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Stock Market Trading: The Event Driven Method
Stock Market Trading: The Event Driven Method
Stock Market Trading: The Event Driven Method
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Stock Market Trading: The Event Driven Method

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"Buy low, sell high" If you have ever traded stocks in the stock market, then I am sure that you have heard of this phrase. Have you ever purchased a stock that you thought was low in price, only to see it go lower after you have purchased the stock. Well if you have, you are not alone. Because this happens to just about everyone that has invested in the stock market.


The problem is, knowing when a stock is at a low price and it is time to purchase it. This is really very simple. The only time a stock is at a low price is when it goes up after you purchase it. By now you are saying to your self, I know that. Well could you have known that the stock was going up without a tip from some one? Even with that tip, could you have analyzed the stock to see for your self? If not, then this book is for you. Its main purpose is to enable you to find, analyze, purchase, and sell stocks on your own while making a hansom profit along the way.


With this book you will be able to find main events in a stock's history right up to the current time to let you know if this is a stock to purchase and when, or to leave it alone.

LanguageEnglish
Release dateOct 9, 2003
ISBN9781412215046
Stock Market Trading: The Event Driven Method
Author

Geary Hooper

Geary Hooper resides in Texas, with his wife and four children. After ten years of trading in the stock market and working for JPMorgan/Chase, Geary has developed a different approach to buying and selling stocks in the stock market. Using this approach you can take the guess work out of trading in the stock market. For more information about the author or this book, visit www.stocktradingbook.com.

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    Stock Market Trading - Geary Hooper

    © Copyright 2003 Geary Hooper. All rights reserved.

    No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the written prior permission of the author.

    DISCLAIMER

    The author and publisher of this book assume no responsibilities for the investing action taken by the readers. The author and publisher are not providing investment advice. The author and publisher do not make any claims, promises, or guarantees that any suggestions, systems, trading strategies or information will result in a profit or loss. All readers assume all risk, including but not limited to the risk of losses.

    National Library of Canada Cataloguing in Publication

    Hooper, Geary, 1947-

         Stock market trading : the event driven method / written by Geary

    Hooper.

    ISBN 978-1-4120-0857-0 Softcover

    ISBN 978-1-4122-1504-6 eBook

         I. Title.

    HG4 551.H6 6 2003         332.63’22         C2003-903988-9

    Image369.JPG

    This book was published on-demand in cooperation with Trafford Publishing.

    On-demand publishing is a unique process and service of making a book available for retail sale to the public taking advantage of on-demand manufacturing and Internet marketing. On-demand publishing includes promotions, retail sales, manufacturing, order fulfilment, accounting and collecting royalties on behalf of the author.

    Suite 6E, 2333 Government St., Victoria, B.C. V8T 4P4, CANADA

    Phone          250-383-6864          Toll-free          1-888-232-4444 (Canada & US)

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    Web site     www.trafford.com  TRAFFORD PUBLISHING IS A DIVISION OF TRAFFORD HOLDINGS LTD.

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    10          9          8          7          6          5          4          3          2

    Contents

    Chapter 1 Buying Top Notch Stocks

    Chapter 2 Selling Top Notch Stocks

    Chapter 3 Life Cycle Of A Bull/Bear Market

    Chapter 4 Chart and Ticker Tape Reading

    Chapter 5 Spotting Market Tops

    Chapter 6 Spotting Market Bottoms

    Chapter 7 Market Psychology

    Chapter 8 Best Patterns To Short Stocks

    Chapter 9 Risk Management

    Chapter 10 Hedging Your Stocks

    Chapter 11 Leading Companies Turn Inventory Quickly

    Chapter 12 Stock Tidbits

    Chapter 13 Where To Find These Topnotch Stocks

    Chapter 14 Stock Purchase/Sell/Track Log

    Chapter 15 Day Trading

    Chapter 16 Very High Level Conclusion

    DEDICATION

    I would like to dedicate this book to my wife Cindy, who put up with my long hours of research and writing of this book. Also to our four children and grandchildren, who will be able to trade stocks with success in any given market.

    Introduction

    Who wants to learn how to correctly speculate in the stock market? Speculating is the art of correctly trading in the stock market. In other words, how to make money buying and selling stocks at the right time. In this book, you will learn the art of knowing when to be in the market, as well as when to have the patience to sit on the side-lines and not trade at all. And in this book we will talk about how and when to buy and sell stocks and when not to. We will cover other topics such as how to short stocks in the market, market psychology, where to find topnotch stocks, ETC. I will introduce a new concept in trading stocks called EVENT DRIVEN TRADING.

