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Day Trading for Dummies – A Quick Start Guide

Day Trading for Dummies – A Quick Start Guide

Our Day Trading Quick Start Guide

The world of day trading can be a scary place. If you don’t have a basic understanding of what you’re doing, then you will lose money, and probably end up so frustrated that you never want to make another trade again.

Understand that every day trader starts out knowing nothing, and they got started learning the basics first.

Below is a brief introduction to what day trading is, and a quick overview of the equipment needed to get started.

What is day trading?

Day trading is slightly different from other types of investing, as the securities are only held for one day. This certainly reduces the risks compared to long term investing, as there is no chance of big losses occurring overnight.

However, because everything is done during the course of one day, it means trades often runs at a frantic pace. It take a while for a beginning day trader to adapt to this fast way of trading. Some people never adapt at all.

At the end of the day, this form of trading is a crazy business and not everybody is cut out for it. If you think that you are, then it will pay you in the long run to build a solid foundation and learn the business properly.

Learn more about the different day trading strategies and then decide which one will be the most suitable for you to follow. Once you pick a strategy, stick with it, and don’t be distracted by shiny objects.

What equipment do I need to start day trading?

Although it is not essential to spend thousands on day trading equipment to be successful, there are a few basic things you should invest in to get you started.

A good PC

The majority of personal computers available to buy will have the required processing power so you can start day trading. One thing to keep in mind is the size of the monitor, because when you are spending large amounts of time in front of the computer a small monitor can be punishing to your eyes. A large monitor will also allow you to have multiple windows open at any one time, so you can do more trading.

A backup PC

It doesn’t matter how expensive your PC is, it will probably break down at some point or suffer from technical glitches. It’s for this reason that it is always beneficial to have a backup PC nearby, so you can quickly switch over and not lose any time day trading.

Internet access

A dial-up connection just won’t cut it. In day trading speed is the key, and often decisions need to be made in a matter of seconds. For this reason, it’s essential that you have high speed internet access that is reliable.

Microsoft Excel

Once you have decided on the day trading strategy you will be following, it’s important to track your performance so you can analyze everything at the end of a days trading. Using a software program such as Microsoft Excel will allow you do this.

Skeptical About Day Trading Courses

Skeptical About Day Trading Courses?

It takes special skills and a certain kind of mindset to be a successful day trader. Fortunately, these things are something that anybody can learn, which is why enrolling in one of the numerous day trading courses available can be very beneficial.

Day trading is a lot different to other forms of investing. For example, long term investors usually take their time to study companies before parting with their money, and then they can often hold that investment for many years before selling.

On the other hand, day trading is the complete opposite. Instead of taking a long term view to investing, day traders will often invest in stock for only a few hours, while looking to make a quick profit.

Because of this different strategy, many people have a hard time adapting to this form of investing, which is why day trading courses are becoming more popular with each passing year.

If you are thinking of taking a day trading course, here are a few factors for you to consider before you part with your money…

Do some research

Don’t just blindly hand over your money because a particular day trading course has a good sales pitch. Sure, they might be the best thing since sliced bread, but it doesn’t hurt to do some extra research.

One way you can do this is by searching the internet for reviews of the course from people who have been enrolled in the past.

You have to be persistent when doing this though, as not all reviews will be that helpful. It can take a bit of digging around to find the inside information that you are looking for.

Be sure of the exact price

Once you have decided which day trading course is the right one for you, then it is important to be absolutely sure on the exact price you are expected to pay.

Some courses might have hidden fees down the line, and you might not get access to all of the course materials with the initial price you pay.

Also, there are certain courses that may put you on an automatic monthly payment system without your knowledge, so you end up getting your credit card charged at the end of each month. Being totally clear about the price from the start will save you a lot of frustration down the line.

Is online the way to go?

Did you know that not all day trading courses are only available online? In fact, there is actually a growing number of courses that are held exclusively offline.

Local college’s can be a good place to start enquiring about day trading courses, as sometimes they will offer classes on this subject. You should also keep your eyes and ears open to other types of events related to day trading, such as independent seminars with expert guest speakers.

Conclusion

The most important thing to keep in mind when considering different day trading courses is the specific topics covered in the training.

