Table Of ContentNATIONAL BESTSELLER
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2nd Edition
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Trang Otie uth
NASDAQ and WISE tratgies
TESTIMONIALS
There isu Samurai saying. Me whe is well prepared has won half he bare. To
Prepare ort ate with the markets you hase 0 i the information war."
‘cu glting het, aster and mos accurate infoemation than your opponents
ean gel. By using the ns, ring tates unl strates reveled in my trond
lon Tumer's second edition af 4 seginer’s Giuie to Day Troding Ontne,
you will be armed wich tho skills needol ta help you win your hatle with the
marke"
President eenncandiecris.con
Authar of Japanese Candiestik Chavtine Techniques
This B00 see essence of what tring is all about, Ton eautully desctTbes
and folly explains in excellent terms, what influenoes the markets ang shat
invesioes need to do in ardee to make eflective eading decisions, [believe all
tenders will sbsolutely benefit fom the kuowledge packed in these 2ages. THe
things Lscong recommend people who are vesting da one, read this bool, and
toe ead this book. ll surely helo yeu achieve your trading eoals. which
isto make morey inthe ariets. Every wader, froma. beginner w the advanced
professioaal shud have this book!”
Jolin Person, CTA
resident—Natisalfures.cm
‘Toni Tuner has the uncanny sbility 10 use the very complica subject of
fining and break it town so Ut everyone ean understand it 'lo maste: given
Subject is to have u very firm grasp 9° the asics. "Tht is whar ‘Toni gives you,
“There are only a adult trang educators dat {youll necommernd Henin
fad she is one of stem.
Huher Sontors
arctnadethemartes.cam
inl Tomer'sinformation-packed guide leads you through rechniquos and 14
fs you'll ned to heeome a winaing tzder, an daes i ina upbsat, say 10
ud Format. Road the book if you ssanr ta Ke bow: the meer works
how © make ic work for you
Geeg Capra
2° EDITION
| deanna S
guide to
day trading
online
TONI TURNER
ams Media
Ave, Massachuset's
Cay © 2000, 2007 Yn Pane
“Allsights ost
nis book, or pans hel gy Ho reproduced in any
Son nbuot permis ne: exespuions ae
rl or rl exe puis ecw.
Pubhsbed by adn ications Company
37
fx those forme wth
the underiosing dt te pu
"sher sor engeged in enrng eg evasion vee I est
lvoe or har expe assist is oes oF competent prfesonal
er as ousht
From a Bectaration of P
American Har Asccaion sida Commie of Publishers as Associations
‘May ofthc csnnains we nailer an sellers edie’ her proc
suc clin sears, Where hse designations eppea i his book gn Adan
‘Mea eax: ware fa enn tain, te esiaatons have beet printed th inka
‘spit ete
Realtik® grits ese with permission of Tesysend Analies, Led © 1986-2007
Tense Anlst, LA, Al Fgh reseved. RealTek isa register vadenars of
‘owen! Ausvics, Lic. Aas utattor zed reproduction. alee, o use of Reick
issly poi, Aaierized we of Reallisk deste constut on lose hy
Toomer Sly ofthis boo Teytsend Aaalyies dass nov gute: the acu
to earan as represents rade ts this oak
This boot is aratabe 2: qua sores fe ba err
Tor isormation, leas el 1-800-239-6595,
Dedication
| dedicate this book 1 may dewahier, Adeane.
