How Can I Learn to Be a Day Trader for Free?
Day traders buy and sell stocks throughout the trading day. Learning to become a day trader is a very challenging process. According to the All Business website, nearly 90 percent of beginning traders lose money mostly due to a lack of knowledge. Traders use hundreds of different strategies and techniques to make money. This often seems overwhelming to new day traders. In addition, certain trading strategies are right for different types of people. Furthermore, day trading is notorious for having a steep learning curve where beginners are unable to profit until months after they begin trading.
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Instructions
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Travel to your local library to borrow books on trading. Thousands of books are available regarding different styles of day trading. "An American Hedge Fund" profiles short selling penny stocks. Short selling is the act of borrowing shares from a broker to sell then buying the shares back to repay the broker. "How to Make Money in Stocks" describes how to look for long-term price patterns to day trade. "How to Make Money Selling Stocks Shorts" details how to day trade by short selling larger companies and well-known companies. Check out as many of these books as the library allows. In addition, borrow books about the history of the stock market. Knowing the past performances of the stock market may aid you in speculating the future movement of securities. Also, borrow biographies of famous traders, such as Warren Buffett and Timothy Sykes. Biographies not only provide insight into the previous condition of the stock market, but also aids in teaching the psychology of training. Traders like Jesse Livermore and Timothy Sykes became famous for their trading strategies, but also became famous for their trading psychology. Learning the psychology of trading is vital in learning how to properly day trade.
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Ask a friend, relative or coworker that is a successful day trader if you could watch them trade. Although books are great resources at teaching the fundamentals of trading, books are unable to discuss the current market condition. Watching an experienced day trader work also helps in learning the psychology of training. Take notes and ask the day trader questions about why he chose to buy and sell at certain prices.
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Open up a paper trading account to fully evaluate what you have learned. A paper trading account is similar to a stock account in that it buys and sells securities, however everything is virtual. No money is lost or gained and no real securities are exchanged. Many online services offer free paper trading accounts such as Wallstreet Survivor, Noble Trading and Think or Swim (see Resources). In addition, some brokers even offer free paper trading accounts. Act as if the money were real when you paper trade. After weeks of paper trading, evaluate your success.
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Attend a basic finance class at your local community college or university. Many colleges do not require students to be enrolled to sit in on the class lecture. Although a basic level finance class does not directly teach day trading, the knowledge gained is applicable to the stock market as a whole.
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References
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