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How to become a trader? – Starting My Journey
Recently more and more people looking to make income in a flexible way and remotely i.e online have discovered day trading as a means to achieve exactly that. They may have seen a few trading movies, got super excited and inspired, and decided to give it a try. That’s totally OK. Some of you just love the financial market and decided that day trading will be good as a career, that’s good too!
The important thing here is to start. It’s as simple as that. If you are interested in becoming a trader or if you are wondering how to become a day trader? Well, I’m going to tell you my story, why I choose to trade and everything you need to know so that you can also start off on your own trading journey too.
So if you want to become a day trader, keep reading and learn how you can get started on your own day trading journey!
How to be a day trader?
Before you start your trading journey, you need to know what you’re going to do and what you’ll do. This is why I choose day trading:
Why Day Trading?
How does one know they want to be a trader and not only an investor? I mean, isn’t trading and investing the same thing? You buy a position – be it stock, bond, fund, future holding and then you sell it?
Well that is true to some extent. In reality, trading and investing are completely different animals. The most important thing to know is this:
Investing is long term and trading is daily.
But here are some more fun reasons why they are similar yet different.
How investing and trading are similar:
1. The tools you learn to trade with (charts, indicators, etc…) can be and should be applied to your investments. For example both investors and traders use charts which show price movements over time. Also indicators can help both investors and traders to assess market trends, momentum, volatility and potential reversal points which are super useful for both investors and traders.
2. Doing due diligence is crucial for both your long term investments and your daily trading techniques. Understanding the asset you are getting into whether for trading short term or long term investing is crucial to be able to assess growth prospects of an asset or company.
3. The myth that investing and trading are a form of gambling. When using a strategy this can be less risky than being hired by a corporation these days with all the lay offs happening. And there are some similarities with gambling such as uncertainty and speculation. Bu the differences are also clear. Gambling is a game of chance while trading and investing involve analysis, research, risk management and strategy in order to ‘win’.
4. You must set your targets, especially the stop-losses for both. However, investing for longer term allows you more leeway to go through more ups and downs. Day traders need to tighten up their stops. In the end, risk management is crucial for both.
How investing and trading are different
1. Positions – Investing usually means holding on to your positions anywhere from one week to many years. Trading is done intra day with all your positions closed out before the 4pm bell. So the focus is mostly short-term for traders in comparison to the long term positioning of investors.
2. Time Frames – Trading is micro management. You are usually focused on extremely short periods of time (two minutes, five minutes, fifteen minute charts). Investing is usually looking at the macro picture (one month, six months, one year, etc…), as well as some micro examinations too especially when deciding to get in and out of an investment and analyzing market movements.
3. Passive income – Dividends are a from of passive income that are not really the focus for day traders. But for a long term investor, dividends gained from dividend-paying stocks or dividend focused funds can provide investors with a steady stream of income. In short traders have limited options for passive income in that they don’t focus on acquiring and owning income-generating assets.
4. Analysis – Fundamental analysis can mean very little to traders. It all boils down to technical analysis. Investors need to use both for long term holdings.
5. Daily News – For a day trader news is vital. If you’re holding a position during news, you can literally lose everything. Long term investors can follow some news, but they can usually ride out most storms.
6. Taking Shorts – Day trading is much more fun when shorting positions, not at all recommended for the longer termed investors.
7. Education – Way too many people think they can become a day trader just like that. You will fail for sure without learning and developing a strategic plan which requires taking a high-value course or several courses. Whichever works for you.
Even though there is no point of entry to this industry except to have money, you need to understand what you are doing. Does a wanna be doctor go directly into the operating room? Why should a trader start taking trades without knowing what they are doing? Investors can get away with doing their own self-education.
8. Career –this is the main difference – Day trading is a career, not a hobby. Many investors can look at their different investments periodically. They can study them in their free time. Day trading is your work and your life. No matter if you do it for a couple of hours each morning or a full day watching the market.
How do I Become a Day Trader?
It is my calling.
Honestly, I don’t believe many people will become full time traders or even start their trading journey if it wasn’t their inner passion.
Investing is something that always interested me. I enjoy learning all about the markets. Different ways to set up portfolios and funds.
Even though investing is something that every person should do for the growth of their money. You know you are a trader when you want to do daily, on shorter time frames, and understand how to work with the market.
Remember that day trading is much easier when you have an app that you feel comfortable with, as you’ll be able to trade anywhere, whenever you want. Check out some reviews of the most efficient ones for beginners on this site. Basically, you want a reason to do it all day long.
That is what happened to me. Investing for years on the side wasn’t enough. I always wanted more and more.
Like everything you want to do in life, if it is unconventional (especially for a woman), you put it off. I did that for years until my main business came to a halt. And instead of freaking out where my money is going to come from to feed my family, I sat in my room and took out my ‘dream life’ goals that I have been writing for the past five years. Each year I wrote I want to become a full time day trader and surround myself with other women who have similar interests either in investing and/or trading.
It took a harsh wake up call from the universe to tell me it is now or never. This is when I decided instead of putting more energy into a business that I loved, but wasn’t in love with anymore to starting a new, scary career path.
I will tell you this. Trading is soooooo not easy. But it can be simple!
How to SIMPLIFY DAY TRADING
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Trading has challenged me on every single level and every fiber of my being. From financially to psychologically.
It is without a doubt the greatest, most powerful thing I have ever done. And every single day I learn something new that not only affects my trading but my everyday life.
Trading teaches me how to handle my relationships with my family, friends and even my own body.
It teaches me about patience and discipline and consistency.
I am nowhere near mastering it, but I know I am a better person with it in my life.
Thinking of starting your day trading journey? Let’s connect
If you want to learn more about becoming a day trader and start day trading on your own with ease and confidence – Sign up for the FREE Mini Course.
Come to my Facebook group and introduce yourself, let me know your experience with trading.
Are you ready to go beyond basics, learn day trading and start your dream life – check out My Courses.