How To Day Trade For A Living

What Is Day Trading?

I’m pretty sure you’ve heard the words ” day trading referenced somewhere. But if you’re still unfamiliar with what these two words mean, well, day trading refers to the practice of selling and purchasing stocks on the same trading day.

The primary goal of day trading is to profit from short-term price movements in the stock market, futures, and other financial instruments. The person who participates in these trades is referred to as the day trader.

Day traders typically use a combination of analysis and strategies to capitalize on short-term reversals and trends. Unlike traditional long-term investors, day traders are more focused on getting immediate gains from market fluctuations than gaining from the fundamental value of the stocks.

So, what makes day trading appealing? Well, its main appeal lies in the fact that traders can make quick gains. But while there’s money to be made, there are also risks involved with this type of business.

These risks can very well end your day trading business. But before I discuss the risks of day trading, let’s first learn its basics.

The Basics of Day Trading

For one, traders have to know everything about current events. Any small change, like a recession or company succession, can affect price movements.

By keeping up to date with current events, you can sell and buy stock while still making a profit. Aside from news-based trading, you’ve also got to know how to observe stock market data, as that’s the key to knowing when to sell and when to buy.

Trust me, that’s a skill that will take time to hone. While there are gurus who’ll claim that they can teach you how to hone a skill, that’s something you’ll have to do on your own.

Learning day trading is like learning to ride a bike. At first, you might need training wheels (thanks, experts!), but eventually, you’re on your own. And trust me, it can get bumpy out there.

Not to be the bearer of bad news, but day trading isn’t all sunshine and rainbows. Unless you’ve got cash to burn (and a fire extinguisher on hand), jumping into this game might extinguish your financial dreams faster than you can say “stock market crash.”

Even if you have the basics honed in, there’s always the possibility of you losing money rather than making it. Ask the 99% of day traders who lose their money every day simply because their basics of day trading aren’t working out.

And unless you have thousands of dollars stashed away, I’d advise you to look elsewhere if your true goal is financial freedom.

I understand the appeal of earning 10X on your money in a day, but that isn’t always the reality with day trading. Unless you’re running a gambling site, making that kind of money isn’t possible.

Why not go for a program that will actually help you create a reasonable and consistent income stream? I’m talking about an income stream of $2,000 to $10,000 a month.

And the best part? You get to earn that kind of money without crossing your fingers whenever you sell your stocks.

That program is the Digital Rental Method.

Creating a reliable business requires consistency, and that’s what the Digital Rental Method offers.

But if you still want to learn more about day trading for a living, keep reading!

Day Trading Strategies

Now that you know the basics of day trading, let’s talk about day trading strategies.

A day trader needs to have an advantage over the stock markets. This is where different strategies come in handy.

These strategies include:

Scalping

Scalping is a day trading strategy that specializes in profiting off small price movements and making a fast profit from reselling. This strategy prioritizes making high volumes of small profits.

As a day trader, using the scalping strategy requires you to have a strict exit strategy. The reason for this is that one huge loss could end up eliminating the small gains you worked to obtain.

This is why the scalping strategy requires the right tools, such as the stamina to trade in most places and a live news feed.

How does this strategy work? The scalping strategy assumes that most stocks will complete the first stages of movement. However, what happens from there is completely uncertain.

After stocks pass that initial stage, some cease to advance while others proceed to the next stage. Your job as a day trader is to take advantage of the stocks during the initial stage and make small profits with every sale you make.

News Based Trading

A news-based trading strategy is the next best trading secret. It seeks to take advantage of market opportunities by using relevant information and economic data that hits the headlines.

Economic data and news are major triggers of price changes or volatility when it comes to trading, even day trade.

This means that by keeping up with the data changes, you can take advantage of regular trading opportunities. However, you need to remember that these trading opportunities are not without risk.

An example of a news-based trading strategy could be news of a merger or company accusation. Traders who know how to use news-based trading techniques can quickly decide whether to buy or sell based on these announcements.

Swing Trading

This is a type of day trading strategy that attempts to capture short and medium-term gains in the stock market. It could take anywhere from a few days to several weeks.

Typically, traders get to hold a position, either long or short, for more than one trading session. It also makes use of the resistance level and predetermined support in prices to help determine if the trader should buy or sell.

Now that you know what type of day trading strategies are used, let’s take a look at a few tips you’ll need as a beginner.

Day Trading Tips For Beginner Day Traders

Day trading as a newbie isn’t easy, as there’s a lot you’ve got to learn. But if you’re still interested in going down this road, here are a few tips that could help you start trading.

Trade With Money You Can Afford

Day trading, like any traditional trading, requires a substantive amount of cash. The more money you place on different stocks, the more the profits. However, the profits you get depend on other factors as well aside from the stock market.

It is because of those risks that, as you start trading, you’ll need to do it with money you can afford. Try to set aside a certain amount of money for this purpose. Also, stop trading if your rent payment or monthly mortgage exceeds the amount you set aside.