Your inceigence. vit, Beauty, and sense af tamer batance
‘remain conseant sources of joy a espision 10 me:
Contents
Foreword, eae “
Acknowledgments Saeco xi
Ineroduction 2 cone
CHAPTER 1—This Ain't No Dross Rehearsall. .....2.0cese00c204
Benes uf Day Iaing: Tho Gal News | The Hip Sides Wall Sticet Tekos
Io Prisoners | Wha. Dues a Day Tiader Look Like? Ith Trade oe Nor €
“iadot | Avtho?s Nowe | Centr Poia: The Poses of Commie
CHAPTER 2—Wall Street: A Viow from the Top of the Skyscraper... . 7
‘he Fist Tradens | The Hic of Wall Seoct | Who Are Wall Sees Wings
‘ety Aims? The Bulls a he Tsar I The Land of Gre and Fear | Supply
sunt Dssand or How tet Will You Pay for That Cade? Pier Ihe Hern
Line | The New York Suck bichange The NASDAQ Steck Makes | The
Amsrean Stick Exchange, er Ames | Wiere You Core In |The Bid and Ask,
so Ofer: What They Mean NASDAQ Level IL System: | the Ringmase
CORRE 1 CamarPoint Empuwe Yon Pest Beis
CHAPTER 3—Day Trading Is Your Business:
Let's Set it Up That Way c 23
Yous Duy Tsing Stinks A Relty Chee Chasse Yee Weapoa 1 What ype
ThaderAne¥ou: That tneorFultine? | rn widhanOsline Broker WhichOne
[sR or Ya" | Advanageso UngaDieet aces lading Pltfoms | Sheu
You Open‘: Tang ASCnuet? —Slippugeand Coruissions: How Thy Affe:
YourWoll | Trang 4 Meign: Howto Dole an Sil Sleep atNight | Develop
Sinple sims | Cheat: Successor Lnvionmnent I Paper Ting
Soul You Bu I | Comet Pint: Yous Vision: Lie’ Insitation to Ciciness
CONTENTS be
CHAPTER 4—Te Winning Market
‘Mentality That Leads to Profits a
ule One: Potet You Pnsipal | ule Two: Trade to Tae Wal, No: ae Make
“Money 1 Why the Stock Mike: Als Right |The Tender’ Ms Fomidale
Fi | 6h Fai an Hoes Shon Be ft a Rashes De | Wy
osiP! Made You Tove All That Miney | Celsate ¥iur Tritise Teling
Chistes | Reality Chess What Coe ie Stk Mit? | n't Pace
iver: Sw wide Hand the Mivay Will Fhe to Yn | Hsnsili alReg
how They Ply Fading Resin aur Suncess Center Pon Esler Vin eh
CHAPTER 5—Trading Fundamentals You'llBuild On ............ 58
he ake
ssNuecene ine Linils | Svnmentl Yrs fect Anas
Dereon Tine Hames: Waal They Man to rabing wih the Cle
for Gis | Irian ty Chictng egies | Cenler Pont The Mines
Ging
CHAPTER 6—Technical Analysis 101: The Trend Is Your Friend... 83
Stoos Cyele How Mey Help Yow Plan Your"Inudos | Suppom sé Resistance!
What They Are, How to Recognize Them | Money-meking Brsckouts and
Dreaisowns: How to Identify Them | How to Draw Tiendlines o Where to
{Connsct he Dos 1 Center Point Coineidene or Synsonicty?
(CHAPTER 7—Choose a Stock to Trade 121
Voluin: A Sipe Indicate: Tat Says 8 Lot Moving Asseages: What They Ars
How te Use Thor The Fal Toseh: Monson Indiatos 1 Centr Pot
etachenant—Pathwas to Proene
(CHAPTER 8—Whon tho Tough Get Going
Beginning Trader's Boot Camp... es... eeeceeeveeeeev ees 185
spies Boot Camp: Week One | Byianas Boat Comp: Week Hs | Onler
“Tyes and Pesiniions | Caner Point Te Pwr ton
CHAPTER 9—Plan Your Trade and Trade Your Plan ............ 177
How to Design Your Insc Lig | Siewpoitt: Top Dawe Verses Moto Lp
Apomouch | Paw Your “fade sth Risk rexamt Anais | Money making
Chiat Hauer for Postion Isis "the Doses? Cominnstion ane Rests
rlerns Double-Setum Pater | Cup-nii-basdlePuteen | Revere Hewland-
shore | Min ils Brew | Know or Sop Deore Yoa Shop | Cente
Pin tice thy Stes
CHAPTER 10—The Swinging Day Trader 203
Iebonaest Numbers | loney-intking
Sewps for Swing Tales and Day
Tes | Gap Openings Hes to Manage Them I To Hole Overnight, oF Not:
