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  • Trading Basics: Evolution of a Trader (Wiley Trading Book 597)

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Trading Basics: Evolution of a Trader (Wiley Trading Book 597) 1st Edition, Kindle Edition

4.1 out of 5 stars (50)

Comprehensive coverage of the four major trading styles

Evolution of a Trader explores the four trading styles that people use when learning to trade or invest in the stock market. Often, beginners enter the stock market by:

  • Buying and holding onto a stock (value investing). That works well until the trend ends or a bear market begins. Then they try
  • Position trading. This is the same as buy-and-hold, except the technique sells positions before a significant trend change occurs.
  • Swing trading follows when traders increase their frequency of trading, trying to catch the short-term up and down swings. Finally, people try
  • Day trading by completing their trades in a single day.

This series provides comprehensive coverage of the four trading styles by offering numerous tips, sharing discoveries, and discussing specific trading setups to help you become a successful trader or investor as you journey through each style.

Trading Basics takes an in-depth look at money management, stops, support and resistance, and offers dozens of tips every trader should know.

Fundamental Analysis and Position Trading discusses when to sell a buy-and-hold position, uncovers which fundamentals work best, and uses them to find stocks that become 10-baggers—stocks that climb by 10 times their original value.

Swing and Day Trading reveals methods to time the market swings, including specific trading setups, but it covers the basics as well, such as setting up a home trading office and how much money you can make day trading.

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Editorial Reviews

Review

“The three books in this series were written for people unfamiliar with the inner workings of the stock market, but will still curl the toes of professionals, too. Research is used to prove the ideas discussed, but is presented in an easy to understand and light-hearted manner. You will find the books to be as entertaining as they are informative and packed with moneymaking tips and ideas. Use the ideas presented here to hone your trading style and improve your success. Whether you are a novice who has never purchased a stock but wants to, or a professional money manager who trades daily, these books are a necessary addition to any market enthusiast’s bookshelf.”
Alan Battista, Stockineer.com Book Review

From the Inside Flap

How you trade or invest in the stock markets depends on market conditions. Buying and holding on to a stock during a bear market can mean a substantial decline in net worth. Day trading when the markets are soaring can add to stress unnecessarily. Thomas Bulkowski discusses the evolution of a trader from buy-and-hold to position trading, swing trading, and day trading in his hotly anticipated series of how-to guides, Evolution of a Trader.

The first book in the series, Trading Basics, is a practical introduction to the art and science of stock trading. The book discusses money management, a topic so often overlooked in financial works. How do you size a position properly? How many stocks should a portfolio hold for proper diversification? Should you scale into or out of positions? Do dollar-cost-averaging and averaging down work? He answers these questions and more.

Choosing the correct type of stop can mean the difference between success and failure, profit and loss. Learn why stop-loss orders cut profit more than they reduce risk. Sometimes, stops are best left unused because they cash you out of potentially winning trades prematurely.

Bulkowski discusses a half-dozen types of support and resistance, then he measures and compares their effectiveness. If you can determine where a stock is going to reverse because of overhead resistance or underlying support, then the riches on Wall Street can be yours. His research is a gold mine of information waiting to be unearthed.

He discusses forty-five tips that every trader should know. Have you heard of the 2B rule? Or how about trading busted chart patterns? Does divergence in the RSI indicator really work or have today's markets made it obsolete? Bulkowski offers tips on finding the market direction, determining when the market has bottomed, and over a dozen tips on when to sell.

He wraps it all up by helping you diagnose trading problems. Are you entering or exiting your trades too early or too late? Did you average up? Are you buying out of season?

Bulkowski's work sets an example of how financial books should be written. He doesn't just repeat what others have said. Rather, he investigates and researches his facts before teaching the reader in an entertaining and informative style that is accessible to the beginner and the professional. Anyone investing or trading the markets can benefit from this series.

