A lot of people, who want to live from the stock market, want to be a trader. A of crouse the best to achieve it overnight. Stock exchange, whether it’s shares or forex or forward transactions, tempts with unlimited profits. Therefore, to this world wishes to join many of you! Here you will find how to day trade on US Stock Markets.
This is the first article of cycle: Trader Road. Here you will find helpful information about ‘how to start’ on US Stock Markets!
How to day trade?
This article is a part of cycle: Trader Road:
Focus on your hobby – I want to be a trader
Many of my friends, with whom I used to go to high school, decided to study at the Medical University. They wanted to become doctors, dentists, surgeons. After a few years of studies, each of them chose appropriate specializations. I bet that every one of you, when you go to the doctor, expect a professional service or professional treatment, examinations, etc.
Each of my friends had to spend a lot of years learning human body, its function and treatment methods. Next they underwent internship, where “worked” already on the living body. Of course, all of this which I describe is a little bit simplified (the doctor probably would describe it more widely); but I want to present a scheme of development. After many years of studies, practice or internships – they began “real” work with the patient. However, for many of them, the authority was senior doctors, from whom they could learn.
My story
When I was almost 18 years old, my dream was to get driving license. I omit the fact that it wouldn’t change anything in my life, because after all I didn’t have a car or savings to buy it. I could, at most, hope that my Dad sometimes will lend it to me. After some time, when I already passed the driving test and received documents, I went to my Dad in order to ask him to lend me the car: after all I already have a driving license, and it means that I can drive :)) Of course, Dad lent me the car, but in the first period he was as a passenger. He wanted to see how I drive and to provide advice on difficult crossroads (then I didn’t understand that, I perceived it as a lack of faith in me or simply as Dad’s whim), but he also watch not to exaggerate with the speed. Actually, it passed quite a lot of time before I received keys from my Dad with a possibility of independently drive the car without my Dad sitting next to. Considering that all this happened in the winter – on icy road, in the snow – it was a really good lesson for the beginner driver.
Only when I purchased my first car, I started to drive much more, there were thousands of travelled miles – I felt differences in abilities of driving a car. Yet situations on the road can surprise.
You will think why I write here about doctors, driving a car. This rather long introduction is a kind of certain digression, because refers to the start in world trading.
Trading isn’t a number of read books, completed courses or obtained certificates from trainings
The same as it is in a process of acquiring knowledge and practical use after graduation or learning to drive, the same is in trading. You start with the zero knowledge. At the beginning you don’t know anything, and it is necessary to choose market, strategies, acquire basic skills.
What to do in such case?
Most important is a full awareness that the time which you must devote to learning, gaining experience and abilities requires great determination from you. Defeats hurt, but in trading they are something completely natural. Even the best traders sometimes close lossy positions, but they do it automatically without ceremony.
Somewhere however it is necessary to acquire the knowledge. Personally I propose to start with most importantly – graphs, quotes. Start to learn looking at changing graphs (even if it was a demo platform).
From where to draw knowledge and how to acquire experience
You have three choices:
1. “Cheaper” – requiring regularity and sacrifice from you – that is learning by own mistakes. This learning seems most effective to me. When you invest (even a small amount of money, but earned by you – you know their value), and hence you learn – you draw general conclusions and you learn emotions, self-controls and you can see the approach of respecting rules. Demo account can be a good platform to learn, learning the basics. When you will start the real test of already know strategy, their development – do it in a real account.
I chose a cheaper version. As a result it wasn’t so cheap, because it cost me 2 deposits, for which I worked hard abroad. But I don’t regret, it was a hard school of life, which as can be seen brought effects. I already almost 7 years live from the stock market – it is probably the best answer. However, before it happened, I tried different markets, intervals, strategies – and that’s all required capital. The best learning is a work above emotions and psyche. If you choose or develop your strategy, which is effective (and only requires modification to changing market), the only problem that you may come across is your own weaknesses and limitations.
2. Theoretically more expensive, but whether effective? More expensive in two forms: that is omnipresent courses led by more good/bad instructors, by those who have never earned a dime in the stock market and by those who earned appropriately and just as well fulfill training others. In every training business – you pay for service and you require results. However, in case of trainings from the stock market – undergoing the training (and it doesn’t mean that the more expensive the better trader you will be) it doesn’t mean that you can already earn money and play the stock market. After training you know a workshop, but there are still tens, hundreds or thousands of hours which you must spend before graphs in order to practice when emotions will start to take on meaning.
On such trainings you will really learn a lot, but still you will have to open a real account and on it begin an adventure with the market, emotions and weaknesses.
An alternative are numerous workshops, trainings (free of charge) organized by brokerage houses.
3. Trading offices – that is the third possibility, to undergo recruitment process in trading offices (about which you will find many articles on the service site). The office gives you possibilities to acquire knowledge from experienced already players, get to know tested strategies. Certainly it is a great track of development for persons aged 18-25 who afford a period of learning without remuneration (half of companies offers the base + bonuses from profits, some only offers % from profits).
From you depends which of these three paths you will follow.
What is important when day trade
Remember that each of them is synonymous with compliance the most important rules in trading:
-
Discipline
-
Consequence
-
Controlling emotions
It doesn’t matter how old you are or what education you have, only the determination counts!
In trading world an age, in which you start, or education, which you have, has no importance. During last 7 years, which in 100% I spent on trading, I got to know many traders in different ages. They graduated different kind of studies, had different passions. Some of them completed education on the secondary school or as mechanic.
Those, who were like a walking encyclopedia of technical or fundamental analysis, most poorly dealt with the market (and finally they gave up, because weren’t able to earn from it). They didn’t had an open mind, weren’t able to adapt to changing market, and perhaps by the fact that they valued and were proud that graduated such a direction of studies – considered themselves as better ones? And it disturbed them in trading. When they looked at someone who had no university degree with an outstanding results in trading, probably wanted quickly to chase him and prove that they are better. And unfortunately, on the stock-market it can’t be done quickly, it’s impossible to jump several levels. It’s not a game where you can add codes and skip several stages 🙂
Remember also that the same as not everyone can become an athlete, doctor or teacher, the same not everyone has predispositions to be a trader. However, you won’t know, until you try it. How they say “never try, never know”!
This article is a part of cycle: Trader Road:
