Day Trading Stocks the Wall Street Way A Proprietary Method For Intra-Day and Swing Trading Wiley Trading Series

Day Trading Stocks the Wall Street Way: A Proprietary Disclosure on Intra-Day Trading and Swing Trading Equities provides a real-world guide to successful day trading, and gives you the tools, techniques, and tested, reliable methods you need to trade like the pros. Written by a seventeen-year day trading veteran, this guide talks you down from the industry hype to give you a realistic grounding in self-discipline, consistency, and patience while teaching you the hard skills you need to have a real chance of success.

Avoid losses by swerving from the typical beginner's path of seminars, software, and major brokerage houses, and instead develop the insights that lead to real, long-term profits. With an engaging and humorous tone, the author relates his own experiences and lessons learned to teach you the do's, the don'ts, and the ingredients for success. You'll discover Josh DiPietro's FUSION TRADING SYSTEM?a proven method developed from years of reliability testing. He'll show you how intra-day setups and swing trading setups can be merged to develop a perfect trade.

The surest path to failure and tremendous financial loss begins with the over-eager, overly optimistic amateur trader who sees day trading as a quick and easy path to wealth. This book gives you a much more realistic outlook, and the fundamentals you need to make the most of the market.

• Get an honest perspective on real-world day trading
• Gain the wisdom of experience and avoid common pitfalls
• Learn the framework to Josh Dipietro's profitable FUSION TRADING SYSTEM

A poorly defined trading approach will cost you more money than you will make, rendering your day trading venture a potentially damaging net loss. Day Trading Stocks the Wall Street Way: A Proprietary Disclosure on Intra-Day Trading and Swing Trading Equities teaches you the avoidance of loss, the discipline, and the transparent strategies of success, so you can play the market to win.

Author’s Note xi

Three Essential Prerequisites xiii

Introduction xv

Discovering Day Trader Josh xxv

Acknowledgments xxxvii

Part I Mastering Your Mindset Before You Absorb the System by Day Trader Josh 1

Lesson 1 Control of Emotions and Mastery of Focus 3

Lesson 2 How Overconfidence Can Destroy Your Trade 6

Lesson 3 Dealing with Your Impatience 8

Lesson 4 Knowing When to Stop Trading 10

Lesson 5 Risk Management: Buying Power versus Capital 12

Lesson 6 Avoiding Overexposure to Market Risk 15

Lesson 7 Budgeting Your Way to Profitability 18

Lesson 8 A Realistic Look at Stop-Loss 20

Lesson 9 Day Trading Is Not Gambling 23

Lesson 10 Consistency Rules! 26

Lesson 11 News versus Noise 28

Lesson 12 When It Comes to Averaging Down, Amateurs Beware! 31

Lesson 13 What Stocks to Trade and Why 33

Lesson 14 Picking the Right Online Broker 38

Part II Day Trader Josh’s Intra-day Trading Methodology 43

Chapter 1 Basic Procedure 45

The Best Stocks to Trade with My System 45

Additional Reasons Why You Should Take Only 15 Cents on Each Trade 49

Chapter 2 Prior Price Levels and Newly Forming Intra-Day Levels 53

The Basics of One-Minute Candlestick Chart Reading 55

Get Your Daily Price Levels Logged and Organized 67

What to Do After You Have Your List of Daily High Price Levels and Daily Low Price Levels 68

Log Your Prior Price Levels on a Whiteboard Before the Opening Bell 70

Now You Start the Five-Candlestick Counting Process 74

How to Count Five Minimum Candlesticks (Chart Analysis) 75

Notes, Reminders, Cautions, and Hints of the Lessons to Come 76

Chapter 3 Intra-Day Golden Rules: Entry/Exit Setups 78

The Rules Explained 79

Mastering the Three-Tier Max Strategy with 100-Share Block Trades 84

Understanding the Wisdom of 15-Cent Static Profits 86

Observing the Framework of Entry and Exit Strategy with Step-by-Step Procedures and Guidelines 88

Entry Strategy 90

Exit Strategy 91

The Wisdom of Using Strategy Stop-Loss 92

Chapter 4 The Mechanics of FASTKEY Order Execution 96

Using Your Keyboard Keys for Rapid Order Execution 96

Placing Orders Directly from a Level 2 Quote Chart (Direct Access) 97

Executing Real-Time Trades (Manual Limit Orders) 100

Scrutinizing Both Real-Time and End-of-Day Trades with Back-Testing 102

Part III Day Trader Josh’s Swing Trading Methodology 107

Chapter 5 Introduction to Swing Trading: Basic Rules and Procedures 109

Introducing the Ten-Day Hold Rule 111

How to Determine the First-Tier Swing Level 112

Understanding Entry and Exit Setup Rules 115

Two Key Swing Rules to Follow 118

Buying Power and Trading Experience Dictate Your Swing Strategy 121

Here’s the Good News! 122

Chapter 6 Sample Swing Charting Setups 124

The 5 Percent Bubble 126

Swing Trade Setups 129

Part IV the Fusion of Intra-day and Swing Strategies 137

Chapter 7 Introduction to Fusion Trading 139

Why Are They Not Mutually Exclusive? 140

Applying the Golden Rules 144

Deciding Your Trading Options: Intra-Day Only, Swing Only, or Fusion? 148

Chapter 8 Sample Fusion Trade Setups 150

Sample Fusion Trade # 1 152

Sample Fusion Trade # 2 156

Sample Fusion Trade #3: An Advanced Fusion Trade 160

Final Words on Fusion Trading 169

Part V Advanced Rules and Procedures 171

Chapter 9 Maximizing Net Profits and Minimizing Losses on Overall Trade Setups 173

What Is Pivot Trading? 175

Sideline Trading 178

Earnings Release Trading 181

Part VI Trading and Training with Day Trader Josh 187

Chapter 10 My Trading Room and How It Works 189

Chapter 11The Day Trader Josh Training Program 195

Program Details 196

Learning Objectives 197

What the Price Includes 199

Recap 199

About the Companion Website 200

My Final Words to Readers: Warnings, Reminders, and Prospects for the Future 201

Index 207

JOSH DIPIETRO is a professional day trader who started out in 1998, over seventeen years ago making the rounds at private equity trading floors in the Financial District of Manhattan. He is the author of The Truth About Day Trading Stocks, as well as numerous articles, all of which support his passion for educating tomorrow's trader. Josh operates his online trading room and coaching program, where he can be reached at www.EmailDayTraderJosh.com and www.DayTraderJosh.com or at 1399 9th Avenue #1211 San Diego, CA 92101.