old Ovorigh: | Niey-grity Stuff deat Day Tring | Doss Your Stock Waly,
orfinerbg? _Whess‘0 Pace Your Stop-oss alors | Day Trding Sorups: What
‘You Looking For 1 Quick Level I Review and Invzday Trading Tastes | P=
nov and Aft-heurs Ting Sere | The Utnats Bay Teng Seca | Conte
Point: Relate the Past
CHAPTER 11—Scalps and Shorts, or the Quick and the Dead... ..231
‘What Selping? | ase Sealing Tats | igs Beavis a Whale wal Hal
umbook Sealyng Technique: Ely Fase | Level TY Reviews and Sealing
Srtegies | Adlitions to Your Titonley Toolb | isk Chane Sealy
Seuss | Boost Your Sealping Pri Potential | Seay Creek | Seline
Sot: Dot Sel Shon | Tle Stn Pros He I Works | Chat Piers
for Selig Sort: What to Looe For | Ratan Line Suring Shes | Center
Prin rsa Prony Mile
CHAPTER 12—Love Your Losses: They're a Trader's Best Friand! . . 269
seven “Siete Sere He Aste Hen, nse Your Peep ad Live
Trae Auotie Day | SeeveOne Stl Mayrens | SeeteTWe: Th Goed News Bas
New: Rolescomter Rie | Seen Tees: Dp th Stop Gime | Seeae Fou: How
Nou Ts Cacho Hing Ke 1 Sesre 1e" Hey, Wt for Me! 1 Seene Si The
\Whipeny Clo | Scone Sever: Going Ballstis | Comer Poin The Tat about Pear
CHAPTER 13—Tracing Survival Techniques 2281
We“ Then” Menta: How Tt Roost Yn to he Ranks of Professions 1 Say
fore oF Big Piceus Dynamics |The Adiance-tetine Line as a Soperd
Soryeller | Meet Another Sewell U8. Tiny yea“Tessary Hons | Oth
", Then” Seaings Ton Much Chaco | Wack Dut I's Options Expiration
‘Week | Pogeam Tang: A Tok Ont w! the Jue | Les How 49 Change
Geos | Trading Day In a Capsule Where tn Ci Stocse to inde | Trading
Fines Your dy Your nd | cine Rus
wProsperBy | Centr Point Live
Coaisiously ad Sues!
CHAPTER 14—The Futurols Now! ..... 298
Trading ftom she State of Oseritiele Microlit of High-alher Finacial
Woh Stes | Panay seal Derm | Should You Take a Taading Cause? | hy
Conclusion | Cone Pin Wesel Connect
Recommended Reading List iene 307
Inde. 309
Foreword
lute 1999, oxeryane and “hr grandmether's urs ome atlendant sas
Ja stock marker genius, Poaple baught stock based on sound andametas
suet as “paye wews Wit dgh’t work oat for een ual very is iy we
stool, Ley just gripped that buekirg Ione til and bpd for the estes
loss orders sore for wips, And it worked! Tis ste shined supvome fore
‘while, bur stired gathering rust ia te seen guaner a 2004, Son as, this
tschmiguc thet had made so mary people wo much aroney hear the on sis
‘way te gota gaol ogging, Did peuple adap} No. Mont people gor Hoge,
By the te te year 2000 selld around, hal heen trang. Fr move an &
decade, hal expavienced the crash uf L987, and had srcady scene age
series of radirg mists under my bel. “erefors hon the warkst impeded,
I west a neapayte and cealy siete! the shor ss to ake my profits,
Many people | knew were not ble to susk> this strecth transition and adjust
their tang sles te the current marke: envirnament, Instead, ther contiaved
fa focus on what had been working. fier all, the Tremer was changing the
‘world one click at a tne, It relly was differnt this rime, Sigh, They wee get
ting hue. bad.
“This frustting Wy Walch, an | stertet noking tor tein books that |
‘ow hand to my Grienls and family thar wecesetive i the marke, but dda
oC” Mow of these hocks sere toa techies, too dy. a Wea posive ia the
Dow was going ts 38,X0. Just es 1 was about to theow in Uke towel, Lexte
‘cross Ton Turner's book. A Begiazey"s Guide ce Day Trdg Onin. The test
sss rly abe of fos ae.
