Google (Buy Or sell GOOG?) stock is up over 6% today after earnings beat. This is my favorite stock and is one of the only two stocks that I’m holding for long term. The other stock is Apple. I believe the stock could go even higher.
This is a great technical analysis book written by Michael Swanson, who ran a top ranked hedge fund for 4 years. This book teaches you a comprehensive way to read stock charts and apply technical analysis to pick profitable stocks. You will learn about how an individual stock is affected by the overall life cycle of its sector and how to profit from it. If you are trading stocks base on guru’s newsletter and stock picks, then you definitely need this book in order to gain your edge in trading stocks. The book is like a roadmap to stock charting and technical analysis, and how you can apply that to swing trading or day trading.
Apple stock has been down over 25% from its peak at Sep. I think now is a good time to load up more shares of Apple.
I read over 100 books on stock trading, including technical analysis, fundamental analysis, general investing books, and mechanical trading systems. The following 10 are the best technical analysis books in my opinion:
- This book is divided into 3 major parts: Psychology, Trading Tactics, and Money Management. You will learn many popular technical indicators and how to use them efficiently to generate trading signals.
It also helps you discipline your mind to be successful in the stock market. The book also covers money management skills. One thing that I don’t follow from this book is the author’s 2% stop loss because I think that is way too little in today’s volatile market.
- This book is quite interesting because it offers a few unique points that you wouldn’t find in other books. One of them is the discussion on overbought areas, which are identified by using the indicator, stochastic. Marcel Link, the author, suggested that we should not sell a stock while it is in the overbought area. Instead, we should wait until it pulls back from the overbought area or else you will miss a lot of good opportunities. I agree with him as I backtested the strategy with my own mechanical trading system.
- This book covers short term trading and how you can swing trade and day trade successfully. You will learn how to use technical analysis to predict stock movements and find profitable trade setups (buy & sell). Learn about Candlestick Patterns which is one of the most powerful trend predicting tool ever invented. You will learn how to trade seasonal stocks such as retail stocks. You will also learn how to build a trading system on your own and how you can profit from it.
4. Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits
This is not a book, but a stock trading course on Candlestick patterns. You will learn all the basic candlestick patterns as well as advanced reversal patterns. You will learn how to apply these candlestick patterns on real trading and make a profit. In addition, you will get learn how to get the best charting software and scanning software to scan for these candlestick patterns.
- This is the first book I read on technical analysis. I read the book 3 times for about 1 month to digest everything presented in the book. It will be much easier if you read “Trading for a Living” before reading this one, as they were both written by the same author. I followed the techniques presented in the book when I first started trading, but I didn’t make much profit. Obviously, that does not mean that this is a bad book. There might be thousands of people following his techniques and making fortunes. Currently, I’m only using daily charts to make my trading decisions. I don’t use weekly charts because I usually don’t hold a stock for over a week.
- This book is perfect for beginners. It is a very comprehensive book that covers almost every technical indicator that you need to know. However, if you already read the top 4 books and understand each of them well, then you don’ t need to read this book as you wouldn’t learn much new. I finished this book in 2 days skipping 2/3 of the book because I already knew the concepts and indicators presented in the book.
- This is a good book to read if you are a computer programmer and know how to build your own trading systems, or at least you should be able to program tradestation to backtest trading signals in order to read this book.
- This book covers trading skills and strategies and the author’s 7-step approach to the stock market. It also covers how to set stop losses and when you should not buy a stock, which is when the risk-reward ratio is less than 1:3. The book offers some interesting points and history stock market events that seemed to repeat itself.
- If you plan to day trade online, you should read this book as it shows you different trading strategies based on technical analysis and how they apply to day trading. It describes, step by step, on how to set up an online trading account and how to read the screen.
- A great book on technical analysis and chart patterns for both beginners and experienced traders.
- This book is written by the same author as “Trading for a Living” and “Come into my Trading Room.” This is a great book if:
a) You are a beginner,
b) You read “Come into my Trading Room,” or
c) If you don’t fully understand “Come into my Trading Room”
This book is like a practice book on what you learn from “Come into my Trading Room.” The author interviewed 16 different people to see how they trade. Then he gives his own opinion on each trade based on his trading method which is first presented in “Come into my Trading Room.”
If you are looking for an option course or if you want to make money trading options, then check out OptionsMD. In this OptionsMD Review, I will give you a walk through on what the option course is all about and give my honest review on OptionsMD.Â OptionMD is an option course made by Doc Severson. Here’s what you get with OptionsMD.
There are 4 parts of the course that teaches you how to go from an option beginner to an option expert.
1. OptionsMD Foundations
2. OptionsMD Skills
3. OptionsMD Mastery
4. OptionsMD Pro
Here’s a screen on how the member area looks like. Each of the 4 parts consists two modules.Â All videos come with a pdf file allowing you to read them while you are traveling.
Let’s start with the first part, OptionsMD Foundations.
Part I – OptionsMD Foundations
OptionsMD Foundations I - There are two modules to the OptionsMD Foundation. Â The first module consists of 5 videos where you learn about the basics of option trading such as trader’s progression, mindset, management, business plan and strategy development.
