This article will explain how you can become a day trader and highlight the best trading blogs to check out.
We’re now living in a world where pretty much anyone has easy access to the world of online trading. Be that as it may, there are shockingly very few traders who are succeeding in the day traders practice. Why is that? Is it not a common dream for many investors to become a day trader? They can work comfortably at a home computer, be their own boss, and watch profits roll in. It sounds very appealing, so the low number of success stories is odd, to say the least. Many aspire for it, but the truth is very few will triumph.
In order to be successful, you need to know the intricate details of the practice. Along the way, you will of course have questions or comments. Where better to express those thoughts than on a blog? And it is with great fortune that there are an array of blog platforms for you to choose from.
What do these traders do?
‘Day trading’ pertains to the act of buying and selling a financial instrument within the span of a single day. Sometimes, there can be multiple acts of buying and selling throughout the course of a day. Taking full advantage of even the smallest of price movements can prove to be a lucrative game. Or at least it can be if you play it correctly. Unsurprisingly, it has the capacity to be a rather dangerous game for novices. The same applies to anyone who does not follow a well-thought-out strategy precisely.
The role of a day trader is to actively buy and sell securities. And again, this can often occur multiple times during the same day. However, they do so without carrying any open positions to the following day. Buy/sell positions taken during a trading day are squared-off on the same day prior to the closure of the market. Day traders set themselves apart from active traders who may be holding onto a position for multiple days. Alternatively, from investors who are investing for considerably longer periods. In addition, day traders utilize leverage as a means to boost their intraday trade exposure.
How a Trading Blog Can Increase
In order to be successful at day trading, there is a requirement for knowledge. On top of that, a combination of skills and traits, as well as a commitment to a very specific lifestyle. Are you familiar with mathematical analysis? Do you possess financial knowledge and are aware of behavioral psychology (both in yourself and others)? Finally, are you capable of engaging in entrepreneurship?
Contrary to popular beliefs about easy life or easy money, day trading requires the following:
- Long working hours
- Very little leave from work
- Constant self-learning with little to no guidance
- Abilities in risk-taking
- Continuous commitment to daily activities in relation to the job
It is impossible to generate profits on a consistent basis. Intermittent and extensive losses play a large part in the day trading game. For example, a day trader could suffer eight loss-making trades in a row. However, they can only recover with profit in the ninth trade.
In order to properly handle these risks, a day trader needs to have a satisfactory cushion of capital. Newbies can commence with smaller amounts. It ultimately depends on their trading plan, their trading frequency, and various other costs they bear. If you want to actively day trade, it is imperative that you retain a balance of $10,000 in your trading account.
Understanding markets, securities, and money management
It is imperative that day traders have a solid foundation of knowledge regarding the functionality of the markets. Such knowledge ranges from simple details (exchange trading hours and holidays) to complex details (the impact of news events, margin requirements, and applicable instruments of trade). Whatever it is, a trader must have a broad knowledge base if they want to thrive.
The way in which stocks, futures, options, ETFs, and mutual funds trade are all different. A clear understanding of both the characteristics and the trading requirements of a security is a necessity. Without it, commencing a trading strategy can lead to utter failure.
Money management is what aids you in addressing these challenges. What’s more, it helps you with estimating what your potential profitability could be. An effective form of money management can assist you in winning, even if there are only four out of 10 profitable trades. It is important that you practice, plan, and structure the trades according to money management. Likewise, do so according to whatever the capital allocation plan is.
All in all, lack of knowledge about these requirements that are specific to securities can result in serious losses.
Strategy planning and integration
Novice traders who are starting their journey can begin by choosing at least two trade strategies. Both would function as a backup of each other in the event of failure. Alternatively, if there is a noticeable lack of trading opportunities. You can move on to additional strategies later – ones that have more complexities – as your experience develops.
The trading world, as a whole, is incredibly dynamic by nature. Trading strategies have the capacity to consistently make money for long periods, as well as fail at any time. It is important for one to keep a close eye on the effectiveness of the trading strategy they select. Moreover, they need to adapt, customize, drop, or replace it. It ultimately depends on the developments.
Choosing the right trading strategies alone is not a sufficient enough method to conquer the market. There are several considerations one needs to take in order to complement the strategy and determine the trading plan. Those important considerations are the following:
- How you will use the strategy (entry/exit strategy)
- The amount of capital that you will use
- How much money with each trade you will use
- Which assets are you going to trade
- The frequency of placing trades
Even if you do have a satisfactory amount of money and solid experience, it doesn’t give you an excuse to be reckless. Do not play big on the first trades of a new strategy. Instead, you should try out a brand new technique with a comparatively smaller amount. Furthermore, you should increase the stakes following a brief moment of success.
Keep in mind that markets and trading opportunities will always be around. Money, on the other hand, is a different story. Once you lose it, it may be difficult to re-accumulate it.
Blogs to check out
So, now you have an idea of what’s needed to be a day trader. With that in mind, let’s go over some of the best trading blog platforms.
1 – HedgeTrade
On this platform, traders can attach a ‘story’ to each Blueprint they publish. Some factors that these stories can contain include the following:
- The trader’s outlook on the market
- Their trading strategy with this particular Blueprint
- What led them to publish the Blueprint
It can be whatever they want to abide by their prediction Blueprint. Moreover, it can help engage their followers and the purchases of their prediction Blueprints.
Traders who are looking to follow and copy trade (to trade alongside professionals) can read the story. After purchasing the Blueprint, they can view it and see the reasoning behind that trader’s prediction. It is a great way for them to learn about the trader’s thought process, as well as technical analysis.
For each Blueprint, those who buy it can make comments underneath the story. Furthermore, they can initiate discussions, ask questions, and share comments/replies on social media. HedgeTrade’s prediction Blueprint Stories is advantageous for not just the beginners, but also the pros. Novices can learn about technical analysis and trading trends by reading the thoughts of expert traders. For experts, they are able to grow their community on HedgeTrade.
The Blueprint stories interface allows people to fully format their story, add images, use bullet points, and insert videos and links. And this is only the tip of the iceberg.
The story feature that HedgeTrade offers enables traders to share information pertaining to their Blueprints. Overall, this blog is very engaging and beneficial.
2 – Day Trading Academy
You can find the Day Trading Academy’s blog at – where else? – Day Trading Academy (DTA). Here, they provide readers with informative analyses of potential opportunities and the global investment markets. Following this blog will give you access to market-leading day trading education and trading coaching. All in all, this blog offers you with an ideal route to one day becoming a professional day trader.
3 – TradingView
TradingView is a popular social network for traders and investors on stock, futures, and Forex markets. On its blog, you will find a wide variety of informative articles ranging in length, from short and simple to long and descriptive. In addition, each article has a colorful, eye-catching appearance to make the material more appealing.
Article categories include ‘Business Updates’, ‘Charting Library’, ‘Data Feeds and Exchanges’, ‘Market Analysis’, and ‘Language Localisation’, among many others.
4 – New Trader U
The man behind this platform is Joseph Burns. He posts educational articles on this trading blog on a daily basis. He is a popular name in the trading community and he has thousands of followers on Twitter. In fact, his Twitter is probably where most would immediately recognize him. His feed is chock-full of interesting trading quotes.
This blog focuses on educating new traders in the ways of trading the financial markets. Burns’ posts are surprisingly quite short, yet are very insightful nonetheless. Moreover, they frequently cover topics that range from price-action and chart patterns to trading psychology. Not only are the articles comprehensive, but they also consist of diverse subject matters.
5 – Warrior Trading
Warrior Trading is a blog that teaches students all about day trade momentum strategies. The team reviews trades every single day for students residing in the chat room. This platform is arguably the fastest growing community of traders to exist online. Above all else, they pride themselves in teaching the strategies of Warrior Trading.
6 – LiveStream Trading
LiveStream Trading is a stock trading group whose purpose is to allow users to watch and learn from a professional day trader. And they do so via live screen sharing along with audio. On this blog, the team identifies, explains, and executes live trades that members of the platform can follow in real-time.
If you want to learn from professional stock traders in action, then this blog is for you. It provides you with live trading streams, day trading chat rooms, trade alerts, and daily webinars. In addition, it also offers free video lessons.
7 – Day Trade to Win
Ever since its launch in 2009, Day Trade to Win has proven to be a valuable platform. It mainly covers such subjects as E-mini S&P futures, currencies, and stocks. The posts on this blog primarily head with topics ranging from trading psychology to price-action. With these articles, the blog helps new traders in acquiring the necessary skills for market analysis. Specifically, from a technical perspective.
Overall, the platform caters to novice traders who wish to master their charting skills in various markets. These include the Forex, futures, and stock market.