The Truth About Day Trading Stocks

Submitted by Book Library on 26 February, 2010 - 03:36

A realistic guide to day trading today’s stock market: The 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 book 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. The Truth About Day Trading Stocks 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.

Positive Book Review of The Truth About Day Trading Stocks

If you are searching around on Amazon for a book that will get you started in day trading, this is it. Josh DiPietro will give you the straight truth about the reality of being a day trader. It is a career choice like any other. It takes hard work to become successful. Almost every beginning trader blows out their account before learning to manage risk. You can read books and take seminars but only real trading will make you successful. I have been a trader for over 6 years and I agree completely with these observations from the author.

Josh's key points are to start with 100 share blocks only, to limit exposure and build skill. Do not move above this amount until you have been successful for months, then only increase trade size very gradually. You can make money trading 100 shares at a time through out the day. This also keeps your emotions under control when no one trade has to much riding on it. Use preset stop losses if your trade goes against you. Most amateurs make the mistake of stubbornly holding losing positions or even increase their position on the way down, this can be disastrous. The key to day trading success is consistency, making the money you need daily, by having a great win ratio.

Josh's system is scalping .20 cents to .40 cents off nice steady consumer staple stocks that trade at least a million shares daily on the market. He uses the previous days support and resistance levels as a trading range along with volume. His trading seems to be primarily counter trend, shorting at break outs to new highs and going long at support to try to catch retracements to profit. I have used this system in range bound markets for much success. So I can say his system is sound from my personal experience. He also wants to avoid stocks if they are in the news or earnings are expected, because that will disrupt the range and lead to volatility and trends.

He also explains the value of using pay per share brokers versus pay per trade brokers. If you qualify for an account with a pay per share firm you could get 10 to 1 or even 20 to 1 leverage. This is for the advanced and you must show them your ability to trade before they will release that much buying power to you. But it enables you to be profitable with $10 and $20 scalps because a 100 share trade is about .35 cents. This is an opportunity amateurs rarely hear about.

I have read over a hundred trading books and day traded successfully through this recent financial crises, with a 31% return from September 2008 to July 2009. I also was one of the rare people who went to a cash position in my 401K on January 5th of 2008. With my background I still learned several things from this book and it was great to get my mind focused during this break from trading. I highly recommend for all beginning and intermediate traders. I wish I would have had this book when I started day trading it would have saved me both money and time.

Negative Book Review of The Truth About Day Trading Stocks

There is almost nothing of value for any but the most inexperienced traders in this overpriced book. When a book costs this much for so little information, it makes me think the author is out to make a fast buck and probably needs the money badly.

I do commend the author for his candor about being wary of trading courses, but his own book falls into that same category. If the book cost less or had more info, I'd give it another star or two.

Author Biography

Josh DiPietro is 33 years old, and has been day-trading stocks for 11 years.He provides mentorship programs for aspiring day traders. Josh DiPietro is an internationally published author.He has written books such as:The Truth About Day Trading Stocks :A Cautionary Tale About Hard Challenges; Learn What It Takes to Succeed. . Josh DiPietro's other published works include articles written for Stocks,Futures, and Options (SFO) magazine.

Table of Contents

  1. Part I: Psychological Truths and What to Do about Them.
    • Chapter 1: Truths about Yourself to Know First.
      • How Often Do You Trade, and How Profitably?
      • How Much Are You Trading in Capital and Leverage?
      • How Long Have You Been Trading?
      • What Financial Instruments Are You Trading?
      • Are You Trading Other Peoples' Money or Your Personal Capital?
      • Are You a Licensed Trader, or Trading Independently?
      • How Were You Trained?
    • Chapter 2: How Emotions Can Destroy a Trade.
      • The Fear Factor.
      • Greed Is Not Good.
    • Chapter 3: Preventing Overconfidence.
      • Ignoring Your Predetermined Stop/Loss Price.
      • Holding Too Long.
    • Chapter 4: From Impatient to Cool, Calm, and Collected.
      • The Waiting is the Hardest Part.
      • Deciding to Learn More.
    • Chapter 5: Taking Breaks.
      • Break When Your Confidence is Low.
      • Break Because It’s Just Not Working.
      • Break and Then What?
  2. 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.
    • Chapter 7: Why Overexposure to the Market Can Hurt.
      • Time vs. Timing.
    • Chapter 8: Budgeting: Knowing Your Financial Limitations.
      • Don't Quit Your Day Job: Catch-22.
      • Crunching the Numbers.
      • Cushion Cash.
    • Chapter 9: Minimizing Your Risk with Stop/Loss.
      • Making Stop/Loss Automatic.
    • Chapter 10: Averaging-down: A Skilled Strategy.
      • To Average-down Successfully Takes Mastery.
      • Know-how Doesn't Grow Overnight.
    • Chapter 11: Gambling Vs. Day Trading.
  3. Part III: Intra-Day Trading Truths.
    • Chapter 12: Why Some Traders Make More Mistakes.
      • Pick Your Stocks Carefully.
      • Focus, Focus, Focus.
      • Pay Attention to Market-Moving News.
    • Chapter 13: Trading Consistently All Day.
    • Chapter 14: Stock Picking: Simplifying the Process.
      • Keep Your Average Volume of Trades above One Million Shares.
      • 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.
    • Chapter 15: Why News Can Be Just Noise.
      • Trading on News vs. Monitoring News.
  4. Part IV: The Truth About Training and Preparation.
    • Chapter 16: About Training Programs.
      • Seminars for the Greenhorns.
      • Training Programs for the More Experienced Trader.
      • Tips for Selecting the Right Program.
    • Chapter 17: Picking the Right Online Broker.
      • Pay-per-share vs. 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.
    • Chapter 18: Paper Trading Strategy.
      • Paper Trading for the Amateur.
      • A Word About Advanced Paper Trading.
    • Chapter 19: Trading for Skill vs. Trading for Income.
      • Building a Foundation of Trading Skills.
      • First Level.
      • Second Level.
      • Third Level.
    • Chapter 20: The Perfect Trading Day.
      • Early Morning Activities.
      • Pre-Market Trading.
      • The Opening Bell.
      • Mid-Day Activities.
      • The Last Hour of Trading.
      • The Closing Bell.
      • After-Market Trading.
    • Chapter 21: The Worst Trading Day.
      • Early Morning Activities.
      • Pre-Market Trading.
      • The Opening Bell.
      • Mid-Day Activities.
      • Last Hour of Trading.
      • The Closing Bell.
      • After-Market Trading.

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