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After explaining to readers that The Ultimate Day Trader is for the experienced investor, Jacob Bernstein welcomes beginners in the first chapter, “Definitions and Directions—What It Means to Day Trade Today,” for those who are considering joining the market or simply want to know more about the subject. “A day trader,” he writes, “is an individual who enters and exits a position in the markets during the course of the trading day.” Of course, the “trading day” is now 24 hours, due to the advent of 24-hour trading in many markets.
Bernstein suggests there are 11 reasons to day trade, including reduced headline risk, knowing the results by the end of the “day,” the availability of reliable forecasting, the chance for instant execution, market volatility, and the sheer pleasure of doing it. The downsides, which may not be drawbacks to all, are that day trading is very hard work, subject to random events that impact prices, time consuming, competitive, and stressful.
The author is the founder of the money management firm Bernstein Investments Inc. and has written 35 books on trading, investor, investor psychology, and economic forecasts, including The Compleat Day Trader. Bernstein employs his straightforward, understandable writing style and punctuates it with charts and graphs to lead the reader through day trading markets and methods, gap day trading, volume spikes and their use in day trading, the importance of structure, exit strategies, and the “10 Cardinal Rules of Day Trading.”
Among his rules are doing your homework, showing consistency, avoiding any stocks or futures markets that “scare you,” and being willing and able to make big moves, which is the way to make profits. At the end, Bernstein asks whether you have what it takes to be a day trader. That is, can you own up to your losses and move on? If so, get started.
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