Day trading is stock trading within a single day.
Day trading isn’t like investing. Day trading is speculative. That means you aren’t buying stock in a company or ETF because you believe in their future. Instead, day traders buy shares of a company because they believe the stock will increase in value before the market closes.
A swing trader speculates as well. Although, they are willing to hold onto a share for longer; usually between a week or two.
Day trading comes with high risk. It isn’t for everyone–it isn’t for most people.
Day trading attracts crazy, degenerate gamblers because the action is so God damn hot. And unlike losing at the race tracks, stock market losers aren’t perceived as losers.
To outsiders, the stock market is a financial labyrinth of red and green arrows. They hear ‘Points’ mentioned on the news and tell their friends to appear smart.
It’s easy to learn about trading, investing, and the stock market.
You don’t have to go to college anymore. You can learn about trading online for free on a website like Khan Academy, or buy a few books on trading then enter the arena. The best way you learn is by doing. Another great strategy is Paper Trading.
Paper trading allows you to trade the stock market with fake, monopoly money. Many brokerages offer this service for free.
Day trading isn’t for everyone. You need to be able to manage your emotions. Day trading will pulverize your mind if you can’t manage your stress levels.
If you understand the risks of day trading and still want to learn how to do it, books are a good wealth of knowledge to learn from. You can also use the free TD Ameritrade education platform that is second to none.
Remember, day trading is an art just as much as it is a science. Following someone’s day trading rules that work for them may not work for you.
The best strategy is learning as much as you can, experimenting, then continuing forward with what works for YOU.
Below are the best books available on day trading. The books listed cover day trading or technical analysis in-depth. Regardless of what trading style you deploy, you need technical analysis to understand what direction a stock will move.
You can purchase any of these books directly through their product link. You can also sample the book before you buy.
The Best Books On Day Trading
How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology
Andrew Aziz is a engineer by training and a trader by profession. He is an Amazon author who has penned four different trading and investing books, and they’re all pretty good.
This book is his beginner’s book on Day Trading. It acts as a good base of education for technical analysis contained within a one-day period.
Aziz makes it clear that day-trading is not a hobby or a way to get rich quickly. You can easily lose everything if you aren’t careful. You need to come to day trading as a student and not as a Wolf of Wall Street impersonator.
Charting and Technical Analysis
In order to trade you need to know how to read charts and perform technical analysis. Even though the book is seven years old, it’s one of the highest rated day trading books on Amazon with over 300 reviews.
Expect to gain an understanding of charts, patterns, and how to predict the price movement of securities.
Technical Analysis: The Complete Resource for Financial Market Technicians
If you really want a in-depth book on trading, try to get your hands on a Technical Analysis textbook.
Books written by single authors can be hit or miss depending on the author’s experience. Textbooks on the other hand tend to be written with groups of masters who routinely get their work checked by others and used by many.
Technical Analysis is a long book with over 700 pages of content. But if you want to be serious about trading, you need to learn as much as you can while also being patient.
One reason why Paper Trading is a good strategy for new investors is the ability to trade without risk. This way, you can make mistakes trading fake money instead of real money.
Although textbooks cost more, they tend to be of higher quality. Plus, you can usually purchase them used for significantly cheaper.
Technical Analysis For Dummies
For Dummies books have been around for years. And yet, through every technological innovation that occurred since the 90’s, Dummies are still here.
Don’t expect to find brilliant insights in this book. Instead, think of it as a primer for those who are at the starting line of finance.
The format is the same as other for Dummies books, making this Technical Analysis guide easy to digest.
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications
Another textbook on technical analysis. This book comes from the New York Institute of Finance.
Technical Analysis of the Financial Markets is another behemoth of a book with over 500 pages of content. However, this book does an excellent job with chart illustrations making learning technical analysis a visual process.
If you’re feeling extra studious, you can reference chart examples in this book to any trading platform to learn in real time.
Trading the Trends
Trading the Trends is another book by Fred McAllen, author of Charting & Technical Analysis, also listed in this article.
Day trading is all about preparing for, and taking advantage of price trends within a day period. If you can recognize trends early enough, you have the potential for profit and the possibility to reduce massive losses in a bear market.
The Art and Science of Technical Analysis: Market Structure, Price Action, and Trading Strategies
The Art and Science of Technical Analysis attempts to connect academic market theory to real-world profits.
The book cover may lead you to believe that this book isn’t academic. In reality, it’s an in-depth textbook full of theories, charts, and studies made to make you a better trader.
Advanced Techniques in Day Trading: A Practical Guide to High Probability Day Trading Strategies and Methods
Advanced Techniques in Day Trading is Andrew Aziz’s second and more advanced book on day trading.
It’s best to wait on this book until you have read Aziz’s first. Before you begin learning advanced trading concepts you need to learn the fundamentals.
This book is a great extension for those who already have a concrete understanding of day trading and technical analysis.
Day trading is not a hobby. It’s a dedication and a way of live that doesn’t stop; even when the markets close.
While trading can be risky, it can be immensely profitable if you dedicate time to learning, understanding, and practicing trades. Books are a great place to start learning how to trade, but don’t forget to Paper Trade and trade for real.
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