Here’s a list of books you should consider, at least read half of them
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas
And when you think you want to trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/
Before you enter your first order you need to address four major policies and have very strong discipline to follow them
1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 - You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.
Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader it takes work and constant study of the markets and the products traded in those markets, there is no easy way.
If you invest ￡1000 in 5 stocks with ￡5 stamp duty and ￡10 dealing cost per trade ,you will have 5 stocks with a total book cost of ￡5075 and ￡50 costs to sell ,your break even figure is ￡5125. If ( and a big IF ) all 5 of your stocks rise 3% ,your net return will be ￡5150 for a profit of ￡25 or 0.005%.
Maybe you are living in cloud cuckooland, but good luck.
Do to my busy lifestyle. I do not day trade and I only invest within mutual funds. Maybe you should seek the mutual funds investing route as well. Since index funds hold investments until the index itself changes, they generally have lower management and transaction costs.
I hope this information helped. Take Care
Ummm HELLO don't you know that the stock market is fixed? You will lose your 5k soon enough and will remember me then. The day you think everything is perfect and according to your favourite charts, it will turn for no obvious reason and suddenly collapse and you will be wiped out - then the reason might be something silly like an explosion in Syria or a grandmother dying in Russia.
You have been warned - don't dabble in the stock market - you will LOSE everything you put into it. You are totally out of your league.
I have got around 5k that I want to start day trading with, I have been looking at charts and watching shares rise and fall usually within 3%. I understand that good news does not always make the stock rise and vice versa and you must look at supports and resistances, and Q1 and year end reports as well as analyst predictions etc.
As a day trader you are expected to enter in to a trade and sell by the end of the day. Unlike an investor who stays put for years. I wouldn't put 5k on one stock obviously, but say I put 1000 on 5 separate stocks and all had risen 3% by the time I exited the trade, by the time commission and tax has been deducted it would hardly be worth it, no safe share seems to rise +25% and if it did I would suspect it would fall rapidly and stay clear so what the secret, is it luck, how do you know to get in to a stock before it rises 25%?
I want to learn about day trading; I want to know what figures I should be watching, what data I can get my hands on that would help determine whether a stock would rise and if there are any chart patterns or signs that would tell me when to enter and when to exit. An investor, who wants to invest long term looks at EPS and P/E ratio and studies companies through and through before entering in because they are in for years. What should a day trader be looking at? I cannot see a day trader studying for weeks on end to finally buy shares only to pull out by the end of the day.
I want to learn so I can invest wisely, I know there is no perfect solution but I need to make a strategy, otherwise its just plain old gambling.
Who ever answers please list terminology in order of importance (e.g. EPS, P/E, moving averages etc) so I can study them individually, please state sources of information, chart patterns or mention about good trading books I can get.
Best Regards
:)
