DiPietro - Day trading manual proprietary trading methods that prepare you to trade like the pros

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The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prosperedsome by reinventing systems, others by getting back to basics. Whether a novice trader, professional, or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.

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Copyright 2015 by Josh DiPietro. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

DiPietro, Josh, 1976

Day trading stocks the Wall Street way : a proprietary method for intra-day and swing trading/Josh DiPietro.

pages cm.(Wiley trading series)

Includes bibliographical references and index.

ISBN 978-1-119-10842-9 (cloth) ISBN 978-1-119-15050-3 (pdf) ISBN 978-1-119-15049-7 (epub)

1. Day trading (Securities) 2. Electronic trading of securities. I. Title.

HG4515.95.D567 2015

332.642dc23

2015019105

Cover Design: Wiley

Cover Image: Wall Street Buildings JavenLin / iStockphoto

Caution!

Alone, this manual will not adequately teach you my intra-day trading and swing methodology. Your mastery of my system will only come about through formal hands-on training.

Much of what you'll find in this sequel is material from my training manual. Graduates of my program will tell you that there's much more to learning my system than reading text or looking at one-dimensional charts.

As with any other line of work, mastery requires your guidance for weeks, if not months, by a veteran. If you think you can simply read about a method and then apply it to real markets with success, then you're in for an ugly shock. I say this because I've made that mistake, and I don't want it to happen to you.

In my first book, The Truth About Day Trading Stocks, I discuss the harsh realities of applying a new method without any hands-on training. Whether you're a greenhorn or you've been trading the markets for 20+ years, getting the gist of any real day trading system demands more than just reading a book or watching a few day trading webinars or seminars.

So I repeat: don't attempt to trade any of the procedures and/or rules mapped out in this book. This is only a framework meant to give you an idea of what's ahead. This is the map, not the road.

My goal here is to show you what my system can do for you, and also how much is involved. This system is not easy. This book is not a how-to. This book is your introduction. It's meant to reveal why my training program lasts for one full year. As with any real trading system, applications and real-world procedures come into play as you develop your competency. This requires weeks of hands-on training with a real day trading coach.

Do not attempt to trade with this system without formal training from me.

I specifically designed this book to read as a technical manual. All material is critical to read in order, starting with the Cautions page. If you do read out of order and jump to certain sections, you will only make the material that much harder for yourself to fully digest. So please start reading from here and enjoy!

1. Don't perceive day trading as a quick alternative to make fast cash. You go into this as you would in any serious attempt to take the time and make the effort to learn a real profession.
2. If you're planning to trade fulltime, you need to acquire a pay-per-share broker. This is a broker who charges no more than $1.00 per 100-share block trade.

   (Note: If you're only planning to trade part-time, and you'll be focusing on swing trades that produce more profit potential than intra-day trades, then most pay-per-trade brokers will suffice. You don't have to consider changing online brokers until you've been formally trained.)

3. You do not need to open or fund a live account while training with Day Trader Josh. Once you begin to real-trade, however, you will need a minimum starting balance of 25K.

This amount is a bylaw imposed by the SEC. When you're intra-day trading stocks, and you're placing more than four roundtrip trades in any five-day rolling period, you're considered a pattern day trader. As such you must fund your account with no less than 25K. If your balance falls below that amount, you get hit with an equity call. This means you can't trade on margin or pattern day trade until you deposit enough funds to return your balance to 25K.

You do not need to open or fund a live account while training with Day Trader Josh.

If you've read my first book, The Truth About Day Trading Stocks, then you're well-prepared for this new, more technical application of my trading methodology. Before you get started, all you'll need is awareness of the updates and modifications that have been added since 2008, and that vital information is here.