Stand Apart from the Crowd

Stuart's book has been helping traders become consistently profitable since its first release in 2001. Now in it's 4th edition, the book has been fully revised with new material and interviews with Market Experts to mark it's 10th Anniversary.

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Trading in a Nutshell

Planning for Consistently Profitable Trading
10th Anniversary Edition
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Trading in a Nutshell was first released in 2001 as an guide for trading Australian shares, and over the years has been revised and updated.

To mark the 10th Anniversary of the first release of Stuart McPheeís book, this edition has been fully revised with new material and interviews with Market Experts added.

The trading methods outlined in Stuart McPhee's new book were designed for all countries and markets around the world.

Table of Contents

Chapter 1 – An Introduction to Trading
  • Trading
  • Develop a Trading Plan
  • Commit to It
  • My Story
  • Put in the Required Effort
Chapter 2 – Financial Markets
  • What are stock exchanges?
  • Stock Exchanges around the world
  • Companies
  • Other Markets and Products
  • Stockbrokers
Chapter 3 – Technical Analysis and Charts
  • Fundamental Analysis
  • Technical Analysis
  • Open, High, Low, Close and Volume
  • Charting
  • Volume
  • Trends
  • Peaks and Troughs
  • Moving Averages
  • Always Consider the Trend
Chapter 4 – Chart Patterns and Indicators
  • Support and Resistance
  • Triangles
  • Double Tops and Bottoms
  • Indicators
Chapter 5 – Developing a Trading Strategy
  • The Importance of Entry
  • Aim for consistency
  • Trading Style and Time Frame
  • Trade with the Trent
  • Using moving averages
  • Trend alignment
  • Trading strategy structure
  • Using Indicators
  • Confirmation
  • Confidence
  • Liquidity
  • Weight of Evidence
  • Sector Analysis
  • Diversity
  • Keep it Simple
  • Checklist
Chapter 6 – The Exit Decision
  • Stop Losses
  • Inactivity Stop
  • Trailing exits
  • Stop Losses and Trailing Exits Together
  • Profit Targets
Chapter 7 – Trade Execution
  • At Market / At Limit Orders
  • Which One Should I Choose?
  • Know your Orders
Chapter 8 – Money Management and Risk
  • Importance of Money Management
  • Your Primary Aim
  • Risk
  • Capital Preservation
  • Risk Amount
  • Position Sizing
  • Probability
  • Half the risk
  • Volatility
  • Averaging Down
  • Averaging Up
  • Adopt a Defensive Posture
  • A Final Thought
Chapter 9 – Developing your Trading Plan
  • Buy and Hold Approach
  • Aim for Something
  • Discover Yourself
  • Give Yourself an Edge
  • Monitoring your trades and performance
  • Paper Trading/Testing
Chapter 10 – Developing Your Mindset
  • Attitude
  • Confidence
  • Patience
  • Control
  • Emotions
  • Perspective
  • Decisiveness
  • Humility
  • Discipline
  • Get Healthy
  • Trading as a Game
  • Give Yourself a Break
  • Ultra-comfort
  • Focus
Chapter 11 – Rules of Trading
  • Cut Your Losses
  • Let Your Profits Run
  • Follow the Trend
  • Don’t Overtrade
  • Never Blindly React to a Tip
  • Always Trade Liquid Stocks
  • Keep Positions Small
  • Don’t Buy Something Because it Looks Cheap
  • Keep it Simple
Chapter 12 – The Experts
  • Julie Melillo
  • Ray Barros
  • Mark Cook
  • Alan Hull
  • Rahul Mohindar
  • Greg Morris
  • Brent Penfold
  • Dr Van Tharp
Chapter 13 – Getting Started
  • Guidance for New Traders
  • Discover Yourself
  • Money Management
  • Entry and Exit
  • Your Routine
  • Taxation Structure
  • Information
  • Computers and Software
  • The Internet
  • Recordkeeping
  • Conclusion

Interviews with Market Experts



Jo Martin

Australian Investors Association

It is easy to understand and everything you need to know about trading is logically set out. It is a book for everyone, from the newbie through to the more experienced trader who wants a revision and an annual ‘tune up’. Read full review

Ray Barros

Fund Manager and Interviewee in Trading in a Nutshell

The book is an excellent resource, especially if you are a newbie trader. What I like most about this book is the easy to understand manner in which it is written. It covers all the essential material for a newbie to understand what he needs to succeed at trading.

Rahul Mohindar

Trader and interviewee in Trading in a Nutshell

No matter which stage of the learning curve a trader’s at, Trading in a Nutshell resonated some very meaningful principles that any trader should adhere to.

Julie Melillo

Trading Coach and interviewee in Trading in a Nutshell

A concise, well-written read with smart tips. This is an essential book for every trader’s bookshelf. I recommend Trading in a Nutshell to all of my trader clients — from Wall Street and beyond



Let me take you back to what now seems a long time ago. I first became interested in the Australian sharemarket in 1996 and set about making some trading decisions of my own with reasonable success. Living in the US throughout 1997 and 1998 brought me closer to a major part of the financial world, New York...

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Market Expert - Greg Morris

I first met Greg Morris at a trading conference in Las Vegas, USA. I listened to his presentation at that conference and everything he said made so much sense. He spoke with such wisdom that obviously came with decades of experience in financial markets....

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Market Expert - Rahul Mohindar

met Rahul at the same conference where I met Greg Morris. He spoke extensively about technical analysis and I liked the way he explained things in a very simple way. Rahul regularly appears as a panellist on CNBC India, CNN IBN, and CNBC Awaaz, and his findings and research on the markets have been carried in India’s leading business daily’s including the Economic Times and the Hindu....

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  • 201210th Anniversary - 4th Edition

    Book Cover - Trading in a Nutshell - 4th Edition
    10 years after the 1st edition, Trading in a Nutshell continued to sell and a 4th edition was published with more material and a large 'Market Wizards' style chapter.
  • 20083rd Edition

    Book Cover - Trading in a Nutshell - 3rd Edition
    Whilst trading principles are universal, the 3rd edition had more material added and included more markets from the Asia Pacific region.
  • 20052nd Edition

    Book Cover - Trading in a Nutshell - 2nd Edition
    After the ongoing success of the 1st edition, the publisher had no hesitation in agreeing to a 2nd edition, where a dedicated chapter on the psychology of trading was included.
  • 20011st Edition

    Book Cover - Trading in a Nutshell - 1st Edition
    After much discussion with a publisher, Wrightbooks (now owned by John Wiley) decided to take a punt and agree to publish Stuart's book - it became a publisher best seller within months.


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