Which book for day trading?

[_Deano]

I have started day trading and being a novice i want to soak up as much information as possible on how i go about a new career path.
Can anyone recommend a book(s) that i can read to give me a better idea of day trading?
I've been doing this for a week so far and i seem to have a good knack of it (and possibly very very lucky)

I'm looking at getting the trading for Dummies book (as this started my whole IT career), but some reviews show that this is geared towards the US markets rather than the UK ones.

Thanks
DJ

[Scawie]

Won't teach you the ins and outs, but it's an entertaining read:

http://www.amazon.co.uk/Dumb-Money-Adventures-Day-...

[tricky69]

http://www.amazon.com/Rogue-Trader-Brought-Barings...

[tricky69]

hang on a minute, what do you mean you have just started day trading ? You mean you have no previous experiance but have decided to risk your own cash !!?

are you smoking crack ?

[_Deano]

Yes. Yes i am

I've got money that i can invest and instead of putting in a savings account i want to invest it. I've also had enough of having to travel into London during the working week to sit in an office working for a crappy wage. When i can be at home making more money and living a better, healthier life.

[tricky69]

_Deano said:

living a healthier life.

You don't know many traders do you ?

Are you seriously saying this ? If you have money to pi$$ away then go for it.... otherwise stop NOW !!!!

[10JH]

How do you know that you'll be making money if you've never had any experience and currently have little knowledge

Madness.

[ingelow]

_Deano said:

I have started day trading and being a novice i want to soak up as much information as possible on how i go about a new career path.
Can anyone recommend a book(s) that i can read to give me a better idea of day trading?
I've been doing this for a week so far and i seem to have a good knack of it (and possibly very very lucky)

I'm looking at getting the trading for Dummies book (as this started my whole IT career), but some reviews show that this is geared towards the US markets rather than the UK ones.

Thanks
DJ

A lot of people will read this (I'm guessing) and tell you that you're out of your mind. Honestly, I'd probably do the same if you were asking me for my opinion on what you're doing, but that's not what you're asking

Books wise, there are a few good ones, but like you say, they can be quite specific. Before you start to get carried away, I'd recommend you work out what you want to trade and how you want to trade it. I could be reading too much into this, but if you're asking whether you should use a 'for dummies' book, I'm guessing you're not sure.

With that in mind, how about:

Fooled by randomness by Nassim Taleb
Way of the Turtle by Curtis Faith

And read them in that order. Taleb will try and convince you it's a terrible idea, Faith will be a good read and probably convince you otherwise

I'm sure there will be others along with better suggestions - and to warn you, like I'm going to now (sorry ) - slow down, be careful and start (very small).

Sorry if any of that sounds condascending in any way - if it does, it's not intentional.

[10JH]

ingelow said:

Fooled by randomness by Nassim Taleb

+1 Very good and easy to read book. Likely to put you off completely though

[shadowninja]

"Invest". There's your first mistake. Day trading and investing are two completely different things.

It is also the worst time to start dabbling in day trading. Everything is so volatile compared to what it was two years ago. You may see lots of opportunities to become rich. I see lots of opportunities for your stops to be hit, which will slowly drain your account. Besides, even if you do make money now, when it changes characteristics again, your volatility-based system won't work and you'll slowly drain your account, anyway.

If you want to read a book, try Trading In The Zone by Mark Douglas. Everything else you need to know is available free of charge on the web if you google hard enough.

I'm also quite a fan of http://www.tradingpostfinancial.com/blog/categorie... .

The three parts of trading: a decent trading system/methodology, good money management and a healthy mental approach ("psychology"). If one isn't right, prepare to give your money away.

The market is much like an internet forum. It reveals who you really are, allowing you to be more aggressive, greedy, fearful, egotistical ("I refuse to admit being wrong."). And it uses this against you to destroy your account. It reflects nature in a way... if you're good, you can earn lots; if you're bad, you will be eaten alive; there is no benefit system, no help for those who are mentally weak or unable to thrive.



Finally, a video: http://www.break.com/usercontent/2008/1/Stock-Futu...

Edited by shadowninja on Tuesday 21st October 13:49

[g4ry13]

The Naked Trader is a pretty good book. But not exactly suited to day trading but it'll help you with starting off. I'd say the best way of learning is just read up a little online, be clear on your strategy and start off in small size. The best way to learn is by doing.

[shadowninja]

Yin and yang... yin and yang.

[Somewhatfoolish]

If you're happy to donate your money to hungry professional traders, I strongly encourage this course of action!

How well capitalized are you incidentally?

[mhg]

_Deano said:

Can anyone recommend a book(s) that i can read to give me a better idea of day trading?

I'd echo what others have said and suggest that you be very careful at first, there are many ways to be caught out (by the market and yourself) and loose lots of money very easily and very quickly.

definately read Trading in the Zone (already suggested).

Many of Elders books are good background reading
http://www.amazon.co.uk/Come-into-My-Trading-Room/...

Van Tharps books are good also - emphasising the need for good money management (position sizing etc) and systems testing.

http://www.amazon.co.uk/Trade-Your-Way-Financial-F...

I know you asked specifically about books but what you need to work out and get you're head around before you start in earnest is how much money you can afford to have committed (and can afford to loose) at the correct position size ( about 1% of your capital) and still get enough of a return to earn a living. I trade (medium term, days to weeks rather than day trading) in my spare time (Forex and spread betting mostly, Forex is good because I can do it in the evenings) alongside my normal job (IT also) and doing fairly well making steady gains. I might, at some point, do it full time when I have enough capital accrued but not in the current climate.

As shadowninja said right now is not a great time to be getting into this, doing it alongside you're day job is possible and might be a safer option (don't underestimate the psychological effect of 'having' to be successful, because you need to earn a living, could have on your trading).

Good luck anyway.
Mark

[_Deano]

Thanks for the pointers and recommendations. I appreciate your views and I do need to read up on the whole day trading system; you can see that my terminology is not yet there.
As mentioned, I’ve only dabbled with UK equities and although I’ve made some money I have also lost some too, luckily not too much of the loosing though.

[shadowninja]

Don't pay for any systems or signals, or, in fact, any courses/seminars.

[mhg]

shadowninja said:

Don't pay for any systems or signals, or, in fact, any courses/seminars.

second that - huge amounts on the web, read up enough so that you can develop you're own system (you're IT experience will help alot with that)

[Boris.]

_Deano said:

Yes. Yes i am

I've got money that i can invest and instead of putting in a savings account i want to invest it. I've also had enough of having to travel into London during the working week to sit in an office working for a crappy wage. When i can be at home making more money and living a better, healthier life.

How much you lost so far then? Hope you haven't quit your job to do this. Sounds liek the road to the poor house imo.

[Somewhatfoolish]

Also if you are going to day trade, leave equities alone, only sensible (and I use that word advisedly) thing to day trade without too much capitalisation is futures through direct market access.

Edited by Somewhatfoolish on Tuesday 21st October 14:55

[limpsfield]

there's a lot of good information on this thread

http://www.pistonheads.co.uk/gassing/topic.asp?h=0...

but you need to wade through a load of guff to get to it.