So you want to learn how to day trade well in this video we’re. Going to be walking you through each of the intent steps to get started by the end of this video you will have a concrete idea of what. Needs to get done in order for you to become well a trader number one numero uno we’re going. To be talking about how to pick a broker because. In order to start trading you best be picking a good.
Broker number two we’re going to be talking about how to set. Up your broker what needs to happen in order for you to start actually using. That broker number three we’re going to be talking about how much money you need in order to fund to your account how much do you need to actually start trading. And start making some progress with your trading goals number four we’re going to. Be talking about how to choose the correct style of trading are you going to be a greedy trader are you going to be a spoiled brat trader what type of trading are. You going to be doing and how do you actually go about using that style to actually grow your account number five we’re going to be talking.
About how to scan for the very best of opportunities and then how to exploit them because the stock market is a beautiful battlefield and in order to. Win a battle well you need to be able to find where the battle is number six we’re going to be talking about how to set realistic goals. So many people screw themselves out right out of the gate because they don’t set realistic goals if you’re not setting realistic goals and you don’t have a realistic plan on how. To get there well you won’t get there and lastly number seven education and practice we’re.
Going to be talking about how to actually go out and acquire the knowledge that you need and backtest the knowledge in order to. Figure out what is the style that’s going to work the best for you and then. You’re going to figure out how to actually gain the skill set that’s going to make you into a better trader and honestly while no trading video is going. To be enough for you to become a trader this video.
Is going to give you a huge boost if you’re able to sit through the entire video it’s going to give you a concrete guide with everything that you need to know in. Order to really just have this structured mindset to start approaching your trading this video is great for. People who know nothing about trading but it’s also good for people who well they haven’t really had a clear pathway to succeed. In trading they’re sort of lost they’re sort of on the sidelines but the only thing that I ask. For all the work that goes into a video like this is that you hit that ravishing like button okay number one picking a broker. So when I started trading most brokers had huge Commission’s almost every.
Single broker had commissions and all of a sudden came out and they didn’t have any Commission’s but today almost no good broker has Commission’s if you’re paying Commission’s. And you live in the United States you’re probably getting robbed people like to say oh you get what. You pay for when it comes to getting free Commission’s but the truth is that brokers have tons of different ways of making money and you. Don’t need to give them an extra way of making money but you do need to know that brokers today make most of.
Their money through you executing trades they don’t give a hoot nor a holler whether. Or not you make money because they win every single trade so you. Could see there’s a huge incentive for you to get into trading but anyways while most today won’t charge you commissions they will still skim some money off the top brokers today profit every time. You place a trade by skimming off your order on both the buy. Side and the sell side and executing you out and.
In favorable prices this is called slippage but if you are signing up with a broker the main things to look. For are the platform’s ease-of-use the execution speed the slippage commissions and if you have a small account the minimum deposit and the two brokers that I always recommend traders start with are we bowl. And thinkorswim I’ll put the links in the description below bakery swim has a. Very advanced but also as a results fairly complicated platform they have tons and tons of tools such as the ability to use on-demand trading to back test your trading. And practice on previous price action from dates in the past and they are Commission free for most securities that you’d trade wiebel is also quite powerful but they are a lot easier. To get started with and I usually recommend them over thinkorswim as they make it a lot easier to get up and trading as fast as possible they also offer.
A lot more hand-holding than figures swim does with it was sort of just really easy to use. Platform but they also are Commission free and have no minimum deposit one thing to know is that you’re never going to find a perfect broker a lot of people.
Will go in the big o we bolas down today or thinkorswim is down today they suck but the truth is that if you’re relying on just one broker it’s. Not the broker that sucks it’s actually you that sucks for not having a back up broker if you are a serious trader you’re going to need to have at least two different brokers. And they don’t have to be thinkers one where we bowl look around see what works best for you if you live outside of the US I also recommend Interactive Brokers Interactive.
Brokers as well they do charge Commission’s but it’s a very powerful platform and I’ve gotten great reviews from them from many of the. Students that we have in zip trader you and other people that I’ve. Worked with in the zip trader communities Interactive Brokers is a pretty good platform lastly Robin Hood is perhaps the most popular.
