Tensile Trading The 10 Essential Stages of Stock Market Mastery

Stage 1 Money Management 1
Crafting Your Money Management Plan 5
Becoming a Successful Investor 9
The Importance of Asset Allocation 11
Constructing Your Personal Asset Allocation Profile 15
X-Ray Magic 24
Allocation Maintenance 24
Stage 2 The Business of Investing 29
Ten Invaluable Investing Lessons 29
Staying Committed on the Road 36
The Investor’s Quad 36
Stage 3 The Investor Self 39
The Five Levels of Investor Growth 40
Investor Weaknesses 42
Learn from the Professionals 46
Your Daily Journal 47
Stage 4 Market Analysis 53
Permission to Buy 54
Telescope-to-Microscope Approach 55
Charting Indicators 56

viiiContents

Organizing Your Analysis 60
Common Misunderstandings 62
The Market Stages and Technical Analysis 64
Fundamentals Checklist for Stocks 67
Fifty versus Fifty 68

S
tage 5 Routines 71
Choosing Your Time Frame 72
From Salesmen to Stock Traders 74
Personal Peak Performance 75
Daily, Weekly, Monthly, Annually 76
A Day in the Life 79

S
tage 6

Stalking Your

Trade 87
Where to Look 88
What to Look For 88
How to Look 89
When to Look 89
Filters 91
Human
Nature and

Overhead Supply 96
SecondOpinion Resources 98
The Sisters Strategy Revisited 98
Mimic Wall Street’s Masters 99
The Base-Hit Investor 101

S
tage 7 Buying 103

BATTL
E V Methodology 106
Pyramid Trading 106
The Language of the Market 108
Buy Routines 109
Considering Alternatives 111
Perfection Paralysis 111
Commission-Free Mind-Set 112
Invest Like You Drive 113
It’s All about Stress Control 114

S
tage 8 Monitoring 117

You Bought It—

Now What? 118
Revisiting the Investor Self 119

ixContents

Market Monitoring 120
Adjusting Stops 121
Tools, Routines, and Charts 123
Fundamentals 126
Allocation Updates 127
What Is Your Motivation? 129
Stage 9 Selling 131
Sell on Technicals, Not Fundamentals 133
The Art of Selling 135
Developing Your Selling System 138
Mutual Fund Sell Signals 146
Selling with the Sisters 148
Sell-Side Pyramid Trading 149
The Endowment Effect 149
The Investor’s Trail 150
Stage 10 Revisit, Retune, Refine 153
Cleanse and Move Forward 154
Personal Data Mining 164
The Investor’s Big Three 165
Thoughts on Transformation