This is Why You Should Start Day Trading Under Quarantine

This is Why You Should Start Day Trading Under Quarantine

This is Why You Should Start Day Trading Under Quarantine 1024 576 Steven Dux

In the wake of the coronavirus outbreak and so many countries going into shutdown, life has changed.

The global coronavirus pandemic has been rampaging through the world affecting not just health, but economies and livelihood. It may or may not have affected you directly but indirectly, all our lives have taken quite a turn.

According to reports, within the first week of April, 6.6 million Americans filed for unemployment. Global unemployment is already at 190 million. No matter which part of the world, the pandemic has dealt a catastrophic blow on the workforce.

Some have completely lost work, while others are facing a loss of income because of less work, and the rest have immense work pressure. 

At this time, no one is really sure when the world will return to normal and that means this might continue for a while. 

At least for the foreseeable future, we are going to be in our homes. And since our work life has taken a complete u-turn, a lot of us are currently feeling lost, finding a lot of time on our hands, binging on Netflix, stuffing ourselves with junk food, and feeling completely restless! 

Does that sound familiar? I know, you’re also worried. You don’t know where the next paycheck is coming from and when. Financial security plays a huge part in our wellbeing and overall mood. Currently, you don’t know what is going to happen next and how you will take care of yourself and your family.

On the other spectrum, if you’ve been able to transition your work online, you may find yourself working longer hours than usual. You may feel disillusioned, exhausted, and undervalued. You’re probably getting paid less than before, and you’re addled with all these sudden changes. You’ve been wondering if this is how you want to go on. Or do you want to make a change?

How does one find work that doesn’t just pay well, but is also fulfilling (work you can do on your own terms?)

Don’t lose hope because the digital world presents immense opportunities.  During this global crisis, let’s try and make the best of the situation. In fact, the changes that this has brought about in your life could be the major transformation you need to propel your life forward.

We can look at events that send us out of work as a huge disappointment, considering that we have to explore new career options, but the truth is that this could be the time for you to completely reshape your destiny. To get out of struggling for a paycheck each and every single month and instead create the lifestyle of your dreams. 

There’s a way for you to do this while at home, just with three to four hours a day.

And the best part of it all is you can do it while spending time with your family and loved ones, AND while collect an unemployment check.  Like I said, staying at home has become our new normal so we might as well start looking at how to work the situation to our advantage.

 

How can you utilize the benefits of staying home right now? 

We are at a time in life when it is up to us to take control of our destiny. Even though we must stay home right now, it is up to us to take charge of our happiness. 

No matter what your background or your talents, there’s a silver lining to be found in staying home. 

Think about this: What if you could earn money staying at home? 

What if it’s something you can continue doing long after the lockdown is over?

Wouldn’t it be amazing if you can start earning for your dream lifestyle right now and save up for traveling once the pandemic subsides?

One thing this pandemic has made very clear is that a lot of us have the ability to work from home. While you’re staying home right now to survive a health crisis, eventually working from home might become the new norm. 

 

Why you should be getting into day trading right now 

While this might seem like a weird time to start a new career, there are actually plenty of reasons why you should. You need to breathe new life into your career. You are either stuck in a low paying, high-stress job, or suffering unemployment. 

In either case, you’re stuck at home mulling over the overhaul your life needs to take and stressing out even more because you have the time to. Well, now is the time to utilize YOUR time to make changes! 

Today!! 

Starting a career in day trading means you’ll spend at least a few months (to a year) learning the ropes and gaining knowledge. Make use of that time right away. 

You could spend your extra time right now binge watching Netflix or you could utilize it learning a skill that can change your destiny. 

I’m a true believer that you can learn anything if you put your mind to it. The economy may be uncertain right now, but your ability to gain new knowledge never will be. 

If I never got into day trading, chances are I would’ve been sent back to China after college. But I took a risk and decided to dive deep into the topic of day trading. I read every book I could read on the topic, studied graphs and took every single course possible. Through all of this research, I found a lot of stuff that didn’t work…

But I did find eight strategies that continued to work time and time again. 

And with those strategies, I created a portfolio that has made over $5 million in the last five years.