Broker right now and I have dissed on Robin Hood quite a bit in the past and I actually made a. Whole video on why I’ll never use Robin Hood but just as a quick recap Robin Hood was actually Kirk Hale – beginning investors and not traders investors and. Not traders and that’s a huge deal because traders are. Focused on quick frequent movements whereas investing is buying and holding honestly Robin Hood has improved quite a bit. And I don’t want to give them too much slack but their executions tend to be quite slow they tend to have a.
Lot of slippage which means that the broker is making more money off skimming your trades some people love Robin Hood you can try it out it’s up to you but for my training style. And from my own trading sanity it just it doesn’t work for me okay number two numero dos how to set.
Up a broker so as a new trader you will have the option to. Choose between a cash account and a margin account now these lovely cash account just means that. You can only trade with cash in your account and the margin means that you can trade with both the cash in your account and the.
Added margin which is essentially like an extra loan that the broker gives you to buy stocks with this gives. You extra buying power unfortunately this is kind of like going to Vegas and then gambling with loaned funds it just it doesn’t really make sense. Unless you have the money to back it up outside of the platform if you are a new trader I recommend just using a cash account. Margin accounts can be helpful for extending your buying power but if you use them and you have under.
25 can your account you’ll be subject to a pesky rule called the PDT rule this makes it so that you can. Only do 3 day trades within a 5 day period I have a whole other video.
Talking about how to avoid this rule so we won’t go more into. This than that but my suggestion if you are at the beginning stage is just choose a cash account and work on growing that up. It’s going to be painful but this part of the process is going to be painful and we will. Talk more about this later ok but now it’s time to.
Ask you go and set up the platform itself so if you just signed up with. A broker you should have a complete blank slate like this this just shows how your price has moved throughout. The day on the bottom you’ll have your volume voluminous volume that is just the number of shares being traded throughout the given time span. But based on your style of trading you’ll also want to add studies called indicators to your chart this is my setup this is our price strength SMA. Line which measures price strength if the price is trading above it we have positive price.
Strength if it’s below it we have negative price strength and the red measures direction if you are above it positive direction if we are below it negative. Direction the RSI right here this is our relative strength index it basically measures whether the stock is getting too heated or too under heated if it’s too heated it turns red this.
Is called overbought if it’s under heated it turns blue this is oversold if it’s blue you could consider this one sign of a stock being a good deal but these indicators don’t. Guarantee good entry points a lot of people think they do but that’s totally a misunderstanding of the point of indicators it’s also a lot of controversy over indicators as people. Say they are scams because they don’t guarantee you entry points but people who say that they are scams are just morons that don’t understand what they do indicators literally just take the. Price action that’s already on the chart and they combust it together into a formula to give our eyes a better way to analyze the charts so if you think that’s. A scam then what you’re saying is that the chart itself is a scam and you’re saying that the stock is a scam and that.
Means that you’re a moron indicators just simply take the price action that we already have on the chart and well. Put it into a way that makes it easier for our eyes to comprehend it alright eyes can’t take the price action and tell. Me where it’s over bind and over selling for example so that’s why I use indicators if you are a cyborg then maybe you can do this without indicators but I’m. Not so I use indicators and it’s also true that some traders choose not to use. Any indicators at all and then just sort of focus on the chart itself and it really depends on.
The trading style that you’re doing for me I measure price ranks though I want to have price strength indicators I measure over selling and over buying I measure positive direction right. So these are all things that I need on my chart so it really depends on the type of trading that.
You’re doing and your goals okay next fund your account everybody loves this part now one of the things that I always tell new traders is that it’s not. The capital that matters it’s the skill right skill over. Capital when you’re a beginner you can have hundreds of. Thousands of dollars to millions of dollars but if you don’t have the skill you’re just going to lose it.
All in the stock market the stock market doesn’t respect your capital just because you have a lot of it it’s your skill set that’s going to protect you and actually help you get more. Capital so focus on your skills over capital in the beginning you could do paper. Trading which allows you to train with zero dollars and you just use a simulated platform 100% you should be doing paper trading first and then after you do paper trading and. You’ve proved yourself with paper trading then what you’re going to. Do is you’re going to start with a small account of real money paper trading is great for learning the mechanics but once you’ve gone through the paper trading then you have to.
