Trading as a Business The Methods and Rules I′ve Used To Beat the Markets for 40 Years Wiley Trading Series, Vol. 588

Trading as a Business: The Methods and Rules I've Used To Beat the Markets for 40 Years gives you a behind-the-scenes look at how Dick Diamond has become a successful independent trader for more than four decades. This vital resource reveals Diamond's methods for analyzing the market and knowing the right time to get in and out of trades. With this book in hand, you'll be able to tap into Diamond's strategy of 80/20 trading which offers an 80% chance of making a winning trade. Diamond also includes his six statistics that are critical for determining where the stock market is headed.

This book is written for anyone who wants to learn the methods, tools, and techniques that will transform them from an ordinary investor into a trading force in the marketplace. Once you master the trading secrets from Dick Diamond, you will have the ability to make money in a business where you call the shots.

• Filled with Dick Diamond's trading secrets for beating the market
• Includes a wealth of trader strategies including Diamond's 80/20 technique
• Discover how to identify and take advantage of the market's buy and sell zones
• Learn what it takes to become an independent trader who makes money over the long-haul

Break free of your old trading habits and discover Dick Diamond's tools and techniques for financial freedom.

Foreword ix

Robert Prechter

Preface xi

Acknowledgments xiii

CHAPTER 1 My Life as a Trader 1

Trading as a Business 5

CHAPTER 2 Emotional Discipline 9

Why Traders Fail 11

Core Position and 80/20 Trades 12

The Emotions of Trading 13

The Importance of Commitment 15

CHAPTER 3 Principles of Successful Trading 17

Trade within Your Capital 17

Quiet Confidence 18

Sell Too Soon, Not Too Late 19

Take Personal Responsibility for Your Trading 21

Wait for 80/20 Trades 21

Play Great Defense 22

Pull the Trigger 22

Opinions Are for Pundits, Not Traders 23

Strictly Follow Technical Data 23

Market Entry Tactics: Use Limit Orders, Buy/Sell Zones, and Position Scaling 24

Use Defensive Stops 24

Track Your Results 25

Managing Your Trading Account 25

Take Advantage of Market Conditions 26

Review the Rules Every Week 27

CHAPTER 4 Technical Analysis and Trading Concepts 29

Moving Averages 29

Crossovers 34

Divergences 35

Williams %R 37

Stochastic Oscillator 38

Stochastic Momentum 40

Bressert 41

RMO 42

Moving Ribbons 43

CHAPTER 5 Trading with theMoving Average Template 45

CHAPTER 6 Trading with theMoving Ribbons Template 65

CHAPTER 7 Trading with the Bressert Template 79

CHAPTER 8 Trading with the RMO Template 99

CHAPTER 9 A Day of Trading 117

Appendix: About MetaStock Pro Templates 123

Creating the Dick Diamond Templates 124

Template 1: Walter Bressert 126

Template 2: Moving Ribbons 127

Template 3: RMO 127

Template 4: Moving Averages 128

Applying an Existing Template 128

Making Changes to a Template 129

Saving a Template 129

The Default Template 130

Creating the Diamond Work Space 131

About the Author 135

Index 137