The Day Traders
The Big Money Losers
The Big Money Winners
Both can be distracted by the reflections and the shadows of Data
A day trader is engaged in day trading, in and out each trade, in less than one trading day, unlike investing and swing trading, for the longer term, holding their trade overnight. but with day traders you enter (buy or go short) and exit the trade during the same trading day. What distinguishes our day trading from the norm or crowd of traders is that we are usually out of a trade within 3 minutes, as long as the price action is working in our favor while most traders hold for hours – hoping the price action will come their way.
With investors, there are no capital requirement, as with swing trading and both involve holding trades over night, whereas with day trading you must maintain a trading account capital balance of at least $25K and you must be out of the trade by the end of the trading day, at least that’s the plan.
While daytrading, day traders seek to make profits with margin leveraging (4X) capital (with a $50K giving you $200K and with a $100K account balance you have $400K buying power (margin), of course, margin trading accelerates/magnifies gains or losses on your base capital – risky, as well, high income potential business.
Margin allows day traders to take advantage of price movements in liquid stocks, usually stocks that are shortable, meaning available from your broker, with a $5.00 stock price minimum.
So, for daytrading as distinguished from a swing trading (holding a position for days) and an investing (holding a position for weeks, usually months, and for others, years – day traders trade a financial instruments for seconds, minutes, hours, all within the same trading day.
What’s Considered a Trading Day?
I distinguish our trading day, like most traders, as between 9:30am and 4pm, east coast time.
That is, I only trade with clients in our day trading room between those hours, where the extra 5.5 hours, before and after normal trading hours, presents unacceptable trading risks for us to enter and exit trades.
In other words, we hold no positions before 9:30 am (8 – 9:30 am) nor after 4pm EST (4pm – 8pm) – no exceptions.
Our day trading rules are simple and few and this one is not to be violated or, we’ve learned the hard way, we risk being killed – both financially and emotionally with a losing, big money losing outcome.
A day trader is required to maintain a trading account balance of at least $25K.
Falling below this level at the end of the trading day can generate a margin call, and we don’t want that, do we?
I recommend my clients trade with a minimum account balance of $50K, optimally – $200K.
Most day traders remain glued to their screens for hours making day trading both the most exciting, as well, the most boring game there is on earth.
Day trading is much like the military – “hurry up and wait“.
During the summer doldrums or during a holiday week, it can be likened to living in a fox hole forever; that’s why we avoid trading altogether on big money, sophisticated software trader “no-show” trading days.
On the other side of day trading, when there is price tension, with price action (volatility), plus a sufficient number of active day traders (volume) it’s the most exciting game on the planet, offering the greatest opportunity for near instant financial rewards.
Life is all about choosing your games well, for winning – and there is no better game for winning than day trading stocks.
I love this game. Can’t you tell?
Did I mention the potential day trader salary? (Oops, I mean day trader income – I forgot, daytrading is a career/business choice – with no boss, no commute, no collections, and no meetings or inventory.) Most traders treat their activities more like a hobby.
Other traders, like gamblers, burn through account after account. And there are traders who can earn 50K, $75K and rarely a bit more. My client income potential: thousands a day, hundreds or thousands a year – big money income, wealth building income.
Here’s the point about income.
If your goal is to make a couple hundred dollars a trade, given the limited number of trading opportunities presented each, your income will be mediocre at best, let’s just say $50K, give or take.
Now, on the other hand, if your goal is to trade with smart money, looking for thousands of dollars a trade, now you have the opportunity to make some serious money, CEO-like income – get the picture?
That’s why the Trading WEALTH Learning program can be so lucrative, for most reading this, unbelievably lucrative – and that’s the best reason for you to think seriously about changing your game from OLD SCHOOL to NEW SCHOOL – from Losing to Winning, then Wealth building Winning.
The game has changed, so have we, and so can you.
How to be a Day Trader?
A successful, that is, highly profitable day trader – needs 3 things:
- Day trade New school. New day trader perspective, new daytrader strategies, new day trader systems, new day trader rules aE” for losers to become consistently profitable winners.
- Daytrade with a Master Day Trader coach, every day trader who comes my way quickly hears me say “If you don’t trade with a coach you are doomed to mediocrity at best and big money losing at worse.”Can you imagine any world-class athlete, CEO, or politician performing at the top of their game without a coach in their field of endeavor helping them master the game?No.The same applies to every day traders, all day traders, who seek mastery; and for stock day traders, that’s about becoming a consistently profitable winner, then a wealth building winner.
- Day trading with other winners, focusing on winning, not the money.
How to be a Day Trader?
Researching with Google’s AdWords keyword search tool using day trader terms when looking for information about how to be a day trader or what is a day trader, you will find the following as the most popular results:
- Day trader
- Day traders
- Day trader salary
- How to day trade stocks
- How to day trade
- How to trade stocks
- What is a day trader
- Trader day
- Day trader stock
- And so on
Much of what I’m going to share with you on this website is what you need to know to become a very successful day trader, and I will especially describe what it takes to be a Winner day trader in today’s stock market; you will not find this information available anywhere on the Web.
