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How to Become a Day Trader

Posted by at 8:42 AM Read our previous post

1. Get educated. MTrader.com and other companies offer online training sessions that will help you master concepts and skills.
2. Shop for a training program that suits your needs and that will stick with you as you transition from student to trader.
3. Work with a winner. If you have a friend who is successful at day trading, ask if you can sit on the person's sessions.
4. Set aside money you can afford to lose. You will need at least $2,500 to establish a margin account with most brokerages. Regulators are considering boosting that to $25,000.
5. Paper trade initially. Make sure you are winning consistently before you start using real money. Give it at least a few weeks.
6. Analyze your mistakes and successes. Know what worked and what didn't and develop some strategies.
7. Open an account at a discount brokerage that will allow you to trade online.
8. Try 'swing trading' before you shift to day trading. Swing traders hold stocks for several days or weeks; day traders hold stocks for shorter periods, capitalizing on volatility.
9. Ignore the herd. If other traders are racing to buy or sell, make sure you understand the phenomenon and that you aren't racing off a cliff with them.
10. Be prepared to take a beating.

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