Day Trading Stocks

Brand new raw beginners are always asking me : What do I need to know and what steps are required in order to make a living out of day trading stocks?

Here’s what I tell them.

WARNING: Day trading in any asset class is not recommended for beginners. Keep in mind that raw beginners who attempt day trading have a 97% failure rate.

The live markets are an intimidating and brutal place for someone who starts off with the wrong information and they can be a mysterious, murky, and complicated place for the ill advised.

Read the rest of this content if you want to know the real way to make money trading the financial markets, your account will thank you.

I talk a lot about what all brand-new raw beginner investors and traders must learn on my Beginner Trading 101 with J.R. Calcaterra Podcast. Check out the evergreen content that every trade has to learn. Subscribe to my podcast and listen in every week. There is also a lot of evergreen content on my J.R. Calcaterracom personal blog.

Raw beginners no matter where they are in the world face a daunting task in learning how to work and survive in this business because let’s face it, it’s no game in there.

If you’re not fully prepared to deal with the brutality and volatility of the live market perhaps it is best you stay out of it until you can, no point in going in there and getting FUBAR right.

The good news is that anyone can learn this business and it doesn’t matter what you’re working asset in so you can work in Forex, futures, stocks or commodities or a combination of them, the better news is that it doesn’t take an MBA from some big fancy college to be able to do it, a matter of fact, you don’t even need a high school diploma.

Read the book Death by Day Trading By: Zordi Cobre it will scare you so bad you won’t even think about day trading stocks as a brand-new raw beginner. After I was done with reading that book I didn’t think that day trading was the way to go for me. I decided to do swing trading and position trading and never looked back.

Beginners have no business trying to learn day trading. It takes years of experience to be able to day trade consistently profitably and make a living from it not to mention a huge amount of capital to work with.

Trading is a vicious and brutal business to be in if you are not prepared for the brutality and volatility that go on in the live markets every day. The numbers are ugly for brand new traders.

It’s said that the average brand new trader loses an average of 25 thousand dollars in their first 3 months of trading live and 40 thousand in the first year, to me that’s just crazy!

Brand new traders think they can learn a few chart patterns and then begin trading live against the best professional traders in the world, sorry newbie it doesn’t work like that.

It takes at least a year to get it down pat more like 18–24 months to be able to work from a strict rule based trading plan which you can follow in both good times and bad.

It can take as long as 3–5 years to become consistently profitable from trading. I know that’s not what you want to hear however it is the brutally raw truth. There is a certain progression that all brand new traders must go through and if you’re not willing to do it then I strongly urge you to look at some other type of business because only one thing happens from not doing this business right from the first day, you lose all your money, ALLLLLL OF IT!

By following the advice in this post and keep it simple and take it very slow and absorbing every detail you can have the best chance for a high probability outcome as a successful market participant.

Should you decide not to listen to what it says, you will have a verrrry looong and expensive journey I assure you of that! Don’t be that trader!

Make no mistake, the market can make you lose your mind, burn your soul, and help you to lose all your money. Quickly!!

There is a certain progression of things that all brand-new investors and traders need to know and study. Unfortunately, no one tells them in the beginning that most of the information they need is basic and is mostly common sense, buy low sell high.

They don’t usually find out until it is too late for their account and they have blown out or ran it down so far they cannot trade live anymore until they deposit more risk capital.

Should you decide to try to take any short cuts or side step any of the learning process, you can be assured of losing some or all of your money in the live market. The learning curve in this business is different for everyone, some people catch on to it right away while it takes others quite some time to get it”.

I encourage you to take as much time as you need to learn everything you need to know for the style of trading or investing you wish to do and build your rule-based trading strategy around that style.

There is a lot to know to be successful in this business and the more you can know in advance the higher the probability of you having a positive financial outcome from working in the live market, anything else is not acceptable, trust me the market is always going to be there waiting to pay you.

All I can say is, learn it the right way the first time from the first day and you can make an unlimited income doing this business from anywhere in the world.

Of course, you do have to put in a lot of hard work to learn how to do this business the right way from the very first day however if you’re willing to do that, you, as I said, can make an unlimited income from anywhere on the planet.

You will also have developed a lifelong skill to make money from anywhere, any time day or night 250 trading days a year, kind of a great business to be in wouldn’t you say?

Here’s the bottom line.

Can you and are you willing to do anything it takes to learn how to make money with money?

Truthfully, the market is not a big secret and all of the information you need to make an actionable trading decision is right out in the open. If you know where to find the information and know what to look for you can and will make some money every day in the market provided you are looking at the right information.

Here’s what you’ll need to do to become proficient and consistently profitable from trading stocks.

The progression of learning is money management first, why do I put it first in the list you may ask because if you lose all your money in the market from lack of managing it you can’t be in the market.

Next would come chart reading and how to build out a price chart properly, learning how to use supply and demand as your trading method, your trading psychology, and composing a rule-based trading strategy.

