So you have decided that you want to get into day trading. You have done your research, determined it is viable, and now you are ready to start!
Day traders go through a process very similar to that of professional investors. The only difference being the time frame involved and the lower risk investment.
There are many ways to get started as a trader but, the most important thing is to do your homework first. Make sure you understand the market, how markets work, and who the major players are. Once you have those pieces in place, then you can move onto the next step.
This article will talk about some easy ways to get into day trading.
Open a trading account
The next step in day trading is choosing where to open an investing or finance-related business account. There are many great online brokerages that offer day trading accounts, so do some research and find one that fits your budget and needs.
Brokerage companies differ from each other not only by what products they carry, but also by how much investment capital they have. Some large banks may offer less expensive daily trading services than smaller, more personal brokers.
Be sure to compare all of the features, costs, and types of trading accounts that each company offers before deciding which one is best for you.
Important things to look for:
1. Is the broker regulated?
- Is the broker regulated in a reputable location? – this is important for the protection of your deposit.
- Are client funds segregated from company funds?
- Look for a broker with the tightest spreads so that slippage (cost of trading) on each trade is minimised.
Here are my top 2 recommendations:
Fund your trading account
Even if you have no experience investing, day trading is still viable! You do not need an investment degree to start practicing this market/trend trader style of investing.
There are many ways to fund your daily trading accounts.
Choose your trading strategy
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Day traders don’t typically invest in stocks, they trade currencies and/or commodities!
A lot of people start day trading by guessing when to buy low and sell high. That can be fun when you start, but it isn’t the best way to run a business.
Guessing may even work for a short period of time & you make make a profit, just by being lucky. However eventually you will suffer a big loss if you have not learned the important rules of trading & also practised sticking to those rules.
Buy and sell stock markets and commodities
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The best way to get into day trading is by starting with something simple. You can start buying and selling commodities, crypto coins, Forex, individual shares of stock or you can begin investing in companies!
Day traders usually focus on risking small amounts of money on short term trades, so investing in large quantities isn’t necessary at first. By starting with just one share of stock, one FX pair or one commodity such as Gold,
you will be more careful about how much you invest because it is your money.
That said, as you gain experience and learn more about the market, you can take greater risks when you understand what you are doing & can trust yourself not to make big losses but losing control of yourself.
Many online brokerage sites have educational tools that can help beginners understand the basics of the markets. But if you are serious about becoming a consistently profitable trader in the longer term you must get yourself a good education.
Of course, this is true if you want to be successful at anything in life.
To become successful at day trading you need a mentor.
A lot of people start investing in the stock market, trying to find what works. They look at different strategies and systems and get involved either as an investor or a trader.
One of the most important things to master is managing your emotions. You will discover that you are not battling against the market but you are battling against your emotions and lack of self control.
What is important is that you understand the basics of the market and how markets work. You also need to know which strategies and products help the stock market move upward towards achieving peak performance
and which ones cost investors money because they can’t achieve that goal.
It is easy to find the basic rules and free education and this could be sufficient if you only intend to play in the markets for a bit of fun. A bit like playing with small sums in a casino.
You will lose some but hopefully you will also win some. Just ensure you never risk more than you can afford to lose. However if you want to get serious and create a regular income from trading you must find a mentor to take you to the next level.
Jason Sen has over 35 years of trading & technical analysis experience.
Some day traders only want a way to earn extra money, not spend lots of money to do so. Which is why I have created a 9 module course, to teach you everything that I have learned in over 35 years of successful day trading – and the cost is ONLY £300!!
It is a one time fee to access the course for life, but what is totally unique about my course is that you get FREE meetings with Jason Sen as often as you wish, for a long as you want, any time in the future, with no time restrictions.
No other mentor with that much experience will offer you unlimited mentorship time for as long as you need it.
Get a 25% discount today
Risk and reward
A lot of people get discouraged when they start day trading, making the assumption that it’s too difficult or expensive to learn. What many don’t realize is that with proper education, investing in general, and understanding risk,
then starting off as a novice trader isn’t very different from buying and selling a few shares on the stock market!
Day trading is not only accessible to anyone, but it can be done for fun without taking away much money. The key difference between the winners & the losers in the day trading game is learning and mastering risk management.
While you are learning, gain experience while keeping things at a manageable level. I have so many people come to me AFTER they have blown more than they can afford & only then do they decide to get professional help so that they can win back their losses.
Know your limit
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“Knowing your limits” is one of the most important things for you to do as a day trader. You want to make sure that you don’t overextend yourself by investing in too many strategies or systems,
or trading with more money than you should have.
There are several ways to determine how much capital you feel comfortable investing into day trading.
First, understand what types of markets and timeframes you are familiar with.
Second, evaluate if this is something that will be easy for you to handle both mentally and physically.
Take responsibility for your actions
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If you have decided to make day trading your full time occupation, you will need to have a good amount of savings that you can use as an emergency fund when things go wrong.
It is best to start with a small investment size to see if you are able to control yourself before investing more money.
Learn to trade from Jason Sen with a 35 year career which includes:
12 years on the LIFFE trading floor (from 1987).
15 years market making interest rate & index options.
3 years options market making when trading went digital.
5 years derivatives broking (investment bank clients).
15 years practising technical analysis of financial markets.
12 years providing technical analysis signals to investment banks and retail traders.
10 years trading Forex, gold & index futures (personal account).
20 years of teaching traders.
Get a 25% discount today