A particular course might have its main focus on Forex day trading strategies. If this not something you plan on doing, then it would be a waste of time to take the course.

Get The ‘Inside’ Day Trading Information Like The Pro’s

Get The ‘Inside’ Day Trading Information Like The Pro’s

If you want to become a profitable day trader, then it is important to be constantly on the lookout for different information so you can come up with new ideas and tactics.

Because this is the “information age,” there are many different sources to get information from. The main question you should always be asking yourself is: “is this source is a reliable provider?”

You can get day trading information from various sources on the internet, television, offline publications, and your broker.

Getting the insider information

In day trading, your biggest advantage is going to come from identifying stocks, currencies, and commodities that have been priced too high or low. This then gives you the chance to place a trade where you can profit as quickly as possible once the stock starts to move.

To identify these under or overpriced stocks, it is essential to get access to some day trading insider information. The main hurdle you face when looking at information is whether or not the source is credible, because quite a lot of what you read may be biased and have an ulterior motive for giving out particular information.

One of the best places to look when gathering insider day trading information is the daily economic and market reports.

This will give you a lot of factual data on the prices that are being traded in various sectors, and can be a good way to gauge how other people in the marketplace are thinking and trading.

You can then combine this information with the news, views and opinions you get from many of the business television shows, radio shows, newspaper articles, and internet forums.

It is also a good idea to look closely at the reports and newsletters that your day trading broker publishes on a regular basis, as well referring to any day trading charts that you have available.

Compiling all of these different sources of information together can be time consuming but it is definitely worth it. It will give you a broader sense of what is happening in the market, and you will find that you are more prepared when the day trading session begins.

Don’t believe the hype

As mentioned earlier, not all sources of day trading information can be reliable, which begs the question…”who can I trust?”

There is no simple answer to this question, as in reality, this is something that can be learned only through experience.

As you start to consult from many different sources, you will start to get a better sense for who’s information is worthwhile to listen to, and who’s isn’t.

At the end of the day, you are the boss of your day trading empire, and it is your responsibility to find the sources of insider day trading information that can be successfully used in conjunction with your strategy to make consistent profits.

Be warned!

Tv news stations and internet feeds might not be the best source of day trading insider information. This is because they have a constant need to fill up air time and news slots, which means they often take even the most trivial news, and spin it to make it seem like it’s important.

Beginner Day Trading Mistakes

Beginner Day Trading Mistakes?

Avoid these basic mistakes to become great Day Trader

If you want to get rich day trading, then it’s probably a good idea to not make huge mistakes on a consistent basis. That’s not to say that the most successful day traders don’t make mistakes from time to time. In fact, making mistakes and experiencing failure is just part of the game, and should be treated as a learning curve to improve your skill level.

However, there are many day trading mistakes that can be avoided altogether. These are the type of mistakes that beginners make over and over again, and is one of the main reasons why they end up broke.

Instead of having to go through all of this yourself, it’s much easier to recognize them before they happen. You can do this by taking note of the following day trading mistakes.

Not having enough money

Because many beginner day traders are scared of risk and losing money, they are cautious of putting too much money in their day trading account. Sure, they might not go broke using this strategy, but they’re not likely to win big either.

Don’t be afraid to put extra money in your day trading account when you are just starting out. Yes, you might lose a lot of it, but you will gain valuable experience which will actually make you more profitable in the long run.

Treating it as a hobby

If you want a hobby then start collecting stamps. However, if you are serious about actually making money from day trading, then you need to start treating it like a business.

This means that you have to take the time to develop a plan and strategy, as well as putting the hours into researching the market. You also need to decide what your short and long term goals are, so you can track your progress along the way.

Becoming too confident

It’s very common for a new day trader to have a big success in their first few trades. They then start to think that they are a “natural” and “born to do it,” and start approaching new trades with a confidence that borders on being reckless.

There’s nothing wrong with being confident, but one of the biggest day trading mistakes is when that confidence turns into recklessness. The markets can be extremely volatile, and in the the blink of an eye everything can change. Professional day traders know that a mix of confidence and caution is the way to go.

Looking for the magic button

It can be very easy to get into the “get rich quick” mindset. You hear the story of that guy that made a million dollars overnight and you decide it will happen to you too.

