There are a lot of complexities involved with the art of day trading, but what about the basics? If you want to start getting into day trading, how do you start? Where do you start?
There is a lot of basic information involved with starting out down a path to becoming a true day trader, which means you can save the complexities for later. When you’re just starting out, keep things simple and grow your knowledge as you grow your experience. Consider this the first stop on your journey as we explain the essential basics.
Remember you need to have some money to day trade, so start saving up. You need minimum $25k to daytrade. However if you are serious you can start with $3k and Livetraders will back you with rest of the capital. In exchange we take a small % of profits for providing you the capital and training.
Know Why You Want to Start
There are a lot of reasons someone may want to start down the road to becoming a day trader. Separate these reasons into two categories: short-term and long-term.
Some want to day trade in order to make some quick cash over a short period of time with a certain goal in mind. This can be collecting enough money and experience to open a business or buy a certain expensive item.
Long-term goals are usually career based. They want to become a day trader as a profession, or to further their career in finance and investment.
When you know what you’re looking for from day trading, you know how much effort you need to put into your journey. What’s the point in investing in day trading programs when you only want to trade for six months or a year?
Start Reading Up
The best way to learn day trading is to get all the info from the horse’s mouth. Join one of our Live trading rooms, attend our webinars, or take one of our courses.
You should also invest some time in some free reading, like via e-books and blogs. Live Traders has a great e-book with crucial trading information, for example, and our blog always contains great info on trading practices and tips.
In addition to basic trading information, you’ll need to branch out into more specified areas. Subjects like trading strategies, volume based analysis and technical analysis are all need-to-know for day traders.
Visual and Audio Aides
Reading isn’t the only way to start learning about day trading. You can also look up hundreds of YouTube videos, subscribe to podcasts and join trading programs that give you a more audio-visual, interactive experience. This is especially useful for more auditory and visual learners.
Other interactive forms of learning are trading simulators. Sites like Trading Sim or Think or Swim give you the ability to test your knowledge in a setting that isn’t as high risk as it would be if you were handling real cash. This also gives you experience with stocks and other trading skills you haven’t yet honed.
Shadow Training and Coaching
Next, you’ll need to learn from a real person. This can be initiated online or through more technical means, like internship, but the best way to learn how to day trade is via real life experience. Shadow trading is when you follow a trader in their own daily dealings. Watch what they do and learn from them via up-close-and-personal experience.
Coaching works in much the same way, but the relationship between a coach and a pupil is different. A coach will instruct you on what to do as you do it instead of just observing and learning this way.
Finally, understand that you’re learning – losing money is almost going to be expected at this juncture, so coming out in the red frequently isn’t a sure sign you’re choosing the wrong career path or financial strategy. Keep practicing, keep learning and you’ll start seeing yourself succeed.