How To Make Money Day Trading

If you want to know how to make money day trading I’ll explain to you step-by-step how it works.

Step 1: Open Up An Appropriate Day Trading Broker

First you must open up an account with a broker and you must decide what you want to day trade like Stocks, Futures, CFD’s, Forex, Crypto. Keep in mind if you want to day trade stocks you’ll need to have over 25K in your stock broker account. 

But if you do not have 25K to day trade with you can instead trade either the Futures market or the CFD market. Both of them are very good to day trade and make money. 

If you want to trade the Futures on Dow, Nasdaq, S&P, Gold, Oil, USD, etc you’ll need $2,000 in your account to have a margin account to day trade with. 

If you do not have $2,000 in your account you can open up a CFD broker and day trade all you want on stocks, indexes like Dow and Nasdaq, Gold, Oil, USD and much more. Using a CFD broker is highly overlooked and can be a beginners dream come true allowing you to start small and build yourself up big. 

You can make $1 per tick with only $50 for margin, that is very powerful and will allow you to start very small while being able to build up your account. And you can use CFD’s to practice with as well when you first start day trading so that you don’t have to tick at $5 per tick on Indexes (YM, NQ, ES) and $10 per tick on Gold and Oil. 

For some people that is just too much risk and stress to deal with when first getting started day trading, making the learning curve difficult to overcome without risking too much money and having too much stress over it. 

Being able to bring it down to $1 per tick really helps and on top of this you can find CFD brokers that allow you to trade indexes like the Dow for no commission costs, really further helping you to learn how to make money day trading without so much stress.

Step 2: Open Up A Demo Account To Start Practicing Day Trading

Now you need to start a demo account with your broker and start practicing placing orders to buy and sell, to short and buy back.To get yourself into a position and back out again and know exactly how to do so. Whether that be manually placing Stop and Stop Limit orders, or using bracket orders, or just using market orders. 

You must learn how to use the trading software that your broker offers. You can practice using their day trading software and learn that part of day trading this works very good and is a requirement if you’ve never day traded before or used trading software before. 

Make sure before you trade real money that you’re able to place all orders on a trade like entry, profit, and loss orders and be able to go both ways long and short and do so without making any mistakes. Once you reach this level you’re ready for the next step.

Step 3: Learn A Really Good Day Trading System To Use

Now you need to learn a day trading system. You must use a system where you know where to enter (price) either long or short and where to exit for a profit and where exactly to exit for a loss if the trade goes the wrong way. This is the basics of any day trading system. You must know and plan your trade in advance, and then follow your plan. 

The way in which a day trading system is developed is through backtesting of the charts as well as forward testing over relatively long periods of time and being able to attain a very high degree of mathematical success like over 85% success rate at an ideal of 1:1 ratio on profit to loss. I can tell you with over 20 years of experience day trading that this is not easy to do, and takes tremendous effort and time to accomplish. But if you want to day trade for a living you’re going to need to have math backing up your day trades.

Step 4: After you have learned a very good day trading system and have practiced using it within your demo account and everything is good you’re ready now to fund your account and start day trading with real money.

How To Make Money Day Trading

Let’s take a look at the kind of money you can make day trading:

NQ (Nasdaq) you make $5 per tick and it’s very easy to day trade the NQ everyday and make 200 ticks which is $1,000 per day using one contract. With 5 contracts you’re making $5,000 per day. 200 ticks on the NQ is only a 50 dollar move, each dollar on the NQ has 4 ticks within it. So a 50 dollar move is 200 ticks, this is very easy to do everyday. You can make 400 ticks on the NQ on good days which is $2,000 per day with one contract or $10,000 per day with 5 contracts.

YM (Dow) you make $5 per tick and it’s very easy to day trade the YM everyday and make 100 ticks which is $500 per day with one contract or $2500 per day with 5 contracts.

ES (S&P) you make $12.50 per tick and it’s very easy to day trade the ES everyday and make 40 ticks which is $500 per day using one contract or $2500 per day with 5 contracts.

GC (Gold) you make $10 per tick and it’s very easy to day trade GC everyday and make 50 ticks which is $500 per day with one contract or $2500 per day with 5 contracts.

Now you can see how to make money day trading on paper, how would you like to see day trading in video? If you really want to see how to make money day trading watch my day trading videos below at my YouTube channel How To Day Trade. There you will see for yourself how to make money day trading and watching the orders being placed and watching the trades fill and exit and making money on different trading instruments including stocks and futures.

My day trading videos below will show you how to make money day trading and inspire you that you can do day trading also and make money for yourself. There is no greater opportunity for the average person to make money than through day trading. See for youself in the below day trading videos.