How to Start Day Trading in 2024

I've been live streaming here on the channel every morning as I trade Futures and the thing I get asked the most every day is have you taken any trades yet but the other thing I get asked the most is how do I get started trading so I thought I'd try to cover the basics of everything you need to know to get started [Music] a big factor is determining what you actually want to trade there are stocks options Futures Forex cfds Commodities and so on and so forth the country in which you live may play a role here for example in the US you are not allowed to trade cfds which are contracts for differences but if you have the option to trade just about anything it's probably best to do some research on your own to see what the benefits and drawbacks are of each different type of instrument just go to investopedia.com and search for whatever trading instrument you want to learn more about I usually recommend people start with shares of stocks first because it is fairly simple and straightforward especially here in the states we have the largest stock market in the world with plenty of high volume liquid stocks to day trade decide on what you want to trade the next step is finding a platform and a broker to trade on the broker is the firm that acts as the intermediary between you and the exchange you're going to trade on that's where you'll eventually deposit your money the platform is a software you'll use to chart and execute your trades some Brokers have their own platforms for example TD Ameritrade has think or swim interactive brokers has their Trader workstation platform tradestation has tradestation and ninjatrader has ninja Trader some platforms and Brokers are better suited for different types of trading too for instance thinkorswim has a great platform for trading stocks and options but TD ameritrade's Futures fees are really expensive compared to the other Brokers out there so it's not the best place to trade Futures another reason why I think stocks are a good place to start compared to something like features is because features are leveraged instruments this means you don't have to have 100 of the value of the contract to trade it rather you just eat a percentage of it and your brokerage will cover the rest every brokerage has margin requirements which is the minimum amount you need in your account to open a trade as soon as your account goes below the minimum margin required your brokerage will liquidate the trade you're in and will probably charge you a fee too it can get a bit complex so if you're set on trading features just make sure you know what margin your broker requires and make sure that you have plenty of cushion in your account to avoid being liquidated a lot of countries have strict requirements for Brokers to be regulated in their country so I would recommend sticking with regulated Brokers as opposed to unregulated Brokers because they have to adhere to some standards that should protect you the consumer so how much money should you start with as little as possible because you should paper trade on a demo account before you ever go live with real money the good news is most Brokers have a simulation account for you to trade on you may just need like three to six dollars a month to pay for live data from your broker so the data is not delayed and you can practice trading some brokerages will let you paper trade for free if you have a real money account with them which is great too but if you have a few hundred dollars or even a thousand dollars and trade live chances are high that you'll lose it all when you first start out so the idea here is to trade without Financial repercussions until you feel like you have a strong grasp on the mechanics of trading on your platform and a solid strategy in place that will be profitable for you once you are ready to trade with live funds I'd recommend only trading with money that you're okay with losing because it is much different than paper trading your emotions will come into play and affect your trading because now you have something on the line one of the most challenging elements when starting out as a Trader is finding a winning strategy or system that you can actually Implement whether it's supply and demand ICT a macd or EMA strategy find something that resonates with the style in which you want to trade and back test which I'll cover in a minute it's very tempting to give up on a strategy if you aren't seeing results right away but if you know it's profitable in back testing I'd recommend trying to stick with it and see how well you can execute it the more you flip between different strategies the longer it will take you to learn back testing is going back in time applying a set strategy and noting how well that strategy performs and this is important for a few reasons first it validates the strategy second you know what win rate you can expect from the strategy and third you will build trust with that strategy so when you see it happen in real time you can execute it now some platforms offer automated back testing where you can input a strategy and will automatically enter trades on a Sim account and give you the results but I prefer manually doing it many platforms like trading view or thinkorswim or motivewave have replay modes so I'll go back in time maybe 30 days to start then play through each trading day marking the trades I would take and noting the results in a spreadsheet if you're looking for a starting point I found a solid back testing spreadsheet for free that I'll link below after you successfully backtest you then should forward test the strategy in real time throughout the trading day on a demo account for weeks at a time you want to make sure that it's a strategy you'll actually be able to execute correctly and that it's something that will work in current market conditions I would recommend having at least one to three months of successful forward testing on demo before trading with real money the toughest aspect of trading at least for me is the mental side if you are looking for some books on improving your trading psychology I'd recommend reading these books trading in the Zone by Mark Douglas the mental game of trading by Jared tendler and the daily trading coach by Brett steenbarger when it comes to learning about the markets as a whole some of the best videos I've found on YouTube are from more experienced Traders and these videos tend to be a little drier a little longer and not so flashy but the knowledge contained in them makes them well worthwhile for overall market analysis I really like the one option YouTube channel I'll link that down below and when it comes to courses I recommend learning as much as you can for free before opening up your wallet if you want to know more on that subject I made a whole video about it which I'll also link right below so to recap you need to First identify what you want to trade you may be restricted by what's available in your country or you may have your own preferences based off of the risk or leverage involved Style Trading Etc I always think a good place to start is just with equities so shares of stocks not penny stocks just mid and large cap companies second you need to find a broker and platform to use again the instrument you're trading the country you're in and the computer you have will all play a factor here third you should find a strategy maybe it's from reading a book watching YouTube videos or putting together your own strategy from a variety of resources whatever fourth back test the strategy and track the results so you know what to expect when you put that strategy into action fifth but that strategy into action in real time but on a simulation account so no real money is at risk sixth if you can trade that strategy successfully for at least one month three would be even better you could consider depositing money with your broker but make sure it's money you'd be okay with losing because trading is really difficult and Incredibly risky seventh profit I guess I hope this gives you the basic framework on getting started trading is a huge time investment there's a lot to learn but I believe if you have the work ethic and dedication to develop the skill it is something that can be worthwhile if you want to hang out with me during the morning New York session swing by my channel and watch me trade live on weekdays that's all for this one I'll see you in the next [Music]

Channel: Daniel Inskeep

Views: 177,945

Keywords: personal finance, daniel inskeep, making money online, day trading, trading, trading futures, trading stocks, trading forex, forex, futures, stocks, how to learn day trading, how to start day trading

Id: xSSWkzhKpeA

Length: 7min 33sec (453 seconds)

Published: Wed Aug 16 2023