Learn The Basics Of Stock Market Day Trading Chart Setting, Technical Patterns, Indicators, Gappers & Breakaway Runners

By BHARAT NISHAD

Day Trading 101 book is Best for Educational Content in Day Trading category.

Trading and Investing: 

• Do you want to learn how day trade successfully? 
• How to read charts and trade effectively?
• And how to limit your losses and increase your profits?

This day trading book will help you unders

• Language: English
• Publisher: BHARAT NISHAD
• Release date: Nov 6, 2023
• ISBN: 9798868975905

Book preview

Introduction

I covered the basics of day trading in that first book, as well as how it differs from other trading and investing methods. I also discussed significant trading techniques that a lot of traders employ on a daily basis during this procedure. While I believe my initial book helped a lot of novice traders, I am aware that many more seasoned traders were left wanting a more comprehensive manual. When I wrote the first book, I had to give something up. I had to decide between a comprehensive and probably overwhelming guide and a more straightforward guide designed for the rookie trader because the book was meant for beginners.

After giving it some thought, I chose to go over the day trading procedure from start to finish, albeit not in great detail. For instance, although I discussed techniques and scanners in my writing, I did not delve into the technical details of scanners, which frequently confuse and frighten novice traders. I aimed to lay forth essential foundations and provide a summary of the key tactics that must be grasped. In this, my second book, I describe some of the more sophisticated techniques and procedures used in day trading using those foundational concepts and strategies as a springboard. Advanced Techniques in Day Trading will act as a reminder or a sort of refresher course on the fundamentals with a deeper dive into the technical if you have already read the first book, Learn The Basics Of Stock Market Day Trading.

If you haven't read Learn The Basics Of Stock Market Day Trading yet, you should be able to easily understand the somewhat simplified version of that foundational knowledge in this publication, which also exposes you to more sophisticated strategies. But, in order to get the most out of your educational experiences, I suggest reading both books—and then going back and reviewing them frequently. I think they'll be helpful manuals and resources for you throughout your trading career. Don't limit yourself to only reading my novels. There are many top-notch resources available. Undoubtedly, a profitable day trader is an eternal student. The first volume provides an overview of some of the traditional tactics that most successful retail traders employ, which may be helpful to intermediate traders.

For an overview of the most crucial day trading methods, you might want to start reading (or rereading) from Chapter 7 if you don't think of yourself as a newbie trader. Still, I suggest you take a quick look at the previous chapters. You won’t need to constantly learn complex new trading tactics to become a consistently profitable trader. Traders have been using the tactics described in Chapter 7 of Learn The Basics Of Stock Market Day Trading for more than ten years. They do require mastery, but they have proven effective thus far. Focus on well-known and straightforward tactics, but gradually modify them to fit your unique style and the state of the industry.

Trading success is an evolution rather than a revolution. These publications can provide you with the knowledge of where to begin, how to begin, what to anticipate from day trading, and how to create your own strategy, regardless of your level of experience. Naturally, reading books won't turn you into a successful trader. Trading earnings do not result from reading one, two, or even a dozen books; instead, as I illustrate, trading profits might result from practice, the use of the appropriate tools and software, and continual education.

Even though I made an effort to minimise recurrence, certain sections may seem repetitive or redundant to traders who read my first book, I must admit. Once more, a difficult decision and a sacrifice were required. Although I intend for this book to be an extension of the first book, it must also be able to stand alone and make sense to readers who are unfamiliar with day trading or have not yet read the first book. I thus apologise in advance if any of the content seems repetitive to you. You might want to quickly scan those parts.

My Trading Approach

Trading can be done in two different ways: mechanically based and discretionary. Discretionary traders use technical analysis to assess whether each possible trade satisfies their criteria after evaluating it in light of their trading plan. The discretionary trader uses their experience to determine which transactions to accept or reject, even though they are aware of their restrictions. The discretionary trader doesn't adhere to a strict entry and exit schedule. Rather, they consider all of the facts at their disposal before making a call. Conversely, mechanical systems are trading techniques that can be carried out by a computer program.

Technical inputs like pricing and indications are frequently the foundation of the mechanical system. The methods are typically built into computer software that can backtest them against historical market data to see if they provide positive expectation, or higher long-term profits than losses relative to the market as a whole. Using mechanical systems rarely requires a trader to make a choice. Algorithms, high frequency trading, and institutional trading are all instances of trading based on mechanical systems. These kinds of computer programs and systems are developed by numerous companies, educators, traders, and even internet scammers, who then market them to traders.

Both strategies have benefits and drawbacks. Discretionary trading allows the trader to pass on deals when information that may be difficult to record in a computer program points to a lower likelihood of success. It also provides a new perspective on every trading opportunity. Discretionary traders are more likely to engage in emotional trading and self-deception, such as falling in love with a trade, because they have to make a decision for every trade. This makes it difficult for them to stick to their trading plan. Conversely, mechanical trading essentially eliminates the trader's ability to make decisions. A computer algorithm carries out the preprogrammed deals. The trader's capital contribution to each trade is their only input.

After deciding on the share size, the trader may just sit back and let the computer do its thing. However, mechanical trading techniques are not without flaws. Is it possible to create a system that accounts for every scenario or opportunity that could occur? In my opinion, no. When losses happen, the automated trader has to decide if it is a one-time component of the system or if the approach has fundamentally failed. This book and my strategies are mostly focused on discretionary systems. A machine cannot readily be trained to perform many of the tasks necessary for a successful trade, in my opinion, such as identifying chart patterns and price action. When I assess every deal myself rather than depending on a computer to complete transactions, I feel more in control.

How to Become a Profitable Trader

Numerous people begin their careers in day trading every single day. They start trading in real accounts or simulators, participate in different classes, and join chat groups. They bring a wide range of expectations to day trading. Let's talk about one that comes up frequently for me. Oh, okay, I'll become a full-time trader and I can make a living out of that, people will remark to me. I'll be able to leave my work, become financially independent, and be free from debt." Regretfully, that is not likely to occur very soon in their trading career. Of fact, anyone can become a full-time trader after three months of study and training.

The simple thing is that. However, it is not going to happen if your goal is to truly become a full-time trader, ideally while drinking tall, chilled cocktails at a beach home on the Caribbean. I usually stress that trading is a business as well as a job. Furthermore, you cannot become profitable in a career or business in just three months. Examine physicians, attorneys, and engineers. To be genuinely called professionals, they must complete years of education, exams, internships, and practice, practice, and more practice.

All of them are difficult, drawn-out procedures that require far longer than three months. Essentially, over the initial three months, you will discover the answers to two crucial questions: Is day trading right for you? If so, how should your trading business be planned? Is this for you or is it not? is the first and most important question.If that's the case for you, you must learn how to budget for it and realise that you must allow your trading firm to expand gradually. The cost of learning day trading is incurred. Although they are not very expensive, real-time simulators and the equipment and software needed for a trading enterprise are