I went from having no career options to reshaping my entire life. And it’s not just me who has been able to do it! I have students who have replaced the income at their jobs, a few who have earned six figures a year day trading, and some who are earning seven figures each year. 

And while all of this may sound too good to be true, it’s really not the case. 

Day trading is a combination of math and basic human psychology. 

There are graphs you can look at that continue down the same patterns each and every single time. Some as consistent as 75 to 85%. That means that out of every 100 times you make a move on the same graph, you’re winning 85% of the time. When you think of the returns for that within a year, your income has the ability to compound significantly.

A lot of investors look at earning 10% a year when they go and trade. And if you have a million dollars to go and put into the market, you’re looking at earning a clean $100,000 a year. But if you are starting out where you’re on unemployment or if you just have less than $10,000 in the bank, a return like that isn’t going to do anything for your career.

That’s how I felt when I first started with my $27,000 investment. 

I knew that if I only got a return of $2,700 for the year, that I would be the first one to head back into a plane and get off on the next flight in China. I came here with limited knowledge of the English language and couldn’t really see myself finding an industry to make a lot of money in. I wanted to do real estate but I couldn’t wrap my head around the contracts. 

So I found something that I could understand, even with language barriers. 

I took a deep dive into day trading because numbers and graphs are universal and understandable, no matter what language you speak. And I’m so glad I did, because this industry completely changed the entire trajectory of my life. 

And just like it’s changed my life, I know it can change yours.

Especially during this time, where people around the world are seriously considering a way to make extra money. 

Now the difficult thing about situations like this is it puts a lot of people into fear:

  • Where fear and uncertainty makes you panic and become scared of what will come tomorrow… 
  • Where bills pile up and you fear you’ll lose your home and face financial collapse…

The government is doing what it can to help with bailouts and stimulus checks. But this isn’t enough to get you a permanent situation to take control of your life. You need to put your family first and take the initiative to keep your family alive and breathing. Then get them to thrive.

It’s your destiny to thrive. To stand out and overcome this adversity that came your way from this pandemic. To step up and reshape your entire destiny.                                                                                                                                                                                                                                                                                                                                                                                                                                  It’s not going to be easy and it’s going to take a lot of studying and hard work, plus you’re going to need a mentor to guide your way. But before getting into all of that, let me first explain what a day trader does so you can see if this is the right career move for you to make. 

 

What does a day trader do?

A day trader, as the name suggests, trades stocks within the same day i.e. buying and selling on the same day without carrying them to the next morning. This is often done multiple times a day. The objective is to earn small profits every day that stack up over time.

And what they also do is they can flip things around and bet the other way. Where they see trends going downwards and they make a bet that the stock is going down (this is called short selling, or shorting).

As an investor of five years and having studied the statistics relentlessly, the numbers have proven that 94% of day traders fail. That means only 6% of them are making money. And while that would scare off most people from trying to even get into the industry, let me explain why people fail like this. 

It’s because they get their emotions involved and wait for an upwards swing, thinking a stock is going to continue to go up. And then more people rally in on the ride up, thinking they’re going to get rich.

While this all happens, there comes a tipping point where a stock starts to go down. And these novice investors who ride the emotional wave of getting rich start to panic. They sell their stocks or hold on too long, then get wiped out in the market.

And this happens time and time again. How I make money, and how my students make money is that they look out for this exact same thing happening. Instead of riding the upwards trends, they ride on the downward trends. And when a stock falls, they are able to get a 25-35% return on their investment.

With $3,000, you could look at getting a return of $1,000 on a trade like that. And if that continues to happen 75% of the time, you could see yourself quickly making a lot more money. But it takes a lot of practice, mentorship and paper trades to really get to that point. 

 

Want to become a day trader? Here’s how to get started 

Now here’s why this is a crucial time in history. Never before have we collectively had as much time and the need to make a change in our lives. This is why I think now is the moment to get started in day trading and change your destiny. 

Now that the seed for day trading has been planted in your head, in order to change your destiny, you are wondering how to get started.

Success in day trading doesn’t happen overnight. It takes time and patience. You need knowledge and skills. The accumulation of that knowledge is a time-consuming exercise that bears fruit at least a year down the line. Hence, this is not a get rich quick scheme. 

