High-Powered Investing All-in-One For Dummies, 2nd Edition

Table of contents

1. 1. Introduction
      1. About This Book
      2. Foolish Assumptions
      3. Icons Used in This Book
      4. Beyond the Book
      5. Where to Go from Here
   2. Book I: Getting Started with High-Powered Investing
      1. Chapter 1: What Every Investor Should Know
         1. Taking a Glance at Investment Options and Strategies
            1. Surveying traditional investment vehicles
            2. Considering high-end investment or speculation vehicles
            3. Investigating investment strategies
         2. Managing Investment Risks
         3. Going for Brokers
            1. Distinguishing between full-service and discount brokers
            2. Picking among types of brokerage accounts
         4. Looking at Indexes and Exchanges
            1. Indexes: Tracking the market
            2. Exchanges: Securities marketplaces
      2. Chapter 2: Playing the Market: Stocks and Bonds
         1. Starting with Stock Basics
         2. Stocking Up
            1. Choosing growth stocks
            2. Investing for income
         3. Getting Your Bond Basics
            1. Maturity choices
            2. Investment-grade or junk bonds
            3. Individual bonds versus bond funds
            4. Various types of yield
            5. Total return — what matters most!
         4. Exploring Your Bond Options
            1. “Risk-free” investing: U.S Treasury bonds
            2. Industrial returns: Corporate bonds
            3. Lots of protection: Agency bonds
            4. (Almost) tax-free havens: Municipal bonds
      3. Chapter 3: Getting to Know Mutual Funds and ETFs
         1. Going Over Mutual Fund Basics
            1. Comparing open- and closed-end funds
            2. Meeting myriad types of mutual funds
            3. Loading up: Sales charges
            4. Being a savvy mutual fund investor
         2. The ABCs of ETFs
            1. Looking at the positives and negatives
            2. Getting in on the action
            3. Managing risk with ETFs
            4. Exploring ETF options
      4. Chapter 4: All about Annuities
         1. Introducing Annuities
            1. Looking at how annuities work
            2. Getting to know the participants
            3. Noting common elements of all (or most) annuities
         2. Deciding Whether an Annuity Is Right for You
            1. Evaluating the pluses
            2. Recognizing the minuses
         3. Checking Out the Main Types of Annuities
            1. Fixed deferred annuities
            2. Indexed annuities
            3. Variable annuities
            4. Income annuities
   3. Book II: Futures and Options
      1. Chapter 1: Futures and Options Fundamentals
         1. Getting the Lowdown on Futures Trading
            1. Getting used to going short
            2. Decoding a futures contract
            3. Futures exchanges: Where the magic happens
            4. Open-cry or electronic: Futures trading systems
            5. The individual players: Hedgers and speculators
            6. Choosing a futures broker
         2. Getting Up to Speed on Options
            1. Comparing call and put options
            2. Uncovering an option's value
            3. Calculating option risks
            4. Taking stock of the U.S. options exchanges
            5. Creating option contracts
            6. Knowing a few important options trading rules
            7. Choosing an options broker
         3. Deciding Whether to Trade Futures or Options
      2. Chapter 2: Being a Savvy Futures and Options Trader
         1. Holding the Key: Interest Rates and the Money Supply
            1. Respecting the role of central banks
            2. Following the money supply
         2. Digesting Economic Reports
            1. The employment report
            2. The Consumer Price Index
            3. The Producer Price Index
            4. The purchasing managers’ reports
            5. Consumer confidence reports
            6. The Beige Book
            7. Housing starts
            8. The Index of Leading Economic Indicators
            9. Gross Domestic Product
            10. Oil supply data
            11. A bevy of other reports
         3. (Psycho)-Analyzing the Market
            1. Defining sentiment
            2. Watching call and put activity
            3. Using volatility to measure fear
         4. Adding Technical Analysis to Your Toolbox
      3. Chapter 3: Basic Trading Strategies
         1. Trading on Margin
            1. Looking at margin limits
            2. Mulling over the multiple meanings of “margin”
         2. Buying Calls
            1. Understanding reasons and getting some pointers for buying calls
