3 Requirements for Day Trading for a Living


If you want to be day trading for a living, you're going to have to meet the following 3 basic requirements. These requirements include an ability to do extensive study and learning, a temperment suitable for this profession, and the minimum monetary requirements according to the Securities and Exchange Commission.

If you think you can just read some books about day trading for beginners, and you're all set as far as your day trading knowledge is concerned, then you are completely incorrect. Day trading requires hours and hours of intensive study. You have to learn from experiencing the markets in real-time in addition to learning how to read stock charts after the market has closed. You have to read books by day traders for day traders, and some blogs are particularly helpful if they're written by an actual trader.

The next requirement is that you have the temperament required of a day trader. You have to be able to stay cool in very stressful situations. You will sometimes have hundreds of thousands of dollars in the market, and you can lose thousands of dollars in mere moments. If you can't disconnect your emotions from the money involved, you're going to have a very difficult time navigating the stock market in day trading. You might consider other less stressful forms of trading like swing, or long-term trading.

You also have to have a pretty large amount of money to get started trading. The minimum requirement for any stock day trader is going to be 25 thousand dollars. This is a rule imposed by the SEC, and can not be waived. In general though, you want to have more than this in case you lose money. You definitely don't want your account to fall below that 25 thousand dollar minimum.

Those are the 3 basic requirements for stock trading for a living. There's a lot more to it though, as you'll find out through your continued education.

No comments:

Post a Comment