Many people will tell you that daytrading is risky...so is going to college, affiliate marketing, ANYTHING has risk to it. College you risk being stuck paying a loan for years with a ridiculous interest rate...even affiliate marketing, you are risking your time for something that MIGHT not give you back anything in return if you aren't focused enough or able to adapt quickly to google/the market/what have you.
Daytrading yes is risky too...which is why you MUST lay out a plan of rules. Trust me, I did not start seeing gains UNTIL I made a set of rules that I would follow no matter what. I have this plastered on my wall. The first few "rules" are the mindset I get into when trading.
Remember, if you are trading under $25,000 you will be stuck into the PDT rule which says if you daytrade (buy and sell within the same day) 4 times in a 5-day rolling period, your MARGIN account will be restricted for 90-days. You can still use a "cash account" but that's a whole nother story. Now there are ways to get around this, either by using an "offshore broker" such as SureTrader (which i HIGHLY advise staying away from due to friends I know that have had the trading software shut down in the middle of their trading MULTIPLE times.) or do what I do and open up multiple brokers.
Now onto the rules....here are mine:
1. I trade AGGRESSIVELY
2. I act IMMEDIATELY without hesitation
3. THE MARKET PAYS me, I do not pay the market
4. I RIP money from the market
5. I FIERCLY protect capital
6. My Trading Day is from 9:35EST - 10:30 EST until I open a 3rd Broker for the Afternoon Set-ups
7. I do NOT trade for the first 5 Minutes ("Amateur Session")
8. I only trade 2 times MAX each day until I open a 3rd broker
9. I MUST have 2 trades in order to trade that day until I open a 3rd Broker (I have 2 brokers at the moment so I have a total of 6 trades I can use in a 5-day rolling period - PDT rule)
10. I only trade real money on Tuesday, Thursday, and Friday until I open a 3rd Broker and I papertrade with a free account from Options House on Monday and Wednesday (Tailors around my work schedule and the PDT rule)
11. I do not swing (holding a stock overnight) any positions until I open a 3rd Broker for afternoon set-ups
12. I do NOT play stocks under $1 (my range is $1-$15)
13. Max Pain (max loss) on any stock is $60 (I look to make anywhere from $200-$500 each time I trade and I am very profitable because I cut my losses so quickly)
14. There will be days where there is NO play. NEVER force a trade, close the laptop and review the day.
I hope these rules give you a guideline.
I haven't used bullsonwallstreet, Kunal is great but from his youtube videos I didn't prefer his his teaching style. I prefer Tim Sykes (everyone calls this guy a scam just out of pure jealousy...I've been in his chatroom for about a year now and I've learned more than I would've ever learned from a book). Hell one of his DVDs "How to Make Millions" with 31+ hours of content has grossed about $200,000+ in sales and is ALL going to charity including any future sales.
EVEN if you don't buy any of his DVDs his chatroom has well over 800 active traders in there every trading day...it serves as its own alert service!
Here's a link to his
Pennystocking Silver Chatroom ---->
http://bit.ly/1R6HRgB
Brokers I use:
Etrade &
Interactive Brokers (primarily for shorting, they are one of the better brokers for traders with small accounts - low commissions and GREAT at having shares to short)...will be looking to add
TD Ameritrade as my 3rd broker this month to have 9 daytrades in a 5-day rolling period
I always enjoy helping out new traders because I've been there...not sure what trading style I wanted to go with, what resources to study from, what patterns and set-ups I wanted to trade. Took me a LOT of hard work and time but I've finally got it and I am continuing my success.
Any new traders/advanced traders, hit me up on Skype:
R3negadeTrader
Good luck!
