Thinking of breaking into the day trading industry? Before you dive into the super-competitive waters, arm yourself with an array of tips and tricks that will help you hit the ground running. If you're not sure where to begin, check out the three tips below on how to get your day-trading skills going:
1. Ask Around: If you have friends or relatives who've succeeded in the day trading industry, don't try to compete with them by outdoing them from the get-go. Instead, recognize their success by respecting what they've been able to accomplish, and use them as mentors to guide you in your early endeavors. I can’t believe how many people don’t do this. For years I had a co-worker who tried more to compete with me than to learn from me, even when I ran a popular stock trading blog and the Stock Trading Master channel on YouTube and functioned as the bosses stock
analyst! When it comes to stock trading, everyone tries to out-do the friend or family member. Don’t do that. It’s stupid. Learn everything they have to teach you first before you try and stick a knife in their back by shorting their positions. A great mentor who has quit his day job as a teacher and now trades at home for a living is here. I highly recommend his services.
2. Brush Up: Brushing up on the technical terms and industry jargon is a critical starting point for any burgeoning day trader. Try checking out www.guerillastocktrading.com to learn more about tricky concepts like volume divergence, day trading wedges, and how to avoid false breakouts.
3. Start Small: Before blowing your dollars on hunches or feelings you're only somewhat positive about, try starting small and building up your portfolio as you become more confident in your skills. Having the patience to know when to hold back is a key component of being a successful day trader. Knowing WHEN to trade is just as important as knowing WHAT to trade. Almost everyone who trades for a living has lost everything at least once. Unfortunately, the best learning comes from the pain of losing everything. If you start off with $2,000 and you lose it all, you can come back from that. What you don’t want to do is to start out trading with $100,000 and then lose it all in your fifties. You’ll probably never recover from that loss. By starting out small while you learn the ropes of various trading styles such as: day trading, swing trading, or trend trading, you put a safety net in place that will limit the amount of money you can lose.