How To Learn Day Trading

If you want to know how to learn day trading I’ll show you 4 easy steps to follow.

Step 1: Open Up The Right Broker Account For The Kind Of Day Trading You’ll Be Doing

The first thing you must do is open up a broker account either for stocks, futures, cfd’s, forex, crypto. You do not need to fund your account yet. How much you have to day trade with may determine what you can day trade. 

If you have 25K in your account you can day trade stocks with 4:1 margin meaning they will give you 4 times your money to trade with, you borrow this money at a very low cost. So with $25,000 in your account you will have $100,000 to day trade with. 

You will need to keep over 25K in your accunt in order to day trade which is to make more than 3 day trades within a 5-day rolling period (market days). If you only make 3 day trades within a whole week Monday through Friday that would not be considered day trading. But if you make 4 day trades within that week then you are day trading. 

If you don’t have 25K in your account you can easily get by this rule simple by day trading the Futures which can easily be done with only $2,000 in your account. 

Or if you only have $500 to day trade with you can open a CFD broker and day trade anything you want like Dow, Nasdaq, Gold, Oil, USD, Stocks for very cheap and yet still make very good profit like $1 per tick for only $50 margin. And CFD’s are just like trading stocks or futures just much cheaper to do so and also no day trading rule, no need to have 25K in your account. 

So how much you have to day trade with will determine to a great degree which kind of broker to open up and start day trading with. Starting off with CFD’s to practice with in a real account with real money at $1 per tick with $50 margin is highly recommended if you’re a beginner trader.

Step 2: Open Up A Demo Practice Account To Practice Day Trading And Placing Orders

Next open up a “demo account” and start practicing your brokers software. You need to learn how to place your orders to get youself into and out of day trades. One of the best ways to learn day trading and placing your day trading orders is to practice them in a demo account. 

Most all brokers offer demo accounts so that you can practice and learn to use their software before you use real money. This is very useful and very helpful to learn day trading by doing day trading but not losing real money while you learn. Make sure you are good at placing orders and not making mistakes before you start day trading with real money.

Step 3: Must Learn A Very Good Day Trading System To Use

Before you day trade with real money you must learn from a real day trader and learn a day trading system. A day trading system will have a specific entry price, a specific profit price, and a specific stop loss price. 

This is called both a day trading system and a day trading plan. 

This day trading system will be based upon both backtesting of the chart as well as continued forward testing of the chart to indicate the exact math of using the system and it’s win percentage. 

This math needs to be high (above 85%) to be considered a good day trading system.

Step 4: Now You’re Ready To Trade But Avoid Day Trading Mistakes

After you have learned a good day trading system and have practiced using it in demo mode you are ready to start day trading. Keep in mind one of the biggest mistakes people make when day trading is not having a good enough plan (day trading system) and or not keeping to their plan. 

Let’s say you’ve gone long looking for +50 ticks and that’s what your plan (math) calls for. So you place your order at Limit for +50 tick profit. When it gets close to exiting you change your plan and go for an additional +50 ticks to make it a +100 tick trade. It goes +60 ticks and then goes back down to your entry price where you have a break even stop in place and make nothing on the trade. 

Or in another scenario instead of placing a break even stop as your trading system calls for you don’t place a break even stop and then the trade goes severely against you so you don’t want to get out for such a loss and you hold it longer, hoping that it will go back up again. 

But instead of going up it only goes down more and more and you lose your account. And all because of what? Because you didn’t follow your day trading plan, when the time came you followed a voice in your head that told you to do this, that it would be good or ok so you followed that voice rather than your plan. 

If you find that instead of making +50 ticks on the trade you could have easily made +200 ticks simply by holding a few hours longer (happens all the time) then you need to have a “plan” for this. 

One plan you could use is to let the trade move +50 ticks and place a break even stop and set Limit (exit) at +200 ticks. It will either keep going higher to +200 ticks or come down and hit your break even stop, you won’t lose any money and have a mathematical chance to hit your +200 tick exit and will do so a certain mathematical percentage which must be calculated in advance.

Day Trading Offers The Greatest And Best Opportunity For The Average Individual To Make Money

But always remember and keep in mind, never througout history has there ever been a greater opportunity to make money than through day trading.Very few people realize this and it’s not talked about much, but day trading opens up a whole new world of making money for the savvy individual.

How To Learn Day Trading By Watching Day Trading In Action

If you would like to witness day trading for yourself and learn to do day trading in a practical way you can watch my day trading videos below and they will show you and allow you to learn day trading and how it works by watching day trading in action. I day trade almost everyday at my YouTube channel How To Day Trade.

I really think if you watch my day trading videos below they will really help you to learn how to day trade by watching how day trading is done taking away all the mystery behind it. Talking about day trading is one thing and has it’s value, but actually watching day trading is just as if not even more valuable.

So feel free to watch my day trading videos below and realize you can also do this day trading yourself it’s actually very easy to do. All you need to do is use the same day trading system as I do and you can do the same thing I’m doing, it’s very simple to do and my day trading courses will teach you in one hour.