Product details

  • ASIN ‏ : ‎ B00A58BJ4S
  • Publisher ‏ : ‎ Wiley
  • Accessibility ‏ : ‎ Learn more
  • Publication date ‏ : ‎ November 8, 2012
  • Edition ‏ : ‎ 1st
  • Language ‏ : ‎ English
  • File size ‏ : ‎ 2.8 MB
  • Screen Reader ‏ : ‎ Supported
  • Enhanced typesetting ‏ : ‎ Enabled
  • X-Ray ‏ : ‎ Not Enabled
  • Word Wise ‏ : ‎ Enabled
  • Print length ‏ : ‎ 210 pages
  • ISBN-13 ‏ : ‎ 978-1118516942
  • Page Flip ‏ : ‎ Enabled
  • Best Sellers Rank: #2,173,290 in Kindle Store (See Top 100 in Kindle Store)
  • Customer Reviews:
    4.1 out of 5 stars (50)

About the author

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Thomas N. Bulkowski
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Thomas N. Bulkowski is recognized by many as one of the world's leading authorities on chart patterns. He is a successful investor and trader with over 40 years of experience trading stocks. He is also the author of the books:

Fiction Titles

Bedroom to Boardroom (a romance novel, no longer in print)

Bumper's Story (a dog story)

Head's Law (a story of good versus evil)

Remember Me (a collection of short stories)

Orb Foresight (NEW for 2025)

Non-Fiction Titles

Chart Patterns: After the Buy

Encyclopedia of Candlestick Charts

Encyclopedia of Chart Patterns, Third Edition

Fundamental Analysis and Position Trading: Evolution of a Trader

Getting Started in Chart Patterns, Second Edition

Invest for Two-Comma Wealth

Swing and Day Trading: Evolution of a Trader

Trading Basics: Evolution of a Trader

Trading Classic Chart Patterns

Visual Guild to Chart Patterns (no longer in print)

His best-selling books have been translated into 23 languages. Almost 140 of his articles have been published in Active Trader; Stocks, Futures and Options; The Technical Analyst; Traders'; The Trader's Journal; Technical Analysis of Stocks & Commodities and other magazines.

Before earning enough from his investments to retire from his day job at age thirty-six, Bulkowski was a hardware design engineer at Raytheon, a senior software engineer for Tandy Corporation, and a software manager for Tracor-Westronics.

He was the president and charter member of the Keller Writers’ Association, vice president of membership and later treasurer of the Keller Chamber of Commerce, chairman of the Keller Parks and Recreation board, president of Keep Keller Beautiful, and vice president of the Friends of the Keller Library. He authored the Keller Recycling Task Force report and Park System Study for the City of Keller.

He enjoys writing fiction, playing his guitar, drawing, watercolor painting, watching flowers bloom in his gardens, woodworking, and reading.

Customer reviews

4.1 out of 5 stars
50 global ratings

Top reviews from the United States

  • Reviewed in the United States on March 20, 2014
    Format: HardcoverVerified Purchase
    I was convinced by Tom's writing posted in his own website ( thepatternsite.com) and then I bought his books and read them (twice in a row) because I have a bunch of questions brought back from the market. Interestingly I read his Swing and Day Trading first. Then Fundamental Analysis and Position Trading. I am so happy to see a lot of my questions got answered (or understand that some of them are not questions that have definite answers), I know I must buy Trading Basics and read it, though I already have some basic knowledge about trading. I am not disappointed.

    A smart novice who starts trading now may hesitate because the news already screaming the bear market is coming. He will find out more if he also read the stage analysis in Fundamental Analysis and Position Trading. Tom covers them quite comprehensively.

    The more you trade, the more you will appreciate the statistics in the books. Tom doesn't guarantee a pattern works, as a reviewer implies. Tom provides statistics, which by definition deals with probability. A trader doesn't ask for guarantee; he only looks for probability on his side. Tom's books help.
    One person found this helpful
    Report
  • Reviewed in the United States on May 4, 2017
    Format: KindleVerified Purchase
    Interesting book, which has a few helpful insights, but definetely not essential for successful trading.

    This book is a walkthrough of various trade ideas most of which you can find in some other sources. Nevertheless, it is helpful to have them condensed in one book and reviewed by a weathered stock trader.

    The author very often backtests the presented ideas and backs his opinions with the gathered statistical data. The best thing about these tests (and I would say my biggest profit in reading this book) is that they inspired me to backtest the presented ideas after incorporating them in my trading system, which helped me earn a few bucks more per annum.
    3 people found this helpful
    Report
  • Reviewed in the United States on March 21, 2014
    Format: KindleVerified Purchase
    This book introduces you to the paradigms of intelligent trading, to name a few:

    * money management
    * stop placement
    * support & resistance levels
    * recurring patterns of the market backed by statistical research
    * entry & exit timing
    * market trend & stock trend relationship

    Having read a few books by this market veteran author, I find his books distinguished from the rest by a single, crucial aspect:

    Thomas conducts and discusses his own research, methods and tools of many years, which he courteously shares with the reader both in his books and at his website (just google his name!)
    7 people found this helpful
    Report
  • Reviewed in the United States on May 12, 2014
    Format: HardcoverVerified Purchase
    Bulkowski's books are the best and you cant go wrong with any of them.
    Thomas is a genious and puts his knowledge in your hands with his books.
    You will learn how to do the stuff the trading pros do if you read his books.
    I have all 9 of his books
    2 people found this helpful
    Report
  • Reviewed in the United States on September 5, 2023
    Format: HardcoverVerified Purchase
    I really like Bulkowski. This book was pretty tiny compared to his others. It didn’t tell me anything I didn’t already know. Not bad for a beginner. Doesn’t provide the value of his other works.
    One person found this helpful
    Report
  • Reviewed in the United States on November 2, 2015
    Format: HardcoverVerified Purchase
    More of a book with statistics of how stocks trend after entering certain trend patterns than anything else. The author did numerous tests to find these statistics, which is all well and good, but the results mean absolutely nothing for the average investor. "My research found that this happened 37% of the time." Also a big problem I had was after the author shared a story about a woman who started trading options contracts. From what the author said it sounded like she had a dozen or so successful buy and hold trades under her belt and decided to give options a try. She ended up betting wrong and getting in over her head, wiping out her entire account. Now the problem with this story is that the author's "lesson" to be learned was to avoid using leverage unless you've been trading for 5+ years, which is NOT the problem. The problem was that she went into that trade with risk management as an afterthought; that was where she messed up big, and that's where the author should be teaching people to be mindful. His reaction was more in line with: "People have gotten injured in car crashes, you shouldn't drive a car because they're dangerous!"
    7 people found this helpful
    Report
  • Reviewed in the United States on June 5, 2015
    Format: HardcoverVerified Purchase
    Excellent book that busts certain trading myths and presents results of back-tested hypotheses. highly recommend it to investors and swing traders.
  • Reviewed in the United States on August 11, 2013
    Format: KindleVerified Purchase
    The information provide was about par.
    The presentation was poor and not well put together.
    Would NOT recommend it to others
    3 people found this helpful
    Report

Top reviews from other countries

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  • Please try a different name
    5.0 out of 5 stars Must Read
    Reviewed in Canada on December 27, 2016
    Format: KindleVerified Purchase
    This book is expensive but worth it. It is a must read! Great book. I would read it again for sure
  • Alice
    5.0 out of 5 stars Raccomandato
    Reviewed in Italy on May 2, 2023
    Format: HardcoverVerified Purchase
    Solo il tema degli stop loss vale il prezzo del libro. Ma c'è molto altro, come in tutti i libri di Bulkowski.
    Report
  • Gonac
    5.0 out of 5 stars Importantes nociones básicas de trading
    Reviewed in Spain on December 4, 2016
    Format: HardcoverVerified Purchase
    Es un libro básico pero importante, Pone en claro los principios fundamentales y repasa a fondo la gestión del riesgo y del capital, las estrategias, el análisis técnico, como entrar y salir del mercado y un conjunto de 45 buenos consejos.

    pero ante todo es claro y conciso, sin enseñar conceptos errónos
  • Arun Kumar
    5.0 out of 5 stars Master the trade
    Reviewed in India on December 10, 2021
    Format: HardcoverVerified Purchase
    Read all the 3 books in the series along with Encyclopedia of Chart Patterns to graduate through technical analysis
  • ap
    5.0 out of 5 stars Thought provoking, well researched and written
    Reviewed in Australia on October 13, 2021
    Format: HardcoverVerified Purchase
    I enjoyed reading all three of the trilogy 'evolution of a trader'

    The text provides well researched and statistically backed statements.

    I particularly enjoyed position sizing for market conditions and the handy chapter reviews.

    Would buy and read again for sure.

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