As a newbie in the stock market I don't know what I don't know. I am looking to understand the fundamentals and pragmatic rules to successfully engage into stock trading.

A correct response will be a list of books or resources that successful day stock traders deem to be a good learning source.

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    You should probably find any of the hundreds or thousands of articles written in the last decade that cite a billionaire like Ray Dalio or Warren Buffett offering the advice that the average person is best served by a broad market index fund like VOO, SPY or SWPPX, etc. Fees related to frequent trading will eat your $25k for lunch. A recommended book would be "The money game" or "A random walk down wall street" "Flashboys" was good too. – quid Sep 6 at 21:28
  • I believe that people like Warren Buffett have an appetite and a buffer for long term investments. Small accounts must function different. That's what I am looking to learn. – David Hofmann Sep 6 at 21:31
  • That's where you're wrong, but good luck. "Snowball" would probably be another good book recommendation for you. – quid Sep 6 at 21:32
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    @quid - There are brokers who do not charge commissions so one can avoid frequent trading fees eating your $25k for lunch. The real risk is that most wanna be get rich quick noob traders lose their money because they don't understand nor do they manage risk. – Bob Baerker Sep 6 at 22:23
  • Warren Buffett had a very small amount of money when he started investing. He started with about $120 – xyious Sep 9 at 18:12

Assuming that this is the US and if you have less than $25k in a cash account then you can only day trade settled cash (T+2). If you make more than 3 day trades (options and equities) in a rolling 5 business day period in a margin account then you are considered to be a Pattern Day Trader and must maintain a minimum equity of $25k in a margin account on any day that trades are made.

At the risk of sounding glib, the 'pragmatic rule' for successfully engaging in stock trading is making profitable trades, netting more than you lose. How you achieve that goal isn't going to be directly found in a series of books or resources but rather in your knitting that information together into a cohesive trading plan along with disciplined risk management. For lack of a better analogy, it's the difference between learning to speak a foreign language in a structured classroom environment versus being out in the real world and freely speaking the language.

What to do? You need to become financially literate. Start by reading beginner level introductory material. As you understand more, seek out the more complex books in areas of the market that interest you. Read everything that you can. Until you're somewhat literate, you won't have a clue what's worthwhile versus what's BS. Only then will you have an idea of what you don't know.

Understanding financial markets is like learning a foreign language. It takes time and effort, something most people don’t want to do and as a result of failing to do so, they often lose their money. Financial markets quickly take the money of the inexperienced and uninformed. There's a lot of junk on the web. Until you learn this language, you're going to be cannon fodder.


A correct response will be a list of books or resources that successful day stock traders deem to be a good learning source.

There are tons of books with a mix of contradictory view on truth, half-truth and hindsight.

So reading those "trade secret" books is not enough. I will suggest you go invest part of your fund on a prudent stock that you gain most knowledge on (i.e. the industry, the norm and the pitfalls), before dipping yourself into serious day trading.

OTH, you can also download or registered Trade Simulator, write down each of your trade ideas and simulate those trade idea from 6 months to 1 year. Assess your virtual trading P/L afterwards and analyze the reason and strategy used.

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