Step 1
It is better to have at least $25,000 to become a pattern day trader (4x purchasing power). Stock market is risky. Please only trade as much as you can afford to lose.
If you trade for four or more days in a rolling five trading day period, you are considered a Pattern Day Trader whether you have $25,000 or not. If your account equity falls below $25,000, a day trading minimum equity call will be issued to your account, prompting you to deposit additional funds or securities.
step 2
Open a Stock Broker Margin Account:
TradeKing
Etrade
TD Ameritrade
step 3
Learn how to read candlestick charts and their patterns.
Technical analysis is the soul of day trading. Please take the time to familiarize yourself with all the tools you can use. Basically, you just need to know simple average lines: 20-day and 50-day moving average line, MACD, RSI and volume.
step 4
Rules to follow:
1) Everyone makes mistakes, reduce loss early if you make a mistake.
2) Once you enter a trade, don’t buy anymore, just watch it go up and sell when you’re happy with the profit, or hold for 5 to 25 minutes. If you add more position something bad would happen. Day trading is like a thief who quickly steals money from the stock market and one by one if you go back to steal more they will catch you.
3) Day trading means quick profit, don’t hold shares for more than 25 min. You can always sell for a profit if it goes down from the top and then buy it back later when it turns out to go up again.
step 5
You should develop your own day trading system. Because each of us has a different personality and a particular trading strategy may not be right for everyone. Enjoy trading and never stop learning!
buying on margin td ameritrade