Sure, some people do make a lot of money quickly in day trading, but it’s usually because they have many years of experience and knowledge to draw upon. If you are looking for the magic button in day trading, then you might stand a better chance by buying a lottery ticket.

What is the Average Income of a Day Trader

What is the Average Income of a Day Trader?

Are you an average Day Trader, or a pro?

This is the harsh cold reality folks: The majority of beginners to day trading never make any significant money, and almost always end up going bust in the end.

With this in mind, should you forget about your day trading dreams and go find something else to do?

Well, not quite, as there are a small percentage of firms and individuals out there who make big money from day trading. The key to making this big money is do the opposite of what the majority of other traders are doing, and follow a long term strategy that has been proven to be profitable.

Unfortunately, not many people do this, which is why they go bust and get frustrated.

So just what is the average income of a day trader? In fact, it’s actually impossible to really know. You see, there is such a large gap between successful day traders and unsuccessful day traders, that there is no way to really arrive at an average number.

But who needs to know what the average income of a day trader is anyway?

At the end of the day, you can make a lot of money working as a day trader, which is way into the 6 or 7 figure a year bracket. Plus, this can all be done from the comfort of your own home, where you are your own boss and in control of your financial destiny.

Day trading firms

Maybe the thought of working for yourself scares you, and you much prefer the security of a job? If that’s the case, then if you are good at day trading and can show real results, then you should have no problem in getting a job with a hedge fund or investment bank.

A recent survey in the USA suggested that an average day trader salary for junior employees at these kind of firms was approximately $200,000. However, this does not factor in things such as bonuses and other performance based rewards, so the real number is likely to be much higher.

Let’s put it this way…if you are a good day trader and working for yourself is not for you, then you can still make a well above average income in the world of day trading.

Fast and easy profits?

Perhaps you don’t care what the average income of a day trader is, and instead, you just want to make some fast and easy profits from the comfort of your computer? After all, day trading is a piece of cake…right?

Well, not quite. If this is your mindset then you will almost certainly end up frustrated and disappointed. Sure, you might hit it big right off the bat, with no real experience or knowledge, but you probably have a better chance of winning this weeks lottery.

In reality, you will most likely have to lose money first, as you gain experience and develop a winning day trading strategy. This doesn’t sound very appealing to the majority of newbie day traders, which is why they will never experience a big day trading income.

Day Trading - What “They” Don’t Want You to Know!

Day Trading – What “They” Don’t Want You to Know!

Most of the day trading advice out there is not worth listening to. The old saying “don’t take advice from broke people if you want to be rich” is more relevant than ever, in this internet age where anybody with a website can offer you their “expert” advice.

The truth of the matter is that only a small percentage of traders ever make any serious money. We are talking like 5% of people here. 95% just fight over the scraps or don’t make anything at all.

Elite traders have their secrets and they like to keep them close to their chest. If you want to be as successful as them, then you must learn their secrets.

Here are some of the secrets that “THEY” don’t want you to know…

Focus on one thing and screw the rest

Rich traders all have one thing in common…they become experts in one type of trading and then they put all of their focus on that.

Contrast this to the majority of traders. They typically try to learn everything about everything, and falsely believe that to make money requires being a jack of all trades. This approach rarely works though.

Sometimes, successful traders drill down even further. Instead of focusing on just one market, they go deeper and just focus on one currency pair. That’s it.

Don’t you think if you did this your chances of becoming more profitable would immediately increase? Specialized knowledge is key!

Patience will be rewarded

A lot of average traders trade just for the sake of it. They believe that “motion creates emotion” and that they must constantly be hustling.

This is the complete opposite of how millionaire day traders view things. In their world, patience is a virtue, and they understand that the rewards are far higher for those that are prepared to sit back and wait for the right conditions.

Once those conditions present themselves, they pounce, and watch their balance grow month after month.

Ask yourself, do you trade for the sake of trading? Do you often get involved in trades you really don’t know anything about? If so, then you might want to take a step back and spend some time watching the market instead of always being involved.

Go against the herd

This one is huge. The vast majority of people always look to what everybody else is doing… and then proceed to do the same thing.

