Day Trading for Beginners - Adam Edwards - E-Book

Day Trading for Beginners E-Book

Adam Edwards

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Beschreibung

If you want to discover everything there is to know about day trading, even if you know nothing at all and start crushing the stock market then keep reading …

Are you looking for a way to get the extra pennies to pay for your next vacation?

There is nothing wrong with your car. Yet, a bit more horsepower would make your daily drive to work much more fun.

The first thing everyone needs to start making money is a plan.

You just need to discover a powerful way of trading millions of ordinary people used before.

...and succeeded with to make their smaller and bigger dreams come true.

Stock market investing doesn´t have to take weeks, month or years. There is a unique shortcut called day trading.

But …

Do you even know what 24h trading is?

It is simpler than you think.

If you are a day trader, then it means you spend all day trading stocks, options, and commodities.

Even if you don’t understand these terms, you will soon.

You don’t need a college degree to understand how to create wealth through day trading.

Even better, you don’t need any qualifications at all.

But you do need to be someone who is ambitious enough to take action.

Once you’ve discovered what day trading is and what the best methods are to always be one step ahead of everyone else, then there’s nothing to stop you from becoming the next Wolf of Wall Street.

Day trading is a serious business ... with serious rewards.

But that doesn’t mean it isn’t fun. Imagine sitting on your sofa watching the number of dollars in your bank account going up and up and up ... and all because you’ve created a solid trading plan.

Trading isn’t the same as gambling. There are simple rules that you can follow to avoid common mistakes and protect you from risky moves in this business.

But before you can start crushing it through day trading, there’s one simple thing you need to do first.

Create a plan.

Then you can take the plunge and make your financial dreams a reality.

In this book, “ Day Trading for Beginners”, you will discover:

  • The 5 most important rules to consider when beginning your day trading journey
  • The first thing you need to check every morning before you start trading
  • The essential tips that every beginner needs to know
  • The types of stocks that will make you money
  • The types of stocks that you MUST avoid
  • The #1 thing you need before you can start day trading
  • How to develop a winning mindset
  • The shortcuts to avoiding risks and reaping rewards
  • The best time of the day to do your trading
  • The 7 essentials for day trading
And much, much more.

You know, you can´t call in money while meditating on your bed. You need to execute a strategic plan.

But you also understand that a well-structured system that is proven to yield significant profits is something that you can follow too.

You don’t have to have a profound intellect.

You just need to be willing to create a plan and follow it.

Then you can start trading and see long-lasting results.

If you want to discover day trading for ordinary people, then you need this book today!

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Day Trading for Beginners

The Complete Guide on How to Become a Profitable Trader Using These Proven Day Trading Techniques and Strategies. Includes Stocks, Options, ETFs, Forex & Futures

––––––––

Adam Edwards

© Copyright 2019 - All rights reserved.

The content contained within this book may not be reproduced, duplicated or transmitted without direct written permission from the author or the publisher.

Under no circumstances will any blame or legal responsibility be held against the publisher, or author, for any damages, reparation, or monetary loss due to the information contained within this book. Either directly or indirectly.

Legal Notice:

This book is copyright protected. This book is only for personal use. You cannot amend, distribute, sell, use, quote or paraphrase any part, or the content within this book, without the consent of the author or publisher.

Disclaimer Notice:

Please note the information contained within this document is for educational and entertainment purposes only. All effort has been executed to present accurate, up to date, and reliable, complete information. No warranties of any kind are declared or implied. Readers acknowledge that the author is not engaging in the rendering of legal, financial, medical or professional advice. The content within this book has been derived from various sources. Please consult a licensed professional before attempting any techniques outlined in this book.

By reading this document, the reader agrees that under no circumstances is the author responsible for any losses, direct or indirect, which are incurred as a result of the use of information contained within this document, including, but not limited to, — errors, omissions, or inaccuracies.

Table of Contents

Introduction

Chapter 1: What Is Day Trading?

