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Start Day Trading

If you have come this far, congratulations! You can now start day trading SLOWLY!

Once you are ready to set up a real account to trade, follow these exact instructions. But PLEASE…make sure that you’re indeed ready to do so! Remember that this is not a game!

To me, day trading is a business like any other. The reason why I think most businesses fail when they start is because of lack of preparation; not because of a lack of intelligence or potential.

Before you start trading, you should have a desire to learn, good training (make sure to read my trading e-book and learn to use the trading tools when you test drive the simulator), the proper tools, an open mind, discipline, and conviction that you can do it.

Forget intelligence. It can easily lead you to believe that you are God’s gift to man and that you are destined to succeed. Well, a feeling of grandiose and overconfidence will probably only lead to frustration and failure when you’re face-to-face with the market.

You can learn to trade if you really want to, but get prepared first.

In summary, before you start trading, you must know some important facts and rules,  like, the account size requirement (which depends on the particular broker you use) and that you need to use a direct-access broker to obtain the best results possible (you can request a free simulator by clicking here first before you risk a penny trading live – then, go to this section to set up a live account only when you’re ready).

You must also have the right computer for trading before you get started. This computer is where the trading software will be installed and run. The trading computer should have a high-speed Internet connection like DSL or Cable Modem (or fiber), an antivirus program, a firewall, and a UPS back-up system.

After getting your computer ready, you should proceed to learn some basic information like “bid” and “ask” and the types of orders you will use, like market, limit, and stop orders. Once you have a solid grasp of these things, you need to become very familiar with additional trading concepts like level II, Electronic Communication Networks (ECN’s), market makers, order routing and technical analysis.

The best way to become familiar with these concepts is while learning how to use the direct-access platform (like RealTick) that your broker provides. Then you are ready to open an account with a direct-access broker (or a Forex broker). From that point on, you should do paper trading with the platform simulator mode (demo) until you are ready to trade with real money. The final step is to start trading live!

After having gone through these seven steps that I have described, you should be on your way to becoming a more effective day trader. Best of luck and God bless you!

If you are ready to start trading in a demo environment, click here to download a free currency or FX trading simulator.

If you have not read the section on trading currencies, click here to do so now.

Back to Paper Trading | Learn about Currency Trading