Very rarely is mass opinion right, which is why successful traders often go against what the herd is doing. Just doing this and nothing else can be a profitable strategy in it’s own right.

Basically, the masses are almost always in reactive mode. This means they are always reacting to the market.

A better strategy is to always stay in control of your thoughts and to not just simply “react” to what is going on around you.

Trading against what everybody else is doing is one of the secrets that winning day traders like to KEEP a secret.

Awesome Day Trading Tips

Awesome Day Trading Tips

Our best Day Trading tips

Many beginners start out in the world of day trading with dreams of making millions. Unfortunately, these dreams quickly fade away, as the harsh reality of losing money hand over fist starts to sink in.

In order to be a successful day trader, there are certain day trading tips that need to be taken on board before any real profits can be made.

Learn the basics

It’s so important to get the basics right first. So many beginner day traders are so eager to jump in with the big boys, that they end up drowning in the deep end. In other words, they try to run before they can walk.

If you are just starting out in the world of day trading, then it is highly advisable to invest in a good day trading book for beginners, that explains everything in a simple to understand style.

Get a mentor

Reading books is a great way to learn, but if you really want to take things to the next level, then finding yourself a day trading mentor can be extremely beneficial.

A good mentor with a proven track record, will have an immense collection of skills and knowledge, and can give you invaluable advice when you’re just finding your feet in the day trading world.

Long term thinking

Understanding that day trading is not a race is one of the best mindsets you can have. Too many traders are overly eager to get their next big score and in they end up going broke in the process.

A slow and steady strategy is much more favourable, and is the way that almost all millionaire day traders amass their fortunes. Remember, you are not competing with anyone, so just simply focus on running your own race and having a long term vision.

Becoming too emotional

Day trading can be tough on your emotions. One day everything works out perfectly, and the next day you can’t do anything right. It’s this rollercoaster ride that sends most traders running for the hills.

When your money is on the line it’s easy to get emotional, but you must realize that it is these emotions that will cloud your judgement. It’s much easier to make the right decisions when you have a clear head and are thinking straight.

Risk

At the end of the day, risk is a huge part of the day trading game. If you can’t handle risk then you will ultimately fail as a day trader.

You must learn to respect the element of risk involved in day trading, without letting the fear of risk overcome your thoughts which then leads to worry and anxiety. Look at risk clearly and objectively, but stay in control of your decision making process at all times.

Walk away

One of the greatest traits of successful day traders is that they know when to cut their losses and walk away. Contrast this to a lot of beginners, who experience some losses and then start trading even harder to try and make up their losses.

Remember that you can always come back tomorrow, and the next day, and the day after that. Chasing losses is the one of the most common ways that people go broke.

When To Get An Accountant For Your Day Trading Business

When To Get An Accountant For Your Day Trading Business

So your day trading business is taking off like a rocket, profits are landing in your account daily, and life is extremely good. Everything is perfect.

Then, the thought suddenly hits you…”HOLY C**P! I need an accountant.”

The last thing you want is to do is avoid paying the tax man. If you do, then your huge day trading profits can quickly become a small chunk of change and the resulting legal problems can drain you of your valuable time and energy.

Getting a good accountant is essential for any day trading business. Not only will they get all of your finances in order, so you can stay out of trouble, but they will also end up saving you money in the long run as they work out ways to reduce your tax bill.

Shop around

You don’t have to choose the first accountant that you come across. In fact, it can be very beneficial to shop around until you find an accountant that seems to be knowledgeable about the day trading business, and has also has experience preparing accounts for other day traders.

If you are having trouble finding an accountant in your local area, then it is a good idea to talk to other day traders about who they use. This kind of insider information can be invaluable, and can lead to finding a great accountant for your day trading business.

Small or Large?

There are many different types of accounting firms out there, and which one you choose will depend on your own specific needs.

For example, there are many large accounting firms with hundreds of staff eager to take your business. While there are advantages to going with a larger firm, there are also a lot of downsides.

One of the major downsides is that it’s hard to build up a solid relationship with any one accountant. You might find that everytime you phone them, you end up talking to a different person.

On the other hand, choosing a small accounting firm is probably the best way to go. Not only will you be able to build a relationship with a small team of accountants, but as time goes by they will also become much more knowledgeable about your day trading business. This means they get better at saving you more money with each passing year.

