The Day Trader's Course: Low-Risk, High-Profit Strategies for Trading Stocks and Futures (Wiley Trading) - Hardcover

Borsellino, Lewis; Crisafulli, Patricia

Hardcover

ISBN 10: 0471065153 ISBN 13: 9780471065159

Verlag: Wiley, 2001

Inhaltsangabe

A complete guide to day trading stocks, options, or futures, plus companion workbook
This valuable guide is a complete day trading course (with a companion workbook) that walks novice traders through all the day trading opportunities. The Day Trader's Course is packed with basic technical skill, proven winning strategies, and essential background. Lewis Borsellino reveals when to buy and when to sell, and shows readers how to identify when "it's over" for a particular stock, option, or future. Drawing from his considerable experience, he identifies the rules that every trader should follow.
Lewis J. Borsellino (Chicago, IL) is the top S&P futures trader in the United States, with a career that has spanned an unprecedented eighteen years. Borsellino is a frequent contributing commentator on CNN and CNBC. Patricia Crisafulli (Chicago, IL) is a freelance business writer who has contributed to the Christian Science Monitor and the Wall Street Journal.

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Über die Autorin bzw. den Autor

LEWIS BORSELLINO is a top S&P futures trader in the United States, with a career that has spanned an impressive twenty years. His long-term success puts him into the trading pantheon that features such luminaries as Paul Tudor Jones, Victor Niederhoffer, and bond trader Tom Baldwin. Borsellino is a frequent contributing commentator on CNN-FN, Bloomberg Television, and Reuters Financial Television.
PATRICIA CRISAFULLI is a freelance business writer and a former correspondent for Reuters America Inc. She has also written for the Christian Science Monitor and The Wall Street Journal. She is the site editor for TeachTrade.com.

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"No one in the world has done more battle in the trading pits than Lewis Borsellino. If you're looking for theory, this is not the book for you. But if you want to learn how to trade in the real world, Lewis is your greatest teacher!" -Larry Connors, CEO and Founder, TradingMarkets.com
 
"Lewis Borsellino is one of the only local traders who can actually single-handedly move the entire futures market. Those who are lucky enough to live in the same city as him have been able to witness his brilliance as a trader year after year. In no uncertain terms, Lewis Borsellino might be the greatest futures trader of our time whose skills and innate ability to 'feel' key inflection points in the market have earned him tremendous success over the years and the utter respect of every trader who has ever shared the floor with him. Truly, having a trader of this magnitude share his experiences and secrets in this book is too valuable to overlook."-B. Goran Yordanoff, Independent Trader and Financial Columnist
 
"In the world of books on trading, there are plenty that talk the talk, but can't walk the walk. Lewis Borsellino can walk the walk and talk the talk because he has made a living by being one of the best pit traders in the world for over twenty years. If you want to learn how to day trade from a practitioner, I can't imagine a better book than The Day Trader's Course."-Jon "Doctor J" Najarian, Chief Market Strategist at BTBull.com and Director of Research & Arbitrage at ptisecurities.com

Aus dem Klappentext

Many novice traders believe that all you need to day trade effectively is an online trading account, dependable real-time quotes, and a reliable source of market information. In reality, day trading is an exhaustive process that begins and ends with you: your technical analysis, your discipline, your trade execution, and your commitment.
 
The Day Trader's Course provides an introduction to the techniques and discipline of day trading that allows you to move along the learning curve of trading with complete confidence. Top S&P futures trader and founder of TeachTrade.com, Lewis Borsellino, brings twenty years of trading experience to life as he shows you how to survive and thrive within the most active and volatile markets in the world-namely, the S&P and Nasdaq futures.
 
Not only does The Day Trader's Course address the "how to" of technical analysis and trade execution, but, more importantly, it describes the discipline that must be a part of every trade. With insights for traders from traders, this comprehensive guide contains lessons that are important for anyone in any market, from mental preparation to the cardinal rule of "Always protect against losses. Profits take care of themselves."
 
Expert Lewis Borsellino prepares you for the psychological rigors of day trading by showing you how to trade what the market gives you and how to focus on making a good trade, not good money. As for techniques and strategies, you will learn how to use technical analysis to spot trends, reversals, and breakouts and how to develop indicators such as moving averages and oscillators. You'll also become familiar with entry, exit, and stop points, which set predetermined limits so you don't stay in the market too long or bail out too early.
 
The Day Trader's Course discusses the dynamics of intraday trading, how to trade the Nasdaq, and how to improve your ability to read the market as it develops. In the ultimate test, Borsellino walks you through some of his most recent trades to illustrate his thought processes and explain what he sees on the charts as he trades.
 
Whether you're trading stocks or futures, The Day Trader's Course will prepare you to take on the market with confidence. The Day Trader's Course puts money and the markets in perspective so you can make the most out of every trade.

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The Day Trader's Course

Low-Risk, High-Profit Strategies for Trading Stocks and FuturesBy Lewis Borsellino Patricia Crisafulli

John Wiley & Sons

ISBN: 0-471-06515-3

Chapter One

The Mental Game

At first you thought it was going to be easy. You read the hype and hoopla that day trading would bring you the sun, moon, and stars. You opened an online account and jumped into trading with both feet. You scored on the first few trades. It seemed too easy to be true: You bought a stock. It went up. You sold at a profit. What you didn't realize, however, was that in 1999 the market as a whole was up. As the old saying goes, "A rising tide raises all boats." In this case, the market's upward surge brought the majority of stocks with it.

Then came the downturn. The Nasdaq Composite, the highflier that had posted nearly an 86 percent gain in 1999, ended 2000 with a loss of more than 39 percent. The Standard & Poor's 500-stock cash index (S&Ps), the benchmark for individual stock and fund performance, declined 10 percent from the close of 1999 to the close of 2000.

