How to Start Day Trading and Earning Consistent Profit
Day trading is the dream job. It is the ultimate freedom based lifestyle with an unlimited amount of profit potential.
But it can also be one of the most difficult jobs to master if you start on the wrong foot.
Here is how to start day trading and give yourself the best chance of success from day one.
How to Start Day Trading – What is your work shift?
Day trading is a business, like any other.
You can be your own boss, your office can be anywhere (there is internet) and make an unlimited amount of money.
However, like any other business it is very important to decide what you want your working hours to be.
This will vary on the time zone you are in and the type of job you work.
Read the best futures trading hours here, and decide if you can be at work during this time slot.
Before moving on to the next step, be sure to write down when you want to work and that it is not longer than 3 hours on any given day.
One of the benefits of day trading is that you can achieve a full time income in just a few hours a day, maximum.
How to Start Day Trading – What product will you trade?
This is where you may be misled as a new trader, because you think there is a perfect market you need to trade.
The truth is, you need to find a perfect market for your unique situation. It’s all about adapting trading to YOU!
In the beginning, what you trade depends on how much capital you have and where you reside.
First off, let’s start with the US residents:
- Over $25,000 USD capital (US based individuals only) you can day trade stocks and options
- Under $25,000 USD capital (US based individuals only) you can trade Futures and the Currency markets as they do not have these day trader rules
Now, here are my personal recommendations for your capital level when deciding how to start day trading:
- $25,000 USD to trade stocks
- $10,000 USD to trade options (debits, credits and outrights only)
- $5,000 USD to trade directional options strategies
- $2,000 USD to trade most futures, with the oil market requiring closer to $5,0000
Now some of you might be wondering why I am not recommending trading in currency markets, commonly called FOREX?
Day trading is all about analyzing order flow and tracking institutional players. Currencies do not trade on a regulated exchange and very little transaction information is available.
For this reason among many, I strongly recommend learning how to start day trading futures over forex. The benefits outweigh the cons.
How to Start Day Trading – Develop your trading strategy and technique.
If you wanted to start your own business you would start with creating a comprehensive business plan.
Trading will be your new business. If you just want to work for someone and collect a pay check, this is not the right field for you.
Day trading is a fight, and requires mental toughness and the decision to be a winner in life and in the markets.
As a day trader, you must take the time to learn how to analyze the markets correctly and how to develop trade probability.
Our order flow analysis tools in the Futures Course will teach you professional grade analysis. You will not learn this information anywhere else, because it works.
Learn more about our day trader pro package here.
In addition, I will show you how to manage your risk and your emotions as a trader.
The cold hard truth of this business is that success is not about finding the right strategy.
Success is all about finding out how to execute any strategy and how to be consistent.
This is what we teach you that others do not.
How to Start Day Trading – Choose your broker and software.
Choosing the right tools is the difference between getting a job done or creating a mess.
If you went into a dentist office and saw rusty tools that were about to fall apart how would you feel?
I would not let them touch my teeth, and you likely would not either.
You need the right tools that is the bottom line. They are not free, you will have to pay for them.
These tools are not a “cost”, they are an “investment”. Costs deplete your cash, investments can make you more cash.
If you are looking to save costs or make money first before you get the right tools, you are better off not starting yet.
You can lose a lot more of your starting capital then the investment price of getting the right setup to begin with.
So here are the essentials:
- Getting a broker – this will be the company that clears and processes your trade. We recommend AMP futures, as they are our preferred partner and we like them the best out of literally hundreds of brokers! Even better news, if you use this link here you can get their lowest tier rate under our TRADEPRO VIP group.
- Getting your software – you need to decide how you will be trading and what your strategy needs. Don’t rush this decision. You will likely need to try a few different ones before finding the right one for you. We recommend MarketDelta which is built on the CQG software. This is a trusted name in the industry for decades.
- Setting up your technology – you need a computer, good internet connection and two or three monitors. Don’t buy 12 monitors, get a faster internet and stronger computer instead.
- Membership to a live trading room community – more on this next.
How to Start Day Trading – Trade in a community, not alone at home.
If you were to start any new business, you would want to meet everyone who is walking the same path as you.
Trading is no different.
In fact, there are only two places you can learn from: current traders and current markets. Nothing else matters.
At the beginning it is very important to surround yourself with profitable traders and those that are still learning.
This environment will help you be a sponge for new information and allow you to apply it with your peers.
There are many forums online that cater to day trading, but these are the top ones:
The problem with these forums is that you don’t know who is providing you the information you seek.
Also, you need to see real time analysis and execution to help you fine tune your strategy and process.
In our day trader pro package here, we include a live daily room from 9AM to 11AM EST.
We trade anything that moves, not just one market!
How to Start Day Trading – When to move from demo to live?
You need to know that moving from simulated trading to live is harder than it seems.
Your results are likely to be worse in live mode than demo, especially the first few weeks. The challenge will be dealing with new emotions that arise from attachment to money.
But don’t worry, it’s normal.
We have put together the Phoenix System to help you bounce back, or get started the right way.
The Phoenix is available as part of our Day Trader Pro membership here.
Here is what you can expect to learn:
- How to start demo trading the right way to avoid common mistakes
- System to help you gradually increase your work load (starting with too much too fast is a recipe for disaster)
- Sample risk management strategy to help you trade like the professionals and build the same habits
- List of qualifiers to use to take only the best trades
- Journaling and tracking system to help you keep score and develop a trading edge
- Plus much more!
How to Start Day Trading – Conclusion
So you might have been wondering how to start day trading?
I hope you have more clarity on the process and what to do next after reading this article. Remember, day trading successfully is a life long journey of constant learning and self-mastery.
A great day trader is a discipline human overall, not just in their job in front of the computer.
The beginning few weeks are crucial, and it is critical you get started on the right foot.
We have a very powerful course to teach you how to day trade like the professionals.
You will not find this information anywhere else, unless you join a big prop firm or bank, because it works!
Subscribe for our day trader pro package here and join us in our next live trading session and get instant access to all of our courses and materials.
Good luck and good trading.
Manage that risk!
You can also learn about our institutional grade day trading package here, or learn to trade a more passive options strategy in our package here.
The information contained in this presentation is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.