Q:

How do you become a day trader?

A:

Quick Answer

To become a day trader, you must have the right equipment, do research, start slowly and keep track of trades. It is also important to devote enough time to day trading to become a success.

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Full Answer

Day trading occurs very quickly, and it is important to have equipment that can keep up. A high-speed Internet connection is crucial, as is a high-quality broker website. Doing research is also crucial to the success of day trading because trading without researching is a good way to lose all your investment funds. It is imperative to stay current on the market and receive alerts when things change. It is also important to know how much money you can lose before getting into financial trouble.

If new to dray trading, it is important to start slow, even if it means not making a lot of money. This helps you learn the ropes, which is invaluable for future success. Tracking trades is also important when starting to day trade as the money brought in through trading is considered income by the Internal Revenue Service. A day trader must show where the money came from when reporting it each April. Many get into day trading as a full-time job, and for the most success, it is important that a trader set aside enough time each day for work.

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