How to Make A Living as a Day Trader
Can You Make a Living Day Trading?
Certainly the quick answer is a definite “yes”. Day traders make a living from their financial transactions in increasing numbers. Warrior Trading emphasizes the relevance of a formalized training approach to enable day traders to reach investment goals and hone their strategies. Other sources have studied success rates and find that first-year day traders have a rate of loss similar to that of beginning real estate sales persons.
With this guidance in mind a beginning day trader needs to take into consideration that knowledge and preparation are essential for success. Knowledge includes understanding of the vehicles you expect to invest in such as stocks, bonds, commodities, and currency exchanges. There are also many analytical tools to guide traders in selection and timing of buy and sell orders. Being prepared means to be aware of the reality that there will be wins and losses and have adequate financial resources to recover from the losses and continue trading while your strategy gains a foothold.
To be sure no one will tell you day trading is easy or that there are any guarantees to getting wealthy or even being able to scrounge a living from day trading activities. There are however many precedents and successful day traders that demonstrate that it can be done – and done for the long term.
Just What is Day Trading?
Day trading is typically investing in financial markets such as foreign exchanges (forex) and the stock market for very short periods of time. The intention is to turn around investments for a profit within a few days, hours, or quite often even minutes. Day traders may be totally independent working on their own behalf or could also work for a company that conducts day trading activities.
Today’s internet availability has enabled the proliferation of online stock brokers that provide real-time market knowledge and analysis for day traders. This increases knowledge and therefore potentially reduces risk associated with day trading. Armed with technical skills, market information, and news that impacts financial sectors day traders can place buy and sell orders more confidently and quickly than ever before.
Creating Your Day Trading Strategy
There are many issues to be considered by a beginning day trader. MarketWatch provides insight into thoughts of value to new investors. With their insight and that of other traders and mentors here are some of the factors to successful day trading:
- What is your risk tolerance – all investments incur some level of risk for your capital, some more than others. There is no such investment as the “sure thing – can’t lose” opportunity your friend or family member tells you about. Evaluate your own personal financial situation and don’t exceed the investment levels you set for yourself.
- Experience – starting into day trading will be somewhat unnerving for most investors. Start slow and refine your investment strategy as you determine what investments and timing work for you. Both winners and losers will be valuable to developing your on-going approach to day trading. Keep close track of what worked and what failed.
- Learn and understand stock market and day trading terms – this will allow you to gain knowledge in use of analytical tools and graphs that will help you find the investments that maximize your success.
- Resources – you will learn over time what leads and information sources are credible and those that are better left ignored. Each gain or loss will contribute to your confidence in making your next financial move.
- Perseverance – most day traders who are not successful within the first six months typically discontinue trading. It can easily take a year to formulate your strategy and acquire the discipline that leads to confidence and successful day trading. It also requires putting in the time to monitor markets and to identify trade opportunities with the most potential for gains.
- Don’t trade on emotions. Use logic and sound decisions to drive your trades. Set your rules for making buy and sell orders and stick to them.
Get Started with Day Trading for a Living
The first step to earning a living as a day trader is selecting the online broker that will facilitate your trading activities. Since day trading is focused on quick action and constant monitoring for the optimum time to buy and sell you need a broker that provides the technology you will need to be profitable. Your online broker will facilitate your research and execute your buy and sell orders. Be certain the online broker you select has the analytical tools and features you need for monitoring of the stocks or other financial vehicles you’re interested in.
Online brokers may vary in the financial products they offer to clients. To maximize your investment options be sure your broker provides a full complement that includes stocks, bonds, commodities, and forex trading. Online brokers also vary in fees and commission structures charged to clients. This is another determining factor in your selection of a broker.
SureTrader is a leading online broker with the tools and news access that keeps day traders informed of market trends and conditions that can impact decisions and timing for buying and selling. This provides traders with the ability to react swiftly to take advantage of financial opportunities across national and global markets. Utilization of SureTrader’s sophisticated technology facilitates the quick decisions and lightning-fast trades that make you successful. Desktop and mobile applications ensure timely access to SureTrader services – smartphone access is provided for both iOS and Android platforms. Investors can rely on friendly and courteous support 24×7 to allow execution of trades quickly and efficiently even in after-hours trading.
Contact SureTrader right away to get started doing online trading with the best in online brokers.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.