We wouldn’t be frugalentrepreneur.com is were weren’t chock-a-block with great ideas for home businesses. Today’s brilliant idea is becoming a day trader. The start-up costs are neglible, the opportunities for riches are abundant, and it’s a thrill-minute for thrill-seekers like you.
With just a few thousand dollars, you can get started at home. If you have an idea of what’s going on in the stock market, you have leads on potential clients, you have a tolerance for risk, and if you’re a quick thinker, it could be the business for you.
The first thing to do to get started in this exotic, lucrative career is to get some simulation software that will allow you to make pretend trades and learn the ropes. From there, start reading the Wall Street Journal and other similar trade papers and found out what’s going on in the business. With these economic and political developments in mind, you can develop your trading strategy. This sets out your criteria for selection of stocks, your overall business strategy.
You then take your start-up funds and open a trading account. You’re now in business.
You’ll start placing various orders, with long and short orders being the most common. The most basic order is a market order, simply ordering the broker to buy at best available price. One of a trader’s imperatives is to understand which orders to make, when, and why. Precision is key.
Many traders fail in the first year. It is those who make big bucks that generate all the publicity and promises of riches. Doing well requires a head for numbers, quick thinking, stamina, and the ability to keep up with changing information with speed and acuity.
There are also a couple of external requirements, though you shouldn’t have much trouble meeting these. First, it’s key to have a dual-monitor system. This will allow you to take in more info more quickly. The next thing is to have an excellent internet connection. It can’t just be cable or DSL. You have to know that it’s reliable, not prone to cutting out or to lags. If you’re having any of these problems, do what you can to shore up the issues, whether it be changing settings, getting new modems or routers, etc.
From there, it’s a matter of obtaining a few simple pieces of software. Analysis software and software that executes orders will probably be the extent of it.
Once you get into live trading, you’re executing your trading plan, striving to get results that match the plan. Here’s where speed of mind comes into play. Small errors can get between plan and results. As you go get a few weeks into trading, you’ll look at your equity curve, which shows your profits and losses over a period of time.
The ultimate freedom comes in day trading. It’s all about you and your abilities.