Even on the last trading day of the year-December 29, 2000-the Nasdaq Composite index dropped 63 points or 2.5 percent to 2493. Cisco Systems Inc. (CSCO) and Microsoft Corporation (MSFT) led the way downward, with Cisco trading off 1 3/8 at 38 3/16 and Microsoft down 1 5/16 at 43 1/4. ("U.S. Tech Stocks Fall on Final Trading Day of Year 2000," Reuters, December 29, 2000.)

Blame the "tech wreck," or recession fears, or overzealous activity efforts by the Federal Reserve in 1999 to curb a runaway economy. Whatever the reason, the market was down. Period.

As all traders know, you can't ignore the facts. The price on the screen is as immutable as the fingerprints on your own hands. You can't change the price by an act of will any more than you can make time stand still. And the fact was (and is) the much-touted new millennium raised far more questions about the new economy than Wall Street had answers. The suffix ".com" no longer was a license to print money (or raise it from eager venture capitalists). "Flight to quality" meant out of Nasdaq and its dominant tech sector and into household names. Even a surprise rate cut early in 2001 by the Federal Reserve wasn't enough to jump-start the markets and keep them running positively. As we write in first quarter 2001, the talk is of economic slowdown and the possibility of recession, with all eyes on Mr. Greenspan & Co. to bail us out. Markets and leading stocks continue to struggle. Traders who had ridden on the bulls' coattails are now nose-to-nose with the bear.

In the trading arena, a bear market is what separates the amateurs from the pros. Put another way, welcome to the trader's law of physics: What goes up must come down-often in gyrations and sometimes with ever-increasing volatility and for reasons that may confound you. The result can be panic and confusion. Fearful of losing money, the uninitiated cling to positions that move increasingly into the red-until they face a margin call on a deflated stock or the brokerage house yanks them out of a futures position.

Clearly, they have neglected the cardinal rule of trading: Always protect against losses. Profits take care of themselves.

In this book I will address not only the how-to's of technical analysis and trade execution, but, more important, the mental discipline that must be a part of every trade. You can never underestimate the mental side of trading, whether you're placing your first order through a broker or you've been trading successfully for years. Discipline is as much a part of my trading plan today as it was when I first walked onto the floor of the Chicago Mercantile Exchange 20 years ago.

It was a different world then. In 1981, stock index futures had not been launched as yet at the Chicago Mercantile Exchange, where I still trade today. I started out as a 22-year-old runner and clerk at the "Merc," an apprentice to Maury Kravitz, a major trader in those days at the exchange. After a few months, I became a broker, filling customer orders in the gold futures pit, a contract that is no longer traded in Chicago. Later, I traded for my own account and filled orders, since dual-trading was allowed at the Merc in those days.

It was a tough learning curve for me just as it was-and is-for every beginning trader. Your expectation is that you'll make money at this, because you want to make money. But don't be discouraged if you don't see any profit the first year. In fact, if you can just cover your cost of trading the first year, you should consider yourself a success. The most important lesson for you, particularly in the first year, is to learn how to take losses-quickly, with a clear head, and without panic. In my first year of trading, I was barely able to cover my costs. I had to take a job at night to support myself. I nearly gave up, I was so discouraged.

What I couldn't see then was that I was gaining a valuable education in the University of the Market that would serve me well over the years. Then, when a lucky out-trade (see Glossary) netted me a windfall of $57,000, I had ample capital for the first time. I headed to the hot new pit at the Merc-the S&P futures pit-and I never left. But I went to that market a wiser trader. I had withstood the test of the market. I had endured losses and kept my head when I made profit.

Today, I trade in the S&P pit on the floor of the Merc for an hour or two a day. Then, I trade or monitor my position at the screen at my Chicago-based trading firm, where I also run an educational and market commentary web site for traders, TeachTrade.com.

I've gone through a lot of change as a trader. But one thing that remains constant is the psychological side of trading. Trading is a mental game. The emotional and psychological aspects of trading can never be overlooked or underestimated. For one thing, there is the motivation of trading. (Yeah, you say to yourself, it's money, right?) Well, if it were only the money, then most of us would have found something else to do. If you doubt that, consider the failure rate of traders. In equities, those who try day trading last about six months. In futures, the average life span is about three months, although trading activity dwindles significantly in the latter two months.

The one thing I know about trading is that it's infectious. Once you've made a couple of trades and turned a profit, it gets into your blood. The most successful traders I've known live and breathe trading and the markets. The money is part of it, to be sure. But a bigger part is the adrenaline rush you get from the market. You can also tell this from the retail side of the trading business with average investors and speculators who trade through a broker. Many times beginning traders who try their hand at this will lose their capital, but they don't close their accounts. They leave a small amount to keep them open, and as soon as they get some more capital to trade, they try again.

Now, before you tell yourself that this won't happen to you, that you'll somehow beat the odds, remember that the success rate among traders is slim. The only way to improve your chances of survival-and there is no guarantee-is with education. That is the purpose of The Day Trader's Course.

Whether you trade stocks, futures, or even options, you must have a carefully executed plan. You shouldn't buy because you heard a tip at the health club or on television. Your trades ought to be the result of the execution of your plan. And if your trade goes against you, the next step is a reexamination...

Details zur Ausgabe

• Verlag: Wiley
• Erscheinungsdatum: 2001
• Sprache: Englisch
• ISBN 10: 0471065153
• ISBN 13: 9780471065159
• Einband: Gebundene Ausgabe
• Auflage: 1
• Anzahl der Seiten: 240
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Nicht verfügbar