If you are an individual who enjoys reading and are looking for some recommendations on the best book for day trading, then you have landed at the right spot. There are hundreds of books available for download on Amazon on the topic of day trading. However, you will find that many of these books may be incomplete, poorly organized, hard to follow, and may not provide a profitable day trading strategy.
This article will discuss our recommended book for day trading that you can download and review today.
Maurice Kenny wrote our complete day trading strategy in an easy-to-read format book called Day Trade Like A Millionaire. The text provides the step-by-step, simplified approach to day trading that has changed the lives of many readers. It has introduced a straightforward approach to trading that has our successful traders consistently win 70-80% of their day trades.
So, what makes this book so unique?
To answer this question, we will discuss the topics and contents of the book to help you determine if this is the right fit for you to begin your day trading journey or to enhance your current day trading skills. This book is written for the complete newbie to trading and seasoned traders and investors.
So, let’s discuss what you will learn in each of the chapters of this book:
Day Trade Like A Millionaire
Chapter 1 – Ice Breaker Challenge
The beginning of the text provides a brief introduction to how our day trading program began. After being laid off many times from IT Director jobs, Maurice began to search for opportunities to gain financial freedom and remove the dependency on a 9-5 job to support his family. This search led him down the path to becoming a day trader.
This chapter discusses how he started day trading and his journey to becoming a consistently profitable trader. This story resonates with many readers as most traders decide to begin trading as a career due to job loss or some form of employment insecurity concerns. Hearing this story sets the book’s overall tone and any expectations on what the reader can expect going forward to become a successful trader.
Chapter 2: Why the Top Traders Win & Who They Are?
This chapter details the players in the market, including individual companies, institutional banks, and hedge funds as the market players responsible for moving stock prices within the financial markets. The average trader is considered a retail trader who does not have much control to affect a stock’s price.
However, the large banks and hedge funds are the real, actual players in the market who can place orders for millions of dollars and cause stocks to move in the direction they set. In this case, retail traders, like us, are the small fish in a big pond. Understanding your role in the overall market is critical to trading within and around it.
Chapter 3 – Uncovering the Hedge Fund Strategy
Being a successful day trader requires knowing the prices where the hedge funds and banks buy and sell stocks. This part of the book covers how hedge funds operate and how they use market makers to set price targets that will move an overall stock price.
They can purchase and sell large blocks of orders that retail traders cannot, and this is what has the most significant effect on moving the stock price up or down.
This chapter leads into the concept of trading supply and demand as these are the levels where the banks and institutions trade in the financial markets, and as retail traders, we want to be moving in their direction and not against them since they are the market movers.
Chapter 4 – How to Day Trade Using Supply & Demand
This section provides an overview of supply and demand. Supply represents the price on a given chart where large sellers sell stocks to bring the price down. Demand represents the price where buyers may come in to move the price upward. Trading supply and demand zones is the sole strategy taught in this book.
So, this is not a book on multiple-day trading strategies where you can pick and choose. This chapter provides visual examples of how supply and demand is represented on a chart and how prices are affected when they progress to these zones.
This section also provides a 5-step approach to trading supply and demand overall, which includes:
1. Identifying the market movers’ price target
2. Drawing the respective zones
3. Waiting for the zone to be hit
4. Trading after receiving confirmations
5. Letting the stock prove itself
Each of these topics is further discussed in the subsequent chapters to explain each step in detail.
Chapter 5 – Stocks to Trade & Technical Indicators to Use
This chapter focuses on the following points to simplify day trading and set the overall foundation for the trading strategy.
– Underlying stocks to trade:
The trading method provided in the book is focused on trading one stock (ETF) ticker, SPY. Trading one stock allows you to focus on one thing only and not be distracted by other stocks moving in the market. There is no guesswork on what stock to trade for the day, as SPY is the only stock you will need to review.
There are various reasons why SPY is the stock (ETF) of choice. One of the main reasons is that it is the most liquid ETF available and follows the overall market trend.
– Options Leverage:
SPY is the underlying stock traded using this strategy. However, the system incorporates call or put options contracts to obtain additional leverage that is hard to achieve when only trading shares. Less capital is required from the trader to trade with options instead of purchasing shares.
With this strategy, we only focus on directional options trades (buying calls and puts) and not any of the overcomplicated options, like credit spreads, iron condors, etc. There is a brief overview of options in the book if you require some basic knowledge of options and how to trade them.
– Use of technical indicators:
This chapter also presents the idea that we need to remove the reliance on technical indicators as crucial components in our trading strategy as traders. The primary method promoted in the book is supply and demand, which does not rely on technical indicators to trade using the methodology.
Chapter 6 – How to Draw Supply & Demand Zones
The next chapter in the book discusses the process of drawing supply and demand zones. It provides the steps in detail to draw the zones with clear examples to illustrate them. Supply and demand zones can be found on all different timeframes on a trading chart.
However, since this book focuses on day trading stocks, zones are identified on a lower timeframe chart. In this case, the 5-minute chart time frame is utilized to draw these zones.
This chapter also describes the concept of major and minor zones and how to identify them on a chart when performing technical analysis. All of the patterns and components of technical analysis are not presented in this book. However, the text covers the most important aspects of charting and technical analysis to learn this strategy.
Chapter 7 – How to Read Price Action & Entry Criteria
Chapter 7 of the book provides the essential entry criteria for entering trades based on the drawn supply and demand zones. The entry criteria are based upon a four candle signal or pattern to trade based upon a 1-minute chart.
There are definitions of what to look for in each of the four candles part of the day trading entry criteria. Entry examples are also provided to illustrate the signals and patterns further.
Chapter 8 – How to Use Price Action to Enter a Trade
This chapter further expands on the previous chapter to show an in-depth example from an actual trading day from start to finish (i.e., drawing the zones, waiting for the candles to form, and entering the trade). To review a real-life example and how to trade stocks using the setup, access the video link provided in the text or HERE.
Chapter 9- Stop Loss 101
In many day trading books, the topic of risk management and stop losses is included to handle when a trade goes wrong and does not work out in your favor. This part of the book discusses the importance of having a stop loss and whether or not an automated or manual stop loss should be used.
The trader decides which type of stop loss to use. However, it provides an interesting discussion on risk management and the advantages and disadvantages of automated or manual stop losses.
Chapter 10 – Where to Place Your Stop Loss
After providing the reasoning for a stop loss, the book discusses where these stop losses would be placed after entering a trade. It provides suggestions for the stop loss based on whether you are a conservative or a riskier trader.
Examples are provided to show trades that resulted in losing trades and how to keep these losses small. The critical component is identifying when a trade is not moving in your direction and getting out of it quickly enough to ensure that your winners outweigh the losses.
Chapter 11 – What You Know Now
Lastly, the book summarizes the strategy discussed to ensure that the reader has captured the overall steps and can begin trading the approach independently. To receive additional help or get information on working one-on-one with a coach, access the contact details in the book to ensure your success with the strategy.
Some traders can easily pick up the process from reviewing the book and become successful; others may want the support of a community of day traders who are trading using this same strategy. However, many traders can quickly begin their journey by starting with this book.
“DAY TRADE LIKE A MILLIONAIRE” is the best book for day trading because it provides our simplified approach without any complication by teaching you how to read the price chart and allow the price action to determine your trade. Let us help you read charts easily without needing a trading indicator.
This is our FREE gift to you!
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.