            2. Calculating the break-even price for calls and puts
            3. Using delta to time call-buying decisions
            4. Following up after buying a call option
         3. Writing Calls
            1. Choosing to be naked or covered
            2. Doing your homework
            3. Protecting your trade by diversification
            4. Following up after writing a call
         4. Considering Basic Put Option Strategies
            1. Making the most of your put option buys
            2. Buying put options
            3. Selling naked and covered puts
            4. Exercising your put option
            5. Dealing with a huge profit in a put option
      4. Chapter 4: Advanced Speculation Strategies
         1. Thinking Like a Contrarian
            1. Picking apart popular sentiment surveys
            2. Looking at trading volume as a sentiment indicator
            3. Signaling a potential trend reversal: Open interest
            4. Combining volume and open interest
            5. Checking out put/call ratios as sentiment indicators
            6. Using soft sentiment signs
         2. Exploring Interest Rate Futures
            1. Bonding with the universe
            2. Going global with interest rate futures
            3. Yielding to the curve
            4. Deciding your time frame
            5. Sticking to sound interest rate trading rules
         3. Focusing on Stock Index Futures
            1. Looking into fair value
            2. Considering major stock index futures contracts
   4. Book III: Commodities
      1. Chapter 1: Getting an Overview of Commodities
         1. Defining Commodities and Their Investment Characteristics
            1. Gaining from inelasticity
            2. Offering a safe haven for investors
            3. Hedging against inflation
            4. Taking time to bring new sources online
            5. Moving in different cycles
         2. Checking Out What's on the Menu
            1. Energy
            2. Metals
            3. Agricultural products
         3. Putting Risk in Perspective
            1. Looking at the pitfalls of using leverage
            2. Assessing the real risks behind commodities
            3. Managing risk
      2. Chapter 2: Adding Commodities to Your Portfolio
         1. Checking Out Methods for Investing in Commodities
            1. Buying commodity futures
            2. Accessing commodity markets via funds
            3. Investing in commodity companies
            4. Making physical commodity purchases
            5. Owning a piece of an exchange
         2. Examining the Major Commodity Exchanges
            1. Exchanges in the United States
            2. A sampling of international exchanges
            3. Regulatory organizations for commodity exchanges
         3. Opening an Account and Placing Orders
            1. Choosing the right account
            2. Placing orders
      3. Chapter 3: The Power House: Making Money in Energy
         1. Investing in Crude Oil
            1. Facing the crude realities
            2. Making big bucks with big oil
         2. Trading Natural Gas
            1. Recognizing natural gas applications
            2. Investing in natural gas
         3. Bowing to Ol’ King Coal
            1. Considering coal reserves and production
            2. Investing in coal
         4. Looking at Other Energy Sources
            1. Embracing nuclear power
            2. Trading electricity
            3. Tapping into renewable energy sources
         5. Putting Your Money in Energy Companies
            1. Profiting from oil exploration and production
            2. Investing in refineries
      4. Chapter 4: Pedal to the Metal: Investing in Metals
         1. Going for the Gold
            1. Measuring and valuing gold
            2. Buying into the gold market
         2. Taking a Shine to Silver
            1. Assessing silver applications
            2. Getting a sliver of silver in your portfolio
         3. Putting Your Money in Platinum
            1. Poring over some platinum facts
            2. Going platinum
         4. Adding Some Steel to Your Portfolio
            1. Getting the steely facts
            2. Holding stock in steel companies
         5. Including Aluminum in Your Investments
            1. Considering aluminum companies
            2. Trading aluminum futures
         6. Seeing the Strengths of Copper
            1. Investing in copper companies
            2. Buying copper futures contracts
         7. Appreciating Palladium
         8. Keeping an Eye on Zinc
         9. Noting the Merits of Nickel
         10. Putting Stock in Diversified Mining Companies
      5. Chapter 5: Down on the Farm: Trading Agricultural Products
