So you want to make money on the internet. You’ve heard of a few different ways to do so, even read about a few on this very website. However, there’s one thing that you’ve heard about that’s caught your attention the most. And that thing is day trading.
Many people are captivated by the idea of day trading online to make money while traveling the world. There’s even blogs run by individuals who are making their living doing this that chronicle their adventures around the globe. If day trading is the route you decide you want to go with making money online, there’s a few important things you have to keep in mind:
- It’s not easy to properly get started with day trading
- Many people don’t have the emotional control to be truly successful at it
- Due to this, in the long run, the vast majority of people who attempt day trading don’t end up making a profit
With those three things in mind, it’s also important to keep the following in mind:
- It’s still very much possible to make very good money day trading online
- If you do your homework, approach it with the right attitude and you’re willing to learn, you greatly increase your odds of succeeding with day trading
Day trading is definitely not for the faint of heart or complete rookie investors. However, if you’re willing to tolerate a certain amount of risk and you’re certain you can completely control your emotions even in the face of gigantic swings in momentum, the potential to make a lot of money is indeed there. If you’ve decided you’re willing to take the risks and want to pull the trigger on day trading online, here is the best way to get started.
Choosing the Right Market
The first thing that you must do when getting started with day trading is decide on the market that you’re going to be playing in. The three most common options are stocks, futures, and forex. All of them are viable options. However, each of them also has different entry requirements. For example, day trading stocks requires at least $25,000 per day. Not everyone has that kind of cash laying around to play with, and even fewer are willing to risk it in day trading. There’s huge potential in it though.
The easiest barrier to entry to overcome is forex trading. It’s possible to start with as little as a few hundred dollars, although it’s highly recommended to have between $1,000 – $1,500. The nice thing about the Foreign Exchange market, also known as “FX” or “Forex” is that it’s hands down the biggest financial market in the entire world.
They handle over $4 trillion each and every single day, compared to $25 billion or so in the New York Stock Exchange. As you can see, there’s quite a lot of potential to tap into forex and make some money. Due to this and the low entry cost, it’s recommended that beginners start here.
Expand Your Day Trading Knowledge
So now that you know which market to get involved with, in this case using forex as an example, the next step is to study the market in depth to learn as much as you can about it. There are several resources online available to help you get a good grasp of the basics, and then you can dig deeper down the rabbit hole from there. Good starting topics to study include price movements, market trends, and support and resistance.
One good thing to keep in mind that learning about these topics will give you a solid grasp of the basics that also apply to the other trading markets. Meaning once you feel completely comfortable with your skill in forex, it’s very easy to branch out and dip your toes into the other markets at a later date.
Practice Makes Perfect
So you’ve settled on a market and studied up on it extensively. You feel like you’re ready to start throwing some money around…but not so fast. Instead, you should seriously consider spending a fair amount of time with opening a demo account and learning the ropes there.
Demo accounts are completely free to use and are offered by most trading brokers. Simply open an account, pick one single strategy you want to test out at first, and get to making mock trades. You might be extremely eager to get started and seeing if you’re able to make a profit, but be patient. It’s highly recommended that you spend at least two or three months playing around and making a profit with a demo account to really get a good grasp of what you’re doing.
Earning Real Dollars
Once you feel absolutely confident in making some live trades after a few months of practise, go ahead and dive right in. Stick with the same strategy that you used during your time with the demo account. Focus on a single game plan that you can execute over and over that earns you a profit, and repeat this plan so long as it continues to make money. There’s no need to get fancy and over complicate things at this early stage of the game. Master one strategy completely before attempting to learn and implement another.
The only other thing to keep in mind at this point is learning to manage your own risk. Set a stop loss at which point you will walk away without letting your emotions get the best of you. Make intelligent moves every day following a proven, consistent strategy and you will be well on your way to carving out a living making money day trading online.
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