1. The Trader Progression – You will learn about the foundation of option trading.
2. Trader Mindset – The trader mindset is the most important element in trading successfully in the options market.
3. Trader Management – Learn how to manage your trade, plan your day, automate your trading routine, and the 20/80 rules of “High Value Activities.”.
4. Trader Business Plan – To beat the trading game, you will not only need a trading plan, but you will also need to have a trader’s business plan. Trading is no different than running your own business.
5. Strategy Development - Learn the concept of strategy development, the strategy development cycle, trading rules, the strategy framework,Â evaluatingÂ trading results, adjustments and course corrections.
OptionsMD Foundations II – There are 5 video courses in the second module of the OptionsMD Foundations. It teaches you what are options and why trade them, how options pricing work, trading call options, trading put options, and how to use online brokers.
6. What are Options – You will learn everything you need to know about how options work in this video. This video teaches you about derivatives, stock options, buying vs. selling options, the leverage of options,Â comportmentÂ of options, the options chain, where are options traded, how do you execute options trade, why trade options, building a trading edge, creating a statisticalÂ edge, the flexibility of options and so on.
7. Option Pricing – You will learn about face value and premium value which involve the underlying instrument, expiration date, strike price, puts and calls. You will also learn about the intrinsic and time value of options, how does time value of an option change, otherÂ influencesÂ on options pricing such as the price movement, implied volatility.
8 Trading Call Options – You will learn everything you need to know about buying options. Some of the topics covered in this video are what can we do with call options, buying a call option toÂ exercise, buying a call option as a stockÂ substitute, selling a call option to open.
9. Trading Put Options – This video teaches you about trading put options where you will learn about trading put options. This is exactly the opposite of trading call options where you learn what can we do with put options, buying a putÂ optionÂ to exercise, buying a put option as a short stockÂ substitute, selling a put option to open.
10. Using Online Brokers – This video shows you about the different types of online brokers and which one is the best for option trading. There are mainly 3 types of online brokers, the Swiss Army Knife Brokers, stock brokerages that happen to do options, and options brokerage that happen to do stocks and futures.
That’s it for the first part of the OptionsMD Course, let’s getting into the next part.
The part I of the OptionsMD course will quickly guide you through how options work and why should we trade it. If you are an options beginner, you will find a lot of useful stuff in this part and learn a lot about options.
Part II – OptionsMD Skills - There are two modules under OptionsMD Skills.
OptionsMD Skills I – In this module, you will going to learn about market flow analysis, general risk management, income trades and covered call/naked put income trades.
11. Market Flow Analysis – This video teaches you about the principle and process of the market flow analysis method (MFAM) and apply it to real trading. You will learn about the uptrend and downtrend market flow process. The uptrend reversing into a downtrend, and downtrend reversing into an uptrend. An uptrend moving into a trading range and a downtrend moving into a trading range. Major and minor support and resistance levels.
12. General Risk Management – In this video, you are going to learn about risk management and various elements related to it. Some of the topics that are covered in this video are why do markets move, the #1 rule and the golden rule inÂ managingÂ risk. How to define risk, stops for long options positions, how much of your account balance should you trade and learn how toÂ determineÂ return on risk.
13. Income Trades – This video covers the income trades and the importance of creating income trades. You will learn how to create an income stream via options such as bought a call option, bought a put option, sold a call option and sold a put option. This video also covers the Insurance Company Model and the application of our income trades.
14. Covered Call/Naked Put Income Trades - In this video, you are going to learn about earning income through selling calls. The concept of stock shares with short calls = covered calls and the suggested trading rules for covered calls. You will get to see examples of covered call and how it works. You will then learn about earning income through Naked Puts and the suggested trading rules for Naked Puts. You will also see examples for Naked Puts. Finally, the video moves up to talk about “The Ultimate Boring Options Strategy” and the risk involved with Naked Puts and Covered Calls.
OptionsMD Skills II – In this second module of the OptionsMD Skills, you will learn about the following topics. The Credit Spread Income Trades, Iron Condor Income Trades, Static Risk Management and Debit Spreads.
15. Credit Spread Income Trades - The video starts with a introduction to Credit Spreads and why are they use in option trading. Then it goes into details about how to construct a credit spread and the different credit spread variables. You learn about the suggested trading rules for bear call spreads and bull put spreads.
16. Iron Condor Income Trades – This video covers Iron Condors. It gives an introduction to Iron Condors, and then moves on to talk about why they are used. You will learn how to enter the Iron Condor using Bear Call Spread and Bull Put Spread. This involve strategies to choose strike prices, entering the order, type of entries – extrapolation trade, time to expiration, position size and entry rules. At the end, you will learn the professional’s Iron Condor and their advantages such as faster profitability, risk management, reduced maintenance,Â knowledgeÂ and access.
17. Static Risk Management – this video introduces you to the Static Risk management. Risk is the dark side to credit spreads and you will see how to set the initial risk. Defending a high probability credit spread with different strategies. Other topics covered in this video include Static Trade Defense which shows you how to Â manage high probability credit spreads and condors using some veryÂ strictÂ criteria. You will learn the different trade exists strategies and adjustments in option trading.
