How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology
In How to Day Trade, you will teach the fundamental concepts required for day trading. You will learn how to manage risk, how to choose stocks worth trading, how to identify potential setups, how to enter and exit trades, and how to manage your emotions while you are trading. By taking the time to educate yourself, you are already proving a willingness to learn, and that puts you ahead of the majority of new traders. Most new traders will trade unproven strategies and then wonder why they are losing money.
If you have tried day trading or watched somebody else day trade, you already know the concepts are simple, but being successful at day trading is like walking a tightrope. If you watch somebody doing it they make it look easy, but when you try it, it seems nearly impossible. This is the experience most new day traders will go through.
In fact, it’s the same experience I went through when I was learning to trade. I have found that the best trades are the ones that have the most obvious setups and start to work in our favor almost immediately. If I find myself in the position of holding trades that aren’t performing or I start trying to force trades to work under less than ideal setups, I usually get into trouble. I’d encourage traders to focus on the obvious setups we teach rather than overcomplicating things.
While you are in training, it is important that you only trade in a simulated account. You have to practice the strategies we teach and work on building your skills before ever trading in a live account. In our live trading courses, we review the performance of all our students to ensure they are meeting the metrics and statistics of a profitable trader. This means we evaluate accuracy rates, average losses versus average winners, how much risk they take in their trades and how they behave under stress of difficult markets or losing positions.
Once students have proven they can be profitable in a simulated environment, they will be ready to switch to live trading with strict size and risk restrictions. Students in our live day trading chat room benefit from being able to trade side by side with me, and hundreds of other professional traders. We have trained the students in our community to be the best possible traders, thus increasing the overall skill of our trading group.
- Why do most traders fail?
- Risk Management
- Stock Selection – Choosing the right stocks to trade
- Introduction to Candlesticks
- Setting Up Your Charts – Technical Indicators
- Support and Resistance
- Order Types, Level2, Time & Sales, Hotkeys
- Trend (momentum) Trading Strategies
- Counter Trend (reversal) Trading Strategies
- Stock Scanning & Building a Watch List
- Three Step Day Trading Plan