Trade the Trader: Know Your Competition and Find Your Edge for Profitable Trading

223 Pages·2010·3.07 MB·English

by  Quint Tatro

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Trade the Trader
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Trade the Trader
Know Your Competition and
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Find Your Edge for Profitable Trading
Quint Tatro
Vice President, Publisher: Tim Moore
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©2011 by Pearson Education, Inc.
Publishing as FT Press
Upper Saddle River, New Jersey 07458
This book is sold with the understanding that neither the author nor the publisher is engaged
in rendering legal, accounting, or other professional services or advice by publishing this
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and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the
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Printed in the United States of America
First Printing October 2010
ISBN-10: 0-13-706708-9
ISBN-13: 978-0-13-706708-4
Pearson Education LTD.
Pearson Education Australia PTY, Limited.
Pearson Education Singapore, Pte. Ltd.
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Library of Congress Cataloging-in-Publication Data
Tatro, Quint, 1977-
Trade the trader : know your competition and find your edge for profitable trading / Quint Tatro.
p. cm.
ISBN-13: 978-0-13-706708-4 (hardcover : alk. paper)
ISBN-10: 0-13-706708-9
1. Investment analysis. 2. Technical analysis (Investment analysis) 3. Portfolio management. I.
Title.
HG4529.T38 2011
332.64—dc22
2010027306
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To traders: May you always embrace the tape.
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Contents
Chapter 1 I’m Trading Against You . . . . . . . . . . . . . . . . . . . . 1
Chapter 2 My Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Chapter 3 It’s All Opportunity . . . . . . . . . . . . . . . . . . . . . . . 19
Chapter 4 The Other Traders . . . . . . . . . . . . . . . . . . . . . . . 25
Chapter 5 Finding Your Edge . . . . . . . . . . . . . . . . . . . . . . . 33
Chapter 6 Timing the Entry . . . . . . . . . . . . . . . . . . . . . . . . . 47
Chapter 7 Trend Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
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Chapter 8 The Basics Are Not Enough . . . . . . . . . . . . . . . . 77
Chapter 9 Pick Your Time Frame . . . . . . . . . . . . . . . . . . . . 85
Chapter 10 Developing Your Plan . . . . . . . . . . . . . . . . . . . . . 97
Chapter 11 Determining Entry Points . . . . . . . . . . . . . . . . 109
Chapter 12 Setting Stops . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Chapter 13 How to Trade the Trader . . . . . . . . . . . . . . . . . 137
Chapter 14 Using and Controlling Risk
to Your Advantage . . . . . . . . . . . . . . . . . . . . . . . 149
Chapter 15 Taking Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Chapter 16 Reviewing the Entire Plan . . . . . . . . . . . . . . . . 173
Chapter 17 It’s a Head Game . . . . . . . . . . . . . . . . . . . . . . . . 181
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TRADE THE TRADER
Chapter 18 Dealing with the Emotions . . . . . . . . . . . . . . . . 183
Chapter 19 Following the Trend . . . . . . . . . . . . . . . . . . . . . 189
Chapter 20 The Blowup . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
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viii
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Acknowledgments
I first want to give the glory to my Lord within whom I can do all
things.
To my wife who is always my rock whether it be to keep me
grounded or keep me standing tall. I love you more than ever and
appreciate more than you know the patience you have had while I
have been on this journey.
To my children who were also patient with me while I spent
many weekends writing. May you always give 110% to all the tasks
before you and never stop dreaming.
To my mother who believed in my writing long before a book
was ever in the making. Your humility, dedication, and persever-
ance have made me the man I am today. For that I am forever
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To my father who opened my eyes to the world of finance, big
dreams, and fortitude. It has been an honor to be a recipient of
your wisdom.
To ‘Rev,’ who took me under his wing and graciously opened
my eyes to the world of pattern recognition and double-meat
sandwiches.
I would like to thank some dear friends who also continue to
believe in me regardless of my multiple shortcomings:
Steve McBroom—You have been a father figure to me
for years, and I continue to learn from you daily. Thank
you for always believing in me and making sure I know it.
Anne Beaucage—I cannot imagine where I would be
without your guidance. You led by example, and I will
forever attempt to mimic your actions.
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