Sponsored Content - Have you dreamed about becoming a day trader? Maybe you imagine what it would be like to go from watching someone else becoming a successful day trader to becoming that someone yourself, asks John Carter, president of Simpler Trading?
As you long for a successful career as a day trader, it may be tough to know what you would need to do…or how to even begin.
You are your own boss when you day trade for a living. This reality is both exciting and scary.
Many of us have experienced working in the corporate world with benefits and retirement plans. We’ve also experienced the corporate nightmare. We’ve seen offices cleaned out at a moment’s notice as companies frantically scramble to meet budget demands. Maybe we’ve even been that employee dragging a cardboard box to the car after training another employee to do our job.
Experiencing this vivid reality means being your own boss really isn’t so scary after all.
If you’d like to toss aside your corporate 9-5 and day trade for a living instead, you’ll want to start with a curiosity about the craft, a desire to learn, and a connection to a mentor.
What is Day Trading?
Day traders buy and sell securities during the same day, relying on charts and indicators to make well-timed market entries and exits. A lot of day traders start out as swing traders. Swing trading is different because it allows more time for the trade to land on its feet—it can be in place for days, weeks, or even longer. Some swing traders are lured to day trading as they enjoy the faster pace and more immediate feedback.
Day traders use short-term strategies to capture small price movements throughout the day. Those who execute four or more trades per day over five days are designated as pattern day traders (PDTs) and are subject to an additional regulation called the PDT rule. This rule requires pattern day traders to keep at least $25,000 in their accounts; however, experienced traders have tips for navigating around this rule.
Can you Make a Living Day Trading?
There are many traders who make a career out of day trading. But it’s not always an easy road. While the prospect of setting up office space and monitors might be an important step, Simpler Trading believes preparing mentally to handle the emotions of a volatile market is the most important aspect of the day trading opportunity.
Day trading relies on quick decision making. Volatile markets create great opportunities to profit from price changes, but they also pose a great risk. Potential day traders must decide if they enjoy this pace and can keep their composure even when faced with a loss…because losses will happen.
There can be perks to becoming a day trader, even—and especially—during market volatility. Day traders get in the market and get out with their capital on the same day. Most day traders enjoy the satisfaction of more immediate results. This also means overnight risk is reduced—and that can create less nighttime stress.
Successful day traders spend a great deal of time learning about the markets. Company and market research are key for all traders. But, in day trading, strategy and planning are differentiators when quick decisions are required. Also, the pace of day trading makes indicators incredibly valuable—clear entry and exit signals can make the difference in profits.
Learning these new skills is not easy, but it can be very rewarding. At Simpler Trading, we think we’ve found the secret.
How to Enjoy Day Trading? Hint...Don’t Trade Alone!
Contrary to popular thought about success, dogged independence as a trader doesn’t necessarily yield the most efficient results. Traders—especially day traders who spend time studying the technical signals of the daily charts—can speed up the learning process through the market experience and trading insight that a mentor provides.
The “dream” of day trading for a living will be a disappointment for a person who desires to quickly make millions in the stock market. The road to day trading success can be slow. But those who stop dreaming and work to get their head and heart in the game can find day trading is an exciting and potentially profitable pursuit.
Traders who learn and make trades in sync with an experienced trader can benefit from having a mentor by growing their abilities and can learn to trade more efficiently and better negotiate trades in a choppy market.
The best mentors are those who fit with your own trading goals and trading style—even if those goals or that style are aspirational. Also, since the purpose of mentorship is guidance and learning, it’s important to find someone who explains trading in a way you understand.
We believe that the best way to teach trading is for mentors to get “in the trenches” alongside their fellow traders. That’s why Simpler Trading mentors trade their own money in live-trading rooms with real-time instruction and Q&A.
Most people would not set sail on a long voyage without a ship’s captain—that would be a nightmare. Neither should day traders enter the often-rough waters of the market without a mentor to guide them.
We invite you to take advantage of our free e-book, Getting Started with Day Trading, and begin your journey.
And to learn more about live-trading rooms, courses, and more, contact us at SimplerTrading.com.