Rules of Day Trading

Day Trading is a Serious Business

Day Trading Will Not Help You Get Rich Quickly

Day Trader is Harder Than it Looks

Trading is Different from Investing

You Won’t Win Every Trade

Chapter 2: Basics of Performing a Trade

Build Up Your Watchlist

Must Have Properties

Criteria to Look for When Developing Your Watchlist

What to Avoid in Your Watchlist

Tips for Beginners

Pay Strict Attention to Your Trading Plan

Execute Your Plan of Action

When is the Best Time to Make Your Decision?

Chapter 3: Finding a Suitable Market

Selecting the Best Stocks to Trade

Penny Stocks

Stocks in Play

SPDR S&P 500 ETF

Successful Companies Often Mean Popular Day Trade Stocks

Factors to Help You Select the Best Stocks

Volatility and Volume

Social Media

Look for Stocks Which Show an Upward Swing

Chapter 4: Tools and Platforms

Get Your Education

Build Your Business Plan

Make Sure You Have the Right Supplies

Have Enough Cash

Find a Broker

Know Your Rights

Types of Brokers

Trading Platforms

DAS Trader

Trader Workstation (TWS)

Lightspeed Trader

Chapter 5: Seven Essentials for Day Trading

The Seven Essentials

1. Education and simulated trading

2. Preparation

3. Determination

4. Patience

5. Self-discipline

6. Mentorship and a community of traders

7. Record-keeping

Bonus Tips for Beginners

Make Sure You Have a Budget

You Don’t Have to Trade Every Day

You Need to be Flexible

You Can Access Different Devices

Chapter 6: Right Mental Mindset to Have

Key Characteristics of the Winning Mindset

Realizing You Will Lose Sometimes

Be Your Own Type of Trader

Always be Confident in Your Abilities

You Are Consistent

You Have Self-Discipline

You Keep Your Emotions in Check

Developing the Winning Mindset

Make Sure You Stick to Your Daily Routine

Keep Yourself Accountable

Make Sure You Keep a Positive State of Mind

You Need to Truly Believe in Yourself

Chapter 7: Trading Strategies and Techniques

ABCD Pattern

Bull Flag Momentum

Volume Weighted Average Price (VWAP) Trading

Electronic Communication Network (ECN) and Level II

1. Candlestick Charts

2. Line Charts

3. Bar Charts

Spread Trading

Low Profits Comes from Large Volume

You Will Have a Lower Risk if You Lower Your Exposure

Smaller Moves are Easier

Trend Following

Money Management

Price

Diversity

Risk

Rules

News Playing

Fading

Stop-Loss Trading

Range Trading

Chapter 8: Trading Strategies for Various Financial Instruments

Stocks

Currencies

ETFs

Futures

Options

Forex

Chapter 9: Fundamental Analysis

Chapter 10: Technical Analysis

What You Will Find through Technical Analysis

Price Charts

Point and Figure Chart

Range or Trend

Technical Analysis and Psychology

Chapter 11: Managing Risk

Strategies to Help You Manage Risk

The 1% Risk Rule

Don’t Trade Alone

It’s Fine to Just Cut Your Losses

Note Other Day Trader Mistakes

You Find Yourself Trading Too Much

You Have Unrealistic Expectations

Not Following Through with Your Post-Trading Analysis

Not Following Through with Your Pre-Trade Activities

You Don’t Worry About Your Mental Health

Believing That Anyone Can Become a Day Trader

Chapter 12: What Does a Typical Trading Day Look Like?

Before the Market Opens

The Morning Stock Market

The Afternoon Market

After the Stock Market Closes

Trading Journal

Bonus Section: How to Manage Your Time as a Day Trader

Find a Strategy That Can Become a Part of Your Lifestyle and Personality

Don’t Try to Force Time

Keep Away from the Distractions

Find a Way to Systematically Learn All the Information You Need to

Always Make Time to Look at the Charts

Chapter 13: Understanding the Terminology

Conclusion

Bibliography

Introduction

Before I begin, I want to thank you for purchasing this book as part of your trading research. I have spent a lot of time compiling some of the best sources from books to online resources in order to create one of the best beginner’s guides for day traders.

