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

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

Chapter 1:
Introduction
In this book, I explain the fundamentals of day trading and how day trading is
different from other styles of trading and investing. In the process, I also
describe important trading strategies that many traders use each day. This
book is deliberately short so readers will actually finish reading it and not get
bored halfway through and put it to one side. We are all distracted by Internet
diversions, emails, Facebook or Instagram notifications, or the dozens of
other apps that we have on our smartphones or tablets. Therefore, this book is
concise and it is practical.
If you are a beginner trader, this book will equip you with an understanding of
where to start, how to start, what to expect from day trading, and how you can
develop your own strategy. Simply reading this book will not make you a
profitable trader. Profits in trading do not come from reading one or two
books, but, as I will explain later, profits can come with practice, the right
tools and software, and proper ongoing education.
I have included at the back of this latest edition of my book a handy and
helpful glossary of the most common terms you will come across in day
trading. If, as you are reading this book, you come across a term or phrase
that you don’t recall the meaning of, please go and have a look at its
definition in the glossary. I’ve used easy to understand language to explain the
“lingo” of day traders.
Intermediate traders may benefit from this book’s overview of some of the
classic strategies that the majority of retail traders use effectively. If you don’t
consider yourself a novice trader, then you may wish to jump ahead and start
reading at Chapter 7 for an overview of the most important day trading
strategies. However, I encourage you to skim through the earlier chapters as
well. Becoming a consistently profitable trader will not require you to master
complicated new trading strategies every day. The strategies in Chapter 7 are
the ones that traders have used for over a decade. They have worked so far
and need to be mastered. Work on simple well-known strategies, but adjust
them over time to complement your own personality and whatever the current
market conditions are. Success in trading is not a revolution, it is an
evolution.
In my opinion, the most important lesson that you can learn from reading this
book is that you will not get rich quickly by day trading. Day trading is not
similar to gambling or playing the lottery. This is the most important
misconception that people have about day trading and I hope you will come to
the same conclusion after reading this book. Day trading looks deceptively
easy. Brokers do not normally release customer statistics to the public but, in
Massachusetts, a state court did order the release of the records of financial
brokers. Those records indicated that after six months of trading, only 16% of
day traders actually made money. It is very easy to be one of those 84% of
traders who are losing money.
This brings you to my first rule of day trading:
Rule 1: Day trading is not a strategy to get rich quickly.
A very common misconception that people have about day trading is that it is
easy: “buy low, sell high” or “buy the dip, sell the rally”. Again, day trading
looks deceptively easy, but it is not.
If it were that simple, everyone would be a successful trader. You must
always remember that day trading is difficult and will not make you rich
quickly. If you have this misconception, and if you want to get rich quickly
and easily in the stock market, you should stop reading this book right now
and spend the savings that you put aside for day trading on a nice family
vacation. It would be much more satisfying to spend your money that way,
rather than losing it in the stock market.
Having mentioned all of these points, day trading can be a profitable
profession. But keep in mind that it’s a highly demanding professional career
and most definitely not a casual activity for beginners. It takes time to become
a consistently profitable trader. Many traders will fail in the long and at times
fatal day trading learning curve.
Chapter 9 focuses on the real actionable steps you must take to successfully
enter the world of day trading, but again beware that day trading dem

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