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Guide to Building a Day Trading Empire

Guide to Building a Day Trading Empire

Despite what you may have heard, anybody can make money in the world of day trading. It doesn’t matter what your background is, how many grades you got in school, or how high your IQ is.

That’s not to say that you are guaranteed success however, as there are certain steps that you must take in order to increase the likelihood of making winning trades on a consistent basis.

Also, you don’t need any fancy high tech equipment, or an office in the financial district of a large city. In fact, you can easily build your day trading empire from the spare room in your house, all with an average computer and high speed internet access.

Thousands of people all around the world are doing exactly this, quietly getting rich by employing simple to understand strategies that could be taught to just about anybody.

Are you interested to find out more? If so, then here are some step by step instructions to get you on the right path to becoming a trading mogul.

Educate yourself

Before you even think about risking some money in the markets, it is important that you take the time to educate yourself first. That’s not to say you need to become an expert overnight, but you should spend some time familiarizing yourself with the basic phrases and how everything works, so you can get a better overall understanding as a whole.

A good way to do this is to go to a site like Amazon and then find a beginners book that is written in simple and easy to understand language. Also, check the reviews for the different books before you buy, to see what people are saying.

Open a broker account

Do some research on the internet to find an online day trading broker that is both reliable and experienced at dealing with new traders. It is important to understand that most brokers will charge a fee for every trade that you make through them, as well as taking a commission from any profit that you make.

Usually, these charges are not high, and only work out at a few dollars per transaction. It may seem quite a lot once you first start trading, but once you are bringing in the big bucks you will glad to give the broker their cut.

Teaming up with a broker can also help you through those first initial steps in your day trading career. They will have a team of staff on hand to answer any questions that you may have, as well as giving you access to range of online tutorials and software.

Keep your focus

Keep your focus

Once you are initiated into the trading world, and have got a little bit of experience under your belt, the next step is to narrow your focus onto one market.

The main reason why most people fail to make any money, is because they have no area of expertise. In other words, they try to become an expert at all of the markets, but end up only having a very basic knowledge in a any of them.

Learning about just one market will give you a serious advantage over the other traders, as you will gain a keen eye for opportunities that other people miss.

Try to focus on a market that you have an actual interest in, as you learn quicker when you enjoy what you do. Read as much as you can in relation to the market, and stay on top of all the current news and trends by reading financial publications and watching news stories.

Understand your limits

One of the biggest lessons that everybody must learn is to firmly understand where their limits are.

For example, many day traders take a big loss during the course of the day, and then spend the rest of that afternoon trading even more in order to make their money back. Trading in this way can be crippling to your balance, as you begin to trade on emotion, which leads to bad decisions.

Instead, set stop losses in every trade that you make, so you can get out once things start to go bad. Then, if you find yourself in a position where things are not going right for you that day, be prepared to walk away and take a break. You can always come back tomorrow and start again.

Act fast

Day trading is a business where mere seconds can be the difference between making or losing thousands of dollars.

For this reason, if you are ever going to be successful then you need to get into the habit of making decisions on the spot and acting fast. If you see an opportunity in the market, there usually isn’t the time to wait around for a few hours while you think about it for a bit. You have to become confident in your abilities, so you can make quick decisions on the spot.

As many people have found out, hesitating too much in crucial moments will severely hinder your chances of success, and in the end you will find it hard to make any substantial profit.

Conclusion

Day trading is a business with many rewards. It gives you the chance to quit your job, work at home, and gain the financial independence you have always wanted.

Not many people in the world can say they live this kind of lifestyle, so if you really want to make it work, then you should be prepared to invest the appropriate amount of time and energy into your business until you start to see positive gains.

Take the time to learn the business and you will be paid many times over. However, if you try to shortcut your way to success, you may find that your day trading account is empty after only a few months trading.

Start Thinking of Day Trading as a Business!

Start Thinking of Day Trading as a Business!

Has your day trading efforts left you with little profits and a mountain of frustration? Does your account resemble a ghost town? Are you ready to finally stop messing around, so you can achieve the success that you desire?