For new traders, this is what I suggest to help get you started with day trading:

 

1. Knowledge and Expertise: 

The time on your hands that we’ve been speaking of? This is where most of it should be going. The good news is, you’re contemplating making a change in your life during quarantine, you are reading about how to find a new career and your knowledge building process has already begun. 

You’ve come to the right place. 

Use this time to get yourself acquainted with day trading and its nuances.

Spend your quarantined time at home to read my other articles, subscribe to my YouTube Channel, and sign up to my Free Day Trading 101 Newsletter where I guide you through the steps you should (and should not) take.

Here is a video of the discussion I recently had with Ryan Higa for his Off The Pill podcast. Ryan has 20 million subscribers and asked me some very pertinent questions that’s already helped a lot of new traders get started.

This discussion will give you an idea of how to get started. It is a good place to start. When I first got into day trading, I studied the markets each day, read books, and absorbed as much information as possible

I attended seminars and met other successful traders. I listened to their stories and studied their own techniques and patterns. It’s time for you to do the same so you can build your own wealth of knowledge during quarantine at home.

 

2. Capital: 

In the beginning, it’s important you only invest what you’re able to (and willing to) lose. And right now that will be a crucial decision.

I also recommend my students start with at least $3,000 of investment. You can start with less, but $3,000 gives you the leverage you need to build momentum. With this, you set yourself up for potential success from the very onset. 

Whereas if you start with less than this, you don’t give yourself enough room to work with. The money you make won’t give you the traction you need, and the commissions you have to pay will eat into most of your profits.

So if you don’t have $3,000 that you can comfortably spare, begin saving now. In the meantime, study the markets, expand your knowledge, and create a Plan!!

 

3. Create a Plan: 

This will be the beginning of a new career for you so start with a plan. Start prepared.

Day trading is nothing less than a business. You cannot start blindly and hence you need to have a plan with strategy and goals. It’s crucial that this plan includes risk management and an exit strategy.

As much as you’d want to owing to the time you have on your hands, you cannot jump into day trading and expect overnight success. Now that you’re at home, invest some time building a plan.

Your plan must include the following:

RISK MANAGEMENT: In order to become a seasoned, successful and profitable day trader, proper risk management is critical. 

Whenever I am mentoring newcomers, I notice that a lot of them don’t pay attention to risk management. Many of them assume that it will hold them back from success in day trading. It is actually the opposite! 

Proper risk management can actually set you up for success.

Meticulous risk management ensures your losses remain small and don’t turn into big ones before you even notice.  Determining how much risk you’re at ease with means calculating a profit/loss ratio, which is what you anticipate the profit will be versus what you might lose on a particular trade.

Establish for yourself what the maximum percentage of overall capital you’re willing to risk is. Sticking with a 1% to 3% potential loss, the overall risk remains low and gives you room to make more trades in a day.

I call this The 1% rule

It signifies that the maximum risk you take is no more than 1 percent on a single trade. 

With several trades in a day, keeping risk at 1% means there’s more than enough leverage to provide ample returns while keeping any losses minimal. It’s impossible to be profitable with every single trade; hence one must be prudent enough to keep the losses low. 

 

GOAL SETTING: During your planning stage, figure out how much you want to earn by and when. Think for now and also beyond the quarantine time, whenever that will be. Having a goal in mind will help you work towards it. 

Should this be daily or weekly or monthly goals? There’s no correct answer, especially in uncertain times like now, so do what makes the most sense for you. Whatever you decide, make sure that your goals are realistic. If you’re keeping your risk at 1%, your goal for profit should be around 2% or more. 

Finalize percentages that work for you to keep you in this race in the long haul.

 

PAPER TRADES: This final tip is a secret weapon! I will get into this in detail shortly.

 

4. Time

At present, my workday consists 2-3 hours of day trading. Any more than this is overkill and unnecessary.

It’s also where a lot of traders go wrong when they transition from a part-time trader into a full time one.

Having said that, in the beginning, you need to invest A LOT more than 2-3 hours each day.

You need to spend most of this time studying, planning, and experimenting. 

