If you are new to trading stocks, it would make sense to start with pretend trading. There are plenty of sites that allow you to trade virtually. This means that you are not using real money, yet you are choosing your stocks, buying and selling as if it were real. You will accrue pretend gains and pretend losses. Don't laugh! Many people started out this way and then went on to make money when they felt confident enough to become a real day trader investing their real money.
Although the name is day trader, some day traders hold on to stocks for as long as three weeks. They make these decisions based upon market indicators. In order to educate yourself about the market you will need to get your hands on some day trading tools.
1. First you will need a computer with internet access. Your computer should be equipped with a fast CPU speed in order to process the trading charts and graphs quickly.
2. You need to set up a day trader brokerage account. There is an initial investment of a minimum $500 to $2,000 depending upon the brokerage dealer.
3. Because you are trading in such a compressed period of time, you cannot wait for delayed information, so you will need access to real time market data. Many day traders prefer to get this information from their brokerage dealer.
4. Learn technical analysis tools such as range trading or strength index so that you can double check the indicators leading you to buy or sell before you actually do it.
You do not have to trade every day to call yourself a day trader. Skip a day if you need to attend to other business or if you aren't up to the task. It is better to be able to focus your full attention to day trading than to participate half-heartedly.
Now that you have an idea of what it takes to be a day trader, do you still want to do it? If so, do an Internet search for virtual day trading to start your practice.
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