How to Begin Day Trading
- 1). Research some of the various day trading strategies and platforms that are available, such as Investools and ThinkorSwim. These programs provide time-tested investment strategies for traders that can allow them to profit from all types of investments and in all types of markets. They can teach you how to effectively trade stocks, bonds and all forms of derivatives, including options and futures contracts.
- 2). Choose a trading program and also an online brokerage firm. There are several top-quality programs available that are used by thousands of traders each day. Find out how much each firm charges for commissions, what quotation system it uses and the amount and level of research that it provides. You should also try to contact some other current users of a given site or service and get some feedback from them about the level of customer service that is provided.
- 3). Create a specific trading strategy based upon the tenets of the trading program that you chose and stick to it through thick and thin. Do not let your emotions persuade you to change your strategy, unless you feel that the program that you have chosen does not fit your personality. Get to your computer each morning long before the opening bell and find out where the markets are expected to open and what they are expected to do that day. Be prepared to spend long hours both before and after the markets are open checking trades, doing research and learning new trading techniques.
- 4). Assess your trading program on a regular basis. If you are not satisfied with the results that you are getting or are having difficulty understanding your program, then you may need to explore other trading programs or platforms. Don't be afraid to change your firm or program if your current one is not giving you the results that you feel you should be getting.
- 5). Find independent sources of research and keep abreast of daily market news outside market hours. There are several excellent sources of research available, such as the Wall Street Journal, Barrons, Investor's Business Daily and Morningstar. It can be most beneficial to have other sources of information outside what is provided by your trading program or platform.
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