All About Day Trading: The Easy Way to Get Started

December 14, 2014 07:13 PM

All About Day Trading: The Easy Way to Get Started
By Jake Bernstein
McGraw-Hill Education
$22; 237 pages

Bernstein provides the exact details of how to make money as a day trader, as opposed too many other authors who provide generalities, no rules, no operational procedures and no strategies to minimize losses. That’s what makes this book a cut above the rest. Details and process matter greatly and without them the untrained individual will most likely fail and loss a bundle of cash as well.

Not only has Bernstein authored over 44 books on investing, trading and economic forecasting, but he also is an active trader with over 40 years’ experience, as well as the owner of www.trade-futures.com. He has personally mentored over 1,000 traders and held several hundred webinars.

With his substantial background you might assume that the author would write a complex book that would be hard for readers to follow and put his concepts into practice. Fortunately for the readers, the opposite is the case. Bernstein writes in a simple, conversational style coupled with valuable guidance and specific rules that form the basis of a solid day trading approach. Day trading is not only the most difficult trading to master, but also the most difficult to succeed, according to the author. He believes that clearly defined trading methodologies can help traders become profitable.

The author begins the book with a chapter on what day trading is all about. He also reviews eleven critically important factors that traders need to manage well in order to be successful. These factors include capital requirements, selecting timeframes, managing losses, developing trading rules, and maximizing profit. Also included are pointers on the do’s and don’ts of day trading distilled from the author’s decades of trading.

Bernstein devotes individual chapters to specific trading strategies that include the 8-period moving average channel of each bar’s low price and a 10-period moving average of the bar’s high price, using the opening and closing price of the previous day, breakout of first 30-minutes of trading, flat base breakout, and the gap trading methods. Charts and commentary on each trading method is provided so that readers understand exactly how to replicate them.

The author is a big believer in using chart patterns and seasonals to enhance trading profits. For example, he indicates that specific preholiday seasonals in the Dow Jones Industrial Average have shown consistently profitable results over may years. These trades are typically multi-day, but can be executed as a day trade by taking into account the opening and closing price on the day prior to the period. Moreover, he discusses five day trading methods which the trader should review to determine which one meets his/her personality and style. He urges traders not to set a limit on how much they want to earn in a day, as they should have no limit at all and let the market determine the exit point.

In summary, Bernstein has distilled his extensive and profitable trading strategies into an enjoyable and worthwhile book which he willingly shares with readers. This is a remarkable book for potential day traders and current ones who are struggling to be successful. No bibliography is provided which is probably a good thing, as Bernstein may have listed all his other books.

Leslie N. Masonson is a day trader and the author of Buy DON’T Hold and All About Market Timing (Second Edition). Reach him at lesmasonson@yahoo.com

About the Author

Leslie N. Masonson is the author of Buy DON’T Hold and All About Market Timing, (Second Edition).  Reach him at lesmasonson@yahoo.com.