Why? There’s a huge chance that you’ll lose the cash. Can you make money with day trading? Yes, but that doesn’t mean you spend all the cash you have.

So use your money wisely.

Start Small

When you start day trading, you’ll definitely make some or lots of mistakes and lose money in the process. Starting small allows you to limit your losses until you gain enough experience.

Don’t Give Up Your Day Job

One mistake almost all newbies make is to think of day trading as a get-rich-quick scheme, and it isn’t. While there’s the promise of making profits every day, there are lots of risks that could leave you bankrupt in seconds.

So, before you leave that day job, ensure that you assess your trading strategies. How effective are your strategies, especially in volatile markets? Can your trading techniques still make you a profit even through harsh economic times like a pandemic?

Having answers to these questions will make it much easier to decide if you still need your day job as a financial safety net.

Learn The Basics

One thing that’s often overlooked by beginners trying to gain a footing in day trading is the importance of learning the basics. Sure, YouTube is great, but you’ll need to learn your techniques from people who’ve been in the game for years.

I’m talking about programs like Triple Sync Logic and Dow Janes. Each of these programs can serve as your introduction to day trading.

Why is learning the basics important? Beginners who have no understanding of day trading basics often lose money. Working knowledge of chart reading and technical analysis is a good start for any beginner, and that’s something a legitimate day trading program can offer.

Learn Trading Discipline

Most day traders often end up losing money mainly because they often make trades that fail to meet their own criteria. What do I mean by that?

Every trader has their own way of doing things. They know when to sell, buy, and what risks to take, and while strategies might be the same, at the end of the day, your trading discipline is what dictates your trades.

Even as a beginner, you need to plan your trades and then you the plan to trade. This plan is what dictates what risks you’re going to take and what strategies to use for your trades. Remember, success in day trading is impossible without discipline, so you’ve got to learn how to maintain it.

Start With Paper Trading

Every beginner makes mistakes, especially when it comes to something as technical as day trading. So, for you to get a feel of what you’re up against, why not start with paper trading?

Paper trading allows you to simulate actual trades without having to lose real money in the process. You get to practice your trading strategies while not running the risk of losing your money.

One such platform is StockToTrade. This platform allows you to practice your trading abilities without risking your money account.

Day Trading Tools

If you plan on day trading for a living, you need to know that it isn’t only about the strategies you use but also about the arsenal of tools you have at your disposal. So, aside from the tips, what tools should every day trader have?

A Trading Platform

A trading platform is the foundation of day trading tools. It’s software that allows day traders to execute trades and connects them with the market.

So, what should you consider when looking for a trading platform? A good trading platform should have a:

User-Friendly Interface

You should be able to navigate the platform easily, find the information you need quickly, and execute trades with little to no hassle. This feature is especially important to new day traders as they can easily navigate platforms with a user-friendly interface.

Access To Real-Time Data

Day trading heavily relies on real-time data, as that’s the key to making informed trade decisions. Therefore, ensure that the site you choose provides up-to-the-minute data on volume, prices, and other key metrics. Some platforms also come with advanced charting tools that allow you to analyze market patterns and trends.

Mobile Compatibility

Trading on the go is a great way for day traders to keep up with their trades. A great trading platform should be mobile-compatible, making it easier for you to stay up to date with the latest market news, execute trades, and monitor your portfolio all from your phone.

So, make sure you do your own research and consider your needs before committing to any platform.

Charting Tools

Charting tools allow day traders to identify potential stock market opportunities and visualize the price movements. While this tool is great, it also does have specific features you’ll need to consider.

The main features include:

Advanced Charting Capabilities

Most charting tools often come with advanced charting capabilities that enable you to set up alerts for when certain trading conditions are met. So, when choosing a charting tool, go for one with such an advanced capability or more.

Ease To Use

Like any other software, you need to learn your way around a charting tool. As if day trading isn’t hard enough, imagine having to struggle using a charting tool. Therefore, ensure that the tool you go for has a low learning curve.

It should also offer clear analysis and navigational features so that you can visualize the chart easily.

Customizable Interface

The best charting tool should be one that allows you to customize according to your day trading needs. You should get the freedom to decide what you see rather than have irrelevant information clustered on your computer screen.

Here’s a table that highlights more features

News Feed

This is one of the few trading strategies I mentioned earlier, but it’s also an important trading tool. Keeping up-to-date with the latest events and news helps provide real updates on stock prices and market movements.

A good news feed should provide updates on:

• Economic data
• Market events
• Other relevant news

By staying informed about the latest news, traders can make informed decisions about their trades. Most trading platforms have built-in news feeds, but there are also stand-alone news sites like Bloomberg and Reuters.

Economic Calendar

This is a must-have tool for any trader looking to stay ahead of the curve. An economic calendar provides a schedule of upcoming economic events like:

• GDP releases
• Central Bank meetings
• Inflation data

Knowing when these economic events are scheduled makes it easier for day traders to prepare for market volatility. Some stand-alone economic calendars you can check out include ForexFactory and Investing.com

Having the right trading tools can help dictate your success and failure in day trading. Even as a newbie, these tools can improve your performance and help you manage your risk better.