You first need to become familiar with:

  • money management
  • chart reading/ price action
  • how the trading platform you are using works
  • your own trading psyche
  • market dynamics
  • supply and demand trading
  • how to develop an edge to beat your competition
  • how to compose a rule-based investing and trading strategy

After doing all of the above you must compose a rule-based trading strategy for the type and style of trading you wish to engage in which incorporates all of the above into it and then follow the strategy as if your very life depended on it, your account balance certainly will.

Make no mistake, the market can make you lose your mind, burn your soul, and help you to lose all your money. Quickly!! 

If you’re using 250–500 thousand dollars of capital to workday trading for a living is probably not hard at all as long as you have composed a rule-based strategy for the type and style of trading, you wish to engage in.

If you wish to be successful and rich from investing and trading, you’ll need to learn it properly the right way from the first day and compose and always follow a rule-based strategy, it’s the only way you’ll ever make any money from trading.

It’s only you who is going to get FUBAR.

Don’t be that trader.

Always remember, there are people in this business who will walk over dead bodies to get paid, they don’t care about you or care if you lose all of your money to them, you’re the competition and you’d better be prepared to compete at the highest level.

WARNING: Attempting to “trade” any financial instrument intraday as a brand new raw beginner is not recommended. If you’re considering trying to trade any asset intraday and you are a brand new raw beginner and you wish to save yourself a lot of time, stress, and money, JUST DON’T DO IT, read any one of these books first:

  • Day Trading Truths and Lies By: Joe Zordi
  • Day Trading IS Day Gambling By: Mar Ketmaker
  • Death by Day Trading By: Zordi Cobre
  • Day Trading Myths Revealed By: Richard Christopher
  • The Truth about Day Trading By: Joe Soldi
  • The Brutal Reality of Day Trading for Beginners

If you haven’t been scared into not day trading as a beginner have a look at any of these books.

FOR DAY TRADING BEGINNERS

  • Beginner Day Trader Market Timing Bible By: Joe Valuta
  • Day Trading 101 for Newbies By: Joseph Dinaru
  • How to Start Day Trading with $500 By: D. Thrader
  • Basic Day Trading for Beginners By: Joe Soldi
  • How to make a Living from Day Trading By: Richard Christopher
  • Best Tips for High Profit Day Trading By: J.R. Christopher
  • Set it and Forget it Day Trading for Beginners By: Joseph Sordi
  • Quick $tart Guide for Day Trading Beginners By: Christo Ricardo
  • Beginner Day Trading 101 By: Josef Gelp
  • How to start Day Trading on $500 Capital By: Moriaco Dinheiro
  • Day Trading for the Complete Beginner By: Jose Pila
  • Day Trading with an Edge as a Beginner By: J.R. Lira

FOR STOCK TRADING BEGINNERS

  • How to Trade Stocks Online on a $500 account By: Giuseppe Picciuli
  • Simple Daily Chart Stock Trading Method By: J. Geruto
  • How to make Consistent Profits in the Stock Market By: G. Scuti
  • 10 Secrets to Get Rich from Stock Trading By: Giuseppe Scuti
  • How to make a Full Time Income Trading Stocks Online By: J. Moriaco
  • Swing Trading Stocks using the End of Day Method By: Slacker Trader
  • How to Swing Trade Stocks for High Profits By: Joe Monnaie
  • Simple & Easy Stock Trading Strategies By: Josef Fluse
  • How to make Easy Money Position Trading Stocks By: Slacker Trader
  • Trading Stocks Online By: Joseph Moneta

As always….

PAY ATTENTION TO THIS You should compose a rule-based strategy around what your goals are from investing and trading and also for the type and style of investing and trading you wish to engage in be that swing trading, position trading. dividend investing, growth investing, or whatever. Your strategy needs to be specific to what you’re doing.

If you’re a brand new raw beginner you need to start off slow and build on success. It’s the only way you’ll ever be able to make a lot of money doing this business intraday trading is not the way to accomplish that.

One last piece of strong advice. No matter what you decide to do, any money you start out trying to “trade” with should be disposable income, meaning, if you lose all the money it can’t hurt you or your family in any way.

Listen to my Beginner Trading 101 with J.R. Calcaterra Podcast on your favorite Podcast provider if you’re a brand new raw beginner it’s specifically for traders with zero knowledge or experience, you can save yourself a lot of time, stress, and money.

If you’re a brand, new raw beginner PLEASE SHARE my podcast and this content and the links in my profile on your social media and let your beginner trader friends know about jrcalcaterra.com, they will love you for saving them a lot of time, stress, and money.

Also check out the comprehensive beginner trader book list in the suggested reading section.

You can also find J.R. Calcaterra on his podcast.

**Important** Share the knowledge you gained in this educational blog article. I would really appreciate it if you share it on your social media with fellow beginner traders. Click the “Button” to add/share it to Facebook, post it on Twitter, or where ever you are.

Thanks a 100 million for your help in sharing these lessons with others.

Good luck with your trading and investing and remember: Trade smart…OR JUST DON’T TRADE!

J.R.