I was reading an ezine article this morning and it went through a laundry list of things required to be a day trader.  I suppose the author’s system might very well work, but it certainly seemed awfully labor intensive to be truly successful.  It also was very capital intensive and relied upon the trader’s ability to forecast directional market moves.  Yikes!

Step 1.

Decide what you want to trade.   I try to trade the most highly leveraged investments I can find because it maximizes my return.  For me, that would be index futures contracts.  They are liquid, accessible and trade very much like equities.  They are also highly leveraged, which gives the trader great potential for profit, and  conversely, great potential for loss.

Step 2

Start with the YM contract, I believe it is easier to trade than the ES contract.   Don’t start trading with real money, use a demo account and paper trade.   You will need to learn a system to trade, and I have made some videos that hint at my trading technique but plan a launch of my entire system in the near future.

Step 3

Once you can trade on paper for consistent profits, it’s time to trade with real money.  It is different with real money, and I can’t explain why, it just is.  The hallmarks of a good trader are excellent technique and unfaltering discipline.  Never take a trade on a hunch.  You have a system, use it.

Check this amazing FREE trend anlysis report on any issue you trade, especially the eminis:

Step 4

Money Management is of prime importance in trading.  Never risk more than 5-10% of your capital on a given trade.   You should open an account with a minimum of $5000 and only trade 1 contract until you have raised your account balance substantially.  Remember, 1 contract.

I have all sorts of recommendations for brokers, margins…etc, but that will come in time.  For now, realize that leverage is a disciplined day traders friend.