         1. Profiting from the Softs: Coffee, Cocoa, Sugar, and Orange Juice
            1. Feeling the buzz from coffee
            2. Heating up your portfolio with cocoa
            3. Being sweet on sugar
            4. Squeezing healthy profits from orange juice
         2. Trading Ags: Corn, Wheat, and Soybeans
            1. Fields of dreams: Corn
            2. The bread basket: Wheat
            3. Masters of versatility: Soybeans
         3. Making Money Trading Livestock
            1. Staking a claim on cattle
            2. Seeking fat profits on lean hogs
   5. Book IV: Foreign Currency Trading
      1. Chapter 1: Your Forex Need-to-Know Guide
         1. Getting a Quick Overview of Currency Trading
            1. Entering the interbank market
            2. Trading in the interbank market
            3. Looking at liquidity
            4. Meeting the key players: Hedgers, hedge funds, big-time investors, and you
         2. Checking Out Currency Pairs and Prices
            1. Introducing currency pairs
            2. Reading currency prices
         3. Around the World in a Trading Day
            1. Opening the trading week
            2. Trading in the Asia-Pacific session
            3. Trading in the European/London session
            4. Trading in the North American session
         4. The Mechanics of Currency Trading
            1. Grasping the long, short, and square of it
            2. Understanding rollovers
            3. Getting up close and personal with profit and loss
         5. Forces behind Forex Rates
            1. Currencies and interest rates
            2. Monetary policy
            3. Financial stability
            4. Debts, deficits, and growth
            5. Credit risk
            6. Geopolitical risks and events
      2. Chapter 2: Major and Minor Currency Pairs
         1. Banking on the Big Dollar: EUR/USD
            1. Trading fundamentals of EUR/USD
            2. Trading behavior of EUR/USD
         2. Exploring Where East Meets West: USD/JPY
            1. Trading fundamentals of USD/JPY
            2. Price action behavior of USD/JPY
            3. USD/JPY trading considerations
         3. Mixing It Up with the Other Majors: GBP/USD and USD/CHF
            1. The British pound: GBP/USD
            2. Safe haven or panic button: USD/CHF
            3. Price action behavior in GBP/USD and USD/CHF
            4. GBP/USD and USD/CHF trading considerations
         4. Trading the Minor Pairs: USD/CAD, AUD/USD, and NZD/USD
            1. Trading fundamentals of USD/CAD
            2. Trading fundamentals of AUD/USD
            3. Trading fundamentals of NZD/USD
            4. Trading considerations in USD/CAD, AUD/USD, and NZD/USD
      3. Chapter 3: Gathering and Interpreting Economic Data
         1. Making Sense of Economic Data
            1. Interpreting data with a basic model
            2. Assessing economic data reports from a trading perspective
         2. Market-Moving Economic Data Reports from the United States
            1. Labor-market reports
            2. Consumer-level data reports
            3. Business-level data reports
            4. Structural data reports
         3. Major International Data Reports
            1. Eurozone
            2. Japan
            3. United Kingdom
            4. Canada
            5. Australia and New Zealand
            6. China
      4. Chapter 4: Advice for Successful Forex Trading
         1. Finding a Trading Style That Suits You
            1. Step 1: Know thyself
            2. Step 2: Technical or fundamental analysis?
            3. Step 3: Pick a style, any style
         2. Developing Trading Discipline
            1. Taking the emotion out of trading
            2. Managing your expectations
            3. Balancing risk versus reward
            4. Keeping your ammunition dry
         3. Making Time for Market Analysis
            1. Performing multiple-time-frame technical analysis
            2. Looking for price channels
         4. Managing Your Trading Risk
            1. Analyzing trade setup to determine position size
            2. Putting the risk in cash terms
            3. Considering other opportunity risks
      5. Chapter 5: Putting Your Trading Plan in Action
         1. Getting into the Position
            1. Buying and selling at the current market
            2. Averaging into a position
            3. Trading breakouts
         2. Making the Trade Correctly
         3. Managing the Trade
            1. Monitoring the market
            2. Updating your trade plan over time
         4. Closing Out the Trade
            1. Taking profits
            2. Getting out when the price is right
            3. Getting out when the time is right
         5. Analyzing after the Trade