If you answered yes to any of the above questions, then there is a good chance that you need to start thinking and treating trading as a business. Nobody ever got rich by working part-time or putting in minimal effort, so in order to take things to the next level you need to organize yourself and get serious!

Once you start treating it as a business, then it has a much better chance of being self-sustaining in the long term, as well as hugely profitable.

At first, you have got the initial hard work out of the way, such as learning the business, set-up costs, getting an accountant, working out your monthly expenses, writing down short and long term goals, and getting the proper equipment and tools, then you will have built a solid foundation that continues to grow year after year, even if you start to spend less time in the office!

This is the key to passive income and living a relaxing lifestyle. You put the hard work in at the beginning, and then a year or two down the line you can start to enjoy the fruits of your labour.

Most people get it backwards. Instead, they look to put minimal effort in at the start, hoping that their business will somehow become profitable and sustainable all by its self.

Unfortunately, they quickly learn that this isn’t how it works, and end up getting serious about day trading or quitting altogether.

Here are some things to consider when building a REAL day trading business:

Have a dedicated area

Most people nowadays, operate their activities from their house. In fact, this might be one of the main reasons why a lot of traders don’t take it seriously, because it’s much too easy to just sit in bed until noon and the watch television while studying or trading.

The first thing you should do in order to make this into a proper business is to set up a dedicated area to work from.

This could be a spare room in your house, the basement, or even the garage. It doesn’t matter. What does matter is that you have a dedicated space where you will work on your business, free from distractions so that you can remain focused at all times.

Keep accurate records

Start Thinking of Day Trading as a Business!

If you don’t keep accurate financial records of all your incomings and outgoings, then how can you possibly know if your business is successful or not?

Keeping records doesn’t have to be difficult. In fact, many million dollar traders record everything in a simple book, with nothing more than a few columns on every page.

If you want to get a bit more advanced, you might want to consider investing in one of bookkeeping software programs available on the market. These programs can definitely make your life easier, as all you have to do is input your figures and it will do the rest.

Get an accountant

Nobody operating a business should be without the help of an accountant, as they can give you advice that will save you a fortune.

For example, an expert accountant can suggest different company structures that would be beneficial for your own unique circumstances, as well as helping you with your tax returns at the end of the year.

Take your time in finding an accountant, as they are not all created equal. It is a good idea to find somebody who can give you personal attention and will be able to get to know your business better over the coming months and years.

You might also consider trying to find an accountant who has experience at working with people in the day trading field, so they can offer you specialized advice right from the start. At the end of the day, a good accountant will save you much more money than what you pay them.

Become more detached

As you start to treat your day trading hobby more like a business, you should also work on developing the habit if being detached.

People who treat the business as a hobby, usually look at it as a form of entertainment, complete with the highs and lows of winning and losing.

Once you are in the mindset of a business owner, then it is much easier to look at it as a numbers game, where your main focus is on profit and NOT entertainment. That’s not to say that it should be boring and you can’t ever have a bit of fun, it just means that your primary focus is on long term successful trading rather than short term pleasures.

For example, you may find yourself sitting in your office at your computer during a day of trading. You are watching the markets closely but there are no trades to be made that day. In the interest of your business, you switch off your computer and go focus on something else. If your focus was on being entertained, then you would probably be tempted to get involved in the markets even though it doesn’t make sense from a profit point of view.

The final word

There is nothing quite like owning your own day trading business. YOU are in control of your financial destiny, and have the kind of lifestyle where you can see more of your family and friends.

Just be prepared to put in extra work in the beginning, so you can build a solid foundation that will last you for years to come.

At the end of the day, you wouldn’t build a house on quicksand, and then hope it won’t come crashing down in a few months. Instead, you would make sure the house had a solid base before adding more bricks. This is exactly how you should approach day trading.

Day Trading With No Risk!

Day Trading With No Risk!

Interested in day trading? If so, then you are probably raring to get going, and can’t wait to start trading in the markets. After all, you are going to make thousands of dollars profit in the first few months…right?

