Let me first applaud you for realizing that you need proper education and understanding of the markets before attempting to operate on a daily basis.
In this article, I will do a detailed review of the book “Day Trading 101” by David Borman. This book is great information if you are interested in becoming a professional day trader.
So who is David Borman?
David is an author affiliated with the publisher Simon and Schuster. After reviewing his bio page, he has published five books related to trade and the financial world.
David has extensive experience in the markets. He has worked for numerous large financial institutions and, most importantly, has the experience of trading daily to make a living.
I think having real trading experience is key to writing a book about daily trading.
He also has studies in the financial space and is working to obtain a doctorate. in financial management.
So I say all this to say that David Borman is the real deal.
Content of the book
Day Trading 101 is divided into nine chapters ranging from introduction to the markets to managing your accounts and profits.
Now, I’m not professing that this covers all aspects of the trade, but this is a great start to a 101 book that sells for $ 10.99.
At this point, I will delve into each chapter to give you a preview of what to expect.
Chapter 1 – Introductions to markets and trade
This chapter contains a wealth of information for those who are completely new to the market. Topics will range from market makers to what hedge funds are.
Borman then delves into how to make long and short and also refers to futures and currency trading.
This chapter will give you the feeling of drinking from a fire hose, but do what you can to feed it. Chapter 1 will provide you with the basics for processing the rest of the book.
Chapter 2 – Creating a Negotiation Plan
For Chapter 2, I love the fact that Borman develops a negotiation plan before we start talking about negotiation. This is so key for new super pumped traders to start trading.
The highlight of this chapter is that you need to treat trade as a business.
This means thinking about how much you need to trade based on the type of security (stocks and futures).
Another key section is taxes. Many traders don’t think about the impact taxes can have on their end result, but that’s also very important.
The best part of the chapter for me is the topics on how to make a profit and earn a salary. Borman makes it clear that this is not about hoarding your money. He states:Good traders know that they do not become greedy: greed leads to bad business decisions and risky behaviors. Staying hungry with daily trading can lead to safer and more profitable trading.“
Chapter 3 – Negotiation Cost
Again another chapter with valuable information. The section does not start with the actual “cost” of the negotiation, but also with some of the essentials.
The chapter begins with the topic of loneliness in the marketplace. Not much has been said about this in the daily business community. The amount of isolation you will sometimes feel can be overwhelming.
Now, if you enjoy staying with yourself, training is the perfect job for you. For me, it’s the only part of the job that doesn’t particularly matter to me. I like to sit with teammates and work issues together. This sense of camaraderie is something you lose as an independent trader.
You will need to find this community through online groups and meetings.
The chapter then discusses the costs of trading tools and brokerage firms, such as commissions.
Again, notice how we’re almost halfway through the book and we haven’t talked about business strategies at all. I love the fact that the book has a slow build-up, as it is an introduction to commerce.
Chapter 4 – Introduction to the market
Chapter 4 delves into the types of markets you can trade and what you can expect depending on the type of market. The section is very much related to the commodities, so if this is not your cup of tea, do not hesitate to go a little further.
Later, Borman analyzes the seasonality of trade and the use of practice accounts.
Here I am not above a brazen plug for Tradingsim, as we offer the number one platform for paper trading.
In your demo account, state:It is important to feel the emotions full of success and failure, as this is one of the keys to learning to succeed in daily trading.“
Chapter 5 – Risk Management
Trading in the markets at the end of the day is reduced to your ability to deal with risks. If you take too many risks and things go wrong, trading will not be fun at all.
Defensive risk versus offensive risk
In this part of the book, Borman argues that a defensive risk approach means that you are focused on getting the least out of your account to cover your expenses and that you are not focused on growth.
This approach focuses not only on earning a salary, but also on growing your account. You’re likely to be a little more aggressive with this approach while looking for business opportunities.
Your business approach will be different as you progress throughout your business career. The key is to follow an approach for a certain period of time, so that you are not everywhere.
You can’t have a bargaining book without discussing the stops. In this part of the chapter, Borman uses the standard loss of 2% of your total account.
I’m not a big fan of this approach, because as a new trader, you can start with a number of erroneous trades, which can lead to a significant reduction in your account.
The only part of this section of the book that I really liked was the concept of automatic stops. That is, as the market moves in your favor, continue to increase your stalls to protect your profits.
Chapter 6 – Business Configuration and Information
In this section of the book, he talks about using margin and how to climb effectively in positions. This section for me was a bit involved and I think as a new trader it can be a bit confusing.
The other point was that I was expecting to see real business setups, but this was more about a specific setup where there is a panic move and how to handle this scenario.
Finally, I will say as a new trader; you should avoid using margins and trading with small businesses. Learn to reap consistent benefits and not have to worry about margin.
Chapter 7 – Market Analysis
This chapter seems like a pretty high order for anyone. What does it mean by analyzing the market?
This part of the book includes articles such as fundamental analysis and techniques. As an everyday trader, I should say that you opt more for technical analysis for your short-term decisions. However, it is helpful to understand the type of stocks you are trading to have a bigger picture of the stocks at stake.
This is especially important for trading penny stocks, so you know any potential underlying issues before entering the setup.
Broad market indicators
In this section, broad market indicators, such as the VIX and Arms, are discussed. As a trader, it’s always a good idea to have an understanding of how the broad market operates to make sure you use the most profitable trading strategy.
For example, if the market shows a bullish bias, this is not a good time to start shrinking the market.
Chapter 8 – Advanced Day Trading
It sounds like a bit of an oxymoron in a daily trade book 101, but this is where many of you will have a real idea of what it means to trade daily.
The chapter opens with the configuration search.
Don’t be an emotion seeker
Then the book will ask you a very serious question about whether you are an emotion seeker or a trader?
Trade needs joy, but it shouldn’t be a place where you’re looking for excitement. Your goal should be for the business to contribute little in the form of emotion. Honestly, you should feel like you’re just going through the moves while you wait for your trades to develop.
Limit the number of positions
When he was just starting out, he only claims to keep one or three positions open at a time.
I agree with this approach 100%. You must first control things before you can expand and change many positions.
Predefined profit points
This is a fundamental part of daily negotiation. Not only do you need to know when to get out if a trade is going against you, but you also need to know when to get off the bus when things are going your way.
You will notice that as you focus on profiting from the market, it will naturally flow into your account.
Chapter 9 – Managing Your Accounts and Profits
This is by far my favorite chapter of Day Trading 101.
What I liked most is the section on realistic benefits.
The book says:To make a living every day, you need to get small, measured benefits every day. If you make more winning than losing trades at the end of the day, your account will make an overall profit.“
Honestly it comes down to these people: discipline.
Another key part of the chapter is a whole section on how to build your account slowly. Too often, we read of esteemed traders who earn millions out of nothing in a year.
While it’s fantastic, it’s also super risky. Wouldn’t it be great for people to put up with traders who make millions, but maybe it took them 7 or 10 years to create their account?
I guess that kind of story wouldn’t get many likes.
To sum up
The book Day Trading 101 is a fantastic introduction to the world of daily trading. I highly recommend anyone interested in the daily trade to read the book for themselves.
I love how Borman stayed away from his glamorous business negotiation, but, like any other company, set out the facts for you to interpret for yourself.
How can Tradingsim help?
Tradingsim provides the number one market reproduction platform for traders to practice paper trading. You can use Tradingsim to practice money management and the detailed trading techniques in the book.
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