            1. Identifying what you did right and wrong
            2. Updating your trading record
   6. Book V: Hedge Funds
      1. Chapter 1: Getting the 411 on Hedge Funds
         1. Defining Hedge Funds
            1. Hedging: The heart of the hedge fund matter
            2. Characteristics of hedge funds
            3. Alpha: What hedge funds are all about
            4. The people in your hedge fund neighborhood
         2. Introducing Basic Types of Hedge Funds
            1. Absolute-return funds
            2. Directional funds
         3. Fee, Fi, Fo, Cha Ching! Hedge Fund Fees
            1. Management fees
            2. Sales charges
            3. Performance fees
            4. Redemption fees
            5. Commissions
         4. Understanding How Hedge Funds Work
            1. Examining asset options
            2. Researching a security's value
            3. Putting the findings to work
         5. Making Sure a Hedge Fund Is Right for You
            1. Being accredited or qualified
            2. Determining your financial goals
            3. Finding the right asset allocation mix
      2. Chapter 2: Taking the Plunge with Hedge Funds
         1. Investor, Come on Down! Pricing Funds
            1. Calculating net asset value
            2. Valuing illiquid securities
            3. Surveying side pockets
         2. Due Diligence: Picking a Hedge Fund
            1. Knowing what to ask
            2. Poring over fund literature
            3. Picking up the phone
            4. Searching Internet databases
            5. Seeking help from associated service firms
         3. Purchasing Your Stake in a Hedge Fund
         4. Handling Liquidity after Your Initial Investment
            1. Considering other investment opportunities
            2. Withdrawing funds
            3. Receiving distributions
            4. Moving on after disbandment
         5. Reading the Hedge Fund Reports
            1. Appraising positions
            2. Interpreting risk
            3. Avoiding window dressing
         6. Understanding Your Tax Responsibilities
            1. Making sense of capital gains taxes
            2. Taxing ordinary income
      3. Chapter 3: A Potpourri of Hedge Fund Strategies
         1. Viewing Hedge Funds as an Asset Class
         2. Buying Low, Selling High: Arbitrage
            1. Separating true arbitrage from risk arbitrage
            2. Cracking open the arbitrageur's toolbox
            3. Recognizing arbitrage types
            4. Factoring in transaction costs
         3. Investigating Equity Strategies
            1. Surveying the investment styles of long equity managers
            2. Creating a market-neutral portfolio
            3. Looking at long-short funds
            4. Making market calls
            5. Buying on margin to put the power of leverage to use
         4. Participating in Corporate Life Cycles
            1. Venture capital: Helping businesses break to the next level
            2. Short-term transactions: Replacing banks?
            3. Gaining return from mergers and acquisitions
            4. Investing in troubled and dying companies
      4. Chapter 4: Evaluating Hedge Fund Performance
         1. Measuring a Hedge Fund's Return and Risk
            1. Reviewing the return
            2. Sizing up the risk
         2. Using Benchmarks to Evaluate a Fund's Risk and Return
            1. Looking into indexes
            2. Picking over peer rankings
            3. Standardizing performance calculation
            4. Putting risk and return into context with academic measures
         3. Taking a Reality Check on Hedge Fund Returns
            1. Risk and return tradeoff
            2. Survivor bias
            3. Performance persistence
            4. Style persistence
         4. Hiring a Reporting Service to Track Hedge Fund Performance
   7. Book VI: Emerging Markets
      1. Chapter 1: Introducing Emerging Market Investing
         1. Defining Emerging Markets
            1. Displaying great growth opportunities
            2. Knowing the big categories of investment
            3. Identifying emerging and frontier markets
         2. Finding Key Opportunities for Investment in Emerging Markets
            1. Leapfrogging technologies
            2. Growing the middle class
            3. Improving trade opportunities
         3. Considering and Managing Risk in Emerging Markets
            1. Knowing the risks
            2. Managing risks in emerging markets
      2. Chapter 2: A Guided Tour through the World's Emerging Markets
         1. Building with the BRICs: Brazil, Russia, India, and China
            1. Burgeoning Brazil
            2. Running with Russia
            3. Investing in India
