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Day Trading With No Risk!

Day Trading With No Risk!

Interested in day trading? If so, then you are probably raring to get going, and can’t wait to start trading in the markets. After all, you are going to make thousands of dollars profit in the first few months…right?

Well, probably not. You see, day trading, like any other business, and it can take a while to learn properly. There are many different things to take into consideration, and it’s only once somebody gains experience that they really start to get the hang of it.

Want to try Day Trading with someone else’s money?

Things such as identifying profitable trades, knowing when to buy and sell, and choosing a long term strategy all take time to develop. Until you have these sort of things nailed down, you can’t even begin to expect profits over an extended period of time.

With this in mind, it’s probably a better idea to practice day trading before parting with your hard earned cash. This is the way that the majority of successful traders started, and so if it’s good enough for them, it’s good enough for you.

Here are the steps you can begin taking right away to practice day trading, so you can learn the fundamentals and trade with no risk.

Day trading games

There are many sites out there that allow you to play day trading games, or trade with a virtual stock simulator. This is an excellent way to get your feet wet, because you won’t have the added pressure of risking money affecting your judgement.

Experts say that the best way to learn something is do it at first with no pressure or stress, so you can solely focus on what’s important and allow your brain to soak up information like a sponge.

Some of the websites worth investigating for simulation are the Virtual Stock Exchange and the Stock Simulator on Investopedia.

How long should you use a stock simulator for? The answer to this varies from person to person, as everybody learns at a different rate. Basically, when the times comes for you to start day trading with real money you will know instinctively, and you will be making profitable trades on a fairly consistent basis in your simulation account.

Check stock prices regularly

You want to make it a habit to always keep an eye on the markets. This means bookmarking different websites and checking them regularly throughout the day, and making notes of the fluctuations that happen.

Simply put, you need to become obsessed with the markets, to the point where you become very familiar with them and they almost become a part of you.

If you currently work at a day job, then you should schedule time throughout the day to check stock prices, preferably on your morning break, lunchtime, and afternoon break. Also, it can be handy to have certain Apps on your phone for the purpose of doing this, so you don’t have to be at a computer.

Study the history of markets

Once you become more familiar with how the markets are working right now, you can gain added benefits from studying the history of markets and how they have reacted over time. This gives you a serious advantage over other day traders, as most people never bother to study things that have happened in the past.

Learning about the history will give you a better overall knowledge of the markets you will be day trading in, and you might even start to see patterns on how some stocks move in certain economic climates. Having this kind of information can give you a profitable advantage in the future.

Day trading software

Another way to continue practising day trading, is to find one of the various websites that offer day trading software and then find out if they offer a demo account.

Many of the software programs do offer demo accounts, and it can be an excellent way for you to gain further experience, especially when you consider the range of features that most of these programs are equipped with.

For example, you will gain access to real-time data feeds, so you can have your finger right on the pulse of up to the minute market action.

Companies such as StrategyBuilderFX, Assent LLC, and Think or Swim, offer day trading software which can be downloaded from their respective websites and each includes a demo account so you are able to practice your trades.

Getting ready to use real money

Getting ready to use real money

Once you feel ready to start day trading with real money, then you will need to open an account with a brokerage firm and deposit at the least the minimum required amount. This amount varies depending on who broker and which markets you will be trading in. Your deposit will usually be available in your account within a couple of days, sometimes even less, so that you can finally start trading with real money!

It is important to note that some day trading brokers will grant you margin privileges, which basically gives you the power to buy more stocks than your initial deposit allows.

If you are granted these privileges, you definitely want to avoid getting carried away, and instead be extremely cautious with your first few trades. Resist the urge to get in over your head too quickly, and remember that all successful day traders work on a long term plan that is designed to bring in consistent profits.

Day trading forums

Once you start day trading for real, then it can be a real help to talk with other like minded individuals around the world.

One way to do this is with the aid of online forums, which can be found by doing a simple Google search. Many people gather on these forums to talk about their own experiences, ideas, and strategies, and it is very comforting to hear from other traders in the same boat as you.

Just be careful about who you listen to though, as some of the advice on day trading forums is questionable, and there are people posing as “experts” who have never made a dime of profit in their lives.

