Many people dream of becoming full-time traders. Most of them start off with day trading stocks. While it is certainly true that you can make good money doing this, it is also imperative that you first get to know the underlying principles of the stock market before starting your trading career.
Your very first move should be to open a demonstration account at one of the numerous brokers providing this service. You do not need to make any investment to open such an account. Once the account is active, you can start making simulated trades. You would therefore not be using real money, but in every other respect the trading environment would be ‘real’. This is an excellent way to learn.
Since you would most likely use the same company when you are ready to start trading live, you should make sure from the beginning that you are happy with what they provide. An important aspect is that their trading commissions should be reasonable. Especially when you are doing day trading, your profit margins will be quite low and you can’t afford to pay huge commissions to your broker.
Another aspect is that they should provide you with an online trading platform. This is highly preferred over a system where you first have to phone the broker to get in or out of a position. In day trading things sometimes happen fast and you could lose a lot of money if you have to stay another 10 minutes in a losing position.
A fee other features that would be nice to have from your brokerage are: free SENS notices, free trading tips and free live prices. Long term traders don’t have such an urgent need for live prices, but day traders should absolutely not trade without having access to this feature.
Day trading stocks can live up to its promise and provide you with a lucrative part-time or full-time income. It depends on how you approach the situation though. Make sure you do your preparations properly and that you have access to a good broker.
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