- Book Title: Day Trade part-time
- Author:John cook and Jeanette Szwec
- Year written/published: 2000
- Summary:Key concepts, tools, techniques and the psychology of day-trading.
- My Comments: This is my first book on day trading - practise of buying and selling financial instruments on the same trading day! We all know about the unpredictability of the Stock market and day-trading is even more exciting in that way… imagine you are playing with the market ups and downs within minutes and seconds. It was a great insight on some of the techniques, tools and most importantly the mentality needed to be a day-trader. Yes, i didn’t understand eveyrthing… especially all the nitty gritty technicalities, but this is surely the start!
- Contents page:
- day trading as a business
- part-time trading
- key concepts for the day trading
- preparing to trade
- sureStart trading strategies
- money management
- nuts and bolts
- launching your day trading business
online trading rooms for discussions…
Considerations for selecting an online broker…
- speed of execution
- speed of page confirmations
- site downtime
- timing out on a website
- number of screens needed to execute a trade
- real time charts
- can you palce stops on Nasdaq oeders?
- up-charge in commission rate on Limit Orders vd. market Orders
- After hours trading
- are live quotes available on your execution screen?
- live or delayed graphs
- are options available?
- free news ervices
- how quickly can you reach a broker on the phone in emergency?
- Are you protected from excuting orders beyond your margins?
- Ease of understanding daily and monthly statements
- Securities Investors Protection Corporation isured
- Is live customer service by phone quickly available?
What is the real value of simulation trading? let’s look at the answer to this from a broad perspective. While simulation trading you are trying to enter trades in the direction of the market movement. Even if you were filled on every order you entered., it is doubtful that you, as a beginning part-time trader, would have all trades continue in the direction you had expected…. … In simulation trading, you will see if your trading strategies, rules, rhythm-recognition and discipline are taking you in the right direction. Simulation trading is not about how much money you make…. In trading, you must first make good entries so that your trades flow in the direction anticipated, be it long or short.
2 trading strategies…
- Short-term momentum trading
- consolidation-breakout trading - who prefer a less fingernail-biting trading style as compared to short-term momentum.
Short term momentum trading strategy…
Short-term momentum trading is also known as scalping. A trade held for a short duration of time, usually 1 to 15 minutes, for a small profit or one-quarter point to a half point. This strategy is based on trading a stock off the stochastic reversal and bounce on one-minute charts
consolidation-breakout trading strategy…
The underlying theory is that stock prices don’t go straight up or straight down. An up-trending stock will go up then level out for a while, then resume its move upwards. Similarly, down trending stock will have prices that drop for a while, then level off,then resume their move downward. The period of time during which the price movement has leveled off or flattened is called a consolidation.
some words with trading strategies…
practise, practise, practise in simulation trading! Do not be greedy, take your profits! Exit a trade when you can, not when you have to! Take you preset stop less without hesitation! Do not stray too far form the root of your successful trading strategy