Selecting the Right Day Trading System to Make Money

Selecting the Right Day Trading System to Make Money

Watch out! How to avoid the “get rich quick” Day Trading systems

The main problem with the majority of beginner day traders is that they have no focus. One day they are focusing on one system, and the next day they are focused on another one.

Not surprisingly, this leads to very little consistency and zero profits in their account. As any successful trader will tell you, the biggest secret of making more money than you can count, is to find one day trading system that you feel comfortable with and then stick with it.

At the end of the day, there are hundreds of day trading systems out there, and trying to learn all of them will simply result in information overload and a sense of overwhelm.

In order to find the right system, you should spend some time at first analysing the different ones available. Then, when you find one that just feels right, commit to spending all of your time on just that one system for at least 30 days.

At the end of that 30 days you can assess your progress, and decide if you should continue with the system or find a new one. If a day trading system is profitable then you should stick with it, and just conduct tweaks to improve your overall results.

Here are some tips to help you find the right day trading system so you can make money in the markets.

Consistent profits is key

All that glitters is not necessarily gold, and this is definitely true when it comes to day trading systems. Many newbie traders are typically drawn to the systems and strategies which promise the big profits over night, kind of like winning the lottery.

While it is possible to make big profits fast in day trading, it is highly unlikely this will happen for somebody new to the markets. Instead, it is much more profitable in the long run to seek out a day trading system that has a smooth equity curve, and is more focused on producing small profits over an extended period of time.

With these kind of systems, not only are you more likely to actually make money, but you also reduce your amount of risk, so the chances of going bankrupt are slim.

Operating with less risk is also better for your state of mind. Many people who follow systems that are risky end up becoming an emotional wreck. They find it hard to sleep and are constantly worrying about losing money. This leads to making rash decisions based on emotions, which is the number one way that the majority of day traders lose money in the markets.

Don’t be one of them, and instead focus on small profits on a consistent basis.

Make it easy

Have you ever tried to learn about a new day trading system, only to feel like your brain was about to explode because it was just too damn complicated? This is another mistake that many traders make, as they often equate complicated to meaning better.

Actually, nothing could be further from the truth, and as any successful day trader will tell you, the real profits are in keeping it easy and simple.

At the end of the day, the markets are extremely volatile, and it can only take a few seconds for things to change drastically. With this in mind, do you honestly think it is a good idea to trade in this kind of environment with a system that is based on complicated formulas and a million different moving parts? Of course not.

Because everything happens so fast in the world of day trading, you need a system which allows you to make quick decisions on the spot, and this can only be achieved if you strive to keep things as easy and simple as possible.

In fact, your day trading system should be so easy that you can work out what trades you are going to make today using nothing more than a writing pad and a calculator.

Trading frequency

Trading frequency

Any successful trader knows that the more often you trade, the more chance you have of being profitable. That’s why it’s a good idea to choose a day trading system which generates multiple trades every single day, and not one where you have to rely on only a few trades a month.

The reason for this is simple: in order to get good at anything, you need to get plenty of experience under your belt, which can’t be done if you are not trading on a frequent basis.

Also, if the average win percentage of your system is 65%, and you are only trading a few times a month, then it is possible to go months at a time without generating any profits.

However, when you are trading every day with this kind of win percentage, then you will see profits much more frequently, which will give you the confidence to keep going through the bad times because you know that a winning streak is just around the corner.

Another reason why it’s important to find a day trading system with a high trading frequency is because you always learn more from your mistakes. In order to grow as a day trader, you need to be making mistakes on an almost daily basis, and it would be impossible to do this if you were only making trades now and again.

The final word

A good day trading system will always allow you to start small and grow your business from there. Be extremely weary of any system that requires large capital from the beginning, and promises overnight riches. There are no such certainties in the world of day trading, as the markets are changing all the time.

To risk a huge amount of money if you are a beginner is not a very wise choice, and will ultimately lead to frustration and anger. Trading should always be approached with a calm mind and a level head, and it’s much easier to do this with a day trading system that has a long term vision.

The Golden Rules of Day Trading

The Golden Rules of Day Trading

Let’s face the facts for a minute: day trading is definitely one of the more risky careers that you could pursue. There are much more “safer” routes out there if you are looking to make your fortune.

With that being said though, there are some people who just can’t get enough of day trading. These people enjoy the thrill of making profitable trades, and the excitement of making multiple trades in any given day.

If you are one of these people, then you no doubt accept the risk that comes with your chosen profession, and stand by the motto “live by the sword, die by the sword.”

You accept that one wrong move could see your entire trading capital completely blown in a week, or even a few days. At the end of the day, if you don’t take any risk then there is no reward, and you wouldn’t have it any other way.

The 3 Golden Rules of Day Trading

There are ways to reduce the amount of risk in your day trading activities though. Ultimately, the main reason why most people go broke is because they get too risky in their trades, and end up making stupid mistakes. This can be avoided altogether by following these 3 simple rules.

Entry level

They say if you don’t plan, then you plan to fail, which is why you must spend some time planning exactly where you want to enter a certain trade.

Deciding on the correct entry level can often mean the difference between making a profit or a loss.

Once you decide that a trade is “ripe” for getting into, then you must also act fast and not delay your decision, as things change quickly in the day trading world, and failure to jump on an opportunity means you miss the boat.

Profit target

Another golden rule of day trading is to decide on your profit target for each and every trade. This doesn’t mean to just have a general idea of how much you want to make, but to have a specific number in mind so you can accurately measure your progress.

This is one of the main keys to success in day trading, as every elite day trader has a long term strategy where the name of the game is all about making consistent profits. You can achieve this by setting a profit target on every trade and being disciplined in your approach.

Stop loss

The main aim of day trading is to make consistent profits while minimising your losses. With this in mind, it makes perfect sense to set a stop loss on every trade that you make.

As with anything in life, things don’t always go to plan, and the same thing applies to day trading. The markets can be topsy turvy at the best of times, and things can change in the blink of an eye.

Determining how much you are willing to lose on trade is essential, so if things go wrong you won’t take a damaging hit to your account balance.

More Rules to Follow:

If you were just to follow the above 3 golden rules of day trading then you would be in pretty good shape, as they should be the foundation of any plan or strategy that you set in motion. Here are some more rules to keep in mind…

Overtrading

The Golden Rules of Day Trading

The temptation to overtrade will always be there. Due to the sheer amount of action to be found on a daily basis, it’s really easy for the average day trader to get drawn into trades that they have no business being in.

A big problem with overtrading is that you end up spreading yourself too thin, which means you can’t properly analyse every trade correctly.

Instead, it’s much better to only select a few trades a day based on the markets you know the best, and then religiously stick to this day trading strategy even if you feel the urge to get involved elsewhere.

Be proactive, not reactive

This one is huge, and is a big reason why many traders lose their shirt. Basically, your main focus should always be on your day trading plan, so that you remain in control at all times and are pro actively trading in the markets.

Problems start to occur when you lose sight of your plan and start to become reactive to things happening in the markets.

Always remember that making profits in day trading is a long term endeavour, and you should be very careful about deviating away from your strategy in order to make reactive trades.

2 percent of your trading capital

If you are just starting out in day trading, then should make it a point to never risk more than 2 percent of your trading capital on any one trade. In fact, a better starting point might even be 1 percent.

This might not sound like a lot, but it’s important to understand that day traders who trade at say 10 percent, can quickly go broke.

It only takes 10 bad trades in a row to go bankrupt which is more common than you might think. It’s much better to operate with a lower percentage of your trading capital, especially when you start day trading, as it gives you the chance to gain experience.

When you first begin your day trading career, you are going to make a lot of mistakes. Everybody does. It’s much better to make these mistakes while not breaking the bank!

Conclusion

If you were to just follow the 3 golden rules of day trading then you would be in good shape. Add to this the other 3 rules mentioned above, and you should have all the information you need to become one of the elite day traders who makes 6 figures a year out of this profession.

Just remember to always keep your eye on the prize, and don’t be tempted to get distracted away from your long term day trading strategy.

How to use Forex Day Trading Strategies to Profit!

How to use Forex Day Trading Strategies to Profit!

Are you looking to profit as quickly as possible in Forex day trading? If so, then you might have notions about making large sums of money overnight using some kind of push button Forex robot, or a secret strategy that almost nobody else knows about.

In reality, those type of things don’t really work. If you want to make money at Forex, then you better be prepared to put in some ground work and be in it for the long haul.

Not many people get rich overnight, only those that get lucky with the lottery. Using proven Forex day trading strategies is the best way to make consistent profits while trading in the currency markets.

Sure, they might not seem very sexy, and they even require that you put in some effort, but at the end of the day it will all be worth it.

Think about it for a second. Do you want to be your own boss so that you can work from the comfort of your own home, with the ability to set your own hours? If you do, then you should definitely read the rest of this article very carefully, as the following Forex day trading strategies is what everyday people just like you are using to create their dream lifestyles.

Simply choose the strategy that you feel most comfortable with and then stick with it. That’s the most important point, as you need to give any strategy time, so you can ultimately reap the long term profits.

Also, it’s important to understand that a good Forex day trading strategy is not the be all and end all. Sure, it’s a major factor, but there are other things you need to get right in order to become a well rounded day trader who makes consistent profits.

For example, working on controlling your emotions is a vital skill to have as a trader, because if you are always running on high emotion, then even the best Forex trading strategy in the world won’t help you.

There are many popular Forex day trading strategies that you can follow. For example, there is trend trading, range trading, breakout trading, swing trading, and news trading, to just name a few. If you search long enough, then you would come across many more.

Here is how to use a strategy to start making profits.

Choosing a strategy

The best way to choose a Forex day trading strategy is to find one that makes sense to you and also one that feels comfortable.

There is little advantage to choosing a strategy that you don’t really understand, as you will be spending the majority of your time trying to work it out!

 

Which brings us to a major point: find a Trading Strategy that is simple to use and implement. Anybody who tells you that trading Forex is complicated is lying, which is why you only need a simple strategy that focuses on basic elements to be successful.

Stick with it

When you choose one of the Forex day trading strategies to follow, it’s essential to stick with it for a certain amount of time.

It’s no good using it for a few days and then deciding the system doesn’t work. You need at least a month to give any strategy a fair roll of the dice, maybe even a few months.

Many beginners to the Forex markets get distracted much too easily, which can only be described as “shiny object syndrome.” The main problem with this is that they never stick with anything long enough to see positive results, which leads to them getting frustrated.

Paper trade

How to use Forex Day Trading Strategies to Profit!

If you are new to the world of day trading, and you still feel a bit uncomfortable with the thought of risking money, then you should consider testing out different strategies by way of paper trading.

This way, you get the benefits of seeing if a particular strategy is right for you, while not having the burden of putting any of your own money on the line.

Also, it’s been said that the best way to trade in the markets is with no emotional attachment at all, and what better way to learn how to do this than with zero money on the line.

In order to paper trade, you can get a demo account with one of the Forex brokers or software programs, or you can simply use a pen and paper to keep track of the trades that you make.

Make adjustments

Once you have followed a Forex day trading strategy for a certain amount of time, then you will basically come to a point where you have two options; either you can drop the strategy altogether, or you can make adjustments.

No strategy is perfect, and traders are constantly making tweaks and adjustments to make everything more efficient, and most importantly, more profitable. If you adopt this philosophy of constant adjustments, then your Forex income will continue to grow year after year.

Conclusion

If you read enough books and blogs, then you will probably come across hundreds of different Forex day trading strategies.

Ultimately, it’s not going to do you any favours to try and learn every single one, and instead it’s a much better idea to just stick with one strategy for a few months.

Also, it’s worth noting that you shouldn’t be afraid to adapt your own individual style to the Forex day trading strategy that you decide to follow. This is what all successful traders do over time as they gain experience, and what you will end up with is your own unique successful system that favours your strong points.

As mentioned previously, it’s important to spend time focusing on other areas away from your Forex day trading strategy. Things such as learning how to use software, controlling your emotions, and finding the right broker, are all equally important, and will have a major impact on the amount of money you end up making as a day trader.

Day Trading Failure Here are the Most Common Day Trading Mistakes

Day Trading Failure? Here are the Most Common Day Trading Mistakes

No matter what business you’re in, you will always make mistakes. In fact, making mistakes is usually a good thing, as it’s how you learn so that your business can move forward. However, if you are currently experiencing day trading failure and you don’t know why, then there is a good chance that you are making the same mistakes over and over again.

Sometimes, it can be hard to spot these mistakes yourself, especially when you get emotionally involved in your trades, which is why an extra pair of eyes from somebody who is outside of your day trading business can be beneficial to identify the mistakes you are making.

One way to do this is to find a mentor. Getting a day trading mentor is not actually that hard, as there are many experienced traders who are more than happy to lend their expert knowledge and advice to your business.

Below are some of the most common day trading mistakes that keep people in a vicious cycle of failure:

Not being serious enough

One way to ensure day trading failure is to not treat your business seriously enough. In other words, if you want to make large profits then you should stop treating trading like it’s a hobby.

Many people make this mistake, mainly because day trading is something that is done from home, and therefore it’s all to easy to slip into bad habits and become too lazy.

In order to rectify this situation, you need to set aside a certain amount of hours every day to work on your day trading business, and then stick to this schedule religiously. It might be tempting to just want to lie in bed for half the day or go play a round of golf, but if you do this type of thing too often then it will end up hurting your business.

Also, it is a good idea to set out a day trading plan, which clearly defines your long term and short term goals, and has targets for each day, week and month. Once you do this it’s easy to see if you are on track and constantly moving the business forward.

Being too reactive

Another big day trading mistake is the tendency to move into reactive mode far too often. As any elite day trader will tell you, success in this game comes from being in control at all times. What this means is that you should have a day trading plan and a strategy, and then everything you do should be in relation to those two things.

If you find yourself constantly going away from what you’re supposed to be doing, whether it’s reacting to news stories or trying to find “hot tips,” then you are going into reactive mode where outside influences are constantly controlling what you do.

Instead, make sure that you have a daily to do list, with tasks that are all related to your current day trading strategy. This ensures that you stay firmly on course towards your goals, and don’t get sidetracked by shiny objects.

Being over confiden

Day Trading Failure Here are the Most Common Day Trading Mistakes

One of the main reasons why people experience day trading failure, is because they become too confident in their trading plan, and their own abilities.

Sure, it’s a good thing to have confidence in yourself, and to believe that you have the knowledge and skills necessary to reach your goals, but problems start to arise when that confidence starts to get out of control.

If you currently feel like you can do no wrong and that everything you touch will turn to gold, then you are probably approaching day trading with too much confidence, and it will almost certainly end up being your downfall.

Over confidence leads to bad decisions, mainly due to the fact that the person starts entering trades without weighing up all of the facts first.

In order to be a successful day trader who profits consistently, it’s important to get a complete overview of any trade you are about to enter, and to seriously consider what might happen if things go wrong.

Not having enough capital

Many traders make the big mistake of not having enough capital in their day trading account balance. Worse yet, they then start to trade with a high percentage of the capital on a single trade, which means they are always in a position where they can’t afford to lose.

Unfortunately, this way of trading never works because eventually they do lose, and it’s often crippling.

Ideally, you never want to risk more than a few percentage points of your entire balance on any one trade. This gives you a large margin for error and means that you can afford to have a few bad trades in a row.

As a day trading mentor would tell you, this game is all about the long term strategy, and you need to have the account balance to reflect that. It can take a while for your strategy to gain momentum, and in the meantime you will need the funds to cover any losses.

Being honest

Lastly, if you are currently experiencing day trading failure, then there is a good chance that you are just not being honest enough with yourself.

You need to honest about every single area of your business: Is my strategy working the way it should be? Am I doing all that I can? What can I learn from my mistakes? Am I putting enough hours into studying the markets and tweaking my day trading plan?

Once you start to become completely honest with yourself, then you are finally in a position to take full responsibility for the state of your business and for any day trading mistakes you have made. Many traders like to blame outside influences for their shortcomings, but ultimately the buck has to stop with you. If you are the captain of the ship, then you are the only person with the power to steer your ship out of rough waters.