You are reading this article because you decided to look closely at how to begin day trading. Something sparked your interest to learn more, whether it was from another article or an ad you saw on social media. There are a variety of methods I’m sure you have come across when it comes to day trading. Thankfully, you are in the right place and most importantly, I will walk you through the steps you need as simple as possible. With technology and more competition between brokers and trading platforms, it has become even easier for everyday people to day trade in the stock market.
Research has shown that the global stock market is worth around $117 trillion. More than $49 trillion comes from US stock markets, representing the world’s largest number of day traders. Individuals from all backgrounds enter the stock market daily to make the most of the daily price swings in stock prices. But just because it is easy to join doesn’t mean everyone is having success. This is why I want to help guide you through the process, so you can be a successful day trader.
Learning the Craft of How to Begin Day Trading
Before you start working towards learning the craft, you first have to understand what day traders do. Day traders buy a stock at one point during the trading day and then sell out of the position before the market closes; typically, it is not advised to hold a position overnight on the same day. The most successful day traders will use a strict methodology to analyze potential turning points in the market for entry and exit points; which translates to buying and selling. 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 possibly 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, and put contracts. You would then sell your contracts to either follow your strategy or to minimize 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 will first pick a trading platform; I personally like to use TD Ameritrade thinkorswim platform. This platform is easy to use and accessible on phones, laptops, and desktops. There are several stocks and options to choose from, just know you only need one. I teach my students about trading SPY options and 80% of them are doing extremely well. Simply by following the strategy I taught them and putting in time and effort on their part. Having a day trading strategy is crucial, after all, anything without a plan is just known as impulsive. Impulse will lead you to not only lose money but if you ever do make a profit, it won’t be consistent.
Day trading isn’t gambling, it’s a skill. If followed correctly, will be a game changer for your life and bank account. Trading short term price movements mean you need to use technical analysis and all the information available to you and make a decision on where you think the market may move next. Your capability to process this information is important to get in at a good price. Having a strategy serves as a checklist that can help you analyze what you need to in a short period of time and keep your head in the game. When you don’t have something to refer to, it makes it more difficult and will get you off track.
Risk Management: How to Begin Day Trading
You need to decide on a number you are comfortable using to start trading. A good rule of thumb is an amount that if lost will not hurt you in a devastating way. You also need to have a stop loss number in mind. This is a number that you are comfortable losing 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. Without risk, there is no reward, and the benefits are substantial if you are patient and practice. These are excellent ways to use risk management; knowing these things ahead of time helps keep your emotions in place.
The reality is, as humans, we are sometimes the factor that can keep us from succeeding in day trading. The reason for this is that emotions come into play, and sometimes when you least expect them to. Emotions such as anxiety, having unrealistic expectations, failure, loss, greed, fear of missing out and anger are all emotions that if you don’t put the fire out when a flame starts to emerge will quickly burn you. 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.
Summary: How to Begin Day Trading
You are now informed and are on your way to starting learning how to day trade. Like I said at the beginning of the article, I was going to keep it simple and walk you through the key things you need to know to enter into the trading world. You have an understanding of what day trading entails and how to master it by using a strategy. You also learned that you need to be mindful of risk management. Remember that even though I can guide you through the path you need. You will also have to do your part and walk through it; in order to do this, you will need to practice the strategy and keep your emotions in check.
Of course, there are a few more things that I will go into detail with my MK VIP training program, this is just what you need to know to get to the door. 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. With my program, you can learn how to begin day trading, and you will be profitable for at least 80% if not more of your trades. I can teach you the best strategy that if you put in the work and practice, you will be a successful trader for at least 80% if not more of your trades; winning trades.
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.”