In order to be a successful trader you need a day trading guide. Many moons ago the only people able to trade actively in the stock market were those working for brokerages, large financial institutions, and trading houses. The easy-to-use trading apps and 0% commissions of service like TD Ameritrade, Robinhood, and Charles Schwab have changed the game. Making it easy for anyone to trade in the stock market and with any level of experience. Day trading can turn into a lucrative career if you follow a strategy. Even the most experienced traders experience losses and that within itself takes discipline to be able to deal with.
Day trading is most common in the stock markets and on the foreign exchange (forex) where currencies are traded. Some traders like to make trades based on the news. While others go by scheduled announcements such as the release of economic statistics, corporate earnings, on interest rate announcements. Most of these topics are subject to market expectations and market psychology. This is how markets react when expectations are not met. Which in the stock market translated to significant moves which can benefit day traders immensely.
Day Trading Guide: First Understand What it is
Day traders buy a stock at one point during the day and then sell out of the position before the market closes; typically, on the same day, it is not advised to hold a position overnight. The most successful day traders will use a strict methodology to analyze potential turning points in the market for entry and exit points. Traders will often use technical analysis to detect potential trading opportunities throughout the day. Technical analysis is the use of chart patterns and technical indicators to find turning points in the market where buyers and sellers could make a profit.
With trading options, you can purchase a call or a put option. 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, put contracts. You would then sell your contracts for either following your strategy or minimizing a loss. Before you invest a single dollar in day trading you need to learn about the market so you have an understanding of what the overall stock market is doing.
You need to decide on a number you are comfortable using to start day trading. A good rule of thumb is an amount that if lost will not devastatingly hurt Day Trading Guideyou. You also need to have a stop-loss number in mind. You are comfortable losing this number when a trade is going against you and you need to exit. Keep your trading size small, so if a few trades go against you, it doesn’t wipe out your account. Remember without capital you can’t enter into a trade so you want to make sure you are making smart decisions.
We spoke about TD Ameritrade earlier and you’ll need a trading platform to execute trades; they have a great platform called thinkorswim. This platform is easy to use and accessible on phones, laptops, and desktops. The thinkorswim platform allows you to have a paper trading account in which you can practice entering and exiting strategies. There are several stocks and options to choose from just know you only need one. Having a day trading strategy is crucial after all anything without a plan is just known as impulsive. Impulse will lead you to lose money and, if you ever make a profit, it won’t be consistent.
Day Trading Guide: Why is Day Trading Controversial
The profit potential is a topic that is debated immensely on Wall Street. The reason for this the internet has made our society better and more easily accessible. But with great power comes great responsibility. The internet has opened us to make it easier for scammers to try and take advantage of anyone. Many people will go online and promise enormous returns in a short period.
Some people decide to become day traders without enough knowledge. While other day traders make a successful living even with the risks at hand. Some people shy away from day trading because they don’t believe the reward justifies the risk. Profiting from day trading is possible but you have to have a well-tested strategy and plan in place. If you were blindfolded and thrown into traffic how would can you expect to get to your destination? The same applies to day trading if you are executing trades without vision you will not be successful.
Day Trading Guide: Don’t get Burned
You need to be well informed when it comes to the stock market so you don’t get burned. The stock market has rules in place that need to be followed or you can put yourself in a situation where your access may be restricted. So, it is important to learn all these ahead of time to avoid any headaches. The Financial industry regulatory authority (FINRA) pattern day trader rule is any customer who executes four or more “day trades” within five business days, provided that the number of day trades represents more than six percent of the customer’s total trades in the margin account for that same five-day period; business day period. It is very important to know if your account is less than 25k. When your account is over 25k, the only three-day trades pattern day trading rule doesn’t apply to trade stocks.
It is also important to know that you only get one pass on this mistake for the life of your account. So, if you “accidentally” place the fourth trade in five days you will be required to deposit 25k. Your account will be frozen until the money is deposited or you use your one-time pass. Another rule that is important to know is if you sell a position that you purchased with unsettled funds in your cash account, you will incur a Good Faith Violation. It’s called a ‘good faith violation’ because there was no effort in ‘good faith’ to add necessary funds to the account before the settlement date.
Summary: Day Trading Guide
As you can see there is a lot that comes with day trading and you have to be well informed to keep the negativity out of it. With everything that you do in life, there will be people who will try to discourage you. You tell family you want to open a business they will tell you 100 reasons why you shouldn’t. But once you start succeeding and excelling, they are nowhere in sight. It is up to you to choose if the risk is worth having time and money freedom in your life.
We all need something to strive for and do something from the norm to excel. Sometimes you need to stand out to be that light that others need in their lives. I believe everyone should have the opportunity to become their boss, plan out their entire day, and only work as much or as little as they want. I can teach you how to day trade like the top 10% without a complicated strategy or any technical indicators, even if you are a beginner. My goal has always been to teach as many day traders to 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. I teach the working class how to earn $10,000 a month through day trading. I help my students avoid the challenges I faced when I first became a day trader. As of now, MK Financial LLC is already the #1-day trading coaching business in the US in just one year. You are just a click away from learning what you need to become a day trader with any amount of capital and take your life and salary to the next level.
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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.”
