Do you want to do day trading from home? Whether you’ve ever traded anything before, it’s essential to follow a few mandatory steps in order to construct your new enterprise correctly. What are the bare minimum requirements for your at-home office, and how should you go about preparing yourself mentally and emotionally? If you want to get started the right way, with the best chance of success, do the following.
Study the Markets You’ll Be Operating In
It’s wise to specialize, as many day traders are fond of saying. This is particularly true if you’re new to the endeavor. Consider choosing one or two securities and devoting yourself to studying them as if you were preparing to invest your life savings in a piece of property. Remember, this is going to be your job, so become an expert in the one or two companies you intend to specialize in.
Use a Broker and Platform Suited to Your Goals
You will need a computer that has a fast, reliable connection to the internet, though there’s no need for a commercial-enterprise server connection. Most standard home-based PCs will do, as will mobile devices with reliable trading apps. The two key elements of the setup, besides a physical machine/device, are a reputable broker and a versatile trading platform.
Keep in mind that not all brokers offer day trading services, so be sure to check before opening an account. It’s also a good idea to work with a broker whose built-in capabilities include the popular MT4 trading platform, whether you’re a new or seasoned trader. For example, Easy Markets offers this alongside its own web and app platforms. MT4, or Metatrader 4, is ideal for fast-paced buying and selling, giving you all the analytics you need for quick decisions, and displaying real-time price changes.
Run Through the Standard Checklist
Before you open an account, do a thorough assessment of your money situation and your personal strengths. Do you have the funds to begin this kind of venture? Note that you can trade CFDs, forex, and a few other kinds of instruments without having to maintain large account balances. That means it’s possible to get started with a small amount of funds.
Do you have the physical stamina? Day trading can be grueling work sometimes, especially if you have to keep your eyes glued to the monitor as a trade unfolds over a long period of time. Likewise, the pressure can build up to a pretty high level, so it helps to be healthy. Mental and emotional strength are part of the mix as well. You’ll have to hone your powers of concentration and avoid making impulsive decisions based on raw emotion.
Create a Realistic Strategy and Engage in Practice Trading
There’s no substitute for having a strategy. Decide how you’ll make a buy decision and what has to happen for you to get out of a position. Even if you come up with a very simple technique, write it down and follow it. You can always improve upon it as you gain experience. Then, before using your own money, spend a week or two on a simulator so you get the feel for how to quickly place orders and sell out of a position when the time is right.