‘Wien [stared ming Larended sominas, visited Web sites, lke thro
lets, anu gererally looked toe in“armation sayiobere I sould et i. The noe:
mation svus fon crses dry ané contdiclory, Whal [secretly wanted, however,
“am experenced tager dawn to he kc Sterucks, fil
then: up wth eof, an ler them tak bout tli. This ithe feeling I go
‘wis He le
while ice lo recommend te ho frends
surg Von's hook, les & pk
js stoing ou inthe markets. They zr reat t quickly, asp bow
the merkers weed, and Tesen dierent ways to trake—inetad af ast buy ng
stock ara haping tor se bes
who we
i A DEGINNES'S GUIDE“ DAY IHALING CRN
The book heginseseussing he Tifosty et ashor-tern wader hating he
‘ery fist tates, Lge amd Og. There is aso 2 quis description oF how the
rackets work, an wrene the individ rer tts in unde the whate scheme of
things. From ther, toai led ad enteseiningly discusses bow 1 sec up an
teeal your tring snes, ane en how 0 gt inthe righ mas to start
dong this as a protosson, I whlelieantely agro with er ide of “Trading.
trae well, not make money.” Hal igen in and ois wall save ede Io
‘frustration snd earache.
Tron there, Toni reviews base lecaical analysis and trading setups, and
this is why Leagerty hand over this book fo the new and intermediate wade
I gete-male all he time asking abot moving averages, asi chart pales. nd
vorinas oscillators, My response le these questions very simple get To's
bhaok! She explains hem in that sure “talking aver a cup of eulTee style that 1
lowe. doing mau owes ja> doseribing ese tools than feould ever do,
Asimany proiesson, its risa! tha a inv idus undortand their wosking
“envtsoment if they hope to saceced. he Intenet ana or ne walng have ly
‘been a revolution in the financial indy. Lis very easy c0 open up at account
ting and start clicking do by and sell huttens. The Eat that this pucess is
sm Ua the noodusated investor eat
“easy” howrovor. is misleading, It just me
got seowoved mach tore quiekly today thun he could ten years ago. There isn't
nyo I kris wh would presime he enue tw ax sport without a piel’
Ticenss, sneak into a 747, and take off down te sunway f experiment whe
Lis fst Aight would be sucessful Yor, nearly everyone [nose will ty is ot
Jer haat enfin rains with minima knowledge see howe ic orks out Tn
Ihe end, sedan’ wor t's
“Tors book, in my opinion, isthe qu ckest way fur newer traders tn up to
speed with how uo rile the marke Fora living. is uated edition discusses
ey eh
inclding changes that have reveloionized the werlé of using, Wa Ceder 1
Toaging to find some they ea ue! a Starbucks aa lam Ue capes ofthis
never dl basins, te they need eek no fanher das these pages.
John F. Canes
Author, Mastering the ade
President, wn. sruleshemarters.com
that have occucred inthe marésts since the beok was tt writen,
Acknowledgments
‘ng! moment agu, I complies the revision and second edition of my ist
ok, A Satimer¥ Guide to Day Thuave Ontine, My oer two boas Wo
ate ure A Beginner's Gide to Sort-serm Yraitng and Sort erm Leading
the New Stock Masher)
Tm ‘exhaled, seemingly for the first time in mouths. 1s a wonderful
Writingrise this buok was my festhorn. I kas ils sw special pessoal
‘on seta pase sm the fabri of rae
Liks ehildeen, honks involve many more people ths the originator to bring
its pages te
‘Many poops contriutcd 1 the tinal produc, and to them, | ve hearfelt
thanks. Fenn only write shese banks because each of you offen se mach help
inthe prow.
To my husband Mike, hank you for enduring yet one more bool in-process
Once again, you'vs endured vague answers, dead Rouseplants. ite dinners an
solitry aekendsTaank yoo For Your constant cone, supper, smd hugs.
‘To my daughter, Adrienne, thank you for your encouragemen: humor, and
wisdom, Yo age a delight, bright Tigh, snd a ruc blessing
“To my faaily Chuck. Tammy, and Gail, Missy, Jenny, and Joha, eank you
so much fae your supper aud understanding whan Iga undergo
‘To my assistant, Tina Hoes, thank you so mich for your fst and cffctent
‘ontebutions, and forthe many times you cheered me-on,
To my-editr Jill Alewander, hak you for puting "song hand in the mi
‘leo my back" and pushing me for, Youre ne patent ad talented eter,
‘tT wish us dk sou fr bringing his ok (oa wonderful competion,
‘io wy sgt, Deidse Kaigh, as always. nega-agent, age “hank yon" 1
‘could these books withoat you. You ae de bes!
