Cover image for The day traders : the untold story of the extreme investors and how they changed Wall Street forever
Title:
The day traders : the untold story of the extreme investors and how they changed Wall Street forever
Author:
Millman, Gregory J.
Personal Author:
Edition:
First edition.
Publication Information:
New York : Times Business, [1999]

©1999
Physical Description:
xi, 253 pages ; 25 cm
Language:
English
ISBN:
9780812931860
Format :
Book

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Summary

Summary

The gold rush that is revolutionizing Wall Street and the markets--the story of day trading as it's never been told In The Day Traders, Gregory Millman goes behind the scenes to reveal the truth about a modern gold rush that has people from all walks of life playing the market online, in real time, just like Wall Street's biggest pros. This is the story of the extreme investing scene, where the upside dazzles and the threat of financial injury is dire. And whether the day-trading phenomenon lasts a hundred years or ends tomorrow, the markets we know as "Wall Street" will never be the same. Millman chronicles how that happened and why, who wins and who loses. Here are just a few of the players you will meet: ¸  The "King of the Bandits," the first upstart to beat the Wall Street establishment at its own game ¸  The techno-rebels who launched a revolution in the markets and put the New York Stock Ex-change and Nasdaq on the run ¸  The shady courtroom antagonists whose im-broglio of lawsuits and investigations have pried the lid off day trading's best-kept secrets--including allegations of fraud, money laundering, corporate espionage, racketeering, and more This is a story of people testing themselves against almost impossible odds. "Trading is incredibly intense," says one psychologist. "It can suck you in. At the end of the day you feel good or bad about yourself as a person based on whether you've made or lost money." One young doctor won so much playing the markets in med school that he left medicine for the life of a trader, only to spiral down into compulsive gambling, barely escaping the worst. Step inside a day-trading course with Millman and take an objective look at the methods and lessons of the game. Meet other would-be traders: a mother-and-daughter team, a Thai immigrant, a former small-business owner seeking a new career after disability ended his first, a onetime mining engineer trying to regain his self-esteem after being laid off for several years. All of them are eager to join the virtual gold rush and try their luck at a high-stakes game whose first rule is: Forget everything you ever knew about investing. Millman shows why the game gets harder even as it gets bigger, and shows how technology is turning day trading into an international phenomenon, opening new markets and breaking old rules. Some have found a way to make millions even on losing trades--like the failed Texas trader who lost big online but won bigger in court by suing the investor who lent him money to cover margin calls. The Day Traders also includes "The Extreme Investor's Manual"--a handy how-to look at day trading that includes the principles of successful trading as well as a guide to taking your broker to court if things go awry, as they frequently do in this high-stakes world.


Reviews 4

Booklist Review

Most of us remember the headlines last August, when an Atlanta "day trader" went on a murder spree, shooting up two day-trading brokerage firms. His act certainly brought increased attention to the concept and practice of day trading, which veteran business writer Millman explains in a comprehensive and comprehensible history and overview. Day traders are not Wall Street professionals; they come from all walks of life, take a course in day trading (which Millman details), and operate from anywhere, with a computer at the ready--and ready to make split-second decisions about betting on this stock and that stock, buying and selling at a phenomenal rate. The author delves into the history of day trading, the nature of its application, and what its future holds ("day trading cannot be stopped" and "there are sound economic reasons why it should not be"). We see the appeal ("pathologically addictive," one psychologist is quoted as saying), and from the manual of day trading Millman concludes with, we learn how to become part of the action. --Brad Hooper


