Contents

Introduction

§ The Chart Grader

§ What Your Score Means

Step # 1: Charts — The Reflection of Our Collective Psychology

§ Risk and Reward are Not Related in Trading

Step # 2: Price, Volume and Time

§ Identifying Manipulated or Operator Driven Stocks

§ Identifying "Short" and "Long" Term Rallies

Step # 3: Resistance and Support

§ Breaking through Supports and Resistances

§ Strong Supports and Resistances

§ Closing the Trade

Step # 4: Stop Loss

§ Where to Place a Stop Loss

§ When to Use Target, Percentage of Current Price or
Support / Resistance Based Stop Losses

§ Channel Trading

§ Stop Losses for Protecting Profits

§ Stop Losses When Markets Open with Gaps

§ Stop Losses When You Have a Trading Profit

§ Stop Losses When a Stock is Being Manipulated

Step # 5: Accumulation and Distribution

Step # 6: A Fall is Swift! A Rise Takes Time

Step # 7: Head, Body and Tail

§ Figuring Out the Head, Body and Tail

Step # 8: Developing the Psychology for Charts

§ Taking a Loss

Step # 9: Candlesticks

Step # 10: Gaps

Step # 11: Integrity of the Charts

Step # 12: Reading Charts for Day Trading / Long Term Trading

§ When You Need to Exit, No Matter What the Loss

§ Shorting Stocks

§ Day Trading

§ Swing Trading

§ Position Trading

Step # 13: When Charts Fail

Step # 14: Cutting Out the Noise

§ You Don't Need the Terminology

§ Shut that 24-Hour TV Noise

§ A Bunch of Rules to Keep in Mind

Step # 15: Finding Trades that Fit You

§ The 15 Steps Work Only if You Want Them to Work