When most day traders start out, they lose money. It is almost a concrete fact. You can’t make money as a day trader in your first year. More than 90% of traders lose money right away.
And the scary thing is, it is mostly true. Frequent any free chat room out there and the grizzled veteran day traders will tell you the same thing. You need to put the time in in order to be profitable. You need to study hard and learn the techniques that can take advantage of a volatile market.
Screen Time Is Paramount
If you don’t have a prominent day trading education site to learn from, you need to spend at least a year in front of the screen, prepared to make no money. That is how long it takes to learn even the basics of day trading.
That said, even if you can sit in a free chat room and then take day trading classes with veteran instructors, you will need to put in the screen time to get profitable. Screen time means staring at charts and trading software day after day, so you learn to spot patterns that you never would have seen when you started. You really absorb the lessons necessary to be profitable.
Learn To Limit Your Losses
Stop losses are key. You need to put actual stop losses on your trades, especially at the beginning. Without those in place you stand to lose real money when trades go south. When trades start to look very different from the way that you expected, you want to get out. Having a stop loss at a certain percentage or part of the profits is important to manage your risk.
Practice In A Simulator
What is a simulator? Well, it is a trading environment that allows you trade at the speed of the market with virtual currency. It is a great way to get screen time without having tens of thousands of dollars worth of skin in the game. What you really need is a trading simulator with Level II quotes that mimics the regular trading platforms and allows you to get a feel for day trading.
Keep your desk free of clutter. The distractions around you will take away focus from the charts and spreadsheets you need your attention. And you need a computer that is free from extraneous programs too. You want to make sure that you have a dedicated machine just for trading. No non-trading programs on the hard drive. Keep the computer free of viruses and other files that may slow down its working speed. You don’t want to get shut out of a trade by a slow machine.
When searching for day trading education sites, check out Warrior Trading. The site offers real day trading education classes that allow you learn the strategies necessary to get off on the right foot in the industry.