Day trading requires patience. One of the only things better than really nailing a trade is the satisfying sound of the ball cracking into the back of the plexiglass of an indoor soccer goal. I am not a prolific goal scorer, but I recently scored a goal that was hailed as the “Goal of the Match” in a 5-1 win. What made this goal so perfect is the same thing that is often responsible for my best trades – patience. So picture this; the field is about the size of a hockey rink, complete with wooden sideboards.
The book The Warren Buffetts Next Door: The World’s Greatest Investors You’ve Never Heard Of and What You Can Learn From Them by Matthew Schifrin is an interesting compilation of true stories about ‘average Joes’ who have made huge amounts of money in the stock market. Some use technical analysis, some use fundamental analysis, and some use gut feelings.
This book gives hope to every investor and trader. Each chapter covers a different person, describing what their occupation is, how old they are, their investment strategy, what broker they use, and what their favorite web sites and chat rooms are. Also, their best and worst picks, along with the long term track record. My favorite one is the Stock Angler in Chapter 9. The guy has a full time job, trades during the hour or two before he leaves for work, and has been able to achieve a 33% average annualized return since January 2003.
Every trader that is profiled provides an example of on of their successful trades, and shows how the decision was made to make the trade. I really like the last chapter which lists all the major investment websites which he calls Investor Incubators. You should read The Warren Buffetts Next Door for proof that you don’t have to be Warren Buffett, George Soros, T. Boone Pickens, or Carl Icahn to be a successful stock trader.