Are you sitting at home wondering what new skills you can learn? Skills that can add value to your life?
I have the best news for you. I’ve recently started a series on Investing for Beginners and this article is part 2.
Check out the previous article here that will tell you what day trading is, why you should consider it as a career and its basics (click here to open in a new tab).
In this second part of the series, I will take you through things you need to know as a beginner in Day Trading, where you can find appropriate information for learning, and other resources.
But before we do, I’d like to assure you that if you’re feeling overwhelmed with all the information out there and are having a hard time deciding who to trust, you’re not alone.
I have been there.
Since knowledge building is so important at the beginning of your day trading career, I strive to give you the information you need through this blog and my other resources. There’s so much bad advice out there. A large amount of it is pointless. In many cases, you have to go through complete courses to get 10% of the information you require.
There’s no way to know who to trust or follow.
I make every effort to put an end to all this.
I want to give you what you need, when you need it.
Starting a career in investing can be a little challenging when you’re just starting out. That’s why it’s important to know where to look for the right information.
The most significant thing that you will do in the beginning is to build your knowledge base. What you learn by studying is something no one can take away from you. Your knowledge remains a part of you, regardless of the situation of the economy.
With this mindset, no matter what happens you have the skills to rely on (always!)
Even the most experienced investors go through losses, but so long as you have a sound knowledge base, you’ll bounce right back. There are certain trading techniques that I basically used as a beginner that helped me build a $5+ million portfolio.
One of them is Day Trading.
What is Day Trading?
Day trading is defined as the buying and selling of stock within the same trading day. It can also involve buying and selling multiple times within the same day.
Day trading is a little different from traditional investing in the sense that it is short term. The buying and selling happens within the same day. The objective is to buy low and sell later on the same day for a profit.
This essentially means you’ll be making and losing money on the same day sometimes. The focus is on market patterns and research. Once you understand these patterns you’ll be able to make profits every single day.
But in the beginning, you will have good trades and bad trades. Which means this requires a great deal of patience. Accept the fact that returns will not be immediate, even before you think of entering this profession. Rome was not built in a day and any fruitful success takes its own sweet time.
Therefore, day trading is not a get rich quick scheme and neither is it easy. It requires a profound understanding of the markets, needs a strategy, ability to analyze, and patience.
You can have beginner’s luck but you will soon see that to get consistent results you will need consistent effort. The biggest secret of the best traders in the world is that they worked hard to learn the markets and discover what works and what doesn’t.
When you get into trading, you quickly realize how intricate strategies, charts, patterns, and platforms can get.
Without an exhaustive knowledge of the marketplace, a day trader can lose a lot of money, not to mention the zeal. So get acquainted with your marketplace and the assets that exist in it.
The best resources for beginners keep it uncomplicated and present a step by step guide on how to select stock, execute strategy, and handle your capital and risk. If only we were taught day trading in schools and colleges!
Unfortunately, we’re not. Instead, we must find our own resources. Here are some of my recommendations.
The Best Ways To Learn Day Trading For Beginners.
Day trading books can educate you on the concepts, strategy, approach, risk management, and psychology. Selecting the best books, though, is rather tricky. Here are some of the best day trading for beginners books I’ve found over the years.
Market Wizards by Jack Schwager
Everyone ends up finding their own path in trading eventually, so learning about how other people did it can help you create your own.
“Market Wizards” by Jack Schwager is a collection of interviews of successful and knowledgeable traders. For people interested in trading or investing I would recommend going through this book and absorbing as much information as you can.
The book covers a wide variety of trading techniques and markets.
I’ve read a lot of trading books in my career and would without a doubt say this is a good one. It is a treasure of experiences and insight that you can learn from.
How to Day Trade For a Living by Andrew Aziz
This book gives an overview of some classic approaches to day trading and how you can develop your own strategies.
It will also give you insights on why you should consider a career in day trading in the first place.
The book’s simple to follow, which is an added bonus as a beginner.
Trading in The Zone by Mark Douglas
If I had to recommend one book on day trading, it would be “Trading in the Zone” by Mark Douglas. I think every successful day trader must have at least skimmed this once.
Psychology is a huge aspect of day trading, and Douglas nails it in this book.
It really will make you think.
A Beginner’s Guide to Day Trading Online by Toni Turner
Toni Turner has over 14 years of experience in trading. Her books are a treasure trove of her experiences and insights on the markets and tools.
Her uncomplicated writing style also makes this a great book for beginners.
Turner is candid about her experiences and talks about losses as well. She presents a significant amount of analysis and realistic information.
Watch YouTube Videos:
There are many good YouTube channels that offer tips and tricks to help you build your day trading expertise.
To begin with, check out this conversation I had with Ryan Higa for his Off The Pill Podcast (that has 20+ million subscribers). This is a good starting point to give you an idea of what you can do as a beginner.
Once you’re ready to take the next step, go through my YouTube channel where I’ve dedicated many videos toward day trading for beginners. I also share weekly analysis, introduce new strategies, and more tips and tricks.
Here are some of my favorite videos aimed at day trading for beginners:
- How I’ve turned $27,000 to $3,000,000 before the age of 24: In this video I talk about my experiences as a beginner, what strategies I used and how I turned a $27,000 investment into $3,000,000 before I turned 24.
- The two new strategies you can apply into the 2020 market: As the title suggests, in this video I elucidate new strategies that you can use in 2020. So as you can see, the content is made to be relevant for the present to keep you up to date.
