The idea of day trading may have put you off at one time because someone might have told you that you needed a college degree in business or finance to succeed in it. Nevertheless, having a degree is not a non-negotiable requirement to being a day trader. Although knowledge and experience can give you leverage, you can become a day trader even if you never got to finish college, or worse, never got to college in the first place. Why is that? Because you can quickly learn the principles of day trading, especially if you have the right tools on hand.
You will need a computer with access to the Internet, and you will need it to run the trading and charting software. You will likewise require a telephone, just in case you cannot connect to the Internet and need to contact the brokerage firm to inform them of the situation and exit the trade. Your brokerage firm may provide you a day trading software that you will use to place your trades’ entry and exit orders. Finally, you will need charting software, which will provide you with a graphical view of past and current market information, thereby letting you know what is happening in the market.
What Every Online Day Trader Must Know
When you continuously buy and sell financial assets (such as stock options, stocks, currencies, etc.) via the Internet within a brief period and hardly hold them overnight, you are considered an online day trader. If you wish to become an online day trader who makes money quickly, the strategy is to be alert and take advantage of rapid price changes in the market. The risk is that as an online day trader, you can lose significant amounts of money because the hard truth is no one can predict how or when these prices will change.
Your success as an online day trader is somehow dependent on how much risk you can handle. When seeking advice from others who have been in the business for quite some time, remember that the experts who give you advice on online day trading may have a much higher risk tolerance than you do. If you follow their suggestions without considering your own tolerance level, then you may not get the results that you want.
Like online stock traders, you also need to use trading charts and analytical indicators to corner the market and ensure that you stay ahead of the game. It would be best to make sure that you take advantage of any additional leverage that you possess to have a good chance of making a profit at the end of the day. Always be well-informed, and you will likely have a bright future in online day trading.
When it comes to taking risks, you have to remember that each one of us has a different threshold of risk which we are comfortable taking on. However, it is not always about taking risks. You also have to study and learn the rules of the game. Indeed, like the famous American inventor, Thomas Edison once said, “Success is 10 percent inspiration and 90 percent perspiration.”
Options as a Day Trader
As a day trader, you can work for yourself from the comfort of your home as a “retail” day trader. On the other hand, you may opt to work as a professional day trader for a trading firm. If you are wary of choosing the latter because you do not have a college degree, then you may want to explore the possibility of buying degrees online.
Buying degrees online is the perfect solution for people like you who want to work professionally but do not have complete credentials. There are plenty of legitimate online providers these days where people can buy a degree from a real university. These providers are different from diploma mills that sell fake college degrees.
These online degree providers work closely with regionally accredited universities worldwide. That means the schools they work with are recognized by governments globally as providers of the highest quality education possible. You can essentially buy a college degree from a real college, one that is verifiable and authentic, and use it to apply for a position in a trading firm.
What you can do is enroll in an online course for day traders. After you finish the course and receive your certificate, you can get started buying degrees online to supplement your certificate. You can visit any of these providers for more hints on how to go about ordering authentic online degrees. As we said, these online providers are legitimate, so all you need to worry about is being the best day trader you can be.
Three Must-follow Day Trader Rules for Beginners
If you would like to become a successful day trader, you must devote some time to getting educated on the basic concepts and strategies needed to get started. However, more importantly, you have to learn some fundamental day trader rules to stand a chance at making money from the risky business of day trading.
If you are a newbie day trader, you have to remember three must-follow day trader rules:
- Before setting out to day trade as an individual, you have to teach yourself how to read the charts. Do not rely entirely on others for advice. It would be best if you made your own decisions. Day trading requires 100 percent of all senses focused on the trading screens. If you do not understand how to read the numerous illustrations on chart patterns, you will never understand the cycle of events happening in the market.
- Given that day trading is a risky business, you must learn when to continue and when to stop. When you think that you are getting good returns in the day’s trade, you should immediately give up your position. Do not be too greedy by having over-ambitious targets for your investments. The same is true if a stock is falling. One of the most critical rules to learn is that you need to cut and run instantly if a stock is not looking any good to stay in the game and avoid losing everything.
- Because of the very high risks involved in day trading, you should never hold whatever financial instrument you have overnight. So, if you are day trading stocks, you have to make sure that you never keep your position after the markets have closed. Unless you are entirely confident that you have a breakout stock, you have to close all your positions at the close of the day. If you want to end up successful despite the ever-fluctuating nature of stock markets, you must follow that crucial rule.
Day trading may seem like a surefire way of getting infinite returns. New traders think it is simple to churn money from the market, only to find out that they must follow the rules to win it. For amateurs, things may be difficult at first. Nevertheless, things will get easier and better as long as they follow the basic rules of day trading and develop sound strategies as they gain experience.
Day Trader Tips For A Rewarding Day
Making $5,000 or more in just one day of trading may seem like an aspiration that is far from your potential. However, the truth is, becoming a successful day trader is a very realistic goal. Indeed, day trading can be very rewarding, six-digit-figure rewarding. If you are a newbie day trader who wants to achieve success in the business, here are some tips that can help you boost your chances of earning big:
- As with most other things, it is imperative to have a system. Following a predetermined set of rules while trading is one way to promote discipline, an attitude that is a must-have for any day trader. If you have a system that you trust, you will never have to be tempted to “overtrade,” which consequently can turn your gains into losses.
- Aside from preparing yourself financially, you also have to prepare yourself mentally. Before entering the playing field, you have got to have a healthy mindset. More often than not, being psychologically prepared is the key to a successful trade. So, if you are busy, feeling sick, drunk, or simply experiencing a bad day in your personal life, sleep it off and be back the next day. Remember, trade only when you are in a pleasant frame of mind.
- Perhaps one of the most overused tips you will hear from people is “learn to conquer your fears.” It is pretty easy to persuade yourself not to be afraid when executing trades. However, what can you actually do to minimize your fears? First, surround yourself with experienced stockbrokers. Being surrounded by reliable people can have a calming effect, especially when things are not going your way. Second, spend some quality time doing the actual training accounts before doing real transactions. Practice accounts allow you to make risky decisions while not losing any real cash. Such gives you a “feel” of how things work.
There are many unsolicited day trader tips that you will get from both amateur and professional traders. In general, however, these simple day trader tips can teach you lessons that are very useful in day trading activities and endeavors.