free daytrading ebooks

Discussion in 'Trading' started by daytradingebook, Mar 17, 2002.

  1. Trading Tip #51: It is better to average up than to average down
    Stocks go down for a reason. If you buy a stock and it goes down, why buy more? If you have a stock that is going up, well, wouldn’t you want to own more of your winners?

    Trading Tip #52: Buy when the people that "know," buy
    Who are the people that "know"? The people who run the company of course. If the officers and/or directors of a company are making purchases of the company stock in the open market, that is a good sign. Remember, we don’t mean if they are exercising options they have been granted. We mean buying stock in the open market, just like you do.

    Trading Tip #53: Buy...Sell Higher
    People are use to hearing buy low and sell high. You don’t have to buy low. You just have to buy stocks that you think will be going up. That’s how you make money.

    Trading Tip #54: Watch the trend
    Stocks tend to move in groups. That’s why many stocks in the same sector like technology, health care, or banking, as examples, move in the same direction at the same time. You don’t have to look for a star in a sector devoid of other bright lights. When possible, find your stars in clusters of other stars. It could make for a longer, straighter ride.

    Trading Tip #55: Only use margin if...
    you understand what it is and can afford to lose more than you invest. Margin is borrowing money to buy more securities. I have known some brokers who actually told their clients, and I quote, "The amount of money you make in the market is predicated on how many shares you own." Guess what! It’s not! It is predicated on whether or not the stock you own goes up! If it doesn’t go up it won’t matter how many shares you own. You’ll lose money. Make sure you know how much money you have at risk.

    Trading Tip #56: Stocks that split can offer great opportunities
    And even better opportunities are sometimes found with stocks that announce a dividend increase along with the split. Sometimes after a split, a stock will come down a little because of a run up in price caused by the announcement. Look for the bottom, if that happens and enjoy the ride.

    Trading Tip #57: Buy a Winner, Own a Winner
    That’s right. You don’t have to reinvent the wheel to be an investor who makes money. By that I mean, you don’t have to find an undiscovered stock to do well. Buying companies that consistently do well is a good concept.

    Trading Tip #58: Buy on rumor
    Sell on News. Many times the price of a stock will go up because there is a rumor about a company. A rumor is different than a "story." A rumor is based on fact. A story might not have any facts attached to it. Where do these rumors come from? Who knows? But who hasn’t heard of the company that has a drug with a scheduled FDA hearing and the thought is, they are going to get approved? Or the buyout that is going to happen? Or the big deal that makes sense for a company? If you are buying into one of these rumors, sell when you hear the news, good or bad, most times you will be better off. By the way, if the rumor never turns into an announcement, pick your time to sell. You bought the stock for a reason. If the reason is not there...SELL.

    Trading Tip #59: Don’t take tips from your neighbor
    Unless, of course, he is qualified. But most of your neighbors aren’t qualified. Most likely your neighbor is just repeating something he heard from someone else. Kind of like the game whispering down the lane. We all know how that works. Yes, stories change. Do your own research, or use a professional.

    Trading Tip #60: Look around you before you invest
    A great way to invest is to look for companies you know or do business with. Is your bank a public company? Do you shop at the large homebuilding stores? What about your supermarket? Is there one that stands out? Which products do you like? Look around and you might come up with a great investing idea.

    Trading Tip #61: Don’t take large positions in illiquid securities
    You don’t want to buy a lot of stock in a company that doesn’t trade much or one that has a very small float. When you go to sell your stock you could easily drive the price down. If you get into a stock, make sure you will be able to get out of it.

    Trading Tip #62: P/E/G not P/E
    It is not enough to look at the Price Earning Ratio of a company. You need to look at the P/E Ratio versus the past, current and estimated future growth rate. If a company has a P/E of 15 and is growing at 12% annually, all things being equal, it probably will not do as well as a company with a P/E of 20 which has a growth rate of 25%.

    Trading Tip #63: Diversification can save your life...your investment life that is
    This is the proverbial "don’t put all your eggs in one basket," rule. We are not trying to gamble here; we are trying to invest. Don’t put so much money in one stock that if it doesn’t work out it will change your lifestyle for the worse.