Talking of risk, let’s discuss some of the risks of day trading.

What Are The Risks Of Day Trading?

Like any business, including affiliate marketing or dropshipping, day trading also comes with several risks.

Some of these risks include:

Failure

Let’s face it: unlike the unrealistic expectations you’ve heard about day trading, the reality is totally different.

You’ve probably encountered enticing promises of quitting your day job and earning six figures annually by simply dedicating a few hours to trading stocks.

This narrative, often propagated by millionaire day trading gurus in flashy YouTube videos and ads, sells the dream of quick riches without any prior experience other than purchasing their expensive courses.

But here’s the harsh truth: most day traders fail. I’m talking about a failure rate of 95%.

Only 5% of day traders actually come out on top, while the rest end up failing big time. While some gurus might claim that they can help you be the 5%, very few do.

And if you do choose to still day trade, you’ll need to be ready for failure.

Unrealistic Profits

One of the reasons day trading is quite popular today is because of the notion of quick profits. You can sell stock today and earn a killer profit the same day.

However, that’s a dream as people often jump into day trading like a get-rich-quick scheme and it isn’t.

But let me indulge that thought for a second. Let’s say, for example, that you’re constantly pulling in 1% of profits for every same-day trade you make.

That would mean if you buy, let’s say, Tesla stocks for $1000, you’d make $1010 at the end of the day. At first glance, making $10 in profit every day doesn’t seem far-fetched, and it looks quite easy to do.

But to really hit the jackpot, you’ve gotta keep doing this day after day, year after year and handle more than one stock to make a killer profit. Now, that’s where the trouble lies.

If your profit percentage is still 1% every day by the end of a trading year with 256 trading days, you’ll have $12,520.

Now, fast-forward to the second year. With a 1% profit rate, you’ll have $152,000. Fast-forward five years, and you’ll have $267,600,000 at the same percentage.

By the tenth year, you’ll probably have outpaced the likes of Elon Musk, Jeff Bezos, and Bill Gates. Now, making that much money from day trading, I’m guessing Warren Buffet would be the richest man on earth.

However, even Warren’s average annual returns aren’t that crazy. These unrealistic profits cause day traders to lose money with the expectation of making more by the end of the day, which never happens.

Day Trading is a High Cost, High-Stress Full Time Job

The fact that you’re always buying and selling stock on the same day means you’ll always have to be on your phone or computer screen constantly monitoring your trade.

You’ll need to keep up with the late news feed, which can be quite draining mentally and physically. Day trading can also be very stressful, and this can quickly lead to cardiovascular issues.

Also, because day trading is almost like gambling, you could end up becoming addicted. That’s an entirely new problem you’ll have to deal with, and that stress never gets easier.

So, instead of losing thousands of dollars trying to make day trading work, why not check out my number #1 way to make money online?

What’s My Number #1 Way To Make Money Online in 2024?

I’ve personally tried all of the major online business models:

• I’ve traded crypto & purchased a bunch of fancy “insider stock tip” newsletters
• I’ve sold fidget spinners through Amazon FBA
• I’ve drop-shipped a toilet bowl putting green on Shopify (pic below)
• I’ve sold women’s health supplements via Clickbank affiliate marketing

And I made money with all of them, so trust me when I say there is no “perfect” business model.

That being said, my #1 recommendation for making real money online is, hands-down, the Digital Rental Method.

Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, the Digital Rental Method is for you. 

Why?

1)Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.

And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.

That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.

But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.

Day trading requires more than eight hours a day. Most traders have been known to spend the entire time on their screens only to lose all their money.

2) You Own & Control EVERYTHING: When it comes to the markets, nothing is in your control. You have zero influence over market-shifting macro-economic trends.

The number of people that have ACTUALLY beat the market consistently can be counted on one hand.

Why pour your soul into a business that you realistically have zero control over?

With the Digital Rental Method, you literally own all of the assets, which means you have ultimate control.

3) It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…

If you wanted to double your income in the markets, you would need to make twice as many winning trades or double your profit on each trade. And I can guarantee you that’s a lot harder than a few clicks & a phone call.

4) Make Money Helping Real People: When you make money in the markets, you’re not really helping anyone but yourself. There is a loser on the other end of that trade.

But with the Digital Rental Method, you’re helping solve REAL problems that people are ASKING for help with:

Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If we can provide those customers, they’re going to be really happy – and they’re going to pay you for it.

You’re helping a struggling mother or father put FOOD on the table for their families, put their kids through college, or simply live life a little bit more comfortably.

Having this type of impact on the world is what will help you sleep soundly at night.

You could keep researching and researching for the next few months (or few years), never making a concrete decision.

OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.

Making a fortune while actually helping real people who need it.

If this sounds like you, click here to see how it all works.