So, you want to become a day trader? That’s great. It surely has to one of the most satisfying, rewarding and time efficient ways to earn a living. I say earn a living, however, once you’ve learned to become proficient, earning is hardly the word you’ll feel like using. You may even feel rather like you’re cheating sometimes. Why would this be? Because you need only spend a fraction of your time making the money you’d otherwise have to really work for.
1. First and foremost, you need to properly educate yourself. There’s a splendid range of tutorial material to devour and keep you occupied. But, I don’t think you’ll find it a chore – really. A bit difficult to get you head round to start with, but then it become irresistible. Remember, I’m only talking learning at the moment.
2. You need to learn how to train your mind. Don’t get caught up in emotional trading because it’ll put you off forever, and it honestly doesn’t have to be like that. It’s all part of the education, the psychological side. Don’t worry; tools are plentiful to get you in the right frame of mind to become a successful day trader.
3. You can start to trade with as little as $200, but the more you can deposit in your account, the better, $2000 is ideal.
4. I think it’s far easier to trade online, rather than in the traditional manner, by using a broker. Nowadays, day trading platforms are so good and user friendly. You also have a splendid range of charting software, for both technical analysis with charts, and fundamentals, looking at company information.
5. Never, ever go trading with money you cannot afford to lose. Your account has to be what I call playtime money. I don’t mean to downplay it but it’s important. Never use anymore than 5% of you capital on any trade either. That’s critical too.
The biggest error people make when they start to trade is to rush in where angels fear to tread. I cannot over emphasise the importance of using you head, not your heart. If you can stick to the guidelines above, you can carve out a fruitful hobby, or even replacement career for yourself.