Well, probably not. You see, day trading, like any other business, and it can take a while to learn properly. There are many different things to take into consideration, and it’s only once somebody gains experience that they really start to get the hang of it.

Want to try Day Trading with someone else’s money?

Things such as identifying profitable trades, knowing when to buy and sell, and choosing a long term strategy all take time to develop. Until you have these sort of things nailed down, you can’t even begin to expect profits over an extended period of time.

With this in mind, it’s probably a better idea to practice day trading before parting with your hard earned cash. This is the way that the majority of successful traders started, and so if it’s good enough for them, it’s good enough for you.

Here are the steps you can begin taking right away to practice day trading, so you can learn the fundamentals and trade with no risk.

Day trading games

There are many sites out there that allow you to play day trading games, or trade with a virtual stock simulator. This is an excellent way to get your feet wet, because you won’t have the added pressure of risking money affecting your judgement.

Experts say that the best way to learn something is do it at first with no pressure or stress, so you can solely focus on what’s important and allow your brain to soak up information like a sponge.

Some of the websites worth investigating for simulation are the Virtual Stock Exchange and the Stock Simulator on Investopedia.

How long should you use a stock simulator for? The answer to this varies from person to person, as everybody learns at a different rate. Basically, when the times comes for you to start day trading with real money you will know instinctively, and you will be making profitable trades on a fairly consistent basis in your simulation account.

Check stock prices regularly

You want to make it a habit to always keep an eye on the markets. This means bookmarking different websites and checking them regularly throughout the day, and making notes of the fluctuations that happen.

Simply put, you need to become obsessed with the markets, to the point where you become very familiar with them and they almost become a part of you.

If you currently work at a day job, then you should schedule time throughout the day to check stock prices, preferably on your morning break, lunchtime, and afternoon break. Also, it can be handy to have certain Apps on your phone for the purpose of doing this, so you don’t have to be at a computer.

Study the history of markets

Once you become more familiar with how the markets are working right now, you can gain added benefits from studying the history of markets and how they have reacted over time. This gives you a serious advantage over other day traders, as most people never bother to study things that have happened in the past.

Learning about the history will give you a better overall knowledge of the markets you will be day trading in, and you might even start to see patterns on how some stocks move in certain economic climates. Having this kind of information can give you a profitable advantage in the future.

Day trading software

Another way to continue practising day trading, is to find one of the various websites that offer day trading software and then find out if they offer a demo account.

Many of the software programs do offer demo accounts, and it can be an excellent way for you to gain further experience, especially when you consider the range of features that most of these programs are equipped with.

For example, you will gain access to real-time data feeds, so you can have your finger right on the pulse of up to the minute market action.

Companies such as StrategyBuilderFX, Assent LLC, and Think or Swim, offer day trading software which can be downloaded from their respective websites and each includes a demo account so you are able to practice your trades.

Getting ready to use real money

Getting ready to use real money

Once you feel ready to start day trading with real money, then you will need to open an account with a brokerage firm and deposit at the least the minimum required amount. This amount varies depending on who broker and which markets you will be trading in. Your deposit will usually be available in your account within a couple of days, sometimes even less, so that you can finally start trading with real money!

It is important to note that some day trading brokers will grant you margin privileges, which basically gives you the power to buy more stocks than your initial deposit allows.

If you are granted these privileges, you definitely want to avoid getting carried away, and instead be extremely cautious with your first few trades. Resist the urge to get in over your head too quickly, and remember that all successful day traders work on a long term plan that is designed to bring in consistent profits.

Day trading forums

Once you start day trading for real, then it can be a real help to talk with other like minded individuals around the world.

One way to do this is with the aid of online forums, which can be found by doing a simple Google search. Many people gather on these forums to talk about their own experiences, ideas, and strategies, and it is very comforting to hear from other traders in the same boat as you.

Just be careful about who you listen to though, as some of the advice on day trading forums is questionable, and there are people posing as “experts” who have never made a dime of profit in their lives.

Selecting the Right Day Trading System to Make Money

Selecting the Right Day Trading System to Make Money

Watch out! How to avoid the “get rich quick” Day Trading systems

The main problem with the majority of beginner day traders is that they have no focus. One day they are focusing on one system, and the next day they are focused on another one.

