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Can Anyone Become A Trader
Written by Michael Thompson
One of the ways to make money is through trading in the stock market. You probably want to become a stock trader but aren't sure how to go about it and what qualifications are required for you to become a stock trader. You therefore wonder, can anyone become a trader? The answer to this question is yes.  
Thanks to an increase in exchange volumes and changes in technology, trading in the stock market is now accessible to more people than ever before. There are trading cases where personal capital isn't required and in other cases all you need to get started is a small amount of capital. Stock markets are interlinked all over the world and therefore, there's always an open trading opportunity somewhere in the world.
Most of the world markets can be accessed with ease. This means that even with a full-time job, you can still trade since all you need is the right market and opportunity.
We'll take you through the steps of becoming a trader without you leaving the comfort of your home.
Who Is a Day Trader?
A day trader is a person who buys and sells securities during the day but doesn't carry over any open positions to the following day. All the selling or buying positions that day traders take are squared-off before the market closes on a trading day. Day traders differ from investors whose investments is usually over a long time or active traders who hold a position for more than one day.
Day traders use leverage during trading to make an addition to their daily trade exposure.

How Do You Become A Day Trader?
#1 Carry Out Self-Assessment

To become a successful stock trader, you need a combination of skills, traits, knowledge and commitment to stock trading. You need to be good at mathematical analysis, have an entrepreneurial spirit, and be aware of behavioral psychology.
Having the right mindset is crucial when it comes to stock trading. Be mentally prepared to self-learn and to take losses and risks. You can prepare yourself for stock trading by reading books or taking online stock market classes.
#2 Prepare Sufficient Capital

Generation of profits isn't always consistent. When taking part in trading, intermittent and extended losses are part of the process. To handle the losses that come with day trading, you must have sufficient capital to cushion you. Starting your trading journey with inadequate capital will surely lead to your failure.

It's advisable that you maintain a $30,000 balance in your account when actively day-trading. Although some have started with less and have become wildly successful. A $25,000 balance will prevent you from adhering to the PDT laws. Having an extra $5,000 on top of that provides you with the cushion you need!
#3 Understand The Markets

Trading in the stock market requires you to have knowledge of how the stock market operates. You need to have a grasp of simple details such as the trading hours of the stock market and holidays, to complex details like trading instruments, margin requirements, and how new events affect stocks.

Your knowledge base as a trader should be broad.
#4 Understand Securities

Stocks, options, EFTs and mutual funds trade differently. To initiate a trading strategy, you need to clearly understand the characteristics of a security and its trading requirements. For example, as a trader, it's paramount you understand the impact of margin requirements on commodities, future, and options. It's also vital for you to know how a trading plan can be shattered by an interim assignment.

When you lack the basic knowledge of securities, you could be setting yourself up for losses. Ensure that you're familiar with the trading of selected securities.
#5 Come Up With A Trading Strategy

As a beginner in the stock market industry, you can begin trading by choosing at least two established trade strategies. The reason for choosing two strategies is because each strategy would act as a backup for the other in case of lack of trading opportunities or failure. As you gain experience in trading, you can add more strategies.

The trading industry is very dynamic. A trading strategy can earn you money consistently for a long time. However, there's the risk of a trade strategy failing at any given moment. You therefore, need to keep an eye on the trading strategy you are using to see how effective it is. Once you understand a trading strategy you can choose to customize, dump or substitute it depending on its development.
#6 Exercise Management Of Finances

Facts and knowledge of the market environment should be what develops your trading plan or methodology. Take your time, even if you just want to get started and make some money right away because that's not how it works. Rushing won't lead to much, but developing a good strategy and trading plan will. Take trading seriously and invest enough time to learn and build a solid plan that can be backed up by facts.
#7 Do Research On Brokerage Charges

With there being frequent transactions in day trading, there are high brokerage fees. Do a thorough research on what trading plan you want and how much the transactions in that plan will cost you. If you plan on working with one-two trades daily, the most suitable plan is per trade basis brokerage.
If you have high daily trading volumes, choose staggered plans which offer you lower effective cost with high volumes, or fixed plans that offer you a fixed high charge for unlimited trades.

Keep in mind most brokerages have $0 commissions on share trading however options trading still have various cost associated. 
#8 Begin Small Then Expand

When you start trading on a new strategy, avoid playing big begin even if you have enough money or experience. When using a new strategy, start out with small amounts of money and increase the money as you go along. Remember, opportunities to trade and markets will always be there however, once you lose money it may be difficult to re-accumulate it.
Can anyone become a trader? Yes, just follow the steps we've given you and let your spare finances make you more money.

About Author: 
Michael Thompson

Michael Thompson is an advanced senior trader with over a decade of trading insight. He has traveled to trading seminars all over the world including Ireland, Germany, Thailand, California, Florida, and Costa Rica....His trading style is centered on accelerated growth. Michael prefers trading a combination of different options strategies.

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