How to Make Money Online Day Trading

Day trading stocks has become a fast way to make extra cash during tough economic times. Work at home moms and dads are now able to wake up, get the kids ready for the day and make a few stock trades from the comfort their own home. Furthermore, although the stock market is a daily gamble, it is not uncommon to net hundreds or thousands of dollars a day for a few hours of "work".

Difficulty: Moderate

Instructions

Things You'll Need:

• Computer
• Stock Broker- free online programs such as Scottrade.com

1. Learn the ropes- Devote 20 minutes a day to learning about the stock market. Read FREE online guides and try not be roped into expensive tutorials or trading robots. You will already be in the hole, and that is not the end goal!

2. Set up an online brokers account- I use Scottrade, but there are several other firms that offer the same type of services. Most charge about $7 a transaction, and utilize local stock brokers to guide you along the process of trading.

3. Focus on one market- the Dow Jones sees a lot of action, and the learning curve is fast and furious. It also changes throughout the day, and one stands to make a substantial amount of money in time to have breakfast on the table. In addition, trading penny stocks is a great way to buy stocks cheap. Watch them return by the end of the trading day. I have a friend who has made $2,500 this month by spending $500 in penny stocks- not a bad return. If planned correctly, day trading can become a successful and lucrative home business.

Tips & Warnings

• Try not to invest too much money in expensive tutorials- everything you need can be found by studying books and online articles
• Utilize and connect with your broker. He/she will guide you along the process
• Plan to make this your long-term plan and career. This is the best time to enter the markets and buy while stocks are low. One can make a six-figure income if he/she studies the markets and heeds the advice of brokers.
• Do not become emotional when trading - buy when times are tough and hold back when you are earning!!!

Resources

• Day Trading For Dummies (For Dummies (Business & Personal Finance))
• Mastering the Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups
• A Beginner's Guide to Day Trading Online (2nd edition)

[MyJB]

on 9/24/2009 Good information to get started. 5*

[martyd]

on 8/15/2009 Just started doing this myself, and, yes, the learning curve can be brutal to start, but it's like picking money off a tree when you get the hang of it. A VERY good way to practice is to open a "pretend" portfolio (or two or three) at CNN's website (money.cnn.com) and watch what happens for at least a month. THEN sign up for Scottrade.
Cheers

[anthonyrandall]

on 7/15/2009 Good article. I just want to add that good traders make money with a bad system and bad traders lose money even with a great system. The difference is Trading Psychology. I have a great article about it on my blog. www.makemoneyswingtrading.com

[ScarlettOHairy]

on 6/8/2009 This is a really good article on an earning option that is often overlooked. Thanks.