            4. Checking out China
         2. Examining Non-BRIC Emerging Markets
            1. Exploring Eastern and Southern Europe
            2. Moving into markets in the Middle East, North Africa, and South Africa
            3. Navigating North and South America
            4. Finding action in Asia
      3. Chapter 3: Picking Bonds, Stocks, and Mutual Funds in Emerging Markets
         1. Pursuing Emerging Market Bonds
            1. Sorting out key bond categories
            2. Matching bonds and currencies
            3. Noting the effects of inflation on bonds
            4. Dealing with default
         2. Buying Emerging Market Stocks
            1. Calculating the float
            2. Trading depository receipts
            3. Jumping on initial public offerings
         3. Diversifying with Mutual Funds
            1. Choosing open-end funds
            2. Exploring closed-end funds
            3. Evaluating funds of all types
         4. Navigating International Securities Exchanges
            1. Figuring out who's regulating whom
            2. Dealing with dual listings
            3. Getting accurate price quotes
      4. Chapter 4: High Finance in Emerging Markets
         1. Delving into the World of High Finance
            1. Comparing some common emerging market partnership funds
            2. Looking into the structure of limited partnerships
         2. Working with Local Partners
            1. Governments
            2. Local investors
            3. Nongovernmental organizations
         3. Avoiding Potential Traps in High-Finance Investing
            1. Transparency issues
            2. Limits on liquidity
            3. Governance in a limited partnership structure
   8. Book VII: Value Investing
      1. Chapter 1: An Introduction to Value Investing
         1. What Value Investing Is — And Isn't
            1. Important value investing principles
            2. The nitty-gritty of value investing's traits
         2. A Short Math Primer for the Value Investor
            1. Lesson 1: Time value of money
            2. Lesson 2: Rate of return done right
            3. Lesson 3: How buying cheap really pays
            4. Lesson 4: Beware of large numbers
         3. Are You a Value Investor?
      2. Chapter 2: A Value Investor's Guide to Financial Statements
         1. What a Value Investor Looks For
            1. Accessing facts and more facts
            2. The soft stuff
         2. Dissecting Financial Statements
            1. Poring over the annual report
            2. Reading the balance sheet
            3. Understanding the earnings statement
            4. Reading cash flow statements
         3. The Games Companies Play
            1. Revenue stretch
            2. Inventory valuation
            3. Expense stretch
            4. Write-offs: Big baths
      3. Chapter 3: Using Ratios as a Valuation Tool
         1. The Basics of Using Ratios
            1. Identifying ratio resources
            2. Using ratios in your analysis
         2. Key Ratios, Classified and Identified
            1. Asset productivity ratios
            2. Financial strength ratios
            3. Profitability ratios
            4. Valuation ratios
      4. Chapter 4: Valuing a Business
         1. Evaluating Intrinsic Value
            1. Asking key questions
            2. Finding out more about returns
            3. Projecting future growth
         2. Comparing Intrinsic Value Worksheet Models
            1. The indefinite life model
            2. The acquisition assumption model
         3. Examining Return on Equity
            1. Paying attention to the basics of ROE
            2. Seeing the links in the strategic profit formula
            3. Checking out ROE value chain components
            4. Measuring profitability
            5. Measuring productivity
            6. Looking at capital structure
            7. Evaluating strategic intangibles
         4. Deciding When the Price Is Right
            1. Earnings yield
            2. P/E and growth
            3. A PEG in a poke
         5. Taking a Practical Approach
   9. Book VIII: Socially Responsible Investing
      1. Chapter 1: Making Your Investments Match Your Values
         1. Discovering Who Invests Responsibly and Why
            1. Contributing to the community
            2. Monitoring a company's managers
            3. Hugging those trees
            4. Investing internationally and socially
            5. Getting reminders from religion
         2. Taking the Long View: Monitoring and Influencing Your Investments
            1. Keeping abreast of changes
            2. Making a careful selection of assets
            3. Using shareholder activism
