Michael Sincere’s Start Day Trading Now (Adams Media, 2011) is written for the rank novice who missed the heady days of the late 90s when anyone with half a brain was a genius and who now dreams of catching up. Day trading equities is not a moribund enterprise, but it’s no longer the cash cow that it was perceived to be earlier. Many day traders, butting up against the restrictions of pattern day trading and looking for greater leverage, have moved over to futures. Sincere, however, sticks with equities.
Not surprisingly, a good chunk of the book is devoted to chart reading, interpreting patterns, and using technical indicators. The author also explains the basics of order entry and trade management. Then comes a chapter on Hal—not the computer but a rookie trader who makes every mistake imaginable and in one very costly trade learns 33 lessons.
The penultimate chapter is the most interesting because it contains advice from three professional traders—Toni Turner, John Kurisko, and Peter Reznicek. Timothy Sykes also outlines some shorting strategies. Let me share one quotation that I particularly enjoyed, in part because it starts with the name of this blog (well, okay, I the overachiever claim to read more than one market).
“Reading the market is like getting lost in a dangerous forest… An experienced guide will know what signs to look for, see the animal tracks, and find a way out. If an inexperienced person got lost in the forest, he probably wouldn’t last the night.”—Toni Turner (p. 154)
Although the paperback cover screams “Anyone Can Day Trade!” Michael Sincere is much less sanguine. He points out potential pitfalls and urges caution at every turn. He stresses the need for hard work and continuing education. This is definitely not a get rich quick book. It is a measured, well written account of what it takes to get started day trading.