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The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges and What It Takes To Succeed(421 Wiley Trading)

The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges and What It Takes To Succeed(421 Wiley Trading)


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About the Book

The Truth About Day Trading Stocks A realistic guide to day trading today's stock market In terms of the potential for heavy financial losses, day trading is a high-risk profession. No one should contemplate day trading without giving thought to the ways he can lose, and all the ways to lessen or avoid them. Yet many people enter the game with unrealistic expectations, unaware of what it takes to succeed. Seminars and software alone do not make a successful day trader, cautions author Josh DiPietro. Instead, a trader must learn hard lessons of self-discipline, consistency, and staying in the game for the long haul to have a real chance of success. In The Truth About Day Trading Stocks, DiPietro offers the amateur day trader a brutally honest look at the pitfalls of day trading—and how to hopefully avoid them. Written in an engaging and sometimes humorous tone, The Truth About Day Trading Stocks draws on the author's own experiences as a day trader to offer a clear-cut departure from typical "golden goose" strategies promising instant wealth. Instead, he attempts to slow down the dangerous fervor of the average amateur and demonstrate the ways you can become a professional and not lose your shirt in the process. The Truth About Day Trading Stocks shows how trading decisions are bent and shaped by emotions, and why it is critical to know yourself, understand risk, and remember that increasing your skill level is a gradual, ongoing process—there's always more to learn! After dispensing with popular illusions, DiPietro proceeds to offer realistic, practical trading advice—comparing pay-per-trade with pay-per-share brokers, determining which works best and when, offering suggestions on how to avoid the prospect of perfect trades turning ugly, and more. At the end of the book, he also includes a section called "Rules to Remember," a list of over eighty rules, simply stated and easy to grasp, to benefit amateurs' performance. Throughout the book, the author describes his development of acute self-awareness while figuring out how to succeed. Through that blunt self-portrayal, the goal of The Truth About Day Trading Stocks is to help you create a disciplined mind-set and apply it to your own successful trading style.

