Day Trading Academy: Complete Day Trading Guide for Beginners and Advanced Investors: Top Trading Strategies that Every Elite Trader is Using: Option and Stock Trading Advice

By Heath Vasquez

Are you ready to make more money with your investments? Do you need a course to teach you everything you need to know about day trading?

 

The truth is, there's nothing secret about how day trading works. You don't need an expensive course, a life coach, or an MBA to make a huge return on your investments when you get into shifting your fortune for profit. There are a few tried and true secrets, that you can learn from a book.

 

This is that book. Heath Vasquez takes over 20 years of experience in money management, and reduces it to the absolutely essential elements that you must know, if you're going to take your fortune from good to better, and from better to best. Inside Day Trading Academy, you will learn:

• The Best Options and Stock For You
• When to Trade & When to Hold
• Top Trading Strategies the Elite Use to Stay Wealthy
• Investing 101-499 From Beginner to Advanced Tactics

Stop spending your hard earned time and money on stuff that doesn't work when anything you really need to know about wealth building is in this book. Scroll back up and click Buy Now so you can make the most out of your money, today!

• Language: English
• Publisher: Growthshape
• Release date: Feb 20, 2021
• ISBN: 9781393582779

Book preview

Day Trading Academy

Complete Day Trading Guide for Beginners and Advenced Investors. Top Trading Strategies that Every Elite Trader is Using. Options and Stock Trading Advice

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HEATH VASQUEZ

© Copyright 2021 - All rights reserved.

The content contained within this book may not be reproduced, duplicated or transmitted without direct written permission from the author or the publisher. Under no circumstances will any blame or legal responsibility be held against the publisher, or author, for any damages, reparation, or monetary loss due to the information contained within this book. Either directly or indirectly.

Legal Notice:

This book is copyright protected. This book is only for personal use. You cannot amend, distribute, sell, use, quote or paraphrase any part, or the content within this book, without the consent of the author or publisher.

Disclaimer Notice:

Please note the information contained within this document is for educational and entertainment purposes only. All effort has been executed to present accurate, up to date, and reliable, complete information. No warranties of any kind are declared or implied. Readers acknowledge that the author is not engaging in the rendering of legal, financial, medical or professional advice. The content within this book has been derived from various sources. Please consult a licensed professional before attempting any techniques outlined in this book. By reading this document, the reader agrees that under no circumstances is the author responsible for any losses, direct or indirect, which are incurred as a result of the use of information contained within this document, including, but not limited to, — errors, omissions, or inaccuracies.

TABLE OF CONTENTS

Description

Introduction

Value trading

Growth trading

Chapter 1 The Trading Strategy

Developing the Right Trading Strategy

When Can You Day Trade?

Look at Market Correlation

Liquidity and the Risk

Selecting a Timeframe

Choosing the Right Trading Approach

Portfolio Diversification

Introduction to Diversification

The Process of Asset Class Allocation

Portfolio Diversification Approach

Reducing Day Trading Risks

Trades should be Planned Appropriately

Take Profit and Stop Loss Points

Improving the Risk Management Process

Traders should Work Out their expected Returns

How to Set the Stop-Loss Points

Making Your First Day Trade

Steps involved in basic day trading:

Strategies and Techniques

Scalping

Momentum

Range Trading

Dealing with Day Trading Profits and Expenses

What to Do with Profits

When Trading Expenses Can Be Used As Income Tax Deductions

Expenses Not Deductible from A Day Trader’s Income Tax

Techniques to Trade With

What Moves Stock Prices

Market Capitalization and Earnings

Choosing the Price Target

Liquidity and Volatility

Stock Market Trading Tools: Charts and Indexes

What are Support and Resistance Levels and How to Use Them?

Money Management

Choose The Right Lot Size Based On Your Capital

Do not let your gain become a loss

Keep Your Charts clean

Ensure That Your Trading Account Is Protected

Keep Accurate Records

Find out what your tax implications, as well as treatments

Benefits of stop loss order

Stop Loss Mistakes to Avoid.

Putting your Stop at Pockets of Liquidity

How to shield yourself from getting hunted.