This is how you build a platform so in the future you only have to work 2-3 hours each morning. Again, most new traders get this all wrong. They jump into the trades and spend too much time trading and too little studying.

This is how you fail.

Building a new career happens from laying the groundwork. This begins for you now. And there has never been a better time in history to do this.

 

5. Commitment: 

With everyone’s work-life in such great distress right now because of the quarantine, it’s more important than ever to commit to taking things into your own hands.

You cannot get into day trading expecting to become an overnight sensation and making money right away. This is another reason most new traders fail. Taking a few courses and reading a couple of books is not enough.

When you enter the world of day trading, you need to commit to it knowing it will take priority in your work life and become your major source of income in the future. That is how you will come out of this quarantine with a profitable career in your arsenal.

In the beginning, you may get restless. You may feel discouraged. Take it one day at a time and see the results of your efforts gradually blossom. You need to see the bigger picture and appreciate that this is a process of building a skill. The results will come soon enough.

 

6. Technology and Tools:

The best way to use knowledge is to apply it using the right tools. No amount of knowledge will yield fruitful results if you don’t choose the right tools. 

To start with, you will need scanning software. During day trading, only some stocks are worth trading in. Identifying them correctly using a scanning tool is what changes the game. 

The next tool you will need is charting software. Charting is the process of watching asset prices move and take a call on when to trade. Charting software is used to create and view these charts and is a useful tool to understand market movements.. 

During the lockdown, you should take advantage of the numerous free trading tools available to you. These tools are significant for understanding the market, analysis, scanning for stocks to trade, and formulating your trading strategy. 

 

7. A MENTOR: 

I wouldn’t say I have any regrets when it comes to my day trading career but it would have helped had I looked for a mentor

It’s helpful to have a mentor guide you. I observed and spoke to a lot of people when I first got started, but I didn’t commit to a single mentor. If I had, my trading portfolio would be much larger now!

A mentor gives you the right training to get started and get set up for success. Most importantly, a mentor guides you in developing your knowledge and skills so you can create your own techniques and patterns. The quicker you do this, the quicker day trading can become your primary source of income.

This is how you will reshape your destiny and achieve new heights (even during a crisis).

Get a mentor. Find someone you trust and follow their advice.

The only piece you’re missing is the knowledge on how to do this specifically for trading. This is where your mentor comes in.

 

Start small with practice!

Want to know what would be the most significant thing you will do with all this time on your hands when it comes to being prepared for day trading? Practice. What if there was a way to practice day trading without the risk of losing your money? 

There is. It’s called Paper Trading.

Paper trading allows you to buy and sell securities without risking your money. It is a kind of simulation. While you’re building your expertise and honing your skills, paper trading allows you the freedom to fail and learn new patterns.

It will help you see what the real deal will be like!

It’s a fantastic way to map out your strengths and weaknesses, play with new techniques and patterns, and manage your risk.

I still use paper trades when testing new techniques.

I recommend all my students do the same, especially in the beginning. In fact, I tell them to prepare for 12-months of studying the markets and experimenting with paper trades before they invest large amounts of money.

It’s the secret weapon most successful day traders use. 

Once you learn how to do the same, you too can build a very successful portfolio.

 

Your Next Steps…

If you’ve read this far, it’s clear you’re frustrated with your work situation. 

The pandemic has taken a toll on your career!

You give so many hours to your career yet it’s giving you sleepless nights. The monetary returns just aren’t enough. There is no financial security.

It’s been a mission of mine to help people who want to make day trading their primary source of income. 

Now is the time for you to get started. Now is the time for you to build your own knowledge and expertise. The longer you wait, the longer you’ll remain frustrated during quarantine. Take charge of the situation!

Right now, I encourage you to take a few steps with me

  1. Subscribe To My Youtube Channel: where I share valuable training on how to trade, as well as behind-the-scenes insights into the trades I make.
  2. Join My Newsletter: I write these emails for people who want to learn the basics of Day Trading and the practical steps they should take to get started.
  3. Join The Freedom Challenge: my flagship program for traders who want to level-up and learn about the techniques I use, how to use them, and what to do to turn Day Trading into their primary income stream.

I hope you’ve found this article valuable and I hope you are staying safe. We will get through this.

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