      2. Chapter 2: The Socially Responsible Enterprise: Evaluating Companies
         1. Seeing How a Company Makes Its Money
            1. Searching for clues in the company's mission, strategy, and tactics
            2. Evaluating the company's goods and services
            3. Investigating how the company gets products to market
         2. Noting How a Company Balances Shareholder and Stakeholder Needs
            1. Maximizing shareholder value
            2. Remembering stakeholder value
            3. Uniting shareholders and stakeholders with the triple bottom line
         3. Heading Off Principal-Agent Problems
         4. Paying Attention to Company Reports
            1. Reading and understanding an annual report (10K)
            2. Perusing the precious proxy
            3. Reviewing quarterly reports (10Q)
            4. Checking up on current report filings (8K)
            5. Poring over the prospectuses
         5. Staying Up-to-Date in Other Ways
            1. Listening in on conference calls
            2. Viewing investor presentations
            3. Doing a news search
      3. Chapter 3: Introducing the Islamic Capital Market
         1. Defining the Concepts and Principles of Islamic Finance
            1. Searching for balance
            2. Managing wealth in a way that promotes justice
            3. Citing key principles that Islamic firms follow
         2. Adhering to Criteria for Islamic Investments
            1. Fleeing from forbidden industries
            2. Forgetting about financial market trading
         3. Identifying Types of Islamic Financial Products
            1. Products based on profit and loss sharing
            2. Products based on investment financing (sale and lease contracts)
            3. Islamic funds
            4. An alternative to bonds: Asset-based securities (sukuk)
         4. Introducing Islamic Financial Institutions
      4. Chapter 4: Managing Assets in Islamic Investments
         1. Shopping at the Islamic Capital Market
            1. Identifying exchanges on the Islamic capital market
            2. Recognizing liquidity issues in the Islamic capital market
         2. Stocks, Bonds, Mutual Funds, and More: Investigating Your Options
            1. Tapping into the pros and cons of the Islamic equity market
            2. Comparing commodity and equity funds
            3. Understanding the Islamic unit trust and mutual funds market
            4. Investing in Islamic exchange-traded funds (IETFs)
            5. Diversifying with the sukuk (Islamic bond) market
            6. Developing the Islamic derivative market
         3. Benchmarking the Performance of Islamic Funds: Islamic Indexes
            1. Dow Jones Islamic Market (DJIM) indexes
            2. S&P Shariah indexes
            3. FTSE Bursa Malaysia Hijrah Shariah Index
            4. MSCI Global Islamic Indices
         4. Developing New Methods for Managing Market Risk
            1. Identifying the issues
            2. Creating products that mitigate market risk
   10. Book IX: Crowdfund Investing
       1. Chapter 1: Getting the Lowdown on Crowdfund Investing
          1. Seeing the Power of the Online Crowd
             1. Spotting the business beneficiaries
             2. Finding businesses to invest in
          2. Becoming Part of the Crowd
             1. Diversifying your portfolio
             2. Doing your homework and offering expertise
             3. Weighing the risks and potential rewards
             4. Calculating your maximum investment
             5. Preparing for the worst-case scenario
       2. Chapter 2: Evaluating Crowdfund Investing Opportunities
          1. Protecting Yourself through Due Diligence
             1. Studying the candidates
             2. Pinpointing your connection to the entrepreneur or small business owner
             3. Watching the pitch video
             4. Reading the pitch information on the company page (and asking questions)
             5. Reviewing financial information
          2. Applying Some Common-Sense Tactics
             1. Making sure you actually understand the business or project
             2. Asking a simple question: Would you buy it?
             3. Discussing the opportunity with people you trust
             4. Reading the crowd feedback online
             5. Avoiding impulse buys
          3. Sniffing Out Fraud
             1. Trusting that the crowd can spot signs of trouble
             2. Reporting your suspicions to the funding portal
       3. Chapter 3: Committing Your Capital and Adding Value
          1. Making Your First Crowdfund Investment
             1. Pledging your amount on the funding portal
             2. Going into escrow until the campaign is complete
