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3 Simple Steps: Where to Start With DAY TRADING

S tarting day trading seems complicated and often overwhelms people that want to know how to start. If you want to start day trading, I am going to show you in 3 simple steps how you can get started and make your first money in the stock market.

In a nutshell

Don’t want to read a lengthy article and want to start right away? Here are the simple steps in a nutshell, which I further explain down below. Click on one of the steps to dive right in.

1. Learn the stock market basics

To be able to trade successfully, you have to understand the markets where they handle buying and selling of stocks and some basic principles of trading. It is usually best that you trade the market with the most significant volume, so being able to trade the first two hours of the US stock market (stock market always opens 9:30 AM EDT) is vital for a successful day trading career.

How much time do you need to day trade?

The volatility is usually most substantial in the morning. Most traders trade the first two hours at max with a one-hour preparation before the market opens. The market volatility often drops sharply after the morning session and can pick up again up to an hour before the close. So most traders work 2-3 hours a day and are done after the morning.

2. Choose a broker

Picking a broker can be very confusing. Which one offers the best features, the best education, the lowest fees, the fewest restrictions, and the best performance? There are so many options that a beginner can easily get overwhelmed.

A good community is key to success

When you start day trading, you should not just pick a broker but also a good community that goes with it. Having the daily talk about stocks and people that share their watchlist is vital to learn good habits in trading. When they all use the same platform, it is even better as they are all on the same page. In our broker selection, we recommend using the Tradenet service. It comes fully equipped with a funded account, a sleek trading platform, a deeply connected community, experienced mentors, and an excellent trading education.

If you want to read more about Tradenet, please visit our in-depth review of them, where you can also get a special discount on their packages.

3. Learn to trade stocks like a pro

Many people that want to step into stocks tend to just blindly buy the companies they know and hold the stock until they eventually make a profit on it. Investing takes a lot of time to analyze a company to its fullest and requires a financial degree to understand a companies dynamics and potential fully.

Do this instead of investing

It is much easier to trade on a technical level buying and selling on the same day (day trading) or holding the position for several days/weeks (swing trading).
The stock market is driven by fear and greed. People are following patterns and indicators which you can use to your advantage.
By learning these patterns and techniques, you can gain a competitive advantage over less educated traders and thus increase your chance of winning dramatically.

Trade the market both ways

Also important to know is that you can make money both ways, either up or down. When the overall market is going down, you should adjust your trades accordingly and look to short-sell stocks (short-selling means you will sell borrowed stocks at a higher price first and then rebuy them lower for a profit).

Trade in simulation

Before you start risking your money, you can practice your trading skills with a tool like Tradingsim that lets you retrade the markets 24/7 even when they are closed. This tool will genuinely improve your skills in a short amount of time because you don’t have to wait for the markets to open.

The bottom line

Getting started with trading can be confusing with the sheer complexity of the markets. If you follow our free guide, you should be able to get a solid starting point, though, to build your trading career and achieve financial freedom.

Make sure that you are in a community with like-minded people like the one Tradenet provides, which will help you to learn a lot faster. Having a wide variety of ideas from other people opens up new opportunities for you to make more money.

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