    Trading Tip #64: Over diversification can give you a false sense of security
    Most people don’t need to own more than 4 or 5 mutual funds to have maximum diversification. If you invest in multiple mutual funds of the same type, large cap growth for an example, you will find they will own many of the same issues. That is duplication, not diversification.

    Trading Tip #65: Act, and act quickly
    Let’s say you call your broker to buy a stock, or perhaps your broker has called you and you decide you want to enter an order. Once you have made the decision you should live by the "Nike" slogan. Make it your credo. "Just Do It." Don’t inquire about other stocks or ask how the family is doing. If you make a buying or selling decision, do your business so you don’t miss your price. Sometimes stock prices change quickly. Ask your other questions after you have made your trade(s).

    Trading Tip #66: Limit your limit orders
    If you are an investor, the difference of an eighth of a point shouldn’t matter to you. Putting in a limit order to buy could cause you not to get an execution on a stock that you like and is moving up. If you want to invest in a company, invest in that company, don’t leave it to chance.

    Trading Tip #67: If you are an investor, don’t over trade
    Investors do just that, they invest. For the relatively long haul, at that. If you buy a stock for a reason and the reason does not change and there are no mitigating factors. Hold the stock. Remember, let your winners ride and sell your losers.

    Trading Tip #68: Consider buying when there is blood in the streets
    Of course we don’t mean this literally. But the historical fact is that the stock market goes up, the stock market goes down and then the stock market goes back up. When the market has been slaughtered there are always opportunities.

    Trading Tip #69: Don’t give stop orders that are too tight
    If a stock has a normal trading swing of 1 ½ points in a day, don’t put in an order to sell if your stock drops 1 point from where you bought it. You could get "stopped out," not because of a drop in the stock price, which was caused by something extraordinary, but because of the normal price gyrations of the stock.

    Trading Tip #70: Marry your wife (or husband), don’t marry a stock
    Many people get caught up in one or two stocks or one or two industries and hold them forever, even if they are holding on for dear life. There are stocks that go down a lot and never come back. Divorce them.
    #11     Mar 17, 2002
  2. Trading Tip #71: Beware the wicked witch
    The third Friday of the months of March, June, September and December are triple witching months. That means that options on stock, futures and index’s all expire at the same time and often cause wild gyrations in the market. It can create opportunity, but could also be dangerous. Do not take these facts lightly if you are going into the market around triple witching day.

    Trading Tip #72: Don’t be penny wise and dollar foolish
    There are a lot of people out there offering advice on investments. If you are taking advice, concern yourself with more than the commission or the fee. After all, if you own stocks such as First Pacific Networks, Sci-clone Pharmaceuticals, Singing Machine, Magic Restaurants, or Continental Savings and Loan Preferred, it doesn’t matter how much you paid for commissions or fees, you probably have lost a lot of money. Value is in the total profitability of your investments, not in the commission costs.

    Trading Tip #73: Beware the Hustler
    There are three types of people in the investment business. There are those that hurt you because that is what they do for a living. There are those that can hurt you because they don’t know any better, they just don’t know what they are doing. Then there is the third group, the group that Michael Gold and Lee Siler belong to. That is the group of financial professionals who truly can help you. So the next time someone calls you on the telephone and tells you they have the next great stock and it is going to run to $50 and then split and run to $50 again and then split again and run to $50 again and then split again. Look into the telephone and tell them to call you back once the stock has run to 50 and then split the first time. You will still make a lot of money if the scenario comes true. When someone calls you and says they have found a company that can make aluminum out of sand (we actually heard this one), and that the stock will have a big run up in price, tell them to call you after the product is in production and is selling in the United States. Buy quality and earnings, not stories. Oh, one more thing, when someone tells you that you should buy low priced stocks because it is easier for a $2 stock to double than a $20 stock, do yourself a favor and hang up the telephone. In the long run, you will save yourself a lot of money and a lot of heartache.

    Trading Tip #74: Remember, the masses are usually wrong
    When all the pundits on CNBC say the market can only go lower look for a turn up. By the same token, when everyone says the market is surely headed much higher brace yourself for a correction. Pay attention to extreme investor psychological levels in both directions as they usually mark both bottoms and tops.