This book is more than just a beginner’s guide for anyone who wants to look into day trading. Not only will I discuss what day trading is, but I will also inform you of strategies, all the basics, the tools you will need, tips, how you can manage risk and much more!

In the first chapter, I will focus on what day trading is. Throughout this chapter, you will learn a few basic rules of day trading and the difference between trading and investing.

In the second chapter, I will talk about some of the basics you will look for when you start performing your trades. You will learn about what a watchlist is and what this list involves, how you need to have a trading plan you will stick to, and how to implement that plan.

There are a lot of different stocks when it comes to day trading. While it would be impossible for me to discuss all the different types of stocks you can take on as a day trader, I am going to take the time to discuss some of the most common stocks, such as penny stock and stocks in play in chapter three.

Chapter four is going to give you information about the platforms and tools that you will find as a day trader. Some of the tools involve preparation work before you become a trader, such as getting your education and building your business plan. In this chapter, I will also discuss the types of brokers you can look for along with your rights when it comes to working with your broker. From there, I will discuss a few different trading platforms to help give you an idea on what your broker might use or what you might want to install on your computer yourself.

Chapter five is going to focus on some of the tips and essentials that are important to note as a day trader. In this chapter, there are seven basic essentials, such as preparation, determination, finding a mentor, patience, and self-discipline that I will discuss in detail. From there, I will end the chapter with a few bonus tips for beginners. These tips come from experienced traders who wanted to give their advice on what you should do as a beginner.

Chapter six is going to dig a bit into the psychology of day trading as it focuses on the type of mindset you should have as you begin your day trading journey. Of course, it is important to note that it takes time in order to develop the right mindset—the winning mindset. I have broken down this chapter into the key characteristics that create the winning mindset and then ways to help you develop this state of mind.

Chapter seven is full of various trading techniques and strategies that you will find and use throughout your day trading career. For example, you will learn what the bull flag momentum and ABCD pattern strategies are. On top of this, I will also discuss trend following, spread trading, fading, range trading, and much more.

Chapter eight looks at some more basics that a beginner must know. This chapter focuses on various financial instruments that you can find as a day trader, such as stocks, currencies, futures, and ETFs.

Chapter nine is going to take a look at a type of day trading analysis known as fundamental analysis.

Chapter ten is going to look at another type of analysis, which is called technical analysis. In this chapter, I will explain what technical analysis is and how to use it.

Chapter eleven is going to take a look at how you can manage risk. Like any other trading, day trading carries risk, however, there are ways that you can limit risk so you can aim to gain the greatest profit possible. I will discuss the 1% rule, which is followed by the majority of day traders. I will also delve into common mistakes beginners make and how to avoid them.

Chapter twelve is going to give you a brief idea on what your day as a trader will look like, either as a full-time day trader or as someone who trades part time on the side. Both of these are discussed in this chapter, along with the downtime that the stock market sees around lunch and into the afternoon.

Chapter thirteen will list a variety of trading terms that you have read in this book or might find once you start trading. I wanted to include this in a glossary type setting so it could give you a way to easily look up a word that you are unsure about. One of the best ways you can become a successful day trader is to make sure that you understand the terminology of the profession.

My hope is that by the end of this book, you will feel confident about which route to take and what tools you need in order to become a successful day trader yourself. So, read on, get informed, and get started.

Chapter 1: What Is Day Trading?

Day trading is when people buy and sell stocks within a day. Some investors will buy in the morning and sell before the end of the day, while others will buy and sell throughout the day. The main strategies they use when investing are short-term. They are also known to use high leverage, which is using borrowed capital which can be used in any marketplace. Day trading has several positives and negatives, which will be discussed later in this book.

When you start trading, you will find that you can trade more than just stocks. In fact, you can trade money, options, and commodities. Some trades will be riskier than others. The type of trading you do will often depend on the type of risk you want to take on.

