Before you even think about pressing the buy button in 2022, you have to get a basic education of the markets.
Many people just leap into their first day of trading without making sure they have checked off a few key boxes. If you don’t do these things, you will not be able to become a profitable trader. Today, we wanted to dive into the 5 things you have to do before you start day trading:
Find a Reliable Charting Software
Many charting software out there have too many bells & whistles that can slow down processing speeds and cause data lags. Especially the free ones like ThinkorSwim. Your charting software is truly your ‘hub’ for decision-making in trading. You need something very clean, comfortable, and configurable to your needs as a trader. Over here, we use and recommend TC2000 (check them out here: https://www.tc2000.com). It truly is a one-stop shop for all of your trading needs as you can create easy watchlists, scan for opportunities, and make lists/alerts with ease inside of one platform.
Learn One Pattern You Can Use Every Day
Many traders leap into the trading world trying to learn every pattern out there. The best way to gain consistency and profitability from the get-go is to study one pattern and master it, then move to the next. As a new trader, start very simple and limit your scope while at the screens. Search for one pattern like this very simple flag pattern breakout you see in the image below, focus on that, master it, and then move onto another.
Find a Journaling Software
One thing that makes Kunal so successful is the crazy amount of data he has collected from his trading days. Every trade he makes is logged with a trading journaling software. By journaling your trades, you are able to see your strengths and weaknesses and make adjustments to your game over time to better yourself. Stats are key, and by journaling your trades you will find the holes you need to plug in your strategy. TraderSync (www.Tradersync.com) is a great option for those of you looking for a robust, plug-and-play, ready-to-go journaling software.
Choose a Broker
This is further down on the list as you can see, because without checking off the other boxes before this, you won’t be ready to choose a broker and dive into trading. Our best advice for this step is to try out a few different brokers or at least look into a few to see which fit your strategy and style best. Look into fee structures, commission structures, leverage, borrows, etc. to see what fits you best. If you are a swing trader for example you may be fine choosing a broker with weaker technology yet lower commission structures. Whatever your case and strategy may be, there is an optimal broker out there you can choose and leverage.
Find a Trading Buddy/Mentor ASAP
Trading is a lonely game, so having someone you can bounce ideas off of or a mentor you can learn from will only exponentially increase your success and results. Join and leverage different communities like ours you can check out here and don’t be shy! Ask questions, network, and find your core group.
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