Should i try day trading?

[Ausguy]

Hi all, i'm 23, day trading has interested me for a long while... but i still know nothing about it.
here's the deal, right now, i have lots of free time, and about 15k saved up.
i'd really like to give this a shot, right now i have alot of free time, so i want to try and use it

what i'd like to do is practice somehow, that doesnt require any money, and later on i can start small, maybe try working with like $1000, and once i feel comfortable i can try putting more capital into it..

currently reading through all the stickies and stuff, so yeah..
really new to this stuff... what exactly do people use to facilitate day trading? as in, how do you buy / sell stocks, view stock prices/graphs etc

thanks

 

[Jesse_Rogers]

Hey Ausguy, I'm 21, and am highly interested in trading/investing as a full-time career.

If you're wanting to practice, you're in the same boat as me. Paper trading is the name of the game. Take positions in the market and measure out your own performance before you put money on the line.

There are millions of options, but I tend to be more minimalist. 15k is a good start.

In terms of your question, traders would use a direct-access broker which would give them autonomy as a retail trader.

There are price action, volatility measuring systems and technical analysis techniques for day trading. It's a bit more complicated than that, but at a much simpler level you got to know your **** and start small, then build momentum as you acquire more experience/knowledge.

 

[tomorton]

Don't put your money in to see if you can learn to trade and find out if you can make a profit. That's like taking off in a plane solo before you've learned how to fly and land. The nice thing about trading is that you can paper trade and practice until you know you will definitely make a consistent profit.

You should realise that daytrading is the hardest form of trading.

 

[Rhody Trader]

You should realise that daytrading is the hardest form of trading.

Following up on this, don't get into day trading just because you have free time now. Think longer term. It doesn't make a whole lot of sense to learn to day trade, then in a few months be in a job or whatever where you can't keep doing it. Pick a time frame you know you'll be able to trade in consistently.

 

[Fugazsy]

As Tomorton says, day trading is the hardest when your goal is consistency, a deep understanding of TA may help but not always, traders have the tendency to get lost in it, they think more knowledge is the key only to get further lost in it. Mind set is vital as with MM. GL.

 

[mikeeg]

If you're going to daytrade, there are many things that you'll need to focus on, but if I can give you any advice, then it's about putting in the screen time. It's free tuition of the markets and there aint no better teacher around. Watch price, breathe price, and live it, day in and day out. And don't jump around all over the place hovering from corn, to crude, to stocks, to forex....etc. Focus your energies on just a few instruments only - this will be help you find an edge quicker, although still no guarantee. I know traders whose edge is price and tape. I also know traders whose edge is reading charts, patience and being picky on entries/exits. Whatever style of trading you develop, make sure it fits with your lifestyle and personality. If you remain hellbent on daytrading, then I would also recommend level 2/depth of market so you can see exactly how the game is played.

Good luck...

 

[Pat494]

Let us know when you are down to 10k.

Why ?

Because you might be more inclined to listen to good advice.

At 5k you will be near begging.

Oh to be young again and good luck

 

[jamezz34]

What he said

 

[pristine]

Paper trading is your best bet for gaining some familiarity. As far as day trading and TA goes it cannot be summed up in one comment however there are plenty of resources available on this website and others if you are willing to put in the time. You should realize that if and when you begin trading with real money the emotion involved will make it a completely different experience than paper trading. It will take overcoming a few losses to determine whether day trading is the right approach.

 

[Mat_Corp]

Hi

Try to start from babypips. After trade on demo account and then when you will feel yourself ready start to trade live account.

 

[jsc]

Save your money.

 

[nunrgguy]

It's better to trade more markets with a longer time horizon than less markets with a short time horizon. No I'm not going to explain why.

You'll have NO life other than looking at pretty bars going up and down and lots of stress and worry...or you'll be spending a lot of your time on boards such as this one looking for entertainment to stave off the boredom.

You've saved up £15k, which will soon be £7k or less. What you going to live on?

Day trading is not living. What are you going to do with your life?

 

[AllDayHolds]

If you are new and ready to get in the game asap just because you have some money saved up... Please be careful diving in without any real education. Things you should be able to answer before placing a trade are
1. Why should XYZ be moving up or down?
2. Where is the best entry point to get in?
3. Where is you bailing point (stop) if things do not work?
4. How much $ are you risking?
5. Where is your first target?
6. How will you trail or will you bail out all at once?

These are only a few questions... but have a plan first with real money. If you don't have a plan, stick with paper trading until you get one.

 

[Atilla]

This is how it's done :cheesy:

 

[arigoldman]

Daytrading is like trying to predict how much the weather temperature would change in the next 1 hour. Why not try? Haha.

 

[CityTrader]

NO!!! do not paper trade whatever you do. It leads to a false sense of security - only when you trade real money do the( extra) physiological pressure become factored in. Work out what you want to trade, open an account limit your capital, work out strategy, don't risk too much. Have fun!

 

[tomorton]

NO!!! do not paper trade whatever you do. It leads to a false sense of security - only when you trade real money do the( extra) physiological pressure become factored in. Work out what you want to trade, open an account limit your capital, work out strategy, don't risk too much. Have fun!

Hi CityTrader -

Refreshing angle on this problem. First, I assume you mean extra psychological pressure that comes with investment of real money, correct?

Up to a point I would agree. The game does change when you put money in. Its no longer a game.

But then again, how to develop a strategy, learn to manage risk and learn to handle your own psychological pressures without paper practice?

 

[jamezz34]

Find a proper educator and trade Futures not Forex.

I have never met a Forex trader who is more profitable than a Futures trader. There is a good reason for that. Now Investigate

 

[CityTrader]

Hi CityTrader -

Refreshing angle on this problem. First, I assume you mean extra psychological pressure that comes with investment of real money, correct?

Up to a point I would agree. The game does change when you put money in. Its no longer a game.

But then again, how to develop a strategy, learn to manage risk and learn to handle your own psychological pressures without paper practice?

The only problem is when you paper trade, you will NOT make the same decisions that you would make when doing this IRL. I promise you. So paper trade to learn the mechanics, the nuts and bolts of what to do, but please start small, and learn from your real life mistakes, with real money.

 

[CityTrader]

Find a proper educator and trade Futures not Forex.

I have never met a Forex trader who is more profitable than a Futures trader. There is a good reason for that. Now Investigate

That's a bit of an all encompasing statement. As most forex is tradeable via futures on IMM etc etc - how would you classify those? You could argue that a CFD is effectively an off exchange futures contract ( all be it without a settlement date)