There are numerous ways to make money in 2024. Out of the many options, one is very intriguing: day trading. But when one starts the process of day trading with a fresh mind, it can still be quite overwhelming. The formula to success as a day trader includes more than knowledge of the market. A successful trader needs to apply rock-solid discipline and have the right tools at his side for building a profitable career. So we shall tell you how to day trade for a living in this comprehensive guide.
Our capital, your skills
What do you think day trading is? Professionals or educators worldwide claims the definition of day trading is the process of buying and selling financial instruments over a shorter span of time. This is 5 days a week during retail trading hours for retail crowd and for insiders this would include pre-market hours and after-market hours too. Day traders take advantage of the volatile intraday price action and this demands education in market trends and fundamentals respectively.
Being educated is a very important initial step in your trading journey. This might mean learning different market terminologies, techniques, and other important information that can help you on your way. Different market and/or asset class include equities, stocks, forex, crypto, etc. Having the basics of it goes a long way, and firms like Axe Trader have great educational resources to refer to when one starts their journey.
A trading plan operates as a north star in trading. The clearer and more precise it is, the better chance of success. It may be part of the trading plan outlined by setting trading goals (example: profit targets), trading styles (example: trend following, counter-trend trading), risk management (example: total tradable capital, percentage of capital per trade) and market analysis.
Having the right tools and technology helps you in your day trading journey. You will need a trading platform that allows you to access market data in real time, as well as advanced and smooth charting with fast execution speeds. Proprietary trading firms like Axe Trader offer great trading tools and real-time market data to enjoy the best trading experience!
A disciplined trading routine helps you to maintain focus and consistency. You need to develop a daily routine that includes market research, pre-market preparation, trading hours, and post-market analysis. Stick to that routine, build good habits, and over time, your trading performance will surely improve. Spare 1-2 hours before the session you wish to trade!
Always start trading with a small account to minimize the risk while gaining the experience. Paper trade or trade live with small positions to see how your strategies work in real market conditions. As you build confidence and fine-tune your techniques, you can increase your trading size and leverage. Once you feel confident about your results, you can jump into associating with a proprietary trading firm such as Axe Trader, which can help you scale your trading account sizes and move to the next level.
Consider conducting a weekly run-through of your trading results in order to determine your strong and weak points. Keep detailed records of all the trades made, including entry and exit points, size of the trade, and the results. Study your failures and successes to go one step forward and implement new plans to do better in general.
Day trading can be very emotional and, hence, full of fortunes and misfortunes. Managing emotions into emotional discipline is, therefore, paramount and calls for a cool mind while making trading decisions. Don't let your trading decision be swayed by accruing emotions of fear or greed; follow your predetermined trading plan.
Day trading for a living is a demanding but potentially great adventure. You can increase your chances for success by educating yourself, developing a solid trading plan, choosing the right tools, partnership with the right proprietary trading firm, and practicing good discipline. As a day trader, it is important to keep educating yourself on the market and to keep optimizing and refining your strategies further. If you have the interest and desire for trading and approach it in the correct way, then it surely can become a very viable career option.
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Axe Trader Ltd. offers fee-based assessment services and facilitates connections with third parties for Potential Traders who meet specific criteria defined by Axe Trader (“Eligible Traders”). Our services involve evaluating the simulated trading performance and results of Potential Traders in certain virtual off-exchange foreign currency instrument pairs (“Forex”) and/or selected virtual contracts for differences (“CFDs”). We conduct data analysis based on simulated trading activities in demo accounts traded by Potential Traders through Axe Trader’s platform, utilizing data provided by a third-party broker. Our methods and techniques are established and maintained by Eligible Traders.
Axe Trader grants access to a third-party’s simulated trading platform, related demo accounts, and simulated trading information for the purpose of conducting data analysis and assessment services. This third-party offers Eligible Traders a simulated trading environment and an opportunity to earn a share of virtual trading gains generated in demo accounts, as specified in their agreement with the Eligible Trader.
Additionally, Eligible Traders acknowledge and agree, as outlined in their agreement, that the third party has the right to collect and use the data obtained from Axe Trader for their own benefit, including the option to replicate trading activities based on this data. The third party also retains the right to incorporate any information received from Axe Trader regarding Eligible Traders into actual live market trading, which they will conduct for their own account and at their own risk.
Theoretical performance outcomes should not be considered as reflective of real trading experiences and are typically formulated with the advantage of historical knowledge, which may either overstate or understate the influence of specific market factors such as limited liquidity and price fluctuations. Moreover, since theoretical trading does not carry financial risk, it cannot fully encompass the impact of various risk-related elements, including an individual’s or advisor’s capacity to manage losses or adhere to a specific trading strategy when confronted with trading setbacks.