One of the biggest factors to keep in mind when it comes to day trading is if you hold a stock overnight, it is no longer day trading. Instead, this becomes swing trading. This is when you hold on to a stock for longer than a day, up to a few weeks. If you are more interested in swing trading, you will want to research this topic. You do not want to follow the tools or strategies discussed in this book if you are a swing trader. However, this doesn’t mean that you can’t be both a day trader and a swing trader. There are many investors who take part in both businesses. You just want to make sure you understand they are different forms of trading and use the right tools and strategies for each one.

It is very important as a day trader that you stick to your plans. There are always the moments that day traders have, even experienced ones, where they think they should hold onto the stocks overnight. Unfortunately, the end result of this is typically a larger loss in money. Of course, no one wants to lose money on any stock, which is often exactly why day traders will decide to hold their stocks overnight. Day traders feel that if they hold on to a certain stock, it will become less of a loss the next day. While there are a few stories of luck, these lucky moments rarely occur. Therefore, you will typically see less of a loss if you close out your positions at the end of the day.

Rules of Day Trading

Let’s turn our focus to some of the rules of day trading that every investor should follow. These rules are not necessarily set in stone. You can decide to take these rules with you on your investing journey or ignore them. However, they should be followed in order to give you the best day trading experience from the very first day of your investing career.

Day Trading is a Serious Business

When some people start day trading, they think that it’s meant to be fun and games and don’t take the profession seriously. This can be a grave mistake. While you want to enjoy what you are doing, you always want to remember that it is a serious business.

There are some types of investing that are easier to handle as a side career or on the weekends. If this is the type of investing you are looking for, you will not want to look at day trading. This type of investing is meant to be a daily business and many people look at it as their day job. This means that once you decide to become a day trader officially, you need to treat it as you would any other career. You have to get up in the morning, get ready for your day, and make sure you are ready to work by your set time, which could be as early as 7 in the morning.

While you will have some flexibility in your schedule from a regular job, meaning you could set a bit of a later start time in the morning, you will want to make sure to set a schedule you will follow at least Monday through Friday. Even working from home, you will want to make sure to limit distractions. For example, you won’t want to focus on day trading and watching television at the same time. Set up an office for yourself and pay attention to your work. Get ready for your job as a day trader like you would for your job at any other office. Don’t head into your office in your pajamas. You’re more likely to feel like you want to put in 100% effort and succeed if you treat this as a career.

Day Trading Will Not Help You Get Rich Quickly

You should not look at day trading as a get rich quick arrangement. This is a common misconception and one reason people often turn to day trading. If you truly want to become a successful day trader, you will need to make sure you not only have the patience to build your investments, but also realize it takes time.

Day Trader is Harder Than it Looks

Day trading is not as easy as it looks, but this does not mean that you should set this book down and decide not to become a day trader. It just means that you will probably need to spend more time learning about day trading than you initially thought. You want to make sure you are well-versed in the field before you make your first investment. Luckily for you, this is one of the reasons I decided to write this book. I want to give you a comprehensive beginner’s guide so you can learn as much as you can about day trading to start your journey in one location. In other words, I have done most of the research for you.

Trading is Different from Investing

One of the biggest rules that you should understand before becoming a day trader is this is different from investing. In order to help you understand the difference, here are a few basic differences between trading and investing:

As an investor, you need to have an idea where the stocks are heading in the future. However, as a day trader, you only need to concern yourself with which stocks will give you the best financial gain on that day. You look more closely at the minutes. In fact, you won’t even pay much attention to the hours and definitely won’t worry about the next day, week, month, or year.

You Won’t Win Every Trade

It does not matter how experienced you become as a day trader, there will still be days that you lose on a trade. Many people create an image in their mind where they will become so experienced at trading that they will never make a mistake and they will only gain capital. While this is a great vision to help keep your mindset positive (I will discuss this in chapter 6), you will continue to suffer a loss with some of your trades.

The trick to help you lose as little capital as possible when you lose on a trade is to follow the various risk management strategies. I will discuss several risk management strategies later in this book.