So this video caught my eye and made me curious about Day Trading. Since I’m a blogger I thought I would share my full experience with the public as I move forward.
I welcome any feedback or help anyone can provide me on this project. Jump in anytime if you have an idea, questions, or can provide direction.
What I learned from the video comes down to a few points:
- Trading with real money too soon is a bad idea, instead first start on a simulator and develope a strategy that works. He directly talked about his use of the TD Ameritrade simulator. While in the simulator build your stategy around the following guidlines:
- Analyze profit to loss ratio (Average winners VS Average Losers)
- Analyze your percentage of success (Out of 100 trades what are the actual number of Winners VS Losers)
- Consistancy with winns over losses (How many weeks are you a winner (3 being a good number))
He mentioned three ways he personally makes money in day trading:
- Momentum Stocks
- Gap and Go
- Reversals
When you go live and start using real money keep these things in mind:
- You need a trading plan just like any business.
- You need a broker that favors Day Trading.
- You want to have hotkeys to make fast trades.
- Accept small losses. He stated he losses about 30% of the time.
- Keep a log of all trades made.
Have a good PC with good visibility of your trade windows don’t try to do this on a phone. Have trading tools but keep it simple, you don’t want too many tools.
I want to hear what you have to say