Always Keeping to One Stop Level

Going Long (Buying before you Sell)

Expectations

Using Support and Resistance

Going Short (Selling before you Buy)

Using Support and Resistance Lines

Conclusion

DESCRIPTION

Day trading indeed is an art of earning money. To put it simply, day trading involves buying and selling stocks within a single day, before the market closes for the day. This has become a popular method of trading, especially for those who are looking to earn money quickly, without having to wait for days. Here are some of the benefits you will reap day trading:

The profit earned or loss sustained can be viewed at the end of the trading day. The investor won’t have to wait for days on end for gaining this information. The investor can check the profits earned at any time.

The direction or the movement of the market can be easily recognized, and the investor can make an informed decision while this won’t hold true in the case of positional trading.

The brokerage commission payable in day trading is less.

A trader can avoid the uncertainty of an overnight risk on any instrument that is being carried on to the following day.

A trader can enter and exit the market at any time during the working hours of the market, depending upon his convenience.

The buying power in the hands of an investor with a small capital is more.

Daily targets for earning a profit can be set with ease. The number of opportunities available to a day trader are more.

What are you waiting for? Grab this copy for more on day trading.

INTRODUCTION

If you are planning on day trading on the regular, then odds are you are going to start out trading in the traditional stock market. This logic certainly tracks, as it is the easiest market to start out day trading in, simply because so many of the rules are going to remain the same when compared to traditional trading. While some of the rules might remain the same, the stakes are going to be much higher which is why you are going to need to hone your self-discipline first and foremost if you hope to find success with day trading. Check out the following to see where the rules have changed.

Value trading

Value investing is one of the most well-known methods of picking stocks and was first put into practice in the 1930s by a pair of professors from Colombia University. This strategy is very easy to understand, though it can be somewhat more difficult to put into practice. To practice it successfully, all you need to do is find companies that are currently worth more than the amount they are trading at would otherwise indicate.

In order to go about practicing it, the first thing you will need to do is to look for stocks that boast high quality fundamentals when it comes to dividends, earnings, cash flow, and book value. When you find a company, whose value is currently less than what its fundamentals indicate should be the case you are going to want to quickly take advantage of this fact before the market experiences a correction and you miss your opportunity for profit.

When value investing, it is crucial that you learn the difference between stocks that are currently undervalued and those that are cheap because they are largely worthless. This is a very important distinction to make as otherwise you will end up with stocks that are going to continue to decrease in value. As an example, if a company’s stock was previously trading at about $25 per share and it suddenly drops to $10, this doesn’t mean that you will automatically want to go out and scoop up as much as possible. This drop could be the result of a perfectly natural response by the market to that company’s decrease in overall value. In order for the stock to really be a bargain, that company’s fundamentals would still need to indicate that it should be worth more than $10. If this is the case then you could safely buy in on the assumption that the price is likely to rise again after the drop.

Investing superstar Warren Buffet is a big proponent of this type of value investing. In 1967 shares of Berkshire Hathaway were worth only $12 per share and he held them until 2002 when they were worth a staggering $70,900 per share. Now, these results are certainly the exception, not the rule, but they go to show just how powerful this form of investing can be if it is done correctly.

To get the most out of value investing you are going to focus on stocks whose share price is currently no more than two-thirds of what your research indicates the stock should actually be worth. Furthermore, you will want to look for companies who currently have a P/E ratio in the lower 10 percent of related equity securities. Additionally, you will want to seek out companies whose P/E ratio to growth ratio, which can be found by dividing the P/E ratio by the growth rate of the company’s earnings, is less than 1.

Other things to keep in mind is that you will want the stock price to remain below the tangible book value and that the best companies always have less debt than they do equity. The current assets of the company should likewise be approximately twice what their liabilities are and they should have a dividend yield that is at least 60 percent of its long-term bond yield estimates. The company’s earnings growth should also be at least 7 percent each year for the past 10 years.

Finally, it is important to also factor in a safety margin just in case. This will provide you with some breathing room when it comes to errors that appeared when calculating a company’s intrinsic value. To factor in this margin of error, you will simply subtract 10 percent from the intrinsic value number that you calculated.

Growth trading

As the name implies, growth traders are more interested in a company’s future than where they are at currently. So much so, that the current price of the company’s stock barely factors into the equation at all. This strategy hinges on buying into companies that are currently trading at a point that is above their intrinsic value based on the belief that this value will continue growing to the point that it exceeds the current valuation.

In order to properly take advantage of this strategy, you are going to want to be on the lookout for younger companies that are much more