Contents

Preface

Introduction: Why Day Trading?

How to Get the Most Out of This Book

PART 1: DAY TRADING BASICS — WHAT YOU SHOULD KNOW

What is Day Trading?

Who Should Be Day Trading?

Is It Really Possible to Make a Living As a Day Trader?

How to Get Started — Define Your Goals and Make a Plan

1. Define Your SMART Goal

2. Make a Plan

3. Execute the Plan

How Much Money Do You Need to Get Started?

Determining Your Risk Tolerance

What You Need to Begin Trading

A Computer

An Internet Connection

A Charting Software

A Broker

A Properly Funded Trading Account

A Trading Strategy

PART 2: YOUR TRADING STRATEGY — THE CORNERSTONE TO YOUR TRADING SUCCESS

How to Develop Your Own Profitable Day Trading Strategy

Step 1: Selecting a Market

Trading Stocks

Trading Forex

Trading Futures

Trading Stock Options

step 2: Selecting a Timeframe

step 3: Selecting a Trading Approach

Fundamental Analysis

Technical Analysis

Day Trading Charts

Technical Indicators

Popular Trading Approaches

step 4: Defining Entry Points

step 5: Defining Exit Points

Stop Losses

Profit-Taking Exits

Trailing Stops

Taking Partial Profits

Time-Stops

step 6: Evaluating Your Strategy

How to Read and Understand a Performance Report

step 7: Improving Your Strategy the 10 Power Principles — Making Sure That Your Trading Plan Works

Principle #1: Use Few Rules � Make It Easy to Understand

Principle #2: Trade Electronic and Liquid Markets

Principle #3: Have Realistic Expectations

Principle #4: Maintain a Healthy Balance Between Risk and Reward

Principle #5: Find a System That Produces at Least Five Trades per Week

Principle #6: Start Small — Grow Big

Principle #7: Automate Your Exits

Principle #8: Have a High Percentage of Winning Trades

Principle #9: Test Your Strategy on at Least 200 Trades

Principle #10: Choose a Valid Back-Testing Period

PART 3: THE SECRETS TO DAY TRADING SUCCESS

There's More to Trading Than Just Having a Strategy

The Seven Mistakes of Traders and How to Avoid Them

Mistake #1: Struggling to Identify the Direction of the Market

Mistake #2: Not Taking Profits

Mistake #3: Not Limiting Your Losses

Mistake #4: Trading the Wrong Market

Mistake #5: Lack of a Trading Strategy

Mistake #6: Not Controlling Your Emotions

Mistake #7: Overtrading

The Trader's Psyche

The Three "Secrets" to Day Trading Success

The Tenets of Day Trading

How to Start Trading Without Risking a Single Penny

Bonus Materials — Quick Gudie to Charting Software

APPENDICES

appendix a — Trading Plan Template

appendix b — Broker Checklist

appendix c — Additional Resources

appendix d — Reading Resources

appendix e — Glossary

appendix f — Coaching Programs