Publisher's Weekly Review

While how-to books for day traders abound, Millman (The Vandal's Crown), a business journalist, takes an analytical look at the phenomenon. The combination of a roaring bull market and the spread of technology has enabled anyone with access to a computer to trade his or own stocks. Day trading is so widespread now that even the largest brokerage houses are starting to offer online trading services to customers. While many day traders invest for the long term, others are in the market for a quick kill, and these are the people who are featured by Millman. So-called "extreme traders" are not investors at all. They're not interested in lending capital to businesses they believe will be profitable in the long term, but rather look to make money by exploiting price discrepancies and by making manyÄsometimes hundreds ofÄtrades per day. Millman is both admiring and critical of how day trading has evolved. On the positive side, online trading has opened up the markets and made them more democratic, while at the same time scores of day-trading brokers have emerged looking to take advantage of market neophytes. Millman's narrative is generally an unfocused collection of anecdotes peppered with commentary. Cumulatively, however, his snapshots add up to a revealing picture of the day-trading landscape. Millman's clear message: day trading is not for everyone, and most day traders lose money. (Nov.) (c) Copyright PWxyz, LLC. All rights reserved


Library Journal Review

Day trading has received considerable attention as a way of capitalizing on the volatility of the stock market. This book not only offers a glimpse of how day traders make and lose money but provides a historical perspective on how this form of trading started. Millman, who has authored many articles and books on the subject of investing, maintains that day trading is a backlash against the traditional methods of buying and selling stock supported by the federal government. The technologies and teaching methods used by day-trading programs to train hopeful risk takers are also discussed. The book, however, emphasizes the philosophy and history of day trading as opposed to the nuts and bolts of the profession. Most people interested in this form of stock trading will want more specific information on how they can make money than this book offers. Recommended only for larger public and academic libraries that feature strong investment collections.ÄPatrick Mahoney, Kansas City P.L., KS (c) Copyright 2010. Library Journals LLC, a wholly owned subsidiary of Media Source, Inc. No redistribution permitted.


Choice Review

Millman, a business journalist, offers a popular account of the day trader movement and its development with the advent of electronic trading. Successful day trading requires determining the direction of the market; finding a stock that is moving; buying the stock if it is going up or selling it if it is going down; and letting profits run while cutting losses. Millman stresses these rules and the importance of price movements and momentum, noting that the application of fundamental analysis to individual companies is useless and irrelevant for day trading. He notes the personal traits of day traders (discipline and focus), acknowledges the importance of psychological factors (such as proving oneself), and considers the resemblance between day trading and a gambling obsession. Only anecdotal evidence of trading success is provided, and most of the book consists of superfluous descriptions or useless advice. Questions such as "When should I buy?" are flippantly answered with "About ten seconds before the stock goes up." Readers who are expecting to learn how to day trade or who want in-depth information on returns, the costs of day trading, or the characteristics of day traders will be disappointed. Not recommended for academic collections. H. Mayo; The College of New Jersey


Table of Contents

Introductionp. vii
Part 1 The Gold Rushp. 1
Chapter 1 Cut to the Chase: Life and Death in the Trading Roomsp. 3
Part 2 Raising Livermore's Ghostp. 37
Chapter 2 Jesse's Way: The First Day-Trading Masterp. 39
Chapter 3 The Billion-Dollar Brewski: A Story of Scandalp. 49
Chapter 4 Islands, Archipelagos, and Electronic Bucket Shopsp. 64
Part 3 The Global Trading Pitp. 73
Chapter 5 Capitalist Roaders: Day Trading Without Bordersp. 75
Chapter 6 Inside the Archipelago: The Technology of Revolutionp. 86
Chapter 7 On the QT: How the Biggest Traders Cover Their Tracksp. 101
Part 4 Bandit Boot Campp. 111
Chapter 8 A Total Immersion Course in Day Tradingp. 113
Part 5 The Bad and the Uglyp. 155
Chapter 9 The Dirt: Day Trading Secrets Spilled in Courtp. 157
Chapter 10 Cops and Robbers: The Hard Facts of Bandit Lifep. 168
Conclusionp. 176
Part 6 The Extreme Investor's Manual of Online Day Tradingp. 179
Section I Look Before You Leapp. 183
Section II A Day-Trading Primerp. 189
Section III Taking Your Broker to Courtp. 207
Section IV The Extreme Investor Lexiconp. 213
Section V A Short List of Websitesp. 223
Acknowledgmentsp. 225
Notesp. 228
Indexp. 247