How To Start Day Trading For a Living

So, you wanna be a day trader? Read this first!

How To Start Day Trading For a Living
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Day trading is like a fast-paced game where you buy and sell things like stocks, currencies, and futures all within one day. It can be exciting because you might make money quickly, but on the flip side, you could lose a lot of money too! It’s a challenging endeavor that requires a lot of discipline.

I don't day trade anymore because I've gotten old and I'd rather trend trade and invest for the long term. However, if you do want to day trade, I offer the following bits of advice:

Learn the Basics: First, you need to learn a lot about day trading. You can read books recommended by experienced traders and take online courses that are suitable for beginners to experts. Practicing with virtual trading accounts is a great way to try out strategies without risking real money. This learning phase is important to help you understand how the market works.

Create a Trading Strategy: It's important to have your own trading plan. This plan should include when to buy and sell, how much money to invest, and how much risk you’re willing to take. A good strategy helps you make smart decisions and stay calm during market ups and downs. Personally, I like trend trading.

Make a Daily Plan: Each trading day should start with a plan. Decide what you’re going to trade, and what times you’ll be trading, and set goals for how much profit you want to make and how much loss you can handle. Having a plan helps you stay organized and avoid making impulsive decisions. Write down your wins and losses!

Pick the Right Broker: Choosing a good broker is crucial. Look for one with low fees, a reliable trading platform, and good customer service. Your broker helps you access the markets, so make sure they suit your needs. Look for one with low costs and fast execution. I use and like Interactive Brokers (referral link).

Manage Your Risks: Day trading involves risks, so it’s important to manage them well. Use stop-loss orders to limit your losses and only invest a small part of your money in each trade. Protecting your money is key to staying in the game for the long term. Always use stops or know when to get out.

Handle Your Money Wisely: Be disciplined with your money. Set a budget for trading and stick to it. Don’t try to win back losses by making risky trades. Good money management is what separates successful traders from those who fail. I like to track my risk vs reward ratios. A growing account means you're doing something right.

Keep Learning: The market is always changing, so you need to keep learning. Stay updated on market trends, new strategies, and economic news. Joining a community of traders can also provide valuable tips and keep you motivated. Join communities, read articles, and subscribe to great traders and investors.

Starting a day trading career requires dedication, a willingness to learn, and strict discipline. It’s not easy, and it can be stressful, but with the right approach, it can be rewarding both personally and financially.


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