18. Debit Spreads - This video introduces you to Debit Spreads. You will learn the different types of Debit Spreads such as the Vertical Debit Spread, Debit Spread Butterflies, Debit Spread Calendars. You will learn the background and the application for each of the Debit Spread Types.
That it for part II of the OptionsMD. Let’s move on to Part III of the OptionsMD Course, OptionsMD Mastery. This is where you will learn the advanced strategies for options trading.
The part II of the OptionsMD course gets a little deeper, and develop necessary options trading strategies that you need to be successful. The part about risk management is especially important and useful because many traders often focus on the question “How much I can make” instead of the question “How much I can lose”? Remember, trading is a long term game. If you want to be able to constantly making money in the options market or any other market, you should always try to keep your risk to the minimum.
Part III – OptionsMD Mastery
OptionsMD Mastery I - In the first module of OptionsMD course, you will learn about using the Options Greeks,Â ActiveÂ Delta Management, and Gamma/Vega Hedging strategies.
19. Options Greeks – After this video, you learn what Options Greeks are and how they works. There are definitions and examples of different Options Greeks such as the Delta, Gamma, Theta, and Vega. You will learn how to use Greeks for dynamic risk management.
20. Active Delta Management - This video focuses on Active Delta Management where you learn about Delta Neutral and how to manage Delta Risk. Other topics covered in this video are Synthetic Stock Positions, Delta Position Management examples for long stock and Iron Condor. You will learn how to create a long and short synthetic stock position, and the trading rulesÂ involvedÂ for creating Synthetic Stock Positions.
21. Gamma/Vega Risk Management - Learn how to manage dynamic risks of Gamma and Vega. Using Butterflies to Neutralize Gamma and Vega Position Hedging Strategies. You will also learn the risk that Vega Creates and how to combined Gamma/Vega Hedge – the Calendar Spread.
OptionsMD Mastery II – The second module of OptionsMD Mastery focuses on the following topics, Active Risk Management, Low Probability Iron Condors, and the Market Maker Skills.
22. Active Risk Management – This video starts with an introduction to the topic of Active Risk Management such as the general risk management, static risk management, and the dynamic risk management. Then it moves on to talk about numerical active risk management decisions and the technical active risk management decisions such as the risk reward ratio, how much return is enough, P/L Slope Decision, Expansion leads to Contraction, and the Technical “Squeeze” levels.
23. Low Probability Condors – Learn the background about low probability Iron Condors, Offensive and the Defensive Metrics for the low probability Condor. You will learn different strategies to exit a trade with low probability Condor and with many examples. Learn how to use trading instruments to sue with LP condors and the Golden Rule of LP Condors.
24. Market Maker Skills – Learn the market maker skills where you will trade like a professional market maker. Learn how to set open interest targets,Â almost-free exists on index spreads, selling volatility risk management. Learn how to scalping options and negotiating fills. Learn the skills to selling volatility trading the open and close.
Let’s move to the last part, OptionsMD Pro.
The part III of the OptionsMD course is really advanced stuff and if you are able to digest everything from this module, you are on your way to success in options trading.
Part IV – OptionsMD Pro
OptionsMD Pro I - In this module, you are going to learn about weekly options and long options.
25. Weekly Options - In this video, you will be introduced to weekly options and how to trade them. This videos shows you various strategies on how you can trade weekly options successfully such as weeklyÂ offenseÂ and defense strategies. Learn about the underlying instruments with weekly options. Here are some of the strategies that can be traded with weekly options, Naked Puts, Covered Calls, Credit Spreads, Debit Spreads, High Probability Iron Condors and Low probability Iron Condors.
26. Long Options - You will learn all about long options in this video. What you have to get right with a long options trade, the screening progression, fundamental analysis screening, building a watchlist, study your watchlist and wait, defining your exit strategies, enter the position based onÂ technical. Also, learn how to manage your trades.
OptionsMD Pro II – This module is the last module of the course and it offers a summary of what’s covered in this OptionsMD course.
27. Program Summary – Build your foundations, build your income pyramid, earn the right by “Making it yours”.
Are you excited yet? Whether you are an option beginner, immediate orÂ advanced option trader, this course is for you. It covers basically everything you needed to know about options trading. I’ve read many books on options and nothing come close to what OptionsMD has to offer. I’m not an options beginner and I have learn many advanced techniques in this course that I believe will help me make more money trading options in the future. In fact, Doc Severson is so sure that his OptionsMD course will help you make money that he gives a 365 day money backÂ guarantee + $500 back if you use his options system and don’t make money.
Click here to learn more about OptionsMD.
Please post your OptionsMD Review in the comment section if you like.
Here are some of the stock winners from MarketClub this week.
The following is a list of stock winners from MarketClub. If you don’t know what MarketClub is, I highly recommend that you check it out.
Here are some stock winners from MarketClub this week.
Here are some winning stocks from MarketClub this week.