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Day Trading: Become a Pro Trader

Day trading is buying and selling shares of stock inside of a day in trying to produce short-term profits. Day traders close out their positions at the conclusion of every single day and after that they start all over again the following trading day. Day traders close out their positions in a stock prior to the end of the day is because it can be risky to hold a stock overnight.

A trader does not want to get out of bed the next day to discover that the stock that was bought has fallen substantially in value. So, by getting out of their positions by the end of the day it safeguards them from the unknown risks of holding a certain stock of a company overnight.

Is It Right for You?

In order to be a day trader there are a variety of things to consider. There are emotional considerations, time commitments, your availability of funds, and if you have the ability to work alone.

So, you should ask yourself these types of questions; Am I able to work alone? Am I able to be disciplined and am I able to control my emotions?

Get Educated

Before becoming a day trader, you certainly need to get educated in how to trade. There are various ways on getting educated on day trading. You can read books about it, there are also lots of info on the internet where you can learn to trade and there is a multitude of trading courses from trading academies to online courses in trading.

Open a Demo Account

Once you have picked up on some fundamentals of trading, the most effective ways to learn how to trade are practice and the best method of practicing is paper trading.

Paper trading is essentially a simulated trading process in which you can practice trading without using actual money. There are several websites online that allow you to setup a free account so that you can paper trade. Also, some brokerages provide you with an account to paper trade without requiring money in your account.

Create a Strategy

Trading is a business and like any other business it needs a plan. Everyone has heard the saying, “if you fail to plan, then plan to fail.”

Therefore, to become a day trader you need to create a trading plan. A trading plan is like a business plan.

Developing a Trading Plan is essential to become a successful trader and it defines what is supposed to be done, why, when, and how. It covers your trading personality, personal expectations, risk management rules, and trading system or strategy.

A day trader must always stick to the trading plan and when followed, a trading plan will help limit trading mistakes and minimize your losses.

Picking & Opening a Brokerage Account

Selecting the right stock broker is certainly among the important factors to become a successful trader. Because there are a variety of stock brokers available, it can be hard in selecting one.

One of the primary components when picking a broker is the commission. Commission rates differ from broker to broker and each broker has various pricing structures, such as some may have a flat-fee commission or some may charge per share.

Platform

Another factor for selecting a broker is the fees and costs of using their trading platform. Day trading requires a professional trading software platform and a high-speed internet connection. The trading platform displays charts, quotes, technical indicators and allows you to execute trades.

But, simply because a broker offers a low pricing structure on the platform and has very cheap commission rates does not always make them the very best of all stock brokers to choose. Some brokers might have very low rates, but have poor execution on trades, inferior tools or platform and terrible customer service.

The best brokers might not always have the lowest priced commission rates of all the others, but features a good optimal mix of competitive commission pricing together with a good combination of great trade execution, high-quality tools & platform, which in the end provides a trader the best value.

If you’re looking for the best day trading platform out there, then you should definitely sign up with Markets.com or Plus500. Both of these brokerage firms have a reputable track record and offer a superb trading platform.

Things to avoid While Day trading

As you might already have noticed, there is no shortage of advice available about what we should do. That is O.K. and it is necessary, but it is not enough by itself. For balance we should also understand the other side of this. We have to determine what to keep from doing and what to avoid. That said, here are the 4 things you should avoid:

If Not 100% Confident In Your Trade, Do Not Enter If You Want To Open A Day Trading Stocks Practice!

There are particular reasons to refrain from doing this. The main one is if you’re not confident whenever you enter the trade, next time around you will feel this same insecurity, but most likely amplified. You’ll create a hard habit to get rid of. Trading with fear isn’t fun. Confidence originates from being prepared. You have to do your homework and also you should be prepared should you ever intend to to open day trading stocks practice. Preparation includes: pre-market homework, knowing where your entry points will occur before the trade sets up and following your pre-determined and written rules. You have to have rules in place.

Do Not Trade Real Money Without Training If You Want To Open A Day Trading Stocks Practice!

The reason for this is because trading without correct training is suicide. I don’t mean training as in you have a buddy provide you with a book or simply reading information online. Instead, you could simply in life; we usually receive what we put into something. Should you treat day trading just like a hobby, you’ll get hobby results, if you’re lucky. Day trading doesn’t have remorse and can rob you blind. Buy a course which has live day trading examples and shows live trade setups and when they occur should you ever plan to open day trading stocks practice.

If Planning to Open A Day Trading Stocks Practice Do Not Study Static Charts Alone!

Do not buy a course that only shows charts in books or spread sheets. I could teach you in an hour when and how to enter a trade by only considering candle stick patterns on a static chart, a 4 year old boy could let you know this. And what you would like to do instead is look for a course, such as the Day Trading Template and Training Course, which has real live trade examples if you ever plan to open day trading stocks practice. There are many factors that are involved when taking trades and candle stick patterns aren’t the only indicator. The truth is, you should be studying the Market Profile, Time & Sales, Tick & Trin, a Tick Chart, a Simple Moving Average- on different time frames, MACD, long time-frame charts and more immediate time-frame charts. The market is unforgiving; a lot of the courses today put too much emphasis on candle stick patterns and hold trades too long.

Entering A Trade Without A Proper Stop Loss in Place Is Suicide. Do Not Do It If You Want To Open A Day Trading Stocks Practice!

The primary reason why this is a blunder is stop losses are in place is so that you don’t blow up your whole trade account in one or two day trades. If you’re planning to open day trading stocks practice, you have to discover how to enter trades with short stop losses and good money management. Good money management is a must for successful trading. The Day Trading Templates and Training Course uses a 4-6 tick stop loss. This is unheard of inside the stock investing industry. Most hold positions overnight or go thousands in the red before entering the black. That is too much risk, in my opinion. Why hold a trade thousands of dollars into the red? Trading in that fashion is much like rolling the dice, hoping and praying it turns in your direction. As a matter of fact, you’ll probably have better odds at a casino. Instead you really ought to enter a trade exactly once the market is headed in the direction you want, given all indicators line up. One does this by understanding proper trading principals and entering trades with commercial paper. Commercial papers are big lot traders like Goldman Sachs and Merrill Lynch. These big players know where the market is headed and when the market is headed there. 

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