The Truth About Day Trading Stocks A

A realistic guide to day trading today's stock marketThe Truth About Day Trading Stocks is an uncompromisingly realistic look at the challenges involved in becoming a successful day trader. Based on author Josh DiPietro's ten years of experience as a day trader, this book dissects the psychological and strategic pitfalls that cause most aspiring day traders to fail. Written in an engaging and sometimes humorous tone, The Truth About Day Trading Stocks relates his own experiences, and in so doing, provides the reader with valuable lessons. This book is an antidote to trading industry hype that encourages traders to believe that trading is easily learned and is a fast path to wealth. It explains that the conventional route of attending seminars, buying software, and opening an account with a major brokerage house is a path to failure. 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. The goal of this guide is to slow down the over-eager, over-optimistic amateur day trader by imparting a realistic view of the challenges of day trading and providing tools, techniques, and insights to become a successful trader without losing a huge amount of money in the process.Josh DiPietro (West Dennis, MA and New York, NY) has been day trading stocks for ten years. He operates a Web site, www.daytraderjosh.com, and provides training programs for aspiring day traders.

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.

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

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The Truth About Day Trading Stocks A Cautionary Tale About Hard Challenges and What It Takes To Succeed

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Table of Contents

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