Most frequent questions and answers
Do as much reading online as you possibly can, read books and ask as many questions of successful traders as you can think of whenever you have a chance.
Most would highly recommended that you start out trading on a simulator until your win/loss ratio is at least 60% or higher before moving on to a real money account. It’s also almost always recommended that you start with small positions until you can prove to yourself you can be consistently profitable and only then slowly raising your positions over time.
Yes and no. You can definitely treat the stock market the same as you would a casino however, no long-term successful day trader does this. Although it’s true there will always be those certain days where you lose money in the market, that is just part of day trading. Your job as a day trader is to keep your win/loss ratio in positive territory by filling yourself with as much knowledge as possible in order to make educated decisions with the information that is presented to you that may move a stock in a predictable direction. If you do that you can be a successful trader.
You don’t need any money to start your education as there is an abundance of information available online to keep you busy for quite a while. You can never learn enough about the particular type of trading you’re interested in. There are free trading simulators available online. If you feel you’re ready to start trading real money you can start out with as little as $500.
There are plenty of platforms to choose from, but depending on which broker you ultimately choose to go with the broker will normally have their own platform or suggest their clients use particular platforms that they advertise as platform affiliates. DAS Trader Pro and Sterling Trader Pro are two very common platforms that numerous traders use.
Keep meticulous record of your trades and analyze them. There’s likely a pattern that can easily be identified. Once you figure out how you’re losing money eliminate those bad behaviors by modifying your trading techniques. If you still can’t figure it out ask someone else to analyze your trades for you. Trade on the simulator until you figure it out because there’s no reason to continue throwing money down a bottomless hole.
That’s up to you. We can give you all of the information and good advice in the world, but if you don’t put in the amount of time and effort that is required of you to become successful none of that information is worth a single cent. You won’t be successful overnight which is why we strongly recommend everyone start out on a simulator until you learn enough to become consistently profitable.
Unfortunately, that question can only be answered by you. Some chat rooms and classes are better than others just like any other number of services in other industries. If you’re the type of person that learns better in a classroom or a one-on-one situation rather than on your own then it would probably be beneficial. You can definitely learn things from other day traders that are offering their opinions. It’s always good to hear someone else’s perspective or have them explain things point by point.
The short answer is, we’re just like you. We were once searching for good information while having to sift through all of the disingenuous scams designed to lure aspiring day traders in so they could be fleeced out of their hard earned money for subpar educational courses at extraordinarily high prices.
In truth, our group didn’t start out with grand plans of starting a paid service. The more questions that are asked by increasing numbers of people the more the need arises to concentrate our efforts on trying to help our fellow struggling traders. In order to invest the time and effort required, we have to be able to make an income that would otherwise come from trading or our other means of employment.
It all depends on the type of person you are. Some people learn better in a structured environment. Some people learn more rapidly by teaching themselves. There is a plethora of free material available on the internet, but learning that way forces you to sift through the useless in order to find the gems you’re looking for. A good paid course designed by profitable traders will have their proven methods outlined and condensed in an easily understandable format. You also have the experienced traders themselves to ask questions if you’re confused.
Depending on your skill level, the type of trading you plan on doing, your region, probable account level, etc. will determine which broker might be best for your personal situation. Our traders have their personal favorites, but that isn’t uniform across the board. Opinions differ.
- Broker Fees – Account fees, commissions, platform fees, routing fees
- Tools – Trading platforms, mobile platforms, research tools, etc.
- Features – Margin, short lists, locate services, etc.
Identify your requirements depending on the type of trading you plan on doing. Compare the particulars of each broker in order to determine which one best suits you.
Some brokers are better for short selling than others, some have lower fees than others and others have better customer service. It’s just a matter of need and preference.
No. You can start with as little as $500. Although, a larger account would be much easier because platform fees, broker commissions, ECN fees, etc. will quickly deplete an account if you’re not profitable enough which is pretty difficult with an account that small. It also limits your access to margin as well if you plan on using leverage to trade.
It’s a common misconception that you have to start with $25,000 to day trade. This only applies when using a United States based broker that requires you to abide by pattern day trader (PDT) rules which limits your number of day trades to 3 per calendar week if you have a trading account of less than $25,000. This, however, can be circumvented by using an offshore broker which aren’t bound by the PDT rules. A large population of small account day traders do this and it is completely legal.
Of course you can day trade part-time! In fact, it’s probably one of the best part-time jobs a person could choose. There is an immense amount of opportunity for profit between 9:30 AM ET and about 11:00 AM ET every morning. This is the best time to trade the momentum and volatility in the market. You can also trade power-hour before market close as well, but most prefer the mornings as that is usually where the most opportunity lies.
You should not be in a rush to start day trading with real money until you have proven to yourself that you have the ability to be consistently profitable in a simulator. Your first priority should be trying to learn as much as you possibly can about trading multiple strategies even if you plan to focus on only one strategy when trading. You can never learn too much!
Don’t try to take shortcuts! You have to be willing to dedicate as much time and effort in learning as possible in order to be successful. Apply what you learn by trading in a simulator before actually dedicating real funds to a newly learned strategy.
This is dependent on a trader’s individual situation. Factors that affect a trader’s profit abound from whether or not you’re actually able to attain profit at all. If a trader has reached a certain level of consistent profitability the amount of profit is then determined by percentage of consistency, the amount that they trade, the size of the positions they’re trading, strategy, the amount of gain they’re able to capture in a single trade, the size of their account, the amount of margin they choose to use, etc.
That being said, it’s not uncommon for a profitable trader to average a net of $2,000 – $50,000+ per month . A consistent trader can comfortably average $100+ per day trading 500 share positions if they are scalping $0.10 – $0 .20 per trade which isn’t overly difficult to do with practice. No trader can be profitable 100% of the time though. That needs to be considered. If you can maintain a win/loss ratio above 60% you’re making money as long as you keep your losses as low as possible.
At minimum you will need a decent internet connection, a stock broker, market data (i.e. news, charts, level 2, etc) and a good understanding of what you are doing (i.e. how to set up hotkeys, read level 2 data, how to interpret time and sales aka the tape, etc.) Most brokers offer some level of real-time data with the platforms they advertise. A good stock scanner like Trade Ideas is a wonderful asset however, it can be somewhat expensive for the novice trader. Fortunately, there are free alternatives out there that can help you narrow down your daily watchlists. As you gain more experience and attain consistent profitability you can add better more costly tools as your budget allows.
Currently Ahmed uses Tradezero and Interactive Brokers.
However his primary broker is usually Interactive Brokers.