How To Start Day Trading?
Before your set out on your quest to become a day trader, make sure you know all the rules, regulations and pitfalls. First, never start day trading with capital you cannot afford to lose. Most day traders never achieve their goals of being a seasoned pro because of two reasons. First, they do not master the discipline and second, they are under capitalized. Just like becoming a doctor or lawyer, schooling is needed to master the art of day trading. If you want to make millions a year, you must pay for that. Doctors and lawyers go to school for years and pay hundreds of thousands to one day make big money, traders are no different. You have to be ready to pay the market. Being under capitalized is the biggest pitfall a new trader will run into. If you are using $30,000 to day trade with, but also pay your rent or mortgage and all your bills from that money, the likelihood of success is minimal. Be ready to study the markets.
Regulations in the United States say do be a day trader, your account must have $25,000. A smart trader will always keep slightly more than that in his or her account because the second you fall below that level, your broker will not allow you to day trade any longer. When first starting, a day trader will take losses as they learn and master the markets. Be ready for it. Find a great day trading chat room to join where you can learn from the pros.
When you begin to day trade, the biggest key is to lose small. All newbie day traders will take losses. When you start day trading, start with 100 shares. In the beginning it does not matter how much money you are making. The key is to learn first. Like a baby, first crawl, then walk, finally run. Once you are winning on your trades with a 75% success rate on 100 shares, up it to 200 shares. After trading with 200 shares for a few weeks and getting to the point of making money on 75% of your trades, up it to 300. The point in the beginning is to lose small. Most traders will bat 50% at best in the beginning. In addition, their discipline is their biggest downfall. They cannot cut a loss. While they may make $100 on each the first four trades, the fifth trade they will lose $500. Ultimately, to succeed in day trading, in this scenario, a day trader can only afford to lose $100 on a losing trade. A losing trade should only cancel out one winner. Most new traders allow a losing trade to cancel out many winners. That math will never work and those traders will never achieve pro status. Discipline on cutting a loss is of the utmost importance.
The key is to take it slow, never trade with capital you cannot afford to lose and find pros to learn from. By doing these things, you can have a great shot at living the dream, making millions as a day trader., then follow them. Learn everything they tell you and mold it into your financial success. Day trading takes time, patience and discipline. If you have these, start on the road to financial freedom today.
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