How to become a day trader?

[Jordan Maddison]

How can I become a day trader?
 

[Rishabh Tyagi]

Day is relatively demanding in time and energy spent over chart analysis. 

This is what I would do today to become a day trader:

- Start with basic price action (support, resistance, range, and trend lines).

- Pick 5 stocks with high trading volume and start observing the momentum in their charts.

- Now, you can read about indicators. Most traders, if I had made the mistake of introducing indicators at the beginning, would have been limited in learning more about the charts. Once you are comfortable with reading charts, you can make better decisions with indicators.

- Learn about risk management.

- Now, it's time to come up with a trading strategy with a risk management plan. Backtest it. I prefer doing it manually on the stocks I would be trading.

- Start with a small number of shares and refine your strategy until it starts giving desired profitable trades. Gradually increase your shares.

To start learning you can check this post. 

 

[Hannah Fischer]

Hello Jordan,

Day trader refers to a person who deals in securities, and trades them in order to turn a quick profit.

In order to become a day trader it is necessary to invest a certain amount of time and money. A good trader also conducts a thorough research of markets and securities. 

In the end it is necessary to utilize all of these resources and knowledge and come up with a trading plan and strategy. It also involves keeping mind on finances, looking to invest smart, and to search for safe revenue in the beginning and then expand slowly.
 

[Predrag V]

Hi Jordan,

 

In order to become a good day trader, you are going to need a lot of patience, education and discipline. As with any other trading technique, you will have to make decisions on which markets you plan to trade, with how much capital and define your risk management strategy. 

 

In essence, the process of day trading involves a process of buying and selling securities in a single trading day. This technique can be applied in any market as it's not tied to a particular asset class. As all trades are opened and closed in a single trading session, day traders usually focus on smaller market moves and tend to open a higher number of trades with bigger positions. 

 

Due to its design, day traders focus on events or news that move the market on a daily basis. Therefore, scheduled news releases on economic statistics, CPI, GDPs, unemployment rate, etc., have the ability to move the market. Hence, day traders try and anticipate in which market direction will the price action travel and then hoping to capitalize on that anticipation.