One of the most lucrative ways to make money from the internet is day trading. This gig involves buying and selling different small stocks throughout the day with the purpose of selling a stock for more than what you bought it for.
The key to day trading is that you don’t ever hold on to stocks your buy. Your goal is always to get rid of all the stocks you bought and hopefully be at a profit that day. You might not even hold onto a stock for an hour or more. You may buy a stock at one price, see it go up after a few minutes, and then sell right then and there. It’s a very fast-paced, high-pressure gig that’s certainly not for everyone.
Here’s how you can start to make money with online trading:
Meet the minimum capital requirement. To start day trading, you need at least $25,000 in your account. You may not have a trading budget of $25,000, but it’s the minimum capital requirement for the U.S. stock market.
Have a little cushion in your account. Expert traders recommend having at least $30,000 in your trading account just in case you suffer some losses in a given day. That’s because, if your account goes below $25,000, you can’t continue trading until you make a deposit to that account to bring it back up to or above $25,000.
Study up on day trading processes and procedures. Learn the ins and outs of how day trading works. Read blogs and watch videos from professional traders. Complete some tutorials and practice using a day trading simulator to get used to puts, calls, stops, and just how fast the market moves.
Pick a trading platform. Read reviews for platforms like Fidelity, TradeStation, TD Ameritrade, E*TRADE, and others to find the one that works for you.
Follow stock market news. Sign up for news alerts. Follow companies and industry publications on social media. Keep up to date with what’s going on with the companies whose stocks you’re eyeing to identify opportunities and cut your losses for the following days or weeks.
Determine your risk budget. Figure out how much you’re willing to lose on a given trade. Most traders recommend not risking more than $300 on a trade, which is based on a group of 1,000 at a given price.
Start small. Pick one or two stocks to trade throughout the day and stick to this for a few weeks or months until you really get the hang of things. This early step can let you practice with real money, get a taste for profiting, and limit how much variance you have to deal with while you get used to everything.
Don’t fall for penny stocks. Penny stocks might be great low prices ($5 a pop and under), but there is a way lower chance of them doing well. They’re only traded over-the-counter, so you won’t see them on major stock exchanges.
Know the right moves to play. Understand how and when to use limit orders and market orders to make the fastest moves on the best stocks.
Have a plan and stick to it. Before every day, review your trading strategy and the stocks you’re going after. That way, when the market moves fast, you can move right along with it. Don’t let your emotions control you.
By Admin –