Toe great people at Townsend Analytes, Li. creators ad developers of
ealtich solbwane, especially Mike Fela al Susah Nei, thank you 50 much
fer your support.
Jn Carter, Utne you Zoran te ou of your busy siedule to vate
atinsly an infmative foreword,
iv { AFGNNES GUIDE TA NAY TRACING ONLINE
‘To my inoredible friends who ole he ersten network of suppost a writer
cou have, especiily Feyve Smith, Jacqusline Middlston, Par Hastings, snl
Penny Lavoie. Yes. Py. as you avid, throat this honk, “T nso happy
“An, ily thank vou to Beverly Pickors, Mary Elles, and Courney office
evordinators extraordinaire, who olfered chocolate and sncounigemsent Several
limes a day
“Thank, you apuin to each one of you! Gn les,
Introduction
leone othe wld, lt nro mntighs hooase
if yon jomyp aboard, it wil be the most exhilarating, most verifying
Fide you'll ever tk
‘The stock masket isthe monster of al eller coasters iting trader to har
saising highs ben deopping them to the lows3¢ lows, with ne. spar forthe
sereans, Adrenaline junkies become addicted to the exsitament. The timid
meng us endure or gui
Day trading. or desve trading, as is sometimes called isthe net sa-gentle
«ato buying at selling stocks dating the couse ofa ding day. rhasexpi
in popularity in Celest decal n sey ers exe aking in substantia rewins,
‘Since 1995, stew the Dos ones Industuial Average opened the seae st 3.834, the
‘most-watched inde in the world has now rocketed to highs aver [1 XID, Nott
he outdone, the benciunark Samar & Poor's Indes S&P}, and ils wd cabot,
the NASDAQ Composit. Have also etched dramatic eyeles,
‘Stack prives have gone ballistic, searing skyan! though the glorious bull
‘market ofthe late 1990s, keddne south Uhough the doses dy bear macket
‘oF he curly 200s, an en shooting highes, en
"he resultan volatility Has encouraged wgrovring naber of people te fore
Sake he "hay and nok” re of vesting. We've learned hal ov gues up
sven rind Last, We've learted that global events a ings the
markets so rapidly, we'd est know how ta get wien the gel is goed" A
st of sink
‘we've d severe, sometimes peinfully, that complacency is th
ing pros,
The er
day traders popped onto the scene in th early 1996. Many of
th oviginal players were koown as “SOES hands" (SOES stands for “small
fonderentey systcm") who lated how: to navigate the ney zcvessile Internet
“The bandits waded stocks on NASDAK) Lovo I serzens and shot thsi order-—
many times hundreds, ven tronsancs, per day—to the “tor” of that clectronie
exchange,
As the Tater grew in popularity, ws leamecel to researeh the sek mat
hel. Once megane 38a world of car, esoteric seers understoad only hy carte
carrying members of the Puckored Brow i-a-Suit grovp, the financin) arena
IvtoDUEIEON oil
‘now opens ts coors tnd heckonsd to those aus passionate eneugh to do out
fon research. We quickly diseavsred tha ne could not on'y canict ove ost
clus diligence, sould also anderstand the market's motivation, For exsxaple,
iFinflacon hrestens rea ts annoying head, the Federal Reserve Bos raises
Imorst rates. Tt focees corporations to py’ move for bank Teas Uns allt
ing cir carnings, Result? Fang stock prices
CChar.es Schwb opened the fis: discount brokessge house in 1995. Ouier
sisconnt brokets buts on the scene, ad offered hei services online, No honger
’haied to telephone ad eur broker's avilabiily, we hopped onto our online
trading accounts © buy sel, et automatic stops, and review market ction.
