Day trading can be a very promising and lucrative career. There are many out there that say that day trading is a very risky business, akin to gambling. The truth behind that sentiment is that 90% of day traders lose money. That is right. Just under 10% are actually profitable.
But those 10 percent actually put in the time to become educated day traders. They took the online classes, spend days in the chat rooms, took the time to practice in paper trading rooms. Day trading is not a get rich quick scheme. It is a massive undertaking, similar to getting your master’s degree or learning how to code.
One of the best ways to get a feel for being a day trader is to spend time hanging out in chat rooms. Day trading chat rooms are excellent avenues for learning the lingo of day trading, watching other traders take positions and make moves in the market. Learning by watching can be an actual boon to your abilities as a day trader. And the camaraderie and conviviality of time spend with other day traders is great for a business where most are by themselves in front of a computer screen.
Warrior Trading, a leading day trading education site, offers 5 full days in its trading chat room for just $5. It is a great chance to see the daily watch list that Warrior Traders put out, interact with veteran traders and get a real feel for the industry as it is currently conducted.
But when it comes time to learn how to really be a day trader, you want to take the online classes that will teach you viable strategies. Momentum day trading strategies and reversal trading and swing trading strategies. There are all necessary in order to be flexible enough to become a viable day trader.
Every day brings something new in the stock market. Day traders thrive on volatility and constant change. There is no substitute for being flexible and ready to change direction at any moment. And yet you need a steady plan in order to make real money. You need to understand how much a trade should net you if it goes the way you want it to go and you need to have a stop-loss in place to beat back potential losses.
That is all part of a healthy risk management strategy. Risk management is essential to learning how to be a day trader. Day trading, at its heart, is about searching for good stocks that will give small to moderate gains in a single day. It is all about building up small gains throughout the day and the week, so that your profit/loss ratio will be in the black at the end of the week.
This is not the business of taking long positions or big risks on major companies. The key is finding small-cap stocks or mid-cap stocks that are in the right position to make big moves, up or down on a particular day. Then you need to time your entry and exit point correctly.
How do you do all that? You take the time to study with instructors at a place like Warrior Trading, which has the hard-won experience and skills to translate to it all to aspiring day traders.