Start going to real money and I would say go from paper trading to a small account of about five hundred dollars if you’re trading with about five. Hundred dollars that’s enough where you’ll see some gains but you are also having to deal with some emotions you’re dealing with the emotions that come with trading with real money and having real. Money on the line and that’s a very important thing because a lot of people don’t go from paper trading which is perfect they’ll learn how to do the mechanics and then. They’ll do really well with paper trading but when you go to real money it’s not the same thing because you have a lot of money on the line so make sure. That you’re doing this in a way that makes sense you do paper trading and you scale up slowly to a small account of five hundred. Dollars obviously it’s going to take a long time to grow a.
Small account like that right it’s going to be very very torturous but that’s the whole point right because you feel torture then if you learn the skill. Set the hard way then once you have a bigger account then you’ll be able to manage it properly if you learn capital allocation at a small account of five hundred dollars if you. Learn how to figure out how to get that money and grow it then you’ll slowly learn and develop the skill set that’s needed to. Actually grow a larger account it’s also worth mentioning that. If you are using a cash account you won’t have a PDT rule but you’ll have to deal with settlement time settlement times are quite tricky because each time you sell.
A stock you’ll have to wait two days in order to get. Your buying power back this is actually an important lesson though because it’ll teach you how to deal with your capital allocation and using your account efficiently. To make sure you always have capital available for new moves but folks this is a stage where you’re growing a small. Account enjoy the struggle because this is where you’re actually building the skill set that’s going to be so necessary down the line and also yes you. Are welcome to add more money if you’ve proven yourself profitable you don’t have to grow that small account.
To the amount that you want to eventually trade with just make sure that you’re proving yourself on each stage before you go and add more capital but you can. Do it the natural way to just organically grow in that small account until you get to the point you want to be at okay. Number four choose your style of trading there are tons and tons of different ways in different styles and different methods oh geez I guess. Those are all synonyms of how to start trading and growing your account when I started trading I didn’t have the ability to sit in front of the screen all day due to. School and job commitments at that time so I focused more on swing trading in the beginning which means holding for multiple. Days to multiple weeks and likewise my style focuses on both day and swing trading and I curtail my positions based on what.
My schedule looks like obviously the stock market doesn’t give a hoot about your schedule but you can find opportunities that. Tend to follow certain schedules that are more conducive to what your goals and your current time commitments are but you have to find a style that works for you if you go. Online there’s tons of conflicting information and different opinions and strategies that will make your head.
Spin a lot of beginners unfortunately go and binge on tons of just random trading. Content and they just get so confused and they get into the state of analysis paralysis where. They really don’t know what to do who what to do but the one universal truth no matter what trading style you get to you just have to understand that there’s. One universal truth of trading and that’s the trading is a probability game it’s sort of like structured gambling as traders our whole goal is to.
Put the probabilities to push the probabilities into our favor so that we come out ahead on the long run but when you’re playing a probability game that means that not any single trade that. You take matters right it means that the trades that you take over the long run matter if you win on one. Trade or you lose on the other trade that means.
Nothing you have to do enough trades to actually see. If a strategy works or not because just winning or losing one trade doesn’t actually say anything about the trade itself because. It’s a probability game so if you’re going to win 70%. Of the time which is a high number and you just lose the next time how do you know you’re not on that 30% where you’re supposed to.
Lose but my own style of trading is taken advantage of clean priced ranks in an oversimplified description that means playing off clean. Runs like this Apple play here where we break into clean priced ranked. Over our blue SMA line then we have this clean.
Run before it breaks back below it and validates us out or this. Facebook play here where we break into an upward direction over our red directionless mayline have. A confirmation of price break and then ride it until validation or a break of said.
Price price but of course there is more to it than that since trading is a probability game we have to identify. What creates and powers these runs before we even buy Nanak formation of price breaks we have to figure. Out what catalysts what price drivers and what patterns what setups proceed this run and only then. Can we take advantage of it I call these elevating and deprecating factors things that make it more likely to go up and things. That make it more likely to go down but this video isn’t about my style this video is about introducing you into trading and figuring. Out what structure is going to be the best fit for you and your trading goals and honestly if you want to learn more about.
My style I have over 200 free videos and I have a complete structured course with a private tutoring chat attached if my style is something that appeals to you. But I want you to go out and familiarize yourself with tons of different styles and then see what works best for you you should know that there are two Gospels of trading. There’s the technicals what the chart is doing and saying and there’s the fundamentals what is happening outside the chart the news the company itself the ballot sheet the. Catalysts what’s happening in what the company’s doing bla bla bla technicals show you where to enter the chart shows you where to enter. But fundamentals explain why who why you were entering and. As short-term traders we do have more of a focus on the technicals as compared to the fundamentals but you need to have both in order to really understand the full picture of why it.