          2. Knowing Your Rights as an Investor
             1. The right to be informed
             2. The right to sell
          3. Anticipating Rewards for Your Investment
             1. Dividing up profits: Dividends
             2. (Possibly) benefitting from other perks
          4. Playing the Right Role as an Investor
             1. Sharing what and who you know
             2. Serving on a board of advisors
             3. Evaluating the quality of what's being produced
             4. Becoming an ambassador for the company
             5. Walking a fine line: Participating without becoming a nuisance
             6. Taking action if you believe the company is breaking the law
          5. Debating Whether You Should Exit a Crowdfund Investment
             1. Deciding to stay for more than your mandatory year
             2. Knowing your exit options
   11. Book X: Technical Analysis
       1. Chapter 1: Wrapping Your Brain around Technical Analysis
          1. Realizing That the Trend Is Your Friend
             1. Using reasonable expectation
             2. Charting course
          2. Knowing What to Do about Crowd Extremes
             1. Overbought and oversold
             2. Retracements
          3. Looking at Market Sentiment
             1. Tracking volume
             2. Understanding market effects
             3. Sampling information about sentiment
          4. Using Chart Indicators
             1. Examining how indicators work
             2. Choosing indicators
          5. Getting Started
       2. Chapter 2: Bars and Bar Reading
          1. Building Basic Bars
             1. Setting the tone: The opening price
             2. Summarizing sentiment: The closing price
             3. Hope springs: The high
             4. Hitting bottom: The low
          2. Using Bars to Identify Trends
             1. Identifying an uptrend
             2. Identifying a downtrend
             3. But wait. . . nothing is that simple
          3. Reading Special Bar Configurations
             1. Closing on a high note
             2. Spending the day inside
             3. Getting outside for the day
             4. Finding the close at the open
          4. Understanding Spikes
          5. Grasping Gaps
             1. Showing up out of nowhere: Common gaps
             2. Kicking things off: Breakaway gaps
             3. Continuing the push: Runaway gaps
             4. Calling it quits: Exhaustion gaps
             5. Scoring big: Island reversals
             6. Back to the beginning: Filling the gap
       3. Chapter 3: Charting the Market with Candlesticks
          1. Anatomy of a Candlestick
             1. Drawing the real body
             2. Defining doji: No real body
             3. Studying the shadows
          2. Identifying Emotional Extremes
             1. Hammer and hanging man
             2. Harami
          3. Turning to Reversal Patterns
          4. Recognizing Continuation Patterns
          5. Interpreting a Series of Patterns
       4. Chapter 4: Seeing Patterns and Drawing Trendlines
          1. Introducing Patterns
          2. Identifying Continuation Patterns
             1. Ascending and descending triangles
             2. Pennants and flags
             3. Dead-cat bounces
          3. Noting Classic Reversal Patterns
             1. Double bottoms
             2. Double tops
             3. The triple top: Head-and-shoulders
          4. Drawing Trendlines
             1. Creating rule-based trendlines
             2. Drawing support lines
             3. Drawing resistance lines
             4. Fine-tuning support and resistance
             5. Drawing internal trendlines: Linear regression
       5. Chapter 5: Transforming Techniques into Trades
          1. Capturing Trendedness with Channels
             1. Drawing straight-line channels
             2. Interpreting straight-line channels
          2. Using Channels to Trade
          3. Dealing with Breakouts
             1. Distinguishing between real and phony breakouts
             2. Pressuring the channel
          4. Picking Apart Pivot-Point (Horizontal) Channels
             1. Calculating the first zone of support and resistance
             2. Calculating the second zone of support and resistance
             3. Using pivot support and resistance
          5. Digging into Dynamic Lines and Channels
             1. Single moving average
             2. Double moving average
             3. Weighted moving average
          6. Understanding Volatility
          7. Gauging Momentum
             1. Simple momentum
             2. Complex momentum indicators
          8. Putting Lines and Indicators Together
   12. About the Authors
   13. Cheat Sheet
   14. More Dummies Products