Because I invented it.
most so-called day trader gurus (offering the day trader courses, daytrader books, day trading CDs, daytrading software, picks of the day, on their day trading blog, and the investors, swing traders, and day traders paying for their wares) are talking, teaching, and delivering products and services to day traders that are obsolete, OLD SCHOOL.
Whereas, I will be talking to you about day traders, and how to be s successful day trader, real-time, making big money right now, NEW SCHOOL.
That’s what this website is all about. That’s what our day trading is all about.
And that’s what your opportunity is all about with the Trading WEALTH Learning program – making big money, new school.
What is a Day Trader?
When you “do a Google”, the terms with the most global and monthly clicks are: day trader, be a day trader, what is a day trader, how to be a day trader, the day trader, daytrader, traders day, day traders, and day trader stock.
Searching the word day trader gives results from Wikipedia and Investopedia – the definition sites, the dated, dictionary-like website presents a problem: time lost, questions unanswered, and problems go unsolved.
Google presents these dictionary sites all over the first search page, items 1-5, rather than separating them as they do videos and news, placing these sites below the first five organic listings where trader expect to get their problems solved by professionals.
For most day traders I talk with, this is a nuisance, a distraction a time waster.
Day traders want the most relevant, reliable, problem solving websites on a page one search, in the first five items not buried deep on other Google search pages.
Day Trader Defined!
Below are excerpted definitions from 2 authority (dictionary) websites for your additional information.
Notice they don’t even use the terms: daytrader, day traders, pattern day trader, how to be a day trader, what is a day trader, be a day trader, day trader salary – what traders are really looking for to answer their questions and help them solve problems.
I do, so you will find what you want on this website to solve real trading problems – to get your what day trader questions answered and, as a result, to prevent problems and even get many of your day trading problems solved.
Like any aged reference material, remember that this information takes years to present to traders, thus questionable for accurately and reliably painting a real-world, real-time picture of what’s going on in the stock markets these days – what day trading is really all about is missing.
Day Trader – From Wikipedia, the free encyclopedia.
“Day trader refers to the hold time that a trader, trading in capacity of speculator, buys and sells financial instruments (e.g. stocks, options, futures, derivatives, currencies) within the same trading day, such that all positions will usually be closed before the market close of the trading day.
This trading style is called day trading. Depending on one’s trading strategy, it may range from several to hundreds of orders a day.
There are two major types of day traders: institutional and retail.
An institutional day trader is a speculator who works for a financial institution.
This type of trader has certain advantages over retail traders as he generally has access to more resources, tools, equipment, large amounts of capital and leverage, large availability of fresh fund inflows to trade continuously on the markets, dedicated and direct lines to data centers and exchanges, expensive and high-end trading and analytical software, support teams to help and more.
All these advantages give them certain edges over retail day traders.
A retail day trader is a speculator who works for himself, or in partnership with a few other traders. A retail trader generally trades with his own capital, though he may also trade with other people’s money.
Law has restricted the amount of other people’s money a retail trader can manage. In the United States, day traders may not advertise as advisers or financial managers. Although not required, nearly all retail day traders use direct access brokers as they offer the fastest order entry and to the exchanges, as well as superior software trading platforms.
In the past, most day traders were institutional traders due to the huge advantages they had over retail traders. However, since the technology boom in the second half of the 1990s, advances in personal computing and communications technology, realized in the accessibility of powerful personal computers and the Internet, have brought fast online trading and powerful market analytical tools to the mainstream.
Low, affordable commissions from discount brokers as well as regulation improvements in favor of retail traders have also helped level the trading playing field, making success as a retail trader a possibility for many and a reality for some.
An auto trader is the person who does auto-trading, which stands for automated trading and the use of computer programs and other tools to enter trading orders. Because this all happens with the help of the computer algorithm it is also called algorithmic trading.“
Day Trader – Investopedia
Definition of ‘Day Trader’
A investor who attempts to profit by making rapid trades intraday. A day trader often closes out all trades before the market close and does not hold any open positions overnight. Some day traders use leverage to magnify the returns generated from small stock price movements.
Investopedia explains ‘Day Trader’
Day trading is often glamorized as an easy path to riches. However, this is rarely the case. The SEC warns, “Day traders typically suffer severe financial losses in their first months of trading, and many never graduate to profit-making status.” Day traders are handicapped by the bid-ask spread, trading commissions and expenses for real-time news feeds and financial analysis packages. These costs require day traders to earn significant trading profits just to break even.
Still Have Questions?
Well now you know more about being a day trader (daytrader, pattern day trader) and what day traders are up to – either focused on the money or focused on winning, knowing the former is not nearly as important as the latter.
The “what is a day trader” question should now be no more.
Same for “how to be a day trader?”
And you know more about the big draw to day traders – the huge day trader salary potential, sorry, day trader (pattern day trader) income potential, so you too can become a day trader.
Got more questions?
Great, fire away with a Support request or email me and I’ll do my best to get you an answer.
If I can’t answer the question, I’m sure someone in my network of traders and friends can.
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