    Trading Tip #75: Remember that analyst estimates are just that: estimates
    Companies may earn significantly more or less than analysts believe they will. It is more important to watch the stock price performance heading into an earnings announcement than to focus on what analysts are saying. You will often see a stock’s price run up significantly BEFORE the company announces better than expected earnings.

    Trading Tip #76: Buying options is a speculation, not an investment
    When you buy an option you have to be right about both the move in the underlying security as well as the timing. This is why eighty percent of options expire worthless.

    Trading Tip #77: Tax consequences must come second to performance
    Do not hold a stock solely to avoid paying a capital gain. If the stock is headed lower at some point you must protect yourself and pay the IRS. We have seen numerous instances where people have not sold a stock to avoid paying a capital gain only to have that gain disappear.

    Trading Tip #78: Find your comfort level
    At night you need to be able to put your head on your pillow and go to sleep. If you can’t do this owning a handful of Internet stocks, then don’t own Internet stocks. It is your money, not your broker’s. If you are not comfortable with the investments you own then it is time for a change.

    Trading Tip #79: Buying opportunities
    What is the label usually given to nightmare stock market downturns a few years after the fact. Answer: Buying opportunities. Remember, you can't buy low and sell high if you don't buy low. But it's still scary.

    Trading Tip #80: Buying and Selling
    You don't have to buy or sell just because everyone else is. The day-to-day stock market tends to focus on short-term EPS trends. But the legendary investors tend to focus on the long term.

    Trading Tip #81: Analysts
    Analysts act as if they can forecast EPS right down to the penny. In truth, they can't. Stay alert for opportunities as share prices react to pseudo-surprises.

    Trading Tip #82: Turnover Ratios
    It's proper to be concerned about inventory turnover ratios that are below the industry average. But this calls for homework, not panic. Is the company building inventories for a peak selling season, or to launch a new product?

    Trading Tip #83: Interest Rates
    The relationship between interest rates and stock prices is more than just Wall Street culture. For one thing, lower rates make alternative investments (such as bonds) less attractive than stocks.

    Trading Tip #84: Keep your eyes on the company's pockets too.
    You aren't the only one who can buy a bargain-priced stock. Companies sometimes buy back their own shares if they feel the stock is significantly undervalued.

    Trading Tip #85: Check Insider Ownership
    A low percentage of institutional ownership could signal an undiscovered gem. But before reaching that conclusion, check insider ownership, to make sure there are shares available for other institutions that might want to buy.

    Trading Tip #86: Equity Capital
    Some investors frown when companies sell more stock. True a bigger share base may temporarily cut EPS. But remember, equity capital is less risky than debt.

    Trading Tip #87: Differences
    Big differences between operating and pretax margins call for further inquiry. Hefty non-operating expense (aside from interest costs) could signal the sort of complexity investors often dislike.

    Trading Tip #88: Shorts
    Heavy short interest, which means many are betting the stock will fall, can be scary. But short sellers aren't always correct, and if good news arrives, they may have to buy quickly to "cover" their positions.

    Trading Tip #89: Get the Hell Out
    When sells out weighs or equals buys, don't make the mistake of holding a stock too long . Take your profit while you still can because tomorrow you may be at a loss.

    Trading Tip #90: Economic "Deterioration."
    It's natural to be put off by any kind of economic "deterioration." But keep things in perspective. It's not as troublesome when the economy is backtracking from best-of-all-possible-world levels.

    Trading Tip #91: Earnings Surprises
    Earnings surprise isn't quite what it used to be, as reported numbers are compared with the latest in a series of estimates that were continually tweaked as announcement day approaches. So now, pay more attention to the trend of estimate revisions.

    Trading Tip #92: Study a Company's Track Record
    Occasional headlines aside, changes in corporate quality tend to occur very gradually. So even though investors, strictly speaking, look toward the future, don't underestimate the value of studying a company's track record.

    Trading Tip #93: Stock Buy Backs
    You aren't the only one who can buy a bargain-priced stock. Companies sometimes buy back their own shares if they feel the stock is significantly undervalued.

