This year has been hard for millions of people all around the world. The pandemic led to many of us losing their jobs, and trying to reinvent themselves and find something new to work. It is difficult to find a new job when you are going through one of the worst periods of your life, but the reality is, you can always find something new and interesting to do. Day trading, by definition, is the process when people trade in stocks and financial goods for a short period of time. All deals need to be done and closed at the end of the day, and people who are part of this industry are said to make bigger profits than the traditional trades.
In this 2020 guide, we are going to talk about the things you need to be able to start day trading for a living. We are going to cover some of the skills you will need, and the possible equipment you may be interested in getting so that the whole process is done faster and easier. Know that just like every industry, this is a specific one, so you need to invest your time and knowledge if you want to be successful. Continue reading if you want to learn a thing or two on how you can become better than the rest and be successful in most of your deals.
1. Skills and knowledge
This type of profession will give you the freedom not to work for 8 or 9 hours every single day. The fact that you will be able to take care of your own payment, and you won’t have to depend on someone else to decide how much money you are going to get per day or month gives you a lot of freedom. However, things are not as simple as they sound, and you will have to invest your time in learning the basics of the trade. You will need to gain the needed knowledge, so you don’t end up broke or making little profits.
The first thing you will need to learn is how to read the charts, patterns, and figures. There is a lot of numbers involved here, and you will need to understand all the indicators. When you master this part, it is going to be easier for you to know what is good to invest in, and what you should sell.
You will be able to create your strategy and know your next few moves. You will also need to learn when you should change your mind depending on the current situation, and when you need to stay in the game even though the odds seem to be against you.
All of these things will make the difference between you being successful right from the start, or losing all the money you’ve invested. Know that you cannot start without some risk, but it is better to combine risk with knowledge than just to rely on pure luck.
2. You need an initial capital
You cannot start your own business without having an initial capital. You need to invest your own money, trade with them, and hopefully make profits.
Many people make the mistake of thinking that that capital needs to be hundreds of thousands so that they are able to begin the process. In reality, you can start with as low as one thousand dollars. In reality, there are different types of markets, and depending on the one you choose you will need to invest a different amount of money.
For example, if you choose to go with the traditional United States stock market, then you will need to have at least 25 grand in your pocket to become a part of the industry. On the other hand, if you choose to go to the forex market, then you won’t need to invest more than a thousand dollars. Choose the market depending on your initial budget, and know that you can change your mind and pick a different place once you start making your profits.
Depending on the marketplace you choose to go with, you will need to choose the day trading stocks, and you can click here if you want to see the tutorial for the new brokers. When you are new in this industry, you should read everything you can about the options you have, and choose the one that is the best for your current situation.
3. 3. Platform
For our last part, we are going to talk about the platforms and the brokers that you will need to make sure that you are successful. When you are new in the industry, you need to work closely with someone who already knows what they are doing, so you will need to choose a trader who is experienced, trustworthy, and who won’t charge you the biggest fee.
You will also need to choose a platform that is easy to understand and master, so you don’t spend too much time with the technical part of the whole thing. You should be able to access all the latest news and to learn while you do your job. The broker you choose should have a good reputation, and they should be recommended by other people on the market. The technical support and the access you have to both the trader and the platform are crucial. You want to collaborate with someone who is going to be available for you and someone who will be able to answer all your questions promptly and correctly.
Every person who is now successful in day trading says that it is definitely possible for you to make enough profits out of it. You just need to have the right attitude and to fight for the things you deserve. Know that you should put your emotions to the side, and if things go bad, you should not just get up and walk away. There are going to be great days, and there is going to be a time when you need a break from everything that is happening. Understand your emotions and don’t let them get in the way of your success. Try to stay calm, no matter if you made huge profits, or lost a lot of money. Have the right mindset and you will be successful in this industry.