Day Trading Explained – There are many myths surrounding trading. While many traders make fortunes with day trading, the majority lose money. It has given rise to even more myths, like making money from day trading is not possible. That is not true.
As long as you stick to a few principles, it is easy to make a full-time living from day trading as well. Today, we will cover not only the basics of day trading but also the characteristics of a day trader so that you can work towards developing those instead of just trading haphazardly.
Day Trading Basics
Let us first start with the basics.
Day trading involves buying and selling on the same trading day. You have to conclude the trade on the same date. As you would be finding that trade on the same date, you get a high amount of leverage. It means that with limited capital, you can trade in assets over ten times your money.
For example, if you’re trading in stocks, it is not uncommon to trade in $ 100,000 worth of stocks after depositing $ 10,000 in your account. Even if you can make a 2% profit, you can make $2000, which is 40% of your capital.
It means that earning a high return is certainly possible when you’re day trading.
Now that you are aware of the basics, it is time to understand the characteristics of a day trader so that you can become one.
Characteristics of a Day Trader
If you want to become a pro in day trading, it is necessary to imbibe these characteristics. The characteristics are as follows:
Without technical and professional expertise, you cannot make a living by day trading. You can gain experience through courses, videos, or by following other traders on the social platform. It will give you vital insights when it comes to trading in various asset classes.
Our platform will also help you monitor their trades and understand the logic. We have thousands of experienced traders on our platform. You can gain knowledge by observing others.
Only when you can gain the necessary knowledge about various asset classes and trading strategies, you can think about making a full-time living by day trading
If you have a few hundred dollars, it isn’t easy to become a successful day trader. Despite the strategy you follow or the trader you mimic, you will lose some trades. So, it is essential to have sufficient capital to recover losses and make profits again.
One strategy is necessary, but we have a shortcut for you. Go through the trading leaders section and mimic the trader you prefer. Since the track record of traders is also displayed on our platform, you can make an informed decision.
The right strategy can be the difference between making a handsome return and losing your entire account. That is why you need to pay a significant amount of time to go through our social trading platform and choosing the right trader.
Even the best strategy cannot help you out if you’re not disciplined during trading. Instead of just trading in greed or fear, it is better to create a proper trading plan and stick to it. It’s best if you don’t get distracted by friends or other traders.
Only with discipline, you can create the right trading plan.
These are the characteristics of a professional day trader. Only once you work towards imbibing them in yourself, you can think about becoming a professional day trader.
Can You Earn a Living From Day Trading?
The answer is a resounding yes. You can go through our social trading platform to find traders who trade regularly and make a full-time living through their trading activities.
Our social trading platform not only helps you in observing these traders but also in copying their trades as well. It means that if you would like to indulge in full-time trading, our platform can work as a useful resource.
How to start day trading?
Now that you are aware of the basics of day trading, you would be thinking, how to get started with it? There are some steps to get started with day trading.
- Zero-in on the right strategy. Our platform can help you in this regard.
- Ensure that you have a proper computer/laptop and a reliable broadband connection.
- You need a trading account with a reliable broker.
- Get demo trading experience under your belt before you begin day trading with real money.
- Deposit the 1st part of your capital into your trading account. It shouldn’t be more than 40% of your overall trading capital to navigate learning mistakes.
- Look at the leverage on offer by the broker and then take a call on trading.
Once you follow these few steps, it will become easier to start with day trading. Keep in mind that, even if you’re copying a trading leader, not all the trades will be positive. Also, if 70% of the trades are positive, you can earn significant profits by following proper money management principles.
Also, with social trading, there will be a few mistakes that you will commit. It is likely that at the start, these mistakes will dent your capital. Only when you’re ready for that, you can go ahead and start with day trading.
Making a full-time living from day trading will take at least a couple of years. That is why; it is not advisable to quit your job right away in the hope of making thousands of dollars in day trading profits.
In this post, we covered some aspects of day trading. But there’s much more to learn. Explore our social trading platform today.