Why are there a few successful day traders in a space where everyone is keen to learn day trading online? Because this is not what an investor has dreamt of. The dream imagination was to sit back and relax & let the profits roll in post-investment, right? While many dreams but only a few achieve. 

What is the Job of a Day Trader? 
The job of a day trader includes buying and selling securities multiple times during the day, taking no open positions for the next day. They square up all the buy and sell positions during the day before the market closes. They differ from active traders who hold up a position for many days or take up investments from investors who invest for a longer time. Day traders hold to boost their intraday trade exposure. 




Here’s a 5 step guide to learn day trading online and become a day trader

1. Run a Self-Assessment Test
It would help if you had a mix of knowledge, expertise, mannerism, and dedication to that lifestyle. Are you aware of mathematical analysis, a truck of financial knowledge, and behavioral psychology? Do you have what it takes to become an entrepreneur?  

The idea of luxury, simple life, and easy money in day trading is a myth. But it requires endless working hours, little or no leave from work, non-stop self-learning without guidance, risk-taking capability, and infinite commitment to everyday activities. 

The correct mindset is the foremost important necessity in becoming a day trader. Unless you are convinced to devote time, self-learn, and prepare to take risks and go through the losses, avoid becoming a day trader. 

2. Gather Sufficient Capital
No one can generate profits regularly. On and off losses are a huge part of the game. You can suffer from eight continuous losses in trading in a row and only heal with profit from the ninth one. 

To handle such risks, a day trader should have sufficient capital. To gather such, one must learn day trading online. Before resigning from your current job, there should be at least $100,000 for trading. 

An inexperienced person can go with a smaller amount based on their selected trading plan, the trading rate, and the costs they face. To become an active day trader, it is essential to maintain a balance of $25,000 in your trading account.
 

3. Study The Markets and Securities
Day traders need to have a sound foundation of knowledge on how the market works. A trader needs to have a wide knowledge from minor details like exchange trading hours and holidays to complicated details like news events, margin requirements, and tradable instruments.  

Stocks, ETFs, and mutual funds all trade in their ways. Lack of apparent knowledge about security’s features and trading requirements, leading a trading strategy can lead to a tremendous failure. 


4. Execute Money Management
Suppose you have $100,000 as trading capital and a good trading strategy that gives you a 70% success rate. What will be your spending on the first trade? What if you fail in three consecutive trades? And many more such questions and possibilities.  

Money management allows you to address such challenges and forecast your potential profitability. Accurate money management can help you profit even if there are only four profitable trades out of 10. 

5. Go Small and Then Expand
Even if you own enough money and some experience, don’t go big on the first trades of a fresh strategy. Experiment with a new strategy with little funds and then increase stakes after some success. 

Start small, test to capture, and then go for the big ones.

CONCLUSION
Day traders are self-learners in this big game. Before quitting your job to become a full-time day trader, make sure you have enough motivation to be a continuous learner, create your strategies, and take responsibility for your decisions. 

If you are looking to jump into this trading world, you can learn day trading online and then go solo. In case of any doubts and queries, contact COMMODITIES UNIVERSITY now!


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