginning with time of day.

• ● Integrating key numbers with time.

• ● Accurately reading the tape as essential for successful trading.

• ● Achieving and maintaining emotional balance for good trading.

• ● Establishing strategic objectives and being tactical.

• ● Trading as a business that requires good money management.

• ● Ability of news to destroy the perfect strategy.

• ● Importance of having the right equipment.

● Constantly preparing, evaluating, and improving as a trader.

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Chapter 13: An Afterthought for Consideration

● Why it’s better not to be a genius in order to be a good trader.

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Index
Appendix A (Glossary)

Appendix B (Getting Started)
Appendix C (Order Types)

Appendix D (Suggested Reading)
Appendix E (Helpful Websites)