Trading For Dummies (For Dummies (Business & Personal Finance)) Paperback – March 21, 2023

On time

I have read this book cover to cover and it fits my style completely and expands my knowledge by a ton.I have recommended this book to several friends and relatives.Keep your highlighter and pen handy. I have more highlights, underlines and margin notes than any book I have read since college (several decades ago).

Day trading successfully, consistently and profitability is extremely difficult and the success rate is 10%, as numerous studies over the years has shown. So, know upfront that the odds of success as a day trader are heavily stacked against you. The main reason for the lack of success is that most traders do not have written rules that have been back tested, spend minimal time on money management, and let their emotions enter the buy or sell decisions which can be deadly. Top traders exhibit persistence, a positive expectancy (where they can lose money on 50 to 60% of the trades, and still make money because their winning trades are at least twice as much as the losers), learn from their mistakes, and above all keep loses very small, and let profits run.On the other hand, swing or position trading provides a much higher probability of success as trend following, momentum trading, or break-out trading can be done successfully by disciplined, rules-based traders, many of whom record their trades in journals and review their losing trades to learn what the did wrong, if anything. Actually, losing money on a trade that followed the rules followed is considered a good trade that had a loss. That is to be expected as is normal.In any event, reading books about trading like this one will provide some basic knowledge that is absolutely essential. But actually, trading with small dollars amount will show you whether or not you are cut out for this once you have done your homework, learned what trading is all about, and are able to eliminate your mistakes from re-occurring.This book on the trading basics is a good starting point for the uninitiated. It covers all the required subjects, but in a superficial rather than detailed manner, as it really an introductory text. I would have liked to know how this latest 5th edition has changed from the 4th edition published in 2017. But sadly, that explanation was not provided. Also, the lack of a bibliography for other books on the subject was disappointing. Another shortfall was devoting only nine pages to ETFs which have become a very popular trading vehicle in the last decade with all kinds of choices.Readers of the book will find that the charts in this book are easy to read and useful in explaining the technical analysis applications. Co-author Grayson Roze, Vice President of Operations at a stock charting service has provided his insight on charting which is very helpful.The book is logically laid out, and the writing is straightforward, and easy to understand. The most useful chapters in the book were chapters 21 and 22, on the ten huge trading mistakes, and ten trading survival techniques. Overall, the book provides a competent look at all the aspects of trading that any aspiring traders needs to master to succeed.

The break down of the trading industry so far in the book is simple and easy to read. New to the stock and option trading so I needed a book to simply my understanding and it did just that. Worth buying

If you know absolutely nothing about trading, maybe don’t start here. But if you’ve dabbled, and know the basics, then start here to really expand your knowledge and get a grasp of these concepts. I love this book and find it extremely helpful along my trading journey.