Be clear on the fees

Before you hire any accountant for your day trading business, it’s very important to be perfectly clear on the fees you’ll be charged.

The best way to do this is to have a chat with an accountant before you hire them and get them to put all charges down in writing. This makes everything clear from the start, so you won’t have any nasty surprises down the line.

For example, there are some accounting firms that charge for making corrections to documents, even if they made the mistake!

Save your day trading business from needless accounting fees, by fully understanding fees and charges from the beginning.

Guide to Building a Day Trading Empire

Guide to Building a Day Trading Empire

Despite what you may have heard, anybody can make money in the world of day trading. It doesn’t matter what your background is, how many grades you got in school, or how high your IQ is.

That’s not to say that you are guaranteed success however, as there are certain steps that you must take in order to increase the likelihood of making winning trades on a consistent basis.

Also, you don’t need any fancy high tech equipment, or an office in the financial district of a large city. In fact, you can easily build your day trading empire from the spare room in your house, all with an average computer and high speed internet access.

Thousands of people all around the world are doing exactly this, quietly getting rich by employing simple to understand strategies that could be taught to just about anybody.

Are you interested to find out more? If so, then here are some step by step instructions to get you on the right path to becoming a trading mogul.

Educate yourself

Before you even think about risking some money in the markets, it is important that you take the time to educate yourself first. That’s not to say you need to become an expert overnight, but you should spend some time familiarizing yourself with the basic phrases and how everything works, so you can get a better overall understanding as a whole.

A good way to do this is to go to a site like Amazon and then find a beginners book that is written in simple and easy to understand language. Also, check the reviews for the different books before you buy, to see what people are saying.

Open a broker account

Do some research on the internet to find an online day trading broker that is both reliable and experienced at dealing with new traders. It is important to understand that most brokers will charge a fee for every trade that you make through them, as well as taking a commission from any profit that you make.

Usually, these charges are not high, and only work out at a few dollars per transaction. It may seem quite a lot once you first start trading, but once you are bringing in the big bucks you will glad to give the broker their cut.

Teaming up with a broker can also help you through those first initial steps in your day trading career. They will have a team of staff on hand to answer any questions that you may have, as well as giving you access to range of online tutorials and software.

Keep your focus

Keep your focus

Once you are initiated into the trading world, and have got a little bit of experience under your belt, the next step is to narrow your focus onto one market.

The main reason why most people fail to make any money, is because they have no area of expertise. In other words, they try to become an expert at all of the markets, but end up only having a very basic knowledge in a any of them.

Learning about just one market will give you a serious advantage over the other traders, as you will gain a keen eye for opportunities that other people miss.

Try to focus on a market that you have an actual interest in, as you learn quicker when you enjoy what you do. Read as much as you can in relation to the market, and stay on top of all the current news and trends by reading financial publications and watching news stories.

Understand your limits

One of the biggest lessons that everybody must learn is to firmly understand where their limits are.

For example, many day traders take a big loss during the course of the day, and then spend the rest of that afternoon trading even more in order to make their money back. Trading in this way can be crippling to your balance, as you begin to trade on emotion, which leads to bad decisions.

Instead, set stop losses in every trade that you make, so you can get out once things start to go bad. Then, if you find yourself in a position where things are not going right for you that day, be prepared to walk away and take a break. You can always come back tomorrow and start again.

Act fast

Day trading is a business where mere seconds can be the difference between making or losing thousands of dollars.

For this reason, if you are ever going to be successful then you need to get into the habit of making decisions on the spot and acting fast. If you see an opportunity in the market, there usually isn’t the time to wait around for a few hours while you think about it for a bit. You have to become confident in your abilities, so you can make quick decisions on the spot.

As many people have found out, hesitating too much in crucial moments will severely hinder your chances of success, and in the end you will find it hard to make any substantial profit.

Conclusion

Day trading is a business with many rewards. It gives you the chance to quit your job, work at home, and gain the financial independence you have always wanted.

Not many people in the world can say they live this kind of lifestyle, so if you really want to make it work, then you should be prepared to invest the appropriate amount of time and energy into your business until you start to see positive gains.