Not surprisingly, this leads to very little consistency and zero profits in their account. As any successful trader will tell you, the biggest secret of making more money than you can count, is to find one day trading system that you feel comfortable with and then stick with it.

At the end of the day, there are hundreds of day trading systems out there, and trying to learn all of them will simply result in information overload and a sense of overwhelm.

In order to find the right system, you should spend some time at first analysing the different ones available. Then, when you find one that just feels right, commit to spending all of your time on just that one system for at least 30 days.

At the end of that 30 days you can assess your progress, and decide if you should continue with the system or find a new one. If a day trading system is profitable then you should stick with it, and just conduct tweaks to improve your overall results.

Here are some tips to help you find the right day trading system so you can make money in the markets.

Consistent profits is key

All that glitters is not necessarily gold, and this is definitely true when it comes to day trading systems. Many newbie traders are typically drawn to the systems and strategies which promise the big profits over night, kind of like winning the lottery.

While it is possible to make big profits fast in day trading, it is highly unlikely this will happen for somebody new to the markets. Instead, it is much more profitable in the long run to seek out a day trading system that has a smooth equity curve, and is more focused on producing small profits over an extended period of time.

With these kind of systems, not only are you more likely to actually make money, but you also reduce your amount of risk, so the chances of going bankrupt are slim.

Operating with less risk is also better for your state of mind. Many people who follow systems that are risky end up becoming an emotional wreck. They find it hard to sleep and are constantly worrying about losing money. This leads to making rash decisions based on emotions, which is the number one way that the majority of day traders lose money in the markets.

Don’t be one of them, and instead focus on small profits on a consistent basis.

Make it easy

Have you ever tried to learn about a new day trading system, only to feel like your brain was about to explode because it was just too damn complicated? This is another mistake that many traders make, as they often equate complicated to meaning better.

Actually, nothing could be further from the truth, and as any successful day trader will tell you, the real profits are in keeping it easy and simple.

At the end of the day, the markets are extremely volatile, and it can only take a few seconds for things to change drastically. With this in mind, do you honestly think it is a good idea to trade in this kind of environment with a system that is based on complicated formulas and a million different moving parts? Of course not.

Because everything happens so fast in the world of day trading, you need a system which allows you to make quick decisions on the spot, and this can only be achieved if you strive to keep things as easy and simple as possible.

In fact, your day trading system should be so easy that you can work out what trades you are going to make today using nothing more than a writing pad and a calculator.

Trading frequency

Trading frequency

Any successful trader knows that the more often you trade, the more chance you have of being profitable. That’s why it’s a good idea to choose a day trading system which generates multiple trades every single day, and not one where you have to rely on only a few trades a month.

The reason for this is simple: in order to get good at anything, you need to get plenty of experience under your belt, which can’t be done if you are not trading on a frequent basis.

Also, if the average win percentage of your system is 65%, and you are only trading a few times a month, then it is possible to go months at a time without generating any profits.

However, when you are trading every day with this kind of win percentage, then you will see profits much more frequently, which will give you the confidence to keep going through the bad times because you know that a winning streak is just around the corner.

Another reason why it’s important to find a day trading system with a high trading frequency is because you always learn more from your mistakes. In order to grow as a day trader, you need to be making mistakes on an almost daily basis, and it would be impossible to do this if you were only making trades now and again.

The final word

A good day trading system will always allow you to start small and grow your business from there. Be extremely weary of any system that requires large capital from the beginning, and promises overnight riches. There are no such certainties in the world of day trading, as the markets are changing all the time.

To risk a huge amount of money if you are a beginner is not a very wise choice, and will ultimately lead to frustration and anger. Trading should always be approached with a calm mind and a level head, and it’s much easier to do this with a day trading system that has a long term vision.

The Golden Rules of Day Trading

The Golden Rules of Day Trading

Let’s face the facts for a minute: day trading is definitely one of the more risky careers that you could pursue. There are much more “safer” routes out there if you are looking to make your fortune.