    Trading Tip #94: Immune to the slump?
    When many companies in an industry experience poor profit trends, be careful about those that seem immune to the slump. Even the best of companies find it hard to indefinitely avoid bad economic conditions.
    #12     Mar 17, 2002
  3. Kind of looks like a collection of commonly known, conventional wisdom quotes excerpted from multiple sources thrown together with some new dumb ideas of their own and not edited for consistency.

    Example - tip #10 (presumably something they dreamed up on their own) basically says that stop losses are a bad idea and that they don't recommend using them. Presumably preferring prices to accelerate against them while they stand paralized like deers caught in the headlights. They also seem to have an unusual understanding (or lack thereof) of stop orders since they say "...stops can be used to sell your stock a little quicker in volatile markets, as stops seem to be taken a little more seriously than market and limit orders...". Taken more seriously by whom? The computer that fires the resulting market or limit order into the execution network when the stop price is hit and the stop order elected?

    After having dissed stop orders in #10, they turn around and (presumably) copied from another source say in #30 "Capital: Saving your capital is more important than making money" and in #33 "Protection: Protect profits with stops losses".

    So presumably they'll use stops if the position is positive but not to cut losses, even though protecting your capital is supposed to be more important than making money.

    I also liked the naive "A good way to calculate your sale price is based on how much you'd like to make for the day" in "tip" #12 that looks like it was their idea tagged to the end of some copied quote about using preplanned exits. Gee, if it were only as easy as simply deciding how much you'd like to make for the day.:)

    Also wondering how old the sources are that they copied some of these "tips" from. There are references to "calling your broker to buy a stock" and not "ask how the family is doing".

    How many traders still call their broker to place trading orders? Let alone even have an old style "investor/broker" relationship at all. Maybe the rare instance of getting an alert on your cellphone email while you're away and have to phone in the order to the broker's automated system (assuming you don't have a wireless handheld PC that is). But how many actively trade while away from their PCs?

    What do you want for free I guess :)
    #13     Mar 18, 2002
  4. I agree. They are lame. Those "tips" were the best part. I posted all of that so that no one would have to download their "free" ebook, which is one giant advertisement for newsletters, stock picks, and lame "educational materials." The "book reviews" are hilarious - "This book is great" oh and by the way you can buy it from us.
    #14     Mar 18, 2002
  5. Better check this *.exe file before you run it !
    #15     Mar 18, 2002
  6. Beware, since downloading this crap I have had all kinds of problems. I'm not sure if I have a virus because my Norton program seems to have been disabled. File EMM486.exe seems to have caused all the problems.
    I have deleted the file and got rid of it in my registry but have been left with problems to my desktop manager (Appian).
    I should have listened to Candle.
    #16     Mar 18, 2002
  7. #17     Mar 18, 2002
  8. tom_p


    daytradingebook has not responded as of yet, so in the interests of public safety this thread should be deleted immediately.
    #18     Mar 18, 2002
  9. Whoa! How do you make text so big? That is pretty cool.

    If Baron deletes it, then all of the tips I posted get deleted, too:mad:

    I posted all of that so that no one would want to download the darn thing. And especially after all of this negative feedback, I don't see why anyone would.
    #19     Mar 18, 2002
  10. here in this forum there is a people wants to destroy any one tries to help others
    they just like devils
    if some tries to put a new site they kill him
    or put new idea they destroy him at once
    or tries to find a good service they just send them to hell why???
    so there banks acounts fill with our money becuase any dollar they when will take it from loosers
    they wants us in the dark not to learn or be successfull traders
    any post here for a new thing they tries to crush it with there devils
    i am sorry these people are here
    how ever i am sorry for people who wants to success we must wipe these devils so we can reach safe lands
    just look any new site or software or chat room or a newsltter or any thing can help post it here they tries to crash it
    ok help us instead of killing us to take our money nothing is good for them the only thing is make us loose money to fill there banks accounts.
    sorry they managed to fake us with there poisened ideas and posts
    good luck every one
    #20     Mar 19, 2002