I’ve been day trading for 10 years. I exploited 2 accounts – one $30,000 and other $37,000. I was in the 99% group that never got to day trade. The thing is, I’m a relatively smart guy, with a college education and an IQ of 140, and I still blew up two accounts.
I wrote this article for anyone interested in day trading to help you make up your mind. They will learn to be part of the top 1% who will be able to trade on the day (from anywhere in the world) or be one of the 99% who will fail and blow up their accounts. So if you really want to try day trading, read on.
Now, to tell the truth, I went into day trading for a few years with no education. I soon realized after spending a few thousand on penny stocks that there really was no riches to be found there.
Then, hit the internet for the wisdom of the collective. That is a dead end and your information is faulty. In fact, day trading is a multi-billion dollar a year business, do you think anyone on the internet will give you correct day trading advice? Almost everything you read on the internet about day trading or stock trading is false and designed to help you get your money out of your wallet.
What about the books? Yes, there it is! I’ll read some books and be able to trade stocks like Jim Cramer…(btw read all his stock trading books) the thing is Jim Cramer is an entertaining TV clown and he probably wouldn’t be on TV if he really was what it is. he says it is, the Harvard education and all.
Really put this to the test, watch his show, then see what happens to the actions he mentions. Not even 50%. All it will help you do is lose money faster than your ice pop melting on a 95 degree day.
I even took some private lessons and paid a good fee to be taught how to trade. One that comes to mind is Wall Street Basics run by Gary Williams. It’s not that the classes were half bad, but they weren’t what you need to learn to trade in the day. They led me down a path of continuing education. But I still lost my day trading accounts, just like you if you don’t follow my instructions here.
So what is the answer I asked myself as I looked out the window of my caretaker’s house overlooking the Caribbean Sea (a job I took to earn enough money to open another business account)?
Truth is, I needed a mentor, that’s when the rubber hit the road and my brain started to smoke. How the hell would I choose someone? Someone who was already in the trenches and trading every day, and what the hell would they lead me on? There it is, that’s what came to my mind…
These are the biggest problems that day traders will face.
- Small cap: In my opinion, the largest. The capital is the soul of it. If you don’t start with at least $30,000, you better start by saving your money. In fact, the FTC won’t let you do day trading right now without at least $25,000 in an account.
- Emotions – That’s right, everything changes when you have money at stake. Especially if you need the money to live. My advice? Save enough so you don’t need the money you’re trading with. Trading with the necessary money will DEFINITELY be a strong negative
- Under education. I don’t care how smart you are. YOU NEED A PLAN. If you can’t trade with a plan, then you are planning to fail. No yes, I buts about it.
- Hoping to hit a home run every time. No, this is really a job, a well-paid job, but it is a job. EX I average $250 a day. Some days I hit a home run. Most days, it’s just one. My best day so far? $1200. My worst day? -$5000 GRRR.
- To get a plan, you need a mentor, one who isn’t really interested in teaching for the money. That is why you are here: I am going to share 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 share with only a few per year. Why am I sharing? There really is plenty to go around, the stock market is full of wealth, a small handful of people learning to day trade will have no effect on the markets.
Now, having traded back in the day for at least 4 months or so, he could tell the fakers from the ponies. There are a lot of guys out there who are suitors. They look at a screen and tell you when to buy and when to sell. It’s like the old adage “If you want to feed a man for a day, give him a fish, if you want to feed a man for life, teach him to fish.”
I have added a link in the resource box that is a direct link to the only source of day trading I trust or would use on the internet.
It took me two years to find Mark, don’t make the same mistakes I did. Mark gives away a free day trading guide that is second to none