    The concept of event driven trading will take you away from the old buy and hold theory. Some parts of this type of trading are used today by many professional traders in the NYSE and other Markets. I have developed event driven computer systems for years, so with that along with my stock training, I came up with the concept of event driven stock trading. Event driven trading allows you to let a stock along with the direction of the stock market tell you when it is time to buy or sell. Some stocks can be held for years and others less than a day. It all depends on the stock after you purchase it. In other words let the stock and the market tell you when and what to do. Some people say they are short term traders while others contend they are long term investors. Have you ever heard an investor say his stock is down 50% but he is not worried because he/she is a long term investor and the stock will come back some day, only to say the same thing when the stock drops another 10%. Then he or she is trapped in becoming a long term investor in that stock. Using the methods laid out in this book, you will NEVER have to take that kind of loss again NEVER. Once the method in this book is learned and I do mean learned, trading in the stock market will be fun and profitable. You will say to yourself, why didn’t I think of that myself and why don’t more people use it. Basically 95% of the people in the stock market don’t have the discipline to trade this way and are unwilling to change to any degree the way they are trading now. They want something for nothing. They are willing to take any tip or rumor that comes along. By taking someone else’s tip, in effect the trade becomes theirs, not yours, and you are not sure when to sell and get out. It is very rare to get a tip to sell a stock, but rumors to buy are all over the place. After reading this book, I hope you won’t fall for tips and rumors again. You will not need them. You can trade on your own.

    With this method you will learn not to out think or out trade yourself. You will learn how and when to be patient and when to pull the trigger on a stock. It takes discipline to be successful in the stock market. But it is a trade that can be learned. Learn it and use it.

    This book starts off by telling you how to buy leading stocks in leading industry groups, and then it will go through the concept of when to sell, followed by a chapter on reading the market. All three of these chapters go hand in hand. Learn the concepts like the back of your hand. On second thought, learn them better than knowing the back of your hand. Next we will learn how to read charts for both stocks and the market itself. Reading charts is a key element in your arsenal of goodies to make money in the market. Two other key elements are followed on how to tell when the stock market is at or near its top or bottom.

    We will go over two other areas that are probably the most important topics in stock speculation, psychology and controlling your risk. Read and learn all you can about these topics. It will make a difference between failing and succeeding in the market.

    We will also look at places to find these kinds of stocks to buy and sell.

    Remember, become a student of the stock market, and always stay a student of the stock market.

    There are many roads to going broke in the stock market. Don’t take one of them.

    Good Luck in Your Trading.

    PREFACE

    Stock Market Trading, The Event Driven Method

    Buy low, sell high If you have ever traded stocks in the stock market, then I am sure that you have heard of this phrase. Have you ever purchased a stock that you thought was low in price, only to see it go lower after you have purchased the stock? Well if you have, you are not alone. This happens to just about everyone that has invested in the stock market.

    The problem is to know when a stock is at a low price and it is time to purchase it. This is really very simple. The only time a stock is at a low price is when it goes up after you purchase it. By now you are saying to your self, I know that. Well could you have known that the stock was going up without a tip from some one? Even with that tip, could you have analyzed the stock to see for your self? If not, then this book is for you. Its main purpose is to enable you to find, analyze, purchase, and sell stocks on your own while making a hansom profit along the way.

    With this book you will be able to find main events in a stock’s history right up to the current time to let you know if this is a stock to purchase and when, or to leave it alone.

    Chapter 1 Buying Top Notch Stocks

    This chapter deals with buying stocks and is broken down to show the major different components that you need to look for when scouting for stocks to buy.

    After reading this chapter you will know how to find the stocks that are leading or about to lead the current market and in all probability will continue to lead the market. These are high powered stocks, the kind every one wants to own but their current prices make them seem too high to purchase. But the opposite is true, what seems to high to purchase now could really be very cheap compared to future prices. Most investors want to buy low and sell high. Nothing wrong with that except what is low now will probably be lower tomorrow or soon there after. They are looking for low powered stocks that seem cheap but are going no where. Please take the time to learn how to purchase stocks correctly, you won’t regret it later.

    I must confess that a lot of this chapter is dry reading and shows different examples on what to look for, but once you learn its contents you will see the light.

    Later in this chapter are the examples that I am talking about showing the major buying signals. When using them, keep in mind always keep a sharp eye on the market.

    DON’T go against the markets. When buying make sure the markets are in an upward trend. Make sure they are in a downward trend when shorting stocks. The general market is the guide needed to let you know, if you should be buying or selling stocks.

    Most investors label themselves as short or long term players. Do not get caught in that frame of mind. Instead think of yourself as an EVENT driven trader. This type of thinking will help keep you out of trouble when it comes to investing. Event driven trading means simply, that you are waiting on a set of events to happen before you buy or sell a stock. For example one of the events that you want to happen before you purchase a stock, is the stock is blasting into and out of its pivot point (as discussed in detail later in this

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