Trade the Trader
- Know Your Competition and Find Your Edge for Profitable Trading

Quint Tatro










© 2011 by Pearson Education, Inc.
Publishing as FT Press
Upper Saddle River, New Jersey 07458
This book is sold with the understanding that neither the author nor the publisher is engaged
in rendering legal, accounting, or other professional services or advice by publishing this
book. Each individual situation is unique. Thus, if legal or financial advice or other expert
assistance is required in a specific situation, the services of a competent professional should be
sought to ensure that the situation has been evaluated carefully and appropriately. The author
and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the
use or application of any of the contents of this book.
Charts courtesy of Worden—www.Worden.com.
FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or
special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-
382-3419, corpsales@pearsontechgroup.com. For sales outside the U.S., please contact
International Sales at international@pearson.com.
Company and product names mentioned herein are the trademarks or registered trademarks of their
respective owners.
All rights reserved. No part of this book may be reproduced, in any form or by any means, without
permission in writing from the publisher.
Printed in the United States of America
First Printing October 2010
ISBN-10: 0-13-706708-9
ISBN-13: 978-0-13-706708-4
Pearson Education LTD.
Pearson Education Australia PTY, Limited.
Pearson Education Singapore, Pte. Ltd.
Pearson Education North Asia, Ltd.
Pearson Education Canada, Ltd.
Pearson Educatión de Mexico, S.A. de C.V.
Pearson Education—Japan
Pearson Education Malaysia, Pte. Ltd.
Library of Congress Cataloging-in-Publication Data
Tatro, Quint, 1977-
Trade the trader : know your competition and find your edge for profitable trading / Quint Tatro.
p. cm.
ISBN-13: 978-0-13-706708-4 (hardcover : alk. paper)
ISBN-10: 0-13-706708-9
1. Investment analysis. 2. Technical analysis (Investment analysis) 3. Portfolio management. I.
Title.
HG4529.T38 2011
332.64—dc22
2010027306
To traders: May you always embrace the tape.
This page intentionally left blank
Contents
Chapter 1 I’m Trading Against You . . . . . . . . . . . . . . . . . . . . 1
Chapter 2 My Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Chapter 3 It’s All Opportunity . . . . . . . . . . . . . . . . . . . . . . . 19
Chapter 4 The Other Traders . . . . . . . . . . . . . . . . . . . . . . . 25
Chapter 5 Finding Your Edge . . . . . . . . . . . . . . . . . . . . . . . 33
Chapter 6 Timing the Entry . . . . . . . . . . . . . . . . . . . . . . . . . 47
Chapter 7 Trend Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Chapter 8 The Basics Are Not Enough . . . . . . . . . . . . . . . . 77
Chapter 9 Pick Your Time Frame . . . . . . . . . . . . . . . . . . . . 85
Chapter 10 Developing Your Plan . . . . . . . . . . . . . . . . . . . . . 97
Chapter 11 Determining Entry Points . . . . . . . . . . . . . . . . 109
Chapter 12 Setting Stops . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Chapter 13 How to Trade the Trader . . . . . . . . . . . . . . . . . 137
Chapter 14 Using and Controlling Risk
to Your Advantage . . . . . . . . . . . . . . . . . . . . . . . 149
Chapter 15 Taking Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Chapter 16 Reviewing the Entire Plan . . . . . . . . . . . . . . . . 173
Chapter 17 It’s a Head Game . . . . . . . . . . . . . . . . . . . . . . . . 181
Chapter 18 Dealing with the Emotions . . . . . . . . . . . . . . . . 183
Chapter 19 Following the Trend . . . . . . . . . . . . . . . . . . . . . 189
Chapter 20 The Blowup . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203