Table of Contents:
Preface xiii Acknowledgments xvii Introduction: The Wholehearted Amateur 1 PART I Psychological Truths and What to Do about Them 5 CHAPTER 1 Truths about Yourself to Know First 7 How Often Do You Trade, and How Profitably? 10 How Much Are You Trading in Capital and Leverage? 10 How Long Have You Been Trading? 12 What Financial Instruments Are You Trading? 13 Are You Trading Other Peoples’ Money or Your Personal Capital? 13 Are You a Licensed Trader, or Trading Independently? 13 How Were You Trained? 14 Rules to Remember 14 CHAPTER 2 How Emotions Can Destroy a Trade 15 The Fear Factor 16 Greed Is Not Good 18 Rules to Remember 21 CHAPTER 3 Preventing Overconfidence 23 Ignoring Your Predetermined Stop/Loss Price 24 Holding Too Long 24 Rules to Remember 26 CHAPTER 4 From Impatient to Cool, Calm, and Collected 27 The Waiting Is the Hardest Part 29 Deciding to Learn More 31 Rules to Remember 33 CHAPTER 5 Taking Breaks 35 Break When Your Confidence Is Low 38 Break Because It’s Just Not Working 38 Break and Then What? 39 Rules to Remember 42 PART II The Truth about Your Risk 43 CHAPTER 6 The Importance of Risk Management 45 The Amount of Trading Capital Allocated to Each Trade 46 The Timing for Allocating Capital to a Trade 47 Overexposure to Risk 48 The Stock or Company You’re Trading 49 The Time of Day You’re Trading 49 Gambling 50 Rules to Remember 51 CHAPTER 7 Why Overexposure to the Market Can Hurt 53 Time versus Timing 54 Rules to Remember 58 CHAPTER 8 Budgeting: Knowing Your Financial Limitations 59 Don’t Quit Your Day Job: Catch-22 60 Crunching the Numbers 62 Cushion Cash 63 Rules to Remember 64 CHAPTER 9 Minimizing Your Risk with Stop/Loss 65 Making Stop/Loss Automatic 65 Rules to Remember 71 CHAPTER 10 Averaging-Down: A Skilled Strategy 73 To Average-Down Successfully Takes Mastery 74 Know-How Doesn’t Grow Overnight 75 Rules to Remember 77 CHAPTER 11 Gambling versus Day Trading 79 Rules to Remember 82 PART III Intraday Trading Truths 83 CHAPTER 12 Why Some Traders Make More Mistakes 85 Pick Your Stocks Carefully 86 Focus, Focus, Focus 87 Pay Attention to Market-Moving News 90 Rules to Remember 91 CHAPTER 13 Trading Consistently All Day 93 Rules to Remember 98 CHAPTER 14 Stock Picking: Simplifying the Process 99 Your Stock Should Have an Average Daily Volume of One Million Shares or More 100 Choose Stocks between $10 and $100 101 Pick Stocks That Display Tradable Intraday Price Swings 102 Don’t Trade Stocks Affected by Strict Federal Regulations 102 Beware of Stocks Directly Affected by Current News Headlines 104 Rules to Remember 105 CHAPTER 15 Why News Can Be Just Noise 107 Trading on News versus Monitoring News 109 Rules to Remember 111 PART IV The Truth about Training and Preparation 113 CHAPTER 16 About Those Training Programs 115 Seminars for the Greenhorns 116 Training Programs for the More Experienced Trader 119 Tips for Selecting the Right Program 120 Rules to Remember 123 CHAPTER 17 Picking the Right Online Broker: Pay-per-Share versus Pay-per-Trade 125 Starting Out with Pay-per-Trade 125 Transitioning to Pay-per-Share 126 High Leverage Pros and Cons 130 Hang on to Your Pay-per-Trade Account 131 Rules to Remember 132 CHAPTER 18 Paper-Trading Strategy 133 Paper Trading for the Amateur 134 A Word about Advanced Paper Trading 139 Rules to Remember 140 CHAPTER 19 Trading for Skill versus Trading for Income 141 Building a Foundation of Trading Skills 141 First Level 144 Second Level 146 Third Level 147 Summary 148 Rules to Remember 150 CHAPTER 20 The Perfect Trading Day 151 Early Morning Activities 151 Pre-market Trading 153 The Opening Bell 156 Midday Activities 157 The Last Hour of Trading 159 The Closing Bell 160 After-Market Trading 160 Homework 161 CHAPTER 21 The Worst Trading Day 163 Early Morning Activities 163 Premarket Trading 164 The Opening Bell 166 Midday Activities 166 Last Hour of Trading 167 The Closing Bell 168 After-Market Trading 168 Homework 169 Conclusion: Parting Words 171 Appendix: Rules to Remember 175 About the Author 181 Index 183 CHAPTER 2 How Emotions Can Destroy a Trade. The Fear Factor. Greed Is Not Good. Rules to Remember. CHAPTER 3 Preventing Overconfidence. Ignoring Your Predetermined Stop/Loss Price. Holding Too Long. Rules to Remember. CHAPTER 4 From Impatient to Cool, Calm, and Collected. The Waiting is the Hardest Part. Deciding to Learn More. Rules to Remember. CHAPTER 5 Taking Breaks. Break When Your Confidence is Low. Break Because It's Just Not Working. Break and Then What? Rules to Remember. PART II The Truth About Your Risk. CHAPTER 6 The Importance of Risk Management. The Amount of Trading Capital Allocated to Each Trade. The Timing for Allocating Capital to a Trade. Overexposure to Risk. The Stock or Company You'Re Trading. The Time of Day You're Trading. Gambling. Rules to Remember. CHAPTER 7 Why Overexposure to the Market Can Hurt. Time versus Timing. Rules to Remember. CHAPTER 8 Budgeting: Knowing Your Financial Limitations. Don't Quit Your Day Job: Catch-22. Crunching the Numbers. Cushion Cash. Rules to Remember. CHAPTER 9 Minimizing Your Risk with Stop/Loss. Making Stop/Loss Automatic. Rules to Remember. CHAPTER 10 Averaging-Down: A Skilled Strategy. To Average-Down Successfully Takes Mastery. Know-How Doesn't Grow Overnight. Rules to Remember. CHAPTER 11 Gambling versus Day Trading. Rules to Remember. PART III Intraday Trading Truths. CHAPTER 12 Why Some Traders Make More Mistakes. Pick Your Stocks Carefully. Focus, Focus, Focus. Pay Attention to Market-Moving News. Rules to Remember. CHAPTER 13 Trading Consistently All Day. Rules to Remember. CHAPTER 14 Stock Picking: Simplifying the Process. Your Stock Should Have an Average Daily Volume of One Million Shares or More. Choose Stocks between $10 and $100. Pick Stocks That Display Tradable Intraday Price Swings. Don't Trade Stocks Affected by Strict Federal Regulations. Beware of Stocks Directly Affected by Current News Headlines. Rules to Remember. CHAPTER 15 Why News Can Be Just Noise. Trading on News versus Monitoring News. Rules to Remember. PART IV The Truth About Training and Preparation. CHAPTER 16 About Those Training Programs. Seminars for the Greenhorns. Training Programs for the More Experienced Trader. Tips for Selecting the Right Program. Rules to Remember. CHAPTER 17 Picking the Right Online Broker: Pay-per-Share versus Pay-per-Trade. Starting Out with Pay-per-Trade. Transitioning to Pay-per-Share. High Leverage Pros and Cons. Hang on to Your Pay-Per-Trade Account. Rules to Remember. CHAPTER 18 Paper-Trading Strategy. Paper Trading for the Amateur. A Word About Advanced Paper Trading. Rules to Remember. CHAPTER 19 Trading for Skill versus Trading for Income. Building a Foundation of Trading Skills. First Level. Second Level. Third Level. Summary. Rules to Remember. CHAPTER 20 The Perfect Trading Day. Early Morning Activities. Pre-Market Trading. The Opening Bell. Midday Activities. The Last Hour of Trading. The Closing Bell. After-Market Trading. Homework. CHAPTER 21 The Worst Trading Day. Early Morning Activities. Premarket Trading. The Opening Bell. Mid-Day Activities. Last Hour of Trading. The Closing Bell. After-Market Trading. Homework. Conclusion: Parting Words. Appendix: Rules to Remember. About the Author. Index.

About the Author :
JOSH DIPIETRO has been day trading stocks for ten years. He operates a web site (www.daytraderjosh.com) and provides training programs for aspiring day traders. DiPietro's trading approach involves making many trades every day, taking small profits, exiting losing trades quickly, and minimizing transaction costs. He is a critic of the educational paths offered by the established trading industry and is dedicated to providing an alternative educational approach for aspiring traders.

Review :
"DiPietro gives an insight int to what it takes to become a day trader. And he should know...." (City A.M., July 27th 2009)


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Product Details
  • ISBN-13: 9780470495841
  • Publisher: John Wiley & Sons Inc
  • Publisher Imprint: John Wiley & Sons Inc
  • Language: English
  • Series Title: 421 Wiley Trading
  • ISBN-10: 0470495847
  • Publisher Date: 27 May 2009
  • Binding: Digital (delivered electronically)
  • No of Pages: 208
  • Sub Title: A Cautionary Tale About Hard Challenges and What It Takes To Succeed


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