Is that you’re doing what you’re doing and how to actually play the fluctuations for example we called out. DGL Y which was a body cam manufacturing company they got a contract.
To supply body cams to police over a weekend in which we called it out over. A weekend with tons of laws being passed and just being aware of this current event would have gotten you access to.
A lot of this 83% move but in order to know when to enter. And exit you’d have to understand how to read the technicals on the chart but a lot of the.
Opportunities we talked about on the channel has to do with overreactions to fundamental. News so there’s a combination of both since every reaction and the stock market is a dirty overreaction if you.
Can find stocks that overreact massively to news you can play off their short-term correction for example we called. Out Facebook as it overreacted to news on Friday and then the first two trading days the first two trading periods this week we got an overreaction correction but these. Are very common and some are of slower pace for folks swing trading first for example Salva had our.
Overreaction and because it was so violent it created so much upside that when we we got just a small piece of good news in random massively this was another one of our call-outs of. Course but in other situations you’re going to have less fundamentals to trade off of and that’s fine too that’s why there’s a balance right for example. Zoom tends to oversell and over by during it’s consistent. Uptrend that means we take advantage of over selling points and trade they’re clean strength so overbought or em. You literally buying at any time historically at oversold on MU and selling out at. Overbought resulted in a good position but of course it’s not as easy as that you.
Also have to figure out how to control your risk for when the pattern inevitably breaks. Another example of a fundamental catalyst are FDA approval place now I’ve built my reputation on these plays I do a taught penny stocks video every month.
Where I talk about the upcoming FDA approvals and such like that this is a huge deal why because FDA approvals cause huge huge fluctuations and. Huge increases if it’s a good news event and we have the dates beforehand so we can say. Okay well how do we play this some of our examples of recent FDA approval plays were EVOC. Evey FM and XS PA but we’ve been doing this.
For a long time and you can go back to our top penny stocks video playlist and you can look at tons of ones that we’ve called out before but again we’ll just talk. About EVOC evey FM and XS PA so these aren’t cherry-picked examples but rather ones that we had in our previous.
Top stock video look at this EVF employ it rihanna massively on approval but then got beat down almost. 70 percent of the move right after so knowing that a approval is coming is a. Powerful cue right it’s a powerful fundamental cue but the technicals are also important they explain how to actually handle.
This blowing up the chart your aim is to buy an ik confirmation of a good setup and strength and. Sell out at validation allows you to catch most of the move most. Of the time but if you don’t know how to combine both the technicals and the fundamentals well you wouldn’t have been able to catch this move right you would have only said hey well. There’s a catalyst I don’t know when to buy it I’ll just buy it here then I’ll just sell it randomly here but you don’t know where. To trade it right you don’t know where your entries and exits are so so you need the technicals to explain what you’re doing.
You need the technicals to explain what you’re doing but anyways this is a gross oversimplification of trading in our trading strategy but I just wanted to give you an idea of how technicals and. Fundamentals come together okay number 5 how do you actually find opportunities. To go forward and exploit well there are a lot of and scanning techniques that we teach but if you are a complete beginner my suggestion would be to just. Start with the easiest of opportunities and for me that is overreaction place plays that get beat down massively on earnings or. Bad news and then show signs of increasing to overreaction correction if you’re trying to trade earnings you can find upcoming earnings using an earnings calendar such as weevil but I’d also look at consistent.
Movers a large portion of my day trades or on instruments called leveraged ETF some. Of them are yuko and ESCO spxl SP X s lab U and lab D but these are extremely powerful and if you choose the. Right ones you’re going to have tons of opportunities to trade off if you want frequent runners you want ones that are frequently fall tell us that you can trade the volatility okay number. Six set realistic goals now this may sound a little bit defeatist but set something. That’s attainable a lot of people are like oh I want to.
Make ten million dollars my first year trading or oh I want to make a billion dollars no folks you need to set realistic goals that’s something that’s low. But also slightly enough to motivate you say maybe oh my goal is going to. Be to make 100 dollars per week trading and then once you hit that 100 dollars per day then once you hit that $200 per day I mean.
