Online day trading for beginners
Over my years as a trader and as a trading coach I have worked with thousands of students. The majority of those students experienced a devastating loss at some point due to an avoidable mistake. The money to trade on margin is easily available and the allure of quick profits can lead both new and seasoned traders to ignore commonly accepted rules of risk management. They cap their losses. They accept that each trade has a pre-determined level of risk and the adhere to the rules they set for that trade.
This is part of a well defined trading strategy. The Momentum and Reversal trading strategies are the 1 and 2 best trading strategies out there.
These two day trading strategies are being used by thousands of our students who have participated in the Warrior Trading Day Trading Courses. In short, both of these strategies are going to give you the framework for what type of stocks to trade, what time of day to trade, how to find stocks to trade, how to set your stop loss to have a max risk, and how to find your entry based on traditional chart patterns including Bull Flags and Rubber Band Snap Backs.
Once you choose the one that is a good match for your skill level, your risk management tolerance, and the time of day you plan to trade, you are ready to get started. Make a plan to trade this strategy in a Simulated Trading account for 1 month to test your skills. You also must maintain a profit loss ratio of at least 1: If you can achieve these statistics, then you are positioned well to trade live.
During the 1 month of practice, try to take 6 trades per day. Nobody wants to lose, but the best traders are great losers. They accept their losses with grace and move on to the next trade.
They never allow one trade the ability to destroy their account or their career. I personally focus on accepting small losses, and not letting them get me frustrated. Learning this characteristic will keep them in business as a day trader for a long time. Your most important objective will be to follow your Max Loss rules so you never have a loss that exceeds a predetermined amount. The most important skill you need to learn is to cap your losses.
Learning how to scale in and scale out of your day trades is a critical still every trader must develop. When I have winning trades, I scale out of the positions to take profits and adjust stops to break even as quickly as possible. I never hold a position that has achieved my profit target and hope for a bigger winner. The reason is because all too often the price can drop and you will end up giving up that profit. This method of scaling out ensures small profits on all trades that move in your favor, giving you a better percentage of success.
That would give you a 2: Again, with 6 trades and a 2: With the same percentage of success, if you can increase your profit loss ratio you will make a lot more money! Finish the day green, and do it again tomorrow. Over time accuracy will improve and you will find yourself hitting winners right out of the gates. If you plan to succeed, you must follow your trading plan.
That means ONLY taking trades that fall into your strategy. Sometimes beginner traders start to gain confidence and then venture outside the strategy that works the best. This causes their accuracy to drop and profit loss ratios to go negative. Focus on short term goals! Before you know it you will have months of consistent trading under your belt. For most students, once his or her accuracy has improved the next step is increasing positions sizes to maximize profits.
Remember that your daily goal is 2x your max loss per trade. I would encourage you to join a live webinar with me so you can learn even more about my trading strategies. You can click here to join my next webinar, and make sure in the meantime you keep watching on YouTube! I put out tons of free content to help beginner traders getting started. In Response to these awards, Warrior trading has been constantly pu in the spotlight as being an established educator in the finance sector.
If you really want to learn from the pros, I can say from experience that Warrior Trading offers top notch training from very skilled, highly disciplined and successful instructors. I promise you there isn't a chat room out there that has this level of experienced traders interacting daily to help one another out , you just can't beat it.
For people that are serious about their trading, Warrior Trading is the place to be. I'm a Veteran trader Finance Degree from OSU and always still learning books audible and purchased Warrior Trading Program so much new and useful information that I bought monthly chat to watch them apply principles they teach and to get some new fresh Ideas. I have been trading off and on for over 15 years and full time for the past year and a half. The transparency of Warrior Trading is one aspect that attracted me to them.
They show you it all. They show you their losses as well as their gains. Part of your day trading setup will involve choosing a trading account. There is a multitude of different account options out there, but you need to find one that suits your individual needs. The brokers list has more detailed information on account options, such as day trading cash and margin accounts. Below we have collated the essential basic jargon, to create an easy to understand day trading glossary.
Yes, you have day trading, but with options like swing trading, traditional investment, and binary options, how do you know which one to opt for? Day trading vs long-term investing are two very different games. They require totally different strategies and mindsets. Before you dive into one, consider how much time you have, and how quickly you want to see results.
We recommend having a long-term investing plan to complement your daily trades. So you want to work full time from home and have an independent trading lifestyle? If so, you should know that turning part time trading into a profitable job with a liveable salary requires specialist tools and equipment to give you the necessary edge. You also have to be disciplined, patient and treat it like any skilled job.
Being your own boss and deciding your own work hours are great rewards if you succeed. Whilst it may come with a hefty price tag, day traders who rely on technical indicators will rely more on software than on news.
Whether you use Windows or Mac, the right trading software will have:. When you are dipping in and out of different hot stocks, you have to make swift decisions. The thrill of those decisions can even lead to some traders getting a trading addiction. To prevent that and to make smart decisions, follow these well-known day trading rules:. Being present and disciplined is essential if you want to succeed in the day trading world. This site should be your main guide, but of course there are other resources out there to complement the material:.
For the right amount of money, you could even get your very own day trading mentor, who will be there to coach you every step of the way. Opt for the learning tools that best suit your individual needs, and remember, knowledge is power. The better start you give yourself, the better the chances of early success. This is especially important at the beginning. The other markets will wait for you.
Even the day trading gurus in college put in the hours. You need to order those trading books from Amazon, download that spy pdf guide, and learn how it all works. This is one of the most important lessons you can learn.
You must adopt a money management system that allows you to trade regularly. Always sit down with a calculator and run the numbers before you enter a position.
One of the day trading fundamentals is to keep a tracking spreadsheet with detailed earnings reports. If you can quickly look back and see where you went wrong, you can identify gaps and address any pitfalls, minimising losses next time. Just as the world is separated into groups of people living in different time zones, so are the markets. If you start trading on the Cac 40 at So, if you want to be at the top, you may have to seriously adjust your working hours.
Should you be using Robinhood? What about day trading on Coinbase? Do you have the right desk setup? Where can you find an excel template? How do you set up a watch list? The meaning of all these questions and much more is explained in detail across the comprehensive pages on this website. Furthermore, a popular asset such as Bitcoin is so new that tax laws have not yet fully caught up — is it a currency or a commodity?
How you will be taxed can also depend on your individual circumstances. Due to the fluctuations in day trading activity, you could fall into any three categories over the course of a couple of years. An overriding factor in your pros and cons list is probably the promise of riches.