Becoming a day trader is not an easy task, though most traders want to be day traders because you can earn a good amount of money by trading only a few hours per day. But day trading is now so easy, and it needs months of practice to accrue this skill. A new trader should not think about day trading within at least the first year of his trading career. Because a trader’s first year goes through lots of ups and downs, he should always keep in mind that he cannot blow his account no matter what the situation is.
A day trader should always plan; here, we will discuss few-day trading skills that may help you if you want to be a day trader.
Fix Your Goal and Path
Before you use your valuable time for learning day trading and building a day trading strategy, you should consider certain things.
Suppose you have a sufficient amount for day trading. If you don’t have enough, then wait until you have it. At this time, you can continue practicing with your demo trading amount.
Becoming a good trader and starting to earn constantly from trading takes at least 6 to 12 months of practice. Sometimes it may take more than that, so you must ensure that you are willing to put that amount of time into becoming a consistently profitable day trader.
At first, you must not take trading as your main profession and never quit your job before your trading profit replaces your income. So fix which time of the day you are going to trade.
Have Knowledge about Capital Requirement
Capital of day trader is like the inventory of a grocery store. Suppose you don’t have enough of it, your store is not going to make sufficient profit. So how much capital you have going to determine your income from your day trading.
Stocks: In the U.S., you legally need at least $25,000 for day trading. So you should deposit at least $30,000 for safe trading because the same day if you close any positions below $25,000, you may lose your trading privileges.
Foreign Exchange: In forex day trading, there is no legal minimum, but the more you invest, the more you can earn. Because a big account balance gives you the privilege to open more positions and take more risk, we suggest a day trader invests at least $5,000 or more so that you can withdraw a sufficient amount.
Create a Strategy
Day trading is not smoothing. You can learn overnight. You have to study and rehearsed day trading skills and strategy for becoming a profitable day trader. When you open a position and close it, you should know how much risk you should take with your available balance. So make a strategy before starting to day trade. If necessary, try to find a good trader at Zulu trade so that you can copy trade from them. You can also go for the demo account from Rakuten Securities Australia to test your skills.
The practice is The Main Key.
If you want to be successful in any profession, there are no other options than practice and patient. In day trading, practice is the main key. Even in every job at first, your boss makes you practice your duties before assigning your real tasks. To get started your career as a day trader, you should first practice day trading with demo accounts without risking a single penny. You should understand the market because today, the market may be volatile. Tomorrow, it can be stable. If you don’t practice, you will miss easy opportunities, and you may not find opportunities like that after that day. You have to make use of every opportunity you can get.
Day trading is a hazardous and stressful profession. Before you choose it as a profession, consider all kinds of circumstances carefully, fix and practice a strategy and never get too greedy because you earn money every day by just staying in the market for few hours.