Take the time to learn the business and you will be paid many times over. However, if you try to shortcut your way to success, you may find that your day trading account is empty after only a few months trading.

Start Thinking of Day Trading as a Business!

Start Thinking of Day Trading as a Business!

Has your day trading efforts left you with little profits and a mountain of frustration? Does your account resemble a ghost town? Are you ready to finally stop messing around, so you can achieve the success that you desire?

If you answered yes to any of the above questions, then there is a good chance that you need to start thinking and treating trading as a business. Nobody ever got rich by working part-time or putting in minimal effort, so in order to take things to the next level you need to organize yourself and get serious!

Once you start treating it as a business, then it has a much better chance of being self-sustaining in the long term, as well as hugely profitable.

At first, you have got the initial hard work out of the way, such as learning the business, set-up costs, getting an accountant, working out your monthly expenses, writing down short and long term goals, and getting the proper equipment and tools, then you will have built a solid foundation that continues to grow year after year, even if you start to spend less time in the office!

This is the key to passive income and living a relaxing lifestyle. You put the hard work in at the beginning, and then a year or two down the line you can start to enjoy the fruits of your labour.

Most people get it backwards. Instead, they look to put minimal effort in at the start, hoping that their business will somehow become profitable and sustainable all by its self.

Unfortunately, they quickly learn that this isn’t how it works, and end up getting serious about day trading or quitting altogether.

Here are some things to consider when building a REAL day trading business:

Have a dedicated area

Most people nowadays, operate their activities from their house. In fact, this might be one of the main reasons why a lot of traders don’t take it seriously, because it’s much too easy to just sit in bed until noon and the watch television while studying or trading.

The first thing you should do in order to make this into a proper business is to set up a dedicated area to work from.

This could be a spare room in your house, the basement, or even the garage. It doesn’t matter. What does matter is that you have a dedicated space where you will work on your business, free from distractions so that you can remain focused at all times.

Keep accurate records

Start Thinking of Day Trading as a Business!

If you don’t keep accurate financial records of all your incomings and outgoings, then how can you possibly know if your business is successful or not?

Keeping records doesn’t have to be difficult. In fact, many million dollar traders record everything in a simple book, with nothing more than a few columns on every page.

If you want to get a bit more advanced, you might want to consider investing in one of bookkeeping software programs available on the market. These programs can definitely make your life easier, as all you have to do is input your figures and it will do the rest.

Get an accountant

Nobody operating a business should be without the help of an accountant, as they can give you advice that will save you a fortune.

For example, an expert accountant can suggest different company structures that would be beneficial for your own unique circumstances, as well as helping you with your tax returns at the end of the year.

Take your time in finding an accountant, as they are not all created equal. It is a good idea to find somebody who can give you personal attention and will be able to get to know your business better over the coming months and years.

You might also consider trying to find an accountant who has experience at working with people in the day trading field, so they can offer you specialized advice right from the start. At the end of the day, a good accountant will save you much more money than what you pay them.

Become more detached

As you start to treat your day trading hobby more like a business, you should also work on developing the habit if being detached.

People who treat the business as a hobby, usually look at it as a form of entertainment, complete with the highs and lows of winning and losing.

Once you are in the mindset of a business owner, then it is much easier to look at it as a numbers game, where your main focus is on profit and NOT entertainment. That’s not to say that it should be boring and you can’t ever have a bit of fun, it just means that your primary focus is on long term successful trading rather than short term pleasures.

For example, you may find yourself sitting in your office at your computer during a day of trading. You are watching the markets closely but there are no trades to be made that day. In the interest of your business, you switch off your computer and go focus on something else. If your focus was on being entertained, then you would probably be tempted to get involved in the markets even though it doesn’t make sense from a profit point of view.

The final word

There is nothing quite like owning your own day trading business. YOU are in control of your financial destiny, and have the kind of lifestyle where you can see more of your family and friends.

Just be prepared to put in extra work in the beginning, so you can build a solid foundation that will last you for years to come.

At the end of the day, you wouldn’t build a house on quicksand, and then hope it won’t come crashing down in a few months. Instead, you would make sure the house had a solid base before adding more bricks. This is exactly how you should approach day trading.