Geary Hooper - Stock Market Trading

Stock Market Trading

The Event Driven Method

I have been in the stock market for over 10 years, worked in the computer industry, programming and designing systems for over 30 years. I have made my share of mistakes trading stocks for years. Several years ago, I set out to find a better way to buy and sell stocks. I was tired of losing money.

One thing I knew working with computer software is, triggers or events can make a program do different things, assuming the computer program is working correctly. An example of an event in a computer program would be, when certain inventory in a store, say toothpaste gets too low, the software would order more toothpaste. That low inventory of toothpaste triggered an event to order more. After investigating, I noticed there were different events in a stock that would cause it to go up or down most of the time; I took that concept from software to the stock market.

If you think of it, we go through life every day with hundreds of events causing us to do different things. When driving a car and you come to a stop sign, you stop, not thinking about it. The fact the stop sign was there caused an event to happen. If you learn all the events that cause stocks to go up or down and use them properly you can make a good profit trading stocks.

I hope you will enjoy reading this book and employ the techniques outlined within.

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 332.6322 C2003-903988-9

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Contents

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 didnt I think of that myself and why dont more people use it. Basically 95% of the people in the stock market dont 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 elses 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 wont 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.