10 Tips on How to Become a Day Trader

There are many of us who would like to know how to become a day trader. Nowadays, becoming a day trader is not as difficult as it once was. As long as you have access to a computer with internet, you are pretty much set.  You’ll also need a brokerage account and need to pick up some of the terms which are used in the industry.

It may help to get  a day trader training program or trading software package which is easy for newbies and more seasoned traders to use.

So here are 10 top tips on how to become a day trader:

Tip 1 - Learn the skills.

There are numerous companies both online and offline which provide training sessions which sould help you to master the skills.

Tip 2 – Get a training program which suits you.

When selecting any day trading training program, try and select one that will grow with you as you transform from a learner to an active trader.

Tip 3 – Learn from the best.

If you are lucky enough to know of someone who is a successful day trader, see if that person will let you watch them for a day as they trade.

Tip 4 – Don’t use the rent money.

Only trade with money you can afford to lose. I know this does not sound positive but lets be real for a second. As with aspects of life,  some days are great and some days are not. If the worst happens and you lose all your money, it’s just a lesson learnt.

Tip 5 – Start with no money.

You should always start your trading career by ‘paper trading’. This is a way practice trading following the market using your skills but not using any money. This will let you build confidence and learn before commiting cash to the pot.

Tip 6 – Record your actions.

Keep a record of what works and what failed. From this, you can design your own game plan.

Tip 7 – Look for a discount broker.

Some brokers will offer incentives for you to trade with them. This could be in the form of a reduction of their fees and sometimes a credit into your brokerage account.

Tip 8 – Hold your stock longer.

At the start of your career, it may be beneficial to hold onto your stock for up to a week or so before selling. This will give you a chance to watch your stock without the pressure of the fast sale as there is in normal day trading.

Tip 9 – Understand the reasons.

Don’t just follow all the other traders and buy just because they are buying, take the time to understand why it is the right moment to buy and sell. There will be a time when you will have no one to follow so you will need to understand the reasons behind your trades.

Tip 10 – Stay strong.

Some days, you will feel like it has all been a waste of time and nothing has gone right. Don’t worry. Tomorrow is another day to start a fresh.

If you are starting out and looking to purchase a training program, system or software, the choice can be overwhelming. So what do you buy?

On our website, we report on different trading software, trading systems and programs so you can compare them . When you get the chance, come over and have a look.

And thanks for reading 10 tips on how to become a day trader.