With that being said though, there are some people who just can’t get enough of day trading. These people enjoy the thrill of making profitable trades, and the excitement of making multiple trades in any given day.

If you are one of these people, then you no doubt accept the risk that comes with your chosen profession, and stand by the motto “live by the sword, die by the sword.”

You accept that one wrong move could see your entire trading capital completely blown in a week, or even a few days. At the end of the day, if you don’t take any risk then there is no reward, and you wouldn’t have it any other way.

The 3 Golden Rules of Day Trading

There are ways to reduce the amount of risk in your day trading activities though. Ultimately, the main reason why most people go broke is because they get too risky in their trades, and end up making stupid mistakes. This can be avoided altogether by following these 3 simple rules.

Entry level

They say if you don’t plan, then you plan to fail, which is why you must spend some time planning exactly where you want to enter a certain trade.

Deciding on the correct entry level can often mean the difference between making a profit or a loss.

Once you decide that a trade is “ripe” for getting into, then you must also act fast and not delay your decision, as things change quickly in the day trading world, and failure to jump on an opportunity means you miss the boat.

Profit target

Another golden rule of day trading is to decide on your profit target for each and every trade. This doesn’t mean to just have a general idea of how much you want to make, but to have a specific number in mind so you can accurately measure your progress.

This is one of the main keys to success in day trading, as every elite day trader has a long term strategy where the name of the game is all about making consistent profits. You can achieve this by setting a profit target on every trade and being disciplined in your approach.

Stop loss

The main aim of day trading is to make consistent profits while minimising your losses. With this in mind, it makes perfect sense to set a stop loss on every trade that you make.

As with anything in life, things don’t always go to plan, and the same thing applies to day trading. The markets can be topsy turvy at the best of times, and things can change in the blink of an eye.

Determining how much you are willing to lose on trade is essential, so if things go wrong you won’t take a damaging hit to your account balance.

More Rules to Follow:

If you were just to follow the above 3 golden rules of day trading then you would be in pretty good shape, as they should be the foundation of any plan or strategy that you set in motion. Here are some more rules to keep in mind…

Overtrading

The Golden Rules of Day Trading

The temptation to overtrade will always be there. Due to the sheer amount of action to be found on a daily basis, it’s really easy for the average day trader to get drawn into trades that they have no business being in.

A big problem with overtrading is that you end up spreading yourself too thin, which means you can’t properly analyse every trade correctly.

Instead, it’s much better to only select a few trades a day based on the markets you know the best, and then religiously stick to this day trading strategy even if you feel the urge to get involved elsewhere.

Be proactive, not reactive

This one is huge, and is a big reason why many traders lose their shirt. Basically, your main focus should always be on your day trading plan, so that you remain in control at all times and are pro actively trading in the markets.

Problems start to occur when you lose sight of your plan and start to become reactive to things happening in the markets.

Always remember that making profits in day trading is a long term endeavour, and you should be very careful about deviating away from your strategy in order to make reactive trades.

2 percent of your trading capital

If you are just starting out in day trading, then should make it a point to never risk more than 2 percent of your trading capital on any one trade. In fact, a better starting point might even be 1 percent.

This might not sound like a lot, but it’s important to understand that day traders who trade at say 10 percent, can quickly go broke.

It only takes 10 bad trades in a row to go bankrupt which is more common than you might think. It’s much better to operate with a lower percentage of your trading capital, especially when you start day trading, as it gives you the chance to gain experience.

When you first begin your day trading career, you are going to make a lot of mistakes. Everybody does. It’s much better to make these mistakes while not breaking the bank!

Conclusion

If you were to just follow the 3 golden rules of day trading then you would be in good shape. Add to this the other 3 rules mentioned above, and you should have all the information you need to become one of the elite day traders who makes 6 figures a year out of this profession.

Just remember to always keep your eye on the prize, and don’t be tempted to get distracted away from your long term day trading strategy.

How to use Forex Day Trading Strategies to Profit!

How to use Forex Day Trading Strategies to Profit!

Are you looking to profit as quickly as possible in Forex day trading? If so, then you might have notions about making large sums of money overnight using some kind of push button Forex robot, or a secret strategy that almost nobody else knows about.

In reality, those type of things don’t really work. If you want to make money at Forex, then you better be prepared to put in some ground work and be in it for the long haul.

Not many people get rich overnight, only those that get lucky with the lottery. Using proven Forex day trading strategies is the best way to make consistent profits while trading in the currency markets.

Sure, they might not seem very sexy, and they even require that you put in some effort, but at the end of the day it will all be worth it.

Think about it for a second. Do you want to be your own boss so that you can work from the comfort of your own home, with the ability to set your own hours? If you do, then you should definitely read the rest of this article very carefully, as the following Forex day trading strategies is what everyday people just like you are using to create their dream lifestyles.

Simply choose the strategy that you feel most comfortable with and then stick with it. That’s the most important point, as you need to give any strategy time, so you can ultimately reap the long term profits.

Also, it’s important to understand that a good Forex day trading strategy is not the be all and end all. Sure, it’s a major factor, but there are other things you need to get right in order to become a well rounded day trader who makes consistent profits.

For example, working on controlling your emotions is a vital skill to have as a trader, because if you are always running on high emotion, then even the best Forex trading strategy in the world won’t help you.

There are many popular Forex day trading strategies that you can follow. For example, there is trend trading, range trading, breakout trading, swing trading, and news trading, to just name a few. If you search long enough, then you would come across many more.

Here is how to use a strategy to start making profits.

Choosing a strategy

The best way to choose a Forex day trading strategy is to find one that makes sense to you and also one that feels comfortable.

There is little advantage to choosing a strategy that you don’t really understand, as you will be spending the majority of your time trying to work it out!

 

Which brings us to a major point: find a Trading Strategy that is simple to use and implement. Anybody who tells you that trading Forex is complicated is lying, which is why you only need a simple strategy that focuses on basic elements to be successful.

Stick with it

When you choose one of the Forex day trading strategies to follow, it’s essential to stick with it for a certain amount of time.

It’s no good using it for a few days and then deciding the system doesn’t work. You need at least a month to give any strategy a fair roll of the dice, maybe even a few months.

Many beginners to the Forex markets get distracted much too easily, which can only be described as “shiny object syndrome.” The main problem with this is that they never stick with anything long enough to see positive results, which leads to them getting frustrated.

Paper trade

How to use Forex Day Trading Strategies to Profit!

If you are new to the world of day trading, and you still feel a bit uncomfortable with the thought of risking money, then you should consider testing out different strategies by way of paper trading.

This way, you get the benefits of seeing if a particular strategy is right for you, while not having the burden of putting any of your own money on the line.

Also, it’s been said that the best way to trade in the markets is with no emotional attachment at all, and what better way to learn how to do this than with zero money on the line.

In order to paper trade, you can get a demo account with one of the Forex brokers or software programs, or you can simply use a pen and paper to keep track of the trades that you make.

Make adjustments

Once you have followed a Forex day trading strategy for a certain amount of time, then you will basically come to a point where you have two options; either you can drop the strategy altogether, or you can make adjustments.

No strategy is perfect, and traders are constantly making tweaks and adjustments to make everything more efficient, and most importantly, more profitable. If you adopt this philosophy of constant adjustments, then your Forex income will continue to grow year after year.

Conclusion

If you read enough books and blogs, then you will probably come across hundreds of different Forex day trading strategies.

Ultimately, it’s not going to do you any favours to try and learn every single one, and instead it’s a much better idea to just stick with one strategy for a few months.

Also, it’s worth noting that you shouldn’t be afraid to adapt your own individual style to the Forex day trading strategy that you decide to follow. This is what all successful traders do over time as they gain experience, and what you will end up with is your own unique successful system that favours your strong points.

As mentioned previously, it’s important to spend time focusing on other areas away from your Forex day trading strategy. Things such as learning how to use software, controlling your emotions, and finding the right broker, are all equally important, and will have a major impact on the amount of money you end up making as a day trader.