- 5 Golden Tips I wish I knew before I started trading: This is a video where I talk about the things beginners should know and things I wish I knew when I started. You will find more such videos where there is a goldmine of tips for beginners.
- 3 Reasons why you are failing as a Day Trader: Because I want you to avoid some very common mistakes, I have videos talking about the mistakes that beginners usually make. Watch in order to be aware of them.
On my channel, I offer you transparent, honest, and valuable advice to help you build your own knowledge base. However, I only create content for those willing to put in the work and commit to their success. I don’t make empty promises or offer overnight success. There are a lot of videos like that on YouTube. You won’t find them on my channel.
There are other channels hosted by day trading experts I admire. Amongst them, Tim Grittani stands out. His speech at the 2018 trader and investor summit is something you should watch right away to know the mindset of a successful trader
Listen to Podcasts:
I think podcasts are a great way to learn day trading for beginners, as you can listen to them while you’re doing chores at home, on your commute to the office, or right before bed when you don’t want to read or watch something.
Many day trading beginners have other full-time jobs and hence every minute of your day counts. Podcasts allow you to gain knowledge even when you’re on the move…
Here are some I recommend checking out.
Your First Million by Arlan Hamilton
Your First Million by Arlan Hamilton is a great podcast that teaches you how to get your first million dollars (or first million customers).
Hamilton has invested in over 100 companies led by people of color, women, and/or LGBTQ. The podcast includes tips for entrepreneurs, discussions on the current market scenario, and great information on everything related to finance.
A podcast by the experts at CNBC, Your Money Minute covers saving, spending, debt, retirement, taxes, careers, college, and more.
They also include 60-second personal finance tips based on the day’s headlines.
Chat With Traders by Aaron Fifield
We spoke about books that feature interviews of successful traders, now here comes a podcast that does the same. Listen to traders share their experiences, lessons, tips, and tricks as you dive into their brilliant minds.
If you are just getting into trading podcasts, this one is definitely for you.
Traders Nook Podcast by Matt Owens
On the Traders Noom podcast, Matt Owens takes us through conversations with his students who have achieved success in trading and general Q&A that are really enlightening. The information here can be really helpful and eye-opening for beginners.
Test your strategies:
Eventually, after all your research and reading, you’ll be able to come up with your own strategies. A great way to get better at day trading is to “test” as much as you can.
When I started out, I spent around 10 hours every day testing various strategies and making spreadsheets. You can do all the courses out there and realize that when you go to implement the strategies…they don’t work. You need to test for yourself what works for you. And then perfect it.
An excellent way to practice and test your strategies is Paper Trading.
Paper trades help you prepare for what day trading is really like.
They are a way to practice day trading without you risking your own money.
As you’re building your aptitude and sharpening your skills, paper trading allows you to simulate real trading. It brings you the liberty to slip-up and learn; try again and again to become skilled at new patterns.
Most practice trading these days makes use of electronic stock market simulators, which look and feel like real trading platforms. If interpreted properly, it can help traders improve their strategies, find errors, in addition to gaining assurance strategies before applying it to the real markets.
It’s a top-secret weapon almost every thriving day trader uses. I still do.
A good example to look at is Webull, which offers a free paper trading tool that allows you to try out new investing strategies and acquaint yourself with investing.
I advise my students to take paper trading as seriously as if they were trading in the real market.
Browse Through My Website and Blog:
I take great pride in the amount of information we have on this blog… and now that we’ve started this new series, a lot more is coming up.
Like I said before, there is a dearth of good advice out there and it is scattered across the internet. You have to browse through so many blogs and do so many courses before things begin to make sense.
I’ve put down everything I’ve learned over the years, and share it in a straightforward manner so others can learn and absorb effortlessly.
Introducing The Freedom Challenge:
Before I introduce you to the Freedom Challenge, let me tell you why I created it.
A few years ago, my life had come to a point where I had to find a way to sustain myself or return back home to China. If I did return, I’d consider myself a failure forever.
So I decided to change my life.
It wasn’t easy. It was a huge gamble and the path was rough.
“What if I fall? Oh but my darling what if you fly” – Erin Hanson
That’s the belief I had. What if the risk paid off?
I took my tuition money of $27,000 and turned it into $1.3 million over the next year. So I guess the risk did pay off! It did not happen overnight.
I made a lot of mistakes… mistakes I want to help you to avoid!!.
My personal experience and years of research have helped me create The Freedom Challenge. I help my students based on my knowledge of what to do and what not to do.
When I started out, I felt overwhelmed with all the information out there. I was exasperated at how confusing it was. That’s what prompted me to create this program. To condense everything and help you avoid going through ten different courses that waste your time.
It has become my mission to help people achieve what I did in a much more cohesive way.
Because earning money alone didn’t make me happy. Even though I thought it would.
It wasn’t until I started helping people that I felt content.
If I can help as many people as I can to avoid losing time and money, then I’ll consider myself successful. I don’t look at myself as a trader anymore. I look at myself as a teacher.
If you’d like to learn more about The Freedom Challenge, I invite you to explore here ⇒
Many of my students have gone on to make six-figures in a short amount of time (some even seven-figures). If you’re new to all of this and have limited knowledge as to how the stock market works, you may find it’s the program you need to get to where you desire.
Above all, I want you to know that I’m here for you, creating the content you need.
I write these emails for people who want to learn the basics of Day Trading for beginners, and the practical steps you should take to get started.