Knowing how to day trade can be taught, but having the inborn ability to pick the right stocks and know when to move them is probably something you are either born with or not. It goes without saying that how to day trade the basics involves knowing the many kinds of trading, and the advantages and disadvantages of each one. It also a good thing to understand that the term day trader should not be meant to imply that these traders just fly by the seat of their pants, making trades without careful consideration. There is a lot of knowledge and finesse that goes into knowing how to day trade, so you can make good and knowledgeable trades and succeed, or you can make a few bad trades, lose all of your money. That is why you don't put in all your money on just a few trades.
To get started as a day trader, it is probably advisable that you be familiar with the stock market in general, preferably from working closely with a person that has done it for a few years and is successful at it. Begin by making paper trades, and tracking these pretend trades for performance. Know the ins and outs of the market in general before striking out on your own. Know the day trader regulations, including how to calculate day trade buying power and what the new minimum equity requirements are for day traders. Know which market you will trade on, and which is the best to day trading in general. Also know which financial instrument (stocks, commodities, futures, currency, etc.) that you plan to trade, some of which are best dealt with by the day trader, and others are better off being handled on the more traditional market. Will you be using day trader software, and if so, have you investigated which program best suits your needs and trading skills?
The life of the day trader can be relatively calm, or it can turn into a full-blown storm in the course of a few hours on any given trading day. Economic news coming out of Washington may cause an onslaught of trading activity that will affect your every trade that day. You must be able to go with the flow, know your limits and play to your own strengths and skill. If you have the know-how and the nerves, being a day trader can net you nice, fast returns. But, in life, there is the knowing how to and the knowing why you do it. Knowing how to day trade might seem simple to those suited to the career, but they might have more problems answering the why.
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www.conservativetrader.com for more information
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