You just keep going and you go and go and go. And you just keep hitting each attainable goal that’s very motivating because you pass each stage you feel accomplished and you get somewhere and those. Small attainable goals can stack up and two big goals. But be practical with us figure out everything that needs to happen in. Order to well hit your goal what opportunities will you need to take advantage of what percentage gain will you need to make on your.
Account size to have that amount and how will you manage your new capital once you earn. It the only thing that I’d really avoid at this stage is getting into a mindset of focusing on short-term profits I see so often that. People are like blah blah blah water is the new winner what stock is going to. Be the new winner or blah blah blah X stock is going to skyrocket it’s going to the moon well no folks it’s not about finding the next.
Stock that’s going to run a hundred percent it’s not about finding the stock that’s going to just become the. Next Netflix it really doesn’t matter because as traders guess what we’re trying to trade for the long-term. That means that an individual trade and individual win doesn’t matter at all what matters is that we stack up consistent wins over the long run me personally I’d. Rather have tons of consistent runs then just have one. Huge run if you can’t repeat trade long-term than your short-term profits are really just long-term losses in disguise so know that. It’s fine to catch a huge runner if you have a consistent way to measure your.
Risk and protect your downside but if you don’t have that then don’t try to catch those runners but part of setting realistic goals is also. Having a realistic effort and this is where we get to my last. Point number seven is educate yourself and practice practice practice practice so the truth is you aren’t going to get anywhere in the stock market without. A lot of trial and error but there are always ways to speed up. The process and honestly there are tons and tons of YouTube creators and educators online that have styles. And strategies of training that can help you get introduced into trading and what it means to actually be a trader in fact there’s limitless resources online at.
My channel I have 200 free videos right and I post multiple videos per week I also have a structured course right there’s just tons of content online. Both free and paid based on your goals but understand that there’s more to trading and meets the eyes a lot. Of training styles are watered down in order to get you more interested and you have to have. The discipline to learn all the details of each new style and work out the.
Kinks for example I talked about how important confirmation and validation is to setting clear and clean entries and exit points but this often leads people to thinking. Our strategy is all about confirmation and validation and that somehow you can just simply buy in when a stock breaks above the SMA line but that is not accurate. That’s not it at all this is similar to me teaching you how to build a plane it’s easy for everyone to comprehend that a plane will fly if it has wings. And an engine but it’s not so easy to comprehend many mechanical details.
That power it and actually make it move and this is the same thing when it comes to confirmation and validation it’s easy for me to. Introduce people into the mechanics of buying and selling points and controlling risk but the hope and presenting this easy to understand. Concept first is that learning about the utter simplicity of it makes you more motivated to learn about the complexities behind it that is to say we teach what is trading before we teach why. Is trading it draws you in with something that you can understand very easily and then invites you to learn more about the complexities but my point is that you actually have to take the. Time to learn everything about each individual strategy that you’re learning before you just.
Give it up a lot of people will just choose random strategies and then when they don’t get it right away they go and they throw that learn another strategy and then that. Doesn’t work because they don’t give it the time of the day so pick something dedicate your time to it and. Then grow your account with it if it doesn’t work after a certain amount of trades then you can. Throw it out who cares right doesn’t work but you need to give it. A fair shot and this leads me to my final point.
Find a community that empowers you and give you the structure to be accountable to yourself and also provide you with a clear. Pathway to meet your goals when you start trading you need to feel like. You are on the right pathway feeling lost is going to demotivate you and make you question whether all your work in frustration is for nothing and a lot of. Times it is for nothing because you don’t have a clear pathway and with all of the conflicting information and differing strategies out there it is really easy to be lost and fall. Into a state of being overwhelmed but there is a easy fix for this there’s literally hundreds. Of communities maybe thousands of communities online that will provide you that structure that you need and in this community zip trader we actually have zip trader circle zip trader.
Circle is a huge community of people who are just like you looking to learn how to. Trade looking to learn how to better themselves looking to learn how to grow their account and this is just our free Facebook group right so this is something you can join you have no. Excuse not to join it but maybe you don’t like Charlie Charlie’s kind of a weird dude well there are other communities out there.
As well so look at what is out there and find a community. Just make sure that you find someone to interact with that’s actually on this with you so that you’re accountable and also of course I. Do have to mention that we do offer zip trader U which is our paid course and community for people who. Are looking for a lot of extra guidance right I don’t think that everybody needs a lot of extra guidance but