[By 1997, Amesioa had fallen in Love with te stock aaaliet. Moher Market
sssvoned with the lavish stention, end lock market prices covuned wo hister
highs. (They fell to Jower lows, tee, but no one wetted uo notice.) Quickly, he
‘word got out that you eould buy and sell stocks in your un’ne account all dey
Tong. sad grab big bucks in minutes to hour Viola The new eed of matkst
players, howe as “ey aden." were born,
OF coune, focused alers needed serious tols. Dincet-aoesss ro
{quickly came tothe rescue. They developed hist sophisticated trading lat-
Forms that used NASDAQ Level II SOES sersons or oer entry 28 well asa
Fast acvoss vo rarkel intemal» and ntigate rice chart nd indicat,
[Fyou were aetve inthe markets during the mid-inctics tothe cay senty
first century, yon ne chs est oF Me sry, As mented eaeion, das marks,
soared to bsebleed cops in January, 200, Kupnoria signed. "The sock mar
ket reigned asthe conversationa! topic af all coccallprtiss and tckevision tl,
sts, Trader mera ost in Reta
But what goes up comes down, and by spring of 2000, the stock masker
eae 9 y-inflated NASDAQ and its rambnetions dat.cons stared
losing ait. By Octoher of 2002, the power wschaelagy index acl allen fom
tts highs 5,12 taal af E10
Day tradors wha could not 001d not, se short aya esse, those who
‘held subbocnly to thee thoughts of previeus gly Inst their aveounts. Some.
noun as scalpors, lst heir profits to the Api 2001 decimalizaton carpe Ca
leamarically nsviowed te prise besrecn the inside bid al alle Ue best price
at chet momen, in which stocks ae purchased and so)
Still, bear markets don"t as Toneve, either. aby 2008, ups returned
ta the fsaacial anna, Prices bubbled higher,
At present. with «nev ball market steaming away, new suing prude.
have exploded onto tie sven, Besides ecules sd oplivns,srders now have
a chvice of Exchanee Traded Funds (CTPs). E-taini and mini-sized Dow stock
ides (utures, and singlestaes fatuns, Brevis the domain of pak ae
insiutions, now Porex markets rad global euneneies and ther futox com
tracts) are availabe to iil czders,
COnine rikers and renccess mks have src ther patos
to maximum levels o° speed und sfieiency
"Oka | got” you eply. "As trades, we jump onto ths Insemes an pl
the news anal churts we neo on a stack. Quickly, we sitsh aver ta one aaline
trang exccution sytem, and click te sock we want to be, ath post ents
point, oF cause. Thea we sit hack with a eup of eoftee and rake in the big gal
ins Right
ight,
‘Well. somtimes,
Free hae thar axactseanario happen tom. Ror not always
‘Once, carly in my cing career, you would have Fovne me slumped over
my keyboand, wondering, “What in dhe heck ann Ting vagag?” Tsvachel sy
tealng aeaunt lose maney by the hnekes las, And it 6st maney Leou.d
afford lose, Ted off tat account. pulled the nrigage payment the eles
luc Ul. my Javghte’s college titi, aun! mnoatng erecit card pastes gt
‘of it, You've uever seen aa arcount balance dzup se fast!
One day, soldi my souks cit did't take long Ud lst a Jt wf eats)
and speat a couple of weeks wandering aouidl i astate of sisery, Whe 1
‘ally tnishes feeling sory fo myself Lox mad. Whe Uid ths searket Unk it
vas, aking all of my tey? One word kept mgs nae knwscledge. I dt
ow env
Sore jobs you ea fake with hile sees al a ol of earn, but you can't
fike day trading. You von wander ino this rough-und-turchle arena without
‘knowlege. The market ens ignorant players foe hrsuktas
Tne as eof them, tle a milion mistakes suffer oases 80
vim that my eiends und family Sop me te quit, Bu: I come Som a “long
Hine of stubborn,
[persisted Freud hows on tschsieal amass thet ide" densa
| watchod CNBC until my eyes glezed over. "Then ene day, friend ineodnced
‘me toa tric couple who ware eal day waders. They invited me to their home,
showed me their csrmputer sexyp, ant explained how thay red. A new word
‘pono toi. | realized ny ending ns far more Miele andl involved than 1
‘ha previously thous"
Fensklee ne, envied in teeing rechniques and staregy’ classes, and
studio like evay. Six moaths ‘ater, when ry nonsading fiends asked me boss
Jak diealiier sae areal Sibi eal uaaed died crak Miami edi ecient ead
