Top 5 Must-Read Books on How to Day Trade (October 2023)
Whether you're a seasoned investor or brand new to the world of stocks and bonds, you've probably already heard the term "Day Trading". Day trading refers to a type of investing in which your goal is to capture small inter-day stock price movements by closely monitoring changes in momentum throughout the day. In recent months, this type of trading has become wildly popular on social media because of the potential to make a ton on money in a short amount of time. While getting rich quick is never likely, the best way to set yourself up for success is to get educated. Here are our top picks for the more crucial reads for any new or experienced day trader.
How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
By Andrew Aziz
Why it's great - The most popular day trading book on Amazon have 10x more review than the others on our list for a reason. This indispensable guide lays out easy-to-understand fundamentals with the goal of consistent trading, not "get rich quick" gambling.
From the Author: "In the book, I describe the fundamentals of day trading, explain how day trading is different from other styles of trading and investment, and elaborate on important trading strategies that many traders use every day. I've kept the book short so you can actually finish reading it and not get bored by the middle.
For beginner traders, this book gives you an understanding of where to start, how to start, what to expect from day trading, and how to develop your strategy. Simply reading this book, however, will not make you a profitable trader. Profit in trading does not come with reading a book or two or browsing online. It comes with practice, the right tools and software and appropriate ongoing education.
Intermediate traders may benefit from the book's extensive overview of some of the classic strategies that the majority of retail traders regularly use with proven success. If you think you are beyond the stage of a novice trader, then you may want to jump ahead and start reading from Chapter 7 for an overview of the most important day trading strategies:
Day trading is not gambling or a hobby. You must approach trading very, very seriously. As such, I wake up early, go for a run, take a shower, get dressed, eat breakfast, and fire up my trading station before the markets open in New York. I am awake. I am alert. I am motivated when I sit down and start working on the list of stocks I will watch that day. This morning routine has tremendously helped my mental preparation for coming into the market. Whatever your routine is, starting the morning in a similar fashion will pay invaluable dividends."
How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology
By Ross Cameron
Why it's great: Having grown to social media fame through well-documented day trading success, the mind behind Warrior Trading has an excellent all-in-one guide on exactly how to be successful day trading along with the track record to back it up.
From the author: "Success as a day trader will only come to 10 percent of those who try. It’s important to understand why most traders fail so that you can avoid those mistakes. The day traders who lose money in the market are losing because of a failure to either choose the right stocks, manage risk, and find proper entries or follow the rules of a proven strategy. In this book, I will teach you trading techniques that I personally use to profit from the market. Before diving into the trading strategies, we will first build your foundation for success as a trader by discussing the two most important skills you can possess. I like to say that a day trader is two things: a hunter of volatility and a manager of risk. I’ll explain how to find predictable volatility and how to manage your risk so you can make money and be right only 50 percent of the time. We turn the tables by putting the odds for success in your favor. By picking up this book, you show dedication to improve your trading. This by itself sets you apart from the majority of beginner traders."
SUPPLY AND DEMAND TRADING: How To Master The Trading Zones
By Frank Miller
Why it's great: This book highlights one of the most important undercurrents that drive stock prices. It helps you understand what makes prices tick, which makes understanding day trading strategies much easier.
From the author: "We’ve been familiar with the constant battles between the bulls and the bears in the financial markets that drives the price move every day. By understanding the core of market fluctuations, traders can prepare for the best trade opportunities and avoid market traps. Yet, it’s NEVER an easy task.
One of the most severe pitfalls among traders is the failure to determine which setups to give a go and which one to avoid. There are only a handful of worthwhile market signals out there for traders to consider. These setups are located in the trading zones where the BIG PLAYERS pay attention to, and there are true trade opportunities.
A great way to make the best use of the trading zones is through identifying and analyzing the Supply and Demand Zones in the market. Supply and Demand Trading is a concept that digs in the very basic yet crucial elements of the market operation, whether in traditional or modern ones. With a simple yet effective approach, it deserves a thorough investigation by every Price Action trader.
In this book, you’ll learn:
- How supply and demand are a perfect supplement to the traditional support/resistance levels;
- What are the trading zones and how to find them on the chart;
- The art of drawing supply and demand zones under different approaches;
- A super-powerful way to identify a reliable trading zone;
- How to combine candlestick patterns with supply and demand trading;
- What is a flip zone and how to make the best use of this market formation?
- How to trade reversal and continuation patterns using supply and demand theories;
- Two ways of trading gaps in combination with the trading zones;
- How to implement supply and demand trading with a powerful technical indicator;
- The biggest secret in trading with the zones to secure a high winning rate;
- The secret of long-term success in trading;
Each of these points will be supported with multiple high-quality chart examples so that you will have no difficulty understanding what I convey in the book.
Also, you will have a chance to learn about a very important tool that makes your trading a thousand times more convenient and effective.
The supply and demand theories root in traditional microeconomics with no fancy and complicated technical aspects or mathematical formulas required. Therefore, whether you are an experienced trader with big compassion for price action or a complete newbie, this book is a perfect companion for the rest of your trading journey."
Day Trading QuickStart Guide: The Simplified Beginner's Guide to Winning Trade Plans, Conquering the Markets, and Becoming a Successful Day Trader (QuickStart Guides™ - Finance)
By Troy Noonan
Why it's great: Getting started is the hardest part of day trading as it can feel overwhelming. This book does an excellent job of telling you exactly where and how to start. By breaking down the complexities of trading down, you'll find the strategies much easier to understand.
From the Author:
Day Trading QuickStart Guide Is Perfect For:
- Complete beginners - even if you've never bought a single stock before!
- People who tried day trading in the past but didn't find success because of phony gurus and courses
- Existing traders who want to hone their skills & increase their earning potential
- Anyone who wants the freedom of making full-time income with part-time effort!
Day Trading QuickStart Guide Explains:
- The Inner Workings of the Derivatives Market
- Futures Trading Contracts, How They Work and How to Maximize their Efficiency
- How to Day Trade Options and Use Options Contracts to Hedge Against Risk
- The Mechanics of Forex Trading and How to Use Foreign Currency Markets to Your Benefit
You Will Learn:
- Day Trading Fundamentals, from the Anatomy of a Trade to Powerful Trade Plans For Serious Returns
- Technical Analysis, the Backbone of Finding and Executing Winning Trades
- Trading Psychology, a Key Aspect That Allows Traders to Rise to the Top
- The Surprisingly Simple Way to Interpret Market Charts and Act Based on Your Findings Before Anyone Else
- Technical Indicators, Patterns, Trade Plans, and Mistakes New Traders Must Avoid
Day Trading For Dummies
By Ann C. Logue
Why it's great: From one of the most trusted series in the world of educational literature comes a straightforward and easy-to-follow approach to get you started from the very beginning. Perfect for people brand new to trading.
From the Author:
Due to the fluctuating economy, trade wars, and new tax laws, the risks and opportunities for day traders are changing. Now, more than ever, trading can be intimidating due to the different methods and strategies of traders on Wall Street. Day Trading For Dummies provides anyone interested in this quick-action trading with the information they need to get started and maintain their assets.
From classic and renegade strategies to the nitty-gritty of daily trading practices, this book gives you the knowledge and confidence you'll need to keep a cool head, manage risk, and make decisions instantly as you buy and sell your positions.
- New trading products such as cryptocurrencies
- Updated information on SEC rules and regulations and tax laws
- Using options to manage risk and make money
- Expanded information on programming
If you’re someone who needs to know a lot about day trading in a short amount of time, this is your place to start.
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