Make $200 a day. That is how to make a living day trading. Sounds easy, doesn’t it? Well, it is really not. It takes a lot of blood sweat and tears to make $200 a day as a day trader. Ninety percent of day traders who take a stab at the market fail.
What to Master as a Novice Day Trader
Pick The Right Stocks
Again, it sound simple, but is really is not. There are tons of small and mid-cap stocks out there that you could trade. And only five or 10 of them will make you money. The trick is finding those every day. Or, not entering the market on the days that you don’t find those opportunities.
When you actually make the trades, it pays to know how to manage your risk. Learn what profit/loss ratio means and how to keep records on accuracy. You can’t get better unless you know which stocks you missed. And which trades were flat out bad.
Find the Home Runs
Those big winners that were mentioend before? The home run stocks? You need to know the plan for finding them in a crowded market. It all depends on finding companies with the right float, or amount of shares on the market. Then the breaking news, like earnings reports, that are going to make the stock move. You need that info if you want to make money as a day trader.
Using Level 2
The short story on Level 2 is that it is the order book for NASDAQ stocks. When you are familiar with that, you can see the best bids and the ask prices, giving you real insight into the price action. Knowing how has interest in a stock is one of the best ways to profit from it.
Getting into day trading is fairly easy. Search for Warrior Trading on Stocktwits. StockTwits is a social media network geared towards investors and traders. Many traders use the real time feeds on StockTwits for up-to-date info on companies and markets.
And Warrior Trading is one of the top day trading education website on the Internet. Packed with classes, a daily chat room where thousands of traders share tips and tricks and a paper trading simulator that works for beginning traders looking to get their feet wet, Warrior is an excellent place to learn how to day trade.