I have been day trading now for 10 years. I blew up 2 accounts – one $30,000 and another $37,000. I was in the 99% group that never make it day trading. Thing is I am comparatively smart, college education man with a 140 IQ, and however I nevertheless blew up two accounts.
I wrote this article for any one interested in day trading to help make a decision. They will either learn to be part of the 1% winners that will be able to day-trade (from anywhere in the world) or be one of the 99% that will fail and blow up their accounts. So if your serious about trying to day trade read on.
Now truth be told I went into day trading for a few years with no education. I soon realized after blowing a few thousand on penny stocks that there really was no riches to be found there.
Then off to the internet to get the wisdom of the collective. That is a dead end and their information is defective. In fact Day trading is a Trillion dollar a year business, do you think anybody on the internet is going to give you day trading advise that is correct? Almost every thing on the internet that you read about day trading, or trading stocks at all is false, and designed to help remove your money from your wallet.
How about books? Yes there it is! I will read some books and be able to trade stock like Jim Cramer… (BTW read all of his stock trading books) thing is Jim Cramer is a television entertaining clown and would probably not be on television if he is really was what he says he is, Harvard education and all.
Really put this to the test, watch his show, then watch what happens to the stocks he mentions. Not already right on 50%. All he will help you do is lose money faster then your popsicle melting on a 95 degree day.
I already took some private classes and paid a handsome fee to be told how to trade. One that comes to mind is Wall Street Basics run by Gary Williams. Not that the classes were half bad but they were not what one needs to learn day trading. They took me down a road of continued education. But I nevertheless lost my day trading accounts, as will you if you dont follow my instructions here.
So whats the answer i asked my self staring out the window of my caretaker home overlooking the Caribbean Sea (a job I took to make enough money to open another trading account)?
Truth Is I needed a mentor, that’s when the rubber hit the road and my brain started smoking. How in the world would I pick someone? Someone who already was in the trenches and trading every day, and why in the world would they mentor me? There it is, that’s what came to my mind…
Here are the biggest problems that day traders will confront.
- Under Capitalization – In my opinion the biggest one. Capital is your lifeblood. If you don’t start with at the minimum $30,000 you better start by saving your money. In fact the FTC wont allow you do day trade right now without at the minimum $25,000 in an account
- Emotions – That’s right everything changes when you have money on the line. Especially if you need the money to live on. My advice? Save enough so that you will not need the money you are trading with. Trading with needed money will DEFINITELY be a strong negative
- Under educated. I don’t care how smart you are. YOU NEED A PLAN. If you fail to trade with a plan then you are planning to fail. No if, and or buts about it.
- Expecting to hit a home run every time. No really this is a job, a well paying job, but its a job. EX I make around average $250 per day. Some days I do hit a home run. Most days, its a single. My best day so far? $1200. My worst day? -$5000 GRRR.
- To get a plan you need a mentor, one that’s not really into teaching for the money. That’s why you’re here – I am going to proportion my guru with you. Take it or leave it he is the best on the planet at what he does, and he is willing to proportion with only a few per year. Why am I sharing? Really there is plenty to go around, the stock market is abundant with wealth, a small hand complete of people learning to day-trade will have no effect what so ever on the markets.
Now having day-traded for at the minimum 4 months or so I could tell the phonies from the ponies. There are a bunch of guys out there that are pretenders. They look at a screen and tell you when to buy and when to sell. Its like the old adage ” If you want to satisfy a man for a day you give him a fish, if you want to satisfy him for a life time you teach him how to fish”
I have additional a link in the resource box that is a direct link to the only day trading source that I trust or would use on the internet.
It took me two years to find Mark, don’t make the same mistakes that I made. Mark gives away a free day trading guide that is second to none