I’ve been day trading for about two and a half years while working a “real job” full time, and I’m on the verge of being able to make a living at it. Most people fail at trading because they don’t realize how much time and effort it takes to become consistently profitable. You should plan on needing at least two years experience of trading everyday until you can become successful. The problem is that you have to find a method that fits your personality, learn it, and at the same time get the discipline required to implement it.
Here’s my guide for the new wanna be day trader.
For the new trader I would recommend learning price action. Buy the book “Reading Price Charts Bar by Bar” by Al Brooks. On his website brookspriceaction.com he has daily analysis of the S&P e-mini and links to his webinars. Read his articles in Futures Mag as well. Spend a few weeks studying, then start a forex account trading 10 cent pips off of the 10 minute chart. Forex is too choppy to trade off the 5 minute chart. Do this for several months, refilling your account after you blow it as needed. Then move up to 1 dollar pips. Keep this up until you stop losing money and more importantly, stop making retarded, emotionally driven trades. After you feel confident enough, open a futures account for $5000 and start trading 1 contract on the Euro futures and the S&P e-mini off of the 5 min chart. When you are consistently making money and you take your account up to $8000, start trading 2 contracts. Keep adding a contract every 3 or 4 thousand. At this point you have gotten your bachelor's degree from the traders school of hard knocks. Unlike new graduates from traditional schools who are unemployed and deeply in debt, you should be making about $150 per contract, per day. Then move to Europe were you can trade currencies at normal hours and spend the rest of your life trying to get as rich as possible.