The Trader's Pendulum

The new trader's guide to the business, psychology, and hype in trading

The Trader's Pendulum + Website is the ultimate toolkit for realizing your trading potential. Written by one of North America's leading trading coaches, this guide is designed to show aspiring traders how to design and implement a successful trading strategy by learning the psychological tricks behind solid trading philosophies. New and experienced traders alike will find value in The 10 Habits of Successful Traders, and come away equipped to navigate the real-life emotional-psychological effects of market chaos. You'll learn to embrace change and risk, and use it to your benefit as you climb out of the technical trap and stop riding the Trader's Pendulum between fear and greed. Based on the author's Elliot Wave and Harmonics expertise, this invaluable guide brings you a top-down approach to the market to help you maximize profit and minimize poor choices. The companion website gives you access to an interactive Trader's Scorecard, models for your 'business' and trading plan, The Trading Blotter, and a video synopsis of the all-important 10 habits.

Today's global economy has forced people to search for a second cash flow stream to replace or supplement a primary income. It is more important than ever to have a reliable guide at your side, and this book gives you guidance and so much more.
* Develop and follow a successful trading system
* Make more money while saving time and effort
* Treat trading like a business for lasting success
* Use change and risk to your benefit

Stop chasing trends and listening to widely disseminated bad advice. The Trader's Pendulum + Website is more than a guide--it's advice, examples, models, and more, giving you a practical roadmap to your online trading success.

Foreword ix
Acknowledgements xi
About the Author xiii
Prologue: A Day in the Life of a Successful Trader xv
Part I Introduction 1
Introduction: Riding the Trader's Pendulum 3
Chapter 1 The Successful Trader versus the Average Trader 9
Chapter 2 The Technical Trader's Trap 17
Chapter 3 Becoming an Entrepreneurial Trader-The Process 25
Pendulum Scenario 3. 1: Fear versus Greed 31
Part II Out of Hobby into Business Mode 37
Chapter 4 Habit #1: Establish a Trading Business for the Right Reasons 39
Pendulum Scenario 4. 1: Get Rich Quick or Go Broke Quick 45
Pendulum Scenario 4. 2: Realistic versus Unrealistic Trader 47
Chapter 5 Habit #2: Complete a Trader's Business Plan 51
Pendulum Scenario 5. 1: Clarity versus Muddled Thinking 58
Pendulum Scenario 5. 2: Forgiving versus Angry Trader 61
Pendulum Scenario 5. 3: Courage versus Conformity 63
Chapter 6 Habit #3: Define Your Goals 67
Pendulum Scenario 6. 1: Taking Action versus Feeling Remorse 77
Pendulum Scenario 6. 2: Enthusiastic versus Apathetic Trader 80
Part III Becoming an Entrepreneurial Trader 83
Chapter 7 Habit #4: Commit to Your Education with a Trading Coach 85
Pendulum Scenario 7. 1: Foresight versus Hindsight 91
Pendulum Scenario 7. 2: The Lucky versus Unlucky Trader 97
Pendulum Scenario 7. 3: Calm versus Nervous Trader 101
Chapter 8 Habit #5: Understand and Exploit Your Unique Trading Personality 107
Pendulum Scenario 8. 1: Self-Doubting versus Overconfidence 121
Pendulum Scenario 8. 2: Cautious versus Reckless Trading 123
Chapter 9 Habit #6: Follow a System 127
Pendulum Scenario 9. 1: Optimistic versus Pessimistic Trader 135
Pendulum Scenario 9. 2: Flexible versus Stubborn Trader 138
Pendulum Scenario 9. 3: Accepting versus Willful 140
Chapter 10 Habit #7: Plan the Trade and Trade the Plan 145
Pendulum Scenario 10. 1: Pragmatic versus Idealistic Trader 162
Pendulum Scenario 10. 2: Pulling the Trigger versus Having Regrets 165
Pendulum Scenario 10. 3: Conservative versus Impulsive Trader 168
Part IV The Transformed Trader 171
Chapter 11 Habit #8: Measure Your Performance 173
Pendulum Scenario 11. 1: Organized versus Disorganized Trader 183
Pendulum Scenario 11. 2: Proactive versus Reactive Trader 186
Chapter 12 Habit #9: Learn the Secrets of Successful Traders 191
Pendulum Scenario 12. 1: I Can versus I Can't 199
Pendulum Scenario 12. 2: Patient versus Impatient Trader 202
Chapter 13 Habit #10: Add Balance to Your Life 207
Pendulum Scenario 13. 1: Relaxed versus Stressed Trader 214
Pendulum Scenario 13. 2: Clear-headed versus Sorrowful Trader 217
Pendulum Scenario 13. 3: Good Mood versus Bad Mood Trading 219
Chapter 14 The ''10 Habits'' Checklist 223
Part V The Trader's Tools 233
Chapter 15 Analysis Toolbox-Your First Mentoring Session 235
Chapter 16 Sample Trading System-Your BONUS Mentoring Session 249
Resources 269
Bibliography 273
About the Companion Website 275
Index 277