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Published:
April 2, 2019

Day Trading For Dummies

Overview

Conquer the markets and become a successful day trader

Day trading is a fast-paced, sometimes risky form of investment. Day Trading For Dummies gives you the information you need to get started with this quick-action form of trading for income and maintain your assets. Learn how the market works, how to read and predict price movements, and how to minimize your loss potential, so you can manage your money strategically and create your day trading plan. Expert author Ann Logue will set you on the path to success, showing you the techniques successful day traders use to profit. This new edition covers crypto, AI, meme stocks, new trading options, and the latest strategies. By following market indicators and doing the essential research, you can avoid making critical mistakes and instead make smart trades that earn money.

  • Learn the basics of how the stock market works and master the concepts specific to day trading
  • Understand the risks involved in fast-paced day trading and maximize your profit potential without going broke
  • Discover new methods and ideas, including cryptocurrency trading and FOMO risk
  • Earn income and get tips for minimizing your tax bill at the end of the year

Day Trading For Dummies will teach you a lot about day trading in only a little time. Beginning to intermediate investors will love this jargon-free guide to deciding if day trading is for you and making the best money you can.

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About The Author

Ann Logue, MBA, CFA, is a writer specializing in business and finance. She has written for Barron’s, Entrepreneur, and InvestHedge, among other publications. She is the author of Hedge Funds For Dummies and Socially Responsible Investing For Dummies.

Sample Chapters

day trading for dummies

CHEAT SHEET

If you want to get started in day trading, doing some preparation before you dive in dramatically increases your odds of success. From setting up your trading business (and it is a business) and learning trading jargon to tracking the markets with technical indicators and calculating your performance, these articles get you on your way.

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Articles from
the book

Day trading is a great career option for the right person in the right circumstances. It requires a strong, decisive personality who wants to be running the show every step of the way. And because those profits aren’t steady, good day traders have some financial cushion and good personal support systems to get them through the tough times.
The key to success in day trading is discipline. That starts with good money management: determining how much money you will trade, when you will cut your losses, and when you will walk away with money in your pocket. If you don’t manage your money, you won’t be trading long.Here, you get an overview of the key money-management techniques that you should consider as well as one that is a very bad idea.
Let's keep it real: day trading is a bad idea for most people. So, if I keep you from taking up day trading because it’s the wrong thing for you to do, then I have done my duty. It requires a strong personality; someone who can face the gyrations of the markets day in and day out. And it also requires someone with enough attention to detail to run a business.
If you want to get started in day trading, doing some preparation before you dive in dramatically increases your odds of success. From setting up your trading business (and it is a business) and learning trading jargon to tracking the markets with technical indicators and calculating your performance, these articles get you on your way.
Day trading is a cousin to both investing and gambling, but it isn’t the same as either. Day trading involves quick reactions to the markets, not a long-term consideration of all the factors that can drive an investment. It works with odds in your favor, or at least that are even, rather than with odds that are against you.
"Buy on the rumor, sell on the news" is a primary cause of technical price developments, and in many instances, the only “technical analysis” that commentators mention. When you “buy on the rumor” and then “sell on the news,” you stand to make a nice profit on your stocks. Here's why: Market stock traders buy on the rumor, meaning that they treat forecasts prepared by economists and analysts as though the event had already happened precisely as predicted.
After you put your day trading strategy to work during the trading day, it’s easy to let the energy and emotion overtake you. You can get sloppy and stop keeping track of what’s happening. And that’s not good.Day trading is not a video game; it’s a job (to be honest, it would be a pretty terrible video game). Keeping careful records helps you identify not only how well you follow your strategy but also ways to refine it.
Learning how to read stocks by using stock tables to gather information can help you select promising investment opportunities and monitor your stocks’ performance. The stock tables in major business publications, such as The Wall Street Journal and Investor’s Business Daily, are loaded with information that can help you become a savvy investor.
In short — ha! — selling short means that you borrow a security and sell it in hopes of repaying the loan of the shares by buying back cheaper shares later on. Traditionally, investors and traders want to buy low and sell high. They buy a position in a security and then wait for the price to go up.This strategy isn’t a bad way to make money, especially because, if the country’s economy continues to grow even a little bit, businesses are going to grow and so are their stocks.
Income seems like a straightforward concept, but little about taxation is straightforward. To the IRS, the money you make as a day trader falls into different categories, with different tax rates, different allowed deductions, and different forms to fill out.Don't worry, we're going to cover those here and make it as straightforward as possible.
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