There are plenty of ways to become a profitable day trader. But why would you want to do it? What do you get out of being a financially independent person, with no boss to answer to and no cube to chain yourself to. You get freedom. You get a career with plenty of money to pay the bills and plenty of time to enjoy yourself.
The key is you have to spend the time becoming a smart day trader. You need to spend time in day trading classes, learning the lingo, the techniques and the potential pitfalls. Then spend time in a free chat room that allows you to interact with other day traders that have been through the ringer and have excellent advice to offer.
Here are the 5 steps to becoming a profitable day trader.
Learn The Best Strategies
Day traders need to understand many differnet ways to make money on any given day in the market. There may be some days where there are gappers ready for a momentum day trading strategy that will capitalize on spiking stocks. But other days, you might want to employ a reversal trading strategy that capitalizes on a tough market.
Learning these strategies in a good day trading education site is a great way to be profitable. You need to put the time in.
Spend Time In a Day Trading Chat Room
There could be a free chat room out there that has decent information and traders with some experience. But Warrior Trading offers a chance to pay just $5 for five whole days of a chat room experience that will bring your day trading education to another level. Being around other traders and watching them call out positions and trades in the chat room is a great way to get acclimated to the industry.
Take a Month In a Paper Trading Room
Paper trading is one way of saying simulated trading. What you want is a simulated trading environment that mimics the regular stock market and allows you to make trades at the speed of the real stock market. All with virtual currency. That is the best way to practice your day trading strategies and learn how to make trades and make mistakes without losing real money.
Take Risk Management Seriously
As a day trader, you always need to be thinking aobut risk. You need to know exactly how much you expect to make from a trade and how much you do not want to lose. Then you need to have the proper stop loss in place for each trade. That way you can cap your losses automatically. Once you make your desired profit level, get out of the trade. Don’t sit there and wait for an endless growth spike. You will be disappointed.
Keep Good Records
Quality record keeping is at the heart of profitable day trading. Day trading is all about building up lots of small wins and making sure your losses are even smaller. You are going to lose on a trade. It is inevitable. But, at the end of the week, your profits are higher than your losses, the better off you will be.
For more information on chat rooms and day trading education, check out Warrior Trading.