This article will be a day trading crash course to help you be informed, so you can avoid errors early on. The reality is time and money management help establish financial security. Since day trading changed my life during a time when the next day was unknown to me; I’ve made it a goal of mine to help as many people as I can. Research has shown that day trading activity has increased dramatically since the beginning of the coronavirus pandemic in 2020. TD Ameritrade reports that website searches to their site on giving instructions on trading stocks have nearly quadrupled since this time as well. With day trading becoming as explosive as it is; it’s easy to get confused.
Leaving people not knowing which way to go as there are so many people out there trying to pitch something about the stock market. Just trying to figure out which stock to focus on can put people in a state of panic. There is no need to focus on more than one stock. If anything, focusing on just one eliminates distractions and helps you get focused. I will give you the run down and what you need to be successful with trading options. Unfortunately, the way the world is today, the economy is not getting any better. You will need to have more than one source of income, so you can be prepared for the recession.
What Does Day Trading Entail?
Day traders buy and sell shares of stocks within the same day. Day trading is the activity of buying and selling stocks, bonds, options, futures, or commodities with the intent of profiting from price movements in the underlying security within a single trading day. Day traders rely on analyzing the movement of stocks on a chart rather than factors like products, industry, and management; also known as technical and fundamental analysis. The knowledge aids in knowing when to enter or exit the stock market. It also shows trends which is helpful because previous days’ trends have a tendency to repeat themselves.
A call option gives you the right to buy a stock and a put option gives you the right to sell the stock. If you believe the market is trending upwards you would purchase a call option. If you felt the market was trending downwards, you would purchase, and put contracts. You would then sell your contracts to either follow your strategy or to minimize a loss. Trading options are best to think of it as the probabilities of future price movement. This all may sound simple to follow until you add in the simple element of human emotions.
Anxiety, unrealistic expectations, failure, loss, greed, fear of missing out, and anger are all emotions that really throw a wrench into trading. If you let emotions control you instead of you being in control; you will increase your risk. In order to help keep your emotions in check, you need to build your confidence. In order to build your confidence, you need to research, train and practice your trading strategy.
Tips to Begin Trading
Whether it be a sporting event, business launch, or a war, if either of these doesn’t have a plan in place it can fall apart easily. The finance industry is difficult, and you need to remain focused. Other than technical analysis, day traders need to use a strategy to be successful. With the MK VIP program, I can teach you valuable information and help you achieve the right mindset you need to face the market. The reality is you are looking into investing to make a profit and without a good foundation you won’t be able to build wealth. This applies not only to a novice trader but to an experienced trader as well.
Professional traders become disciplined and allocate time to be successful day traders. They need liquidity and volatility to be high; as it makes it easier to make money trading stocks. The best hours to trade stocks are 9:30 am to about noon ET; when the stock market first opens to lunchtime. Then again, 3:00-4:00 pm ET is referred to as power hour; as it is the last hour before the stock market closes. With day trading, it becomes evident quickly that time truly is money.
Trade with money you can afford to lose; because the reality is you can lose it all. To trade, you will need to open up an account, either cash or margin. You don’t need a lot of money to open an account, you can easily start with $100 and grow from there. The main thing to know when it comes to accounts is that for anything under $25,000 you are only allowed three trades in a five-day rolling period. When your account is over $25,000 there is no restriction on how many trades you can do. With the account, there are several options to be able to trade as easily as from your mobile phone, to a laptop or a desktop. You can even set trade alerts from any of these devices.
Use paper trading to gain experience before starting to use your hard-earned money to day-trade. Start purchasing small as you are learning and making mistakes; until you gain experience and see consistent positive results. You can start purchasing just one contract and then move up from there at your own pace. Don’t quit your day job just because you had a few good trades. You need to make sure you are constantly practicing, documenting, and labeling your zones.
Summary: Day Trading Crash Course
You now have learned the basics in this day trading crash course. You now understand what day trading is, what it entails and a few tips to get started trading and managing risk. Furthermore, you will come across a lot of day trading courses online that go over algorithmic trading, swing trading, and forex trading. You only need one core program, and you are in luck because you found it. The MK VIP training covers all of your trading needs and provides you with a trading plan.
My goal has always been to help as many day traders achieve their personal financial goals, whether they are novice traders or experienced traders. The MK VIP training has plenty of resources to help you get started on reaching your day trading goals. After you complete the program, I provide you with lifetime access free of charge to different articles on trading. I do this to ensure you are always keeping sharp, learning more and know that you are supported in this journey to financial freedom.
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”