The Complete Guide to Investing in Short-Term Trading: How to Earn High Rates of Returns Safely

by Alan Northcott

Book Overview

Short-term trading refers to the practice of buying and selling financial instruments within the same trading week or, at most, a few weeks. Short-term traders buy and sell stocks over a few days or... This description may be from another edition of this product.

• Format: Paperback
• Language: English
• ISBN: 160138002X
• ISBN13: 9781601380029
• Release Date: February 2008
• Publisher: Atlantic Publishing Company (FL)
• Length: 285 Pages
• Weight: 0.85 lbs.
• Dimensions: 0.7" x 6.1" x 8.9"

Customer Reviews

Trading 101

This is an excellent choice for anyone that is looking for a book to start out with and learn the basics of trading. The author does an excellent job touching on every topic you will need in trading, some of these are: how greed and fear factor into the markets, how the markets operate, the differences between swing traders, position traders and day traders, the different kinds of orders that can be placed, market or limit, stop order or limit stop order, trading using fundamental analysis vs. technical analysis, and the importance of money management in trading, along with the importance of building a trading system that fits your personality and gives you an edge over the markets. While experienced traders will get very little out of this book, it is a nice refresher on the psychology of trading and the importance of following your own stock trading system and following your own rules. I rank this book as 5 stars and a must have for traders just starting out, it is a great stepping stone to more advanced books from Alexander Elder and William O'Neal.

Understandable; makes CNBC exciting

This book is a full-on crash course in short term trading. Although it's designed to educate beginners there's a ton of advanced material in here. Luckily, Alan Northcott breaks down this dense subject matter into clearly-defined subsections and tackles each piece individually. It made me feel like I had a good understanding of concepts that I previously had no knowledge of, like how to place different types of orders and buying stocks on margin. Before I picked up this book my eyes would just glaze over when I looked at a price chart, but by the time I got through the chapter "Caught on the Technicalities" I was actually excited to watch CNBC! Throughout the text there are short "Success Stories" that are enjoyable to read and that help put the high volume of technical information into a more personal context. Overall, it's a well-presented introduction to an intimidating subject. Of course, there were several sections I had to read a few times (as well as others that were much quicker to read through). I found it very useful that bullet points and lists of key words to know are provided at the end of each chapter. The glossary in the back of the book is also great for quick reference. I really appreciated Northcott's blunt approach and constant cautions not to get carried away. While I've read other books on investing that emphasize how much can be gained from the markets, Northcott rarely goes a few pages without reminding the reader that thrilling highs can easily turn into devastating lows. (This point hits home especially hard when he discusses the current state of the economy.) This is easily one of the most useful books I've read in a long time and one I'll return to when making potentially expensive decisions. Hands down, any book that could help me feel confident about tracking indicators and questioning an analyst deserves a full five stars.

A Must Have

Just reading through the table of contents may seem daunting for this incredibly detailed and well broken-down text. But don't put it back on the shelves simply because of information overload! This book claims to be a complete guide to investing, and it takes that claim seriously. The strength of this book, in my opinion, is its variety of voice. Technically, it has one author. But between the covers are numerous interviews and personal stories on success and failure of stock market trades- not fictional scenarios, but real anecdotes from real (and often well known) `expert' traders. There is also the layman's approach to it all, with a glossary of terms and handy information `bullets' in the back of each chapter (in case the words were making your head spin). The author also does not cushion us readers with false hope or any sugar-coated lies about ease and success- which, as a beginning stock trader, I greatly appreciate. So, although it may take you weeks to fully comprehend the mass of information here, stick with it. Because, as we all know, playing the market is based on education, not luck, and so if you're a beginner in short term trading you should do your best to educate yourself fully. And this book should be a part of that education.

A great reference book for the newbie trader and anyone else who wants a primer on trading in today'

I wish I had read this book years ago -- I may have been able to react more appropriately (ie: I wouldn't have tuned out, or my eyes wouldn't have crossed) when my husband raved about a stock that he had just sold at a profit, or another one that he was watching as CNBC pundits argued in the background. I'd go into the "huh? zone" because I didn't understand what he was talking about when he referred to futures, options, puts and calls. All I vaguely knew was that a stock going up in price was a good thing, and you buy low and sell high. So, while I'm not planning to do any short term trading, this book gave me a better understanding of trading in terms that I could understand. I sailed through the first several chapters in which Northcott went over the basics: supply and demand, global influences, the mindset of a trader, the differences between the markets and exchanges, placing orders, the types of traders, economic indicators and the tools that are needed to be a trader. Northcott's cheat sheet at the end of each chapter offers a quick look at the chapter in the form of "success bullets" and "words to know" that I found helpful and invaluable to someone using this as a reference book. I did start to get into the "huh? zone" around Chapter 8 when Northcott went into the nitty-gritty world of charting, and I found my reading slowing down as I stumbled over candlestick charts and support, resistance and continuation patterns. His lesson on indicators (ie. Moving Average Convergence/Divergence indicator and the Stochastic Oscillator) go into a detail that should make this book required reading for the beginning trader. The next several chapters aren't a quick read - in fact, they'll take several re-readings and a highlighter. But they're basic tools for anyone wanting to research and trade on the markets. I closed the book with new knowledge and a better understanding of just how risky and exhilarating short term trading can be. This book doesn't offer a get-rich-quick plan, but it does provide a look at the basics of what it takes to do this kind of trading. Throughout the book, Northcott stresses that short term trading is a business, so the novice needs to think of it that way. Don't let emotions like greed and fear get in your way. Come up with a business plan and stick with it: do research to get in or out of the markets, and know the point when you've got to fold and get out. I'd give this book five stars and recommend it as a required reference book on the shelf of anyone who dabbles in buying or selling on the markets to those who want to make it a career.

Good Solid Basics

The Complete Guide to Investing in Short Term Trading is a good, basic book on short term trading. This is no "get rich quick" scheme. Northcott is blunt and to the point about the advantages and drawbacks of short-term trading. He gives a detailed analysis of the stock market - its history as well as the basics of how it works. His style is easy-to-read and straightforward, so you absorb the complex information fairly easily. This book does assume you have some knowledge of business. It's not going to teach you how to handle taxes from your trading profits, for instance. What it does and does well, is guide you through the different types of trading, giving you the advantages and disadvantages of each. Each chapter gives a bulleted review of the information you should have absorbed from the material as well as a vocabulary list of concepts you will have encountered. The book contains an excellent glossary so that you can review terms easily. He explains how to read charts and trends, Because Northcott does not encourage taking foolish risks, and is realistic about how one will do in the short-term trading world, he makes suggestions about how to practice what you've learned before you risk any of your own money. Being a realistic author, he also dips into lifestyle, discussing the stress and demands of being a short-term trader. It was refreshing to read a book on short-term trading that did not seem like a get-rich quick scheme, but a solid analysis of how to succeed in such a demanding field.