Jul 5, 2024
Day Trading Checklist

Here’s a bunch of important things you should know about day trading before you start. First off, can you daytrade if you don’t have the requisite $25,000 plus? Yes. You can start Day Trading with as little as $750 if you decide to trade using a spreadbetting account rather than a standard broker, allowing you to ignore most day trading regulations about trading frequency. To day trade stocks using a standard brokerage account (8 round trips or more per week) you will typically need more than $25,000 in your account as per Uncle e https://npfinancials.com.au/Sam’s regulations designed to stop newbies blowing up. You don’t necessarily need a ‘mega PC’ and a direct access account either. The average spread betting firm will give you access to a day trading system that runs happily in the browser of any low end PC on a dial-up internet account. Just remember that the better your initial setup is, the easier you will find it. You will NOT enjoy seeing your internet connection crash just as you try to pull off a perfectly timed exit, so it pays to have alternatives for everything you use in trading. For a list of the best spreadbetting firms, consult www.traders101.com .

Is day trading the most dangerous form of trading? No. The press is full of stories about how dangerous day trading is. This is pure scaremongering by the misinformed, because day trading simply means not holding any position beyond the current trading day; i.e. closing all outstanding positions by the end of the session putting you 100% into cash overnight. In reality, day trading can be one of the SAFEST form of trading, because you are not exposed to unforeseen events that happen out of hours (like the fall of Enron, Tsunamis in the Far East etc) and the accompanying gigantic losses that can happen during the hours when you cannot trade. Many day traders only hold positions for a few minutes – and the less time your cash is in play in the market, the less chance something will go wrong. Anyone claiming to be day trading who holds positions overnight is fooling themselves – remember this.

Build up your day trading skills with training – practise paper trading till it is second nature to you (for more on paper trading, head on over to www.traders101.com)! Day trading is like running any other kind of business. Adequate training, experience, capital and dedication is always required. Over time, you may find that day trading becomes relatively easy, but you will still have to ‘put in your time’. Day trading is a full time job – you need to be ready to trade whenever the market shows you a great opportunity. If you have limited time to trade, you should consider swing trading instead of day trading.

More Details