Starting a day trading can bring you a huge amount of profit. It becomes more interesting since you just need a few hours a day to do it. If you are interested in day trading you need to pay close attention to these requirements to start day trading.
However, you need to be ready since the first year of day trading will be tough. There will be ups and downs. Your first realistic goal should be as simple as to not lose everything.
Here are the things that you need to consider, according to The Balance.
Create/learn a strategy
Day trading requires a carefully planned method on each trading you make. While planning that strategy you need to consider how you trade, how will you get out, and how much will you risk on the trade.
After that, you need to also consider the position size you will take, for instance, how many shares of stock or lots of currency.
In order for you to get the answers to those things, you need to implement the same method over and over again, while continuously monitoring the results.
Practice
Practicing is essential for trading, especially with thousands of your hard-earned dollars at stake. You can practice without risking a single dollar in a demo account.
Use that demo account to practice methodically, trading your created or learned strategy over and over again. Even when you will find different trades, practicing is still essential.
Today may be volatile, while tomorrow is sedated. Today is trending, while tomorrow is ranging. Thus, you need the practice to deal with each situation.
Also read: 4 Commodity Trading Tips You Should Know
Know the capital requirement
Capital is also essential for a day trader. It is like inventory for a store owner. The number of it, how you operate and manage it will affect your income.
