How To Start Day Trading

If you want to learn how to start day trading then follow these steps:

Step 1: Open Up A Demo Day Trading Account (Practice Account)

Open up a demo account through a broker so that you can start learning to use the software and practice placing your orders without making mistakes. it will also give you the chance to try different brokers and see how you like their trading software. 

You need to find a good software that you like and you need to practice with it and become very good at getting yourself into trades and getting yourself back out. This can be done using Market Order or various different orders like Limit Order, Stop Orders, Stop Limit Order, Bracket Orders. 

You need to find a good software you like to use and learn it well enough that you can easily get yourself into and back out of trades without making mistakes in your orders.

Step 2: Considerations On Choosing The Right Broker For Day Trading

Once you find the right software you like you will then have the broker you’re going to use. Make sure to check all the important considerations when choosing a broker to open up a broker account.

a. Stocks, Futures, CFD’s, Forex, Crypto Broker?
b. Commission costs?
c. Margin Requirments Costs?
d. Software Usage Costs?
e. Borrow money (margin) costs?
f. Time to fill orders? Not too slow?
g. Reviews?

Step 3: Find The Right Day Trading System To Use (Day Trading Strategy)

Now you need to find a day trading system to use. A day trading system involves having a specific entry price whether going long or going short and has an exit of a certain price for a profit and has a stop loss to limit your loss if the trade goes the wrong way. This trading system must have a very high degree of mathematical success above 85% success rate with an ideal 1:1 ratio between the amount of ticks you make in your profit to the amount of ticks you lose.

The way in which a trading system is accomplished is through both backtesting of the charts as well as forward testing for a good amount of time. This takes a great deal of time and effort and thus why you need to find a good day trader who has a day trading system to learn from. It will save you a great deal of time and energy and you can get started making money from day one. 

Make sure this day trader you learn from is able to show they know how to day trade and don’t just talk about day trading. Day trading is something you do not something you talk about.

Step 4. How To Start Day Trading

After you’ve found a good day trading system to learn and have practiced it on your demo account to make sure everything is working right you are now ready to fund your broker account and get started day trading with real money. At this point you will be day trading. It’s not hard getting setup and only takes a day or two to open up a broker account and a demo account is free to use to practice with so you can get started day trading in a demo account right away for free.

If you do not have $25,000 in your account you can opt for the Futures markets and or the CFD’s markets instead of stocks which require $25,000 in your account in order to day trade which means taking more than 3 day trades (trade opened and closed same day) in a 5-day rolling period (trading day).

What If You Only Have $500 To Day Trade With?

If you only have $500 you should opt for the CFD’s market and even if you have much more you can also opt for the CFD market because you can trade for very cheap and yet make very good money. You can also use the CFD market to practice in a real account at only $1 per tick rather than $5 per tick for YM or NQ. Or $1 per tick for Oil and Gold instead of $10 per tick. And do so for much cheaper margins like only $50 for Nasdaq, Dow, Gold, Oil.

This gives a trader the opportunity to build up a small account and this opportunity to do this has never existed before. When I first started day trading you needed to have $2,000 in your account minimum and you needed to find a broker that still didn’t abide by the day trading rule so you didn’t need $25,000 and there were no CFD’s.

But now you have the opportunity to start with a small amount of money and build it up into a successful day trading business. I started with only $2,000 myself and you can start with only $500 or less and make it work.

Futures are also very good and that’s what I trade a lot and you can get margin down to $500 for day trading margin. So not too expensive and you’re able to make very good money.

You Can Day Trade Stocks With $25,000 In Your Account

If you have $25,000 in your account then you can day trade stocks and there are thousands of stocks to day trade with new hot ones coming all the time. If can be a lot of fun to find and catch good stocks to day trade and sometimes even hold for very big moves. 

Stocks can double and triple and even give you a 10x on your money very easily and quickly. So day trading stocks and is very lucrative. The broker will give you 4:1 margin so if you have $25,000 in your account the broker will let you use $100,000 to trade with. 

When you get to $50,000 in your account you’ll have $200,000 to trade with. As you can see it’s very lucrative because you get a lot of money to make money with. All you need is the right day trading system and there is tremendous opportunity to make money day trading stocks. You also have the luxury of swing trading and or investing in stocks as well. You can even day trade for a living combined with investing.

How To Start Day Trading By Watching Real Day Trading In Action By Professional Day Trader

If you would like to watch how to start day trading in action you can watch my day trading videos below which are hosted on YouTube at my channel How To Day Trade. 

I do day trading almost everyday of the Futures markets and the stock market. Stocks like PLTR, NVDA, AAPL, TSLA, and much more. You’ll be able to watch day trading in action and see for yourself how easy and simple and extremely profitable day trading is to do.