Maybury - Day Trading: A Beginners Guide To Day Trading: Learn The Day Trading Basics To Building Riches
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Day Trading
A Beginners Guide to Day Trading Learn the Day Trading Basics to Building Riches
Matthew Maybury
Copyright 2016 by Matthew Maybury - All rights reserved.
This document is geared towards providing exact and reliable information in regards to the topic and issue covered. The publication is sold with the idea that the publisher is not required to render accounting, officially permitted, or otherwise, qualified services. If advice is necessary, legal or professional, a practiced individual in the profession should be ordered.
- From a Declaration of Principles which was accepted and approved equally by a Committee of the American Bar Association and a Committee of Publishers and Associations.
In no way is it legal to reproduce, duplicate, or transmit any part of this document in either electronic means or in printed format. Recording of this publication is strictly prohibited and any storage of this document is not allowed unless with written permission from the publisher. All rights reserved.
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Respective authors own all copyrights not held by the publisher.
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Fortune sides with him who dares.
Virgil
If you are reading this book you may have already heard about the exciting financial and personal rewards of day trading. You are curious about the fascinating tales of great monetary rewards and are excited by the prospect of working from home. But you may also be aware of the horror stories about people losing huge sums and wonder whether the day trader lifestyle suits you.
What is day trading exactly?
In brief, day trading refers to transactions performed on financial securities within a time-restricted period of one trading day on the market. Put most plainly, it is the buying and selling of securities, which for the purposes of simplicity in the demonstration of this book, we will focus exclusively on stocks (but know that there are a variety of trading options, currencies, and futures) limited only to the course of one trading day so that no open positions are held overnight.
But, what are the implications of closing all positions by the end of the day? How does day trading differ from long form trading? And what actually happens during the course of a day traders typical day? These questions are explored in the following chapters with the purpose of providing a basic introduction to the nuts and bolts of day trading so that the beginner trader may make informed choices in their day trading ventures.
In this book you will learn specifically how to start and organize your daily trading activities, the different types of stock available, how to read a candlestick chart, and place different orders. We will conclude with a discussion on important dos and donts of day trading, as well as some techniques and strategies to boost your day trading performance.
But first, it is not enough to simply absorb the very general idea of day trading, but to understand what kind of person is attracted to day trading. While most people are attracted to the idea of this activity because of its popularity, it is not for everyone. Are you someone who would enjoy it? Do you have the temperament and attitude required to day trade? And most importantly, would you be successful at day trading? To answer these questions for yourself, consider the personality profiles and snippet of two days in the lives of two people, Ben and Jenna.
Imagine a fellow named Ben.
Ben is a mechanical engineer in his early 40s who has worked for several years at the same mid-sized firm. He owns a 4-bedroom home, in a prosperous neighborhood, and is 10 years into a 30-year mortgage. He lives with his wife, who is a full time marketing manager, and they have two daughters under the age of 8, and they all lead a fairly active lifestyle. Financially, they are doing well. Ben is especially glad that his family does not feel the need to keep up with the Joneses by buying flashy cars or too many questionable items that would end up in a landfill eventually. But neither does the family scrimp on minor luxuries like Bens golf lessons or his wifes spa days, and their girls have enough toys, clothes, and little extras that round out a comfortable childhood.
One day, Ben goes online and opens up his financial statements to check the status of his investments. Fortunately, he sees a healthy, if pretty much predictable, set of figure on his companys 401(k) plan--both he and his wife contribute their maximums and take advantage of their employers match. Despite the funds limited options for investment options, he doesnt mind, why make waves with a stable ship? Years ago, Ben also signed on board with his fathers full-service broker who works with him to purchase a middle-of-the-road mix of stocks geared toward a conservative portfolio. The broker also advises the family on estate planning and the family taxes as well, and Ben slept well knowing that someone he trusted stewarded his finances.
For a moment, as Ben scrolls through the bylines of the traditional companies in his statement, he thinks briefly about upping his investment game. Just the other week, he was talking to his neighbor about another exotic sounding financial instruments, and at the killing that people were making. Maybe he should set up something? But at the end of the day, the very thought of constantly monitoring the market, following the ups and downs of hundreds of volatile trades makes his stomach churn. Further, as someone who liked to save his money, Ben did not like the idea of paying broker fees, and the more you traded on the market, the higher your fees can be---and you arent even guaranteed to have a successful trade! Why pay to gamble? No, Ben is a true-blue moderate investor, not a trader.
Now, lets take a look at Jennas day.
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