The Complete Guide to Day Trading Review

Most everyone would like a little more financial security in life. Some fulfill this desire by improving education and hoping for a promotion at work. Others leave the workplace and open their own business. These are common approaches to improving one's cash flow, and they are generally good approaches even though success is not guaranteed.

There is one other way to improve income and it doesn't require incorporating as a business or earning an advanced degree. It is the home- based business known as day trading and, if done right, it can help individuals break the eight to five workday rut and earn a very good living. It certainly helps to know the trade before starting, and one book that aims to teach day traders the ropes is The Complete Guide to Day Trading, a book by day trader expert Markus Heitkoetter.

Book Commentary:

Day trading as a profession is growing in popularity but the fact remains that most day traders come up on the losing end of the deal. They either end up losing money or they make so little that they cannot quit their day job and work exclusively as a day trader. The reason the success rate is so low can be attributed to several factors. One is lack of education- many amateurs get involved in day trading with only a minimum level of knowledge on the subject. Another reason is exaggerated expectations. Many day traders enter the field expecting to pocket a huge sum of money on a single trade and not have to work again.

This is where The Complete Guide to Day Trading can help. Author Markus Heitkoetter is a day trading educator who has been trading since he was in high school. He has learned many things about day trading through his own experience and he shares many of the tricks of the trade in this book. Not only does Heitkoetter explain the do's and don'ts of the profession, he also includes graphic illustrations that help explain how to spot trends, how to know the right timing for buying and selling, and how to realize when a specific financial commodity is going nowhere, signaling the time to get out and move on to something more lucrative.

Day Trading requires discipline, education, timing, and planning. These areas are emphasized over and over again in this book because anyone who is lacking in any of these areas is almost sure to fail. For example, one of the most common mistakes made in day trading is not knowing when to say when. A person will be trading away and will have reached their daily cash goal. But because conditions are favorable and the money is looking good, the day trader will suddenly feel a surge of greed and want to continue trading. Sometimes, more money will be made but more often than not, the gains from earlier in the day will be wiped out, resulting in no positive cash flow for the day. On the flip side, a day trader might be having a bad day and to compensate for earlier losses, he/she suddenly increases his investments in an effort to gain back what was lost. Panic can then result, leading to even greater losses. This is why discipline and planning are so important. The day trader needs to set a goal for daily earnings and then stick to that goal.

Besides the advice on attitude, education, and the like, The Complete Guide to Day Trading is also very practical and educational about the art of day trading and it includes many graphic illustrations to help day traders learn how markets work and how to spot the right moment to buy and sell. This is very valuable information and it is probably the most helpful part of the entire guide. Many individuals may have the discipline, the strategic plan, and sufficient cash to get started, but they may have little knowledge about stock options, futures contracts, foreign currency, etc. This book offers a quick overview of these different investments and how they work, followed by actual graphic illustrations showing the pricing trends for a specific commodity or financial security on a given day. Using these illustrations, the book indicates precise ways to spot trends and the exact moment to buy and sell.

I like that the author doesn't promote day trading as a get rich quick scheme. I also like the way he includes evaluations of different software products for tracking pricing changes throughout the day and I like his lists of helpful hints and principles for day trading. His approach is very practical and hands- on, and this book serves as an effective resource for someone considering day trading as a full or part time profession.

Bottom Line Viewpoint:

Day trading isn't child's play. Individuals who get involved in day trading without the proper education are almost certain to get burned. The Complete Guide to Day Trading is a book that helps individuals learn more about day trading and the important facts and disciplinary measures that everyone needs to know if they hope to make a serious run at this often lucrative business. The book doesn't explain certain financial instruments (like futures contracts, put and call stock options, etc.) as thoroughly as it could, but it still serves as a very useful guide to the business practice known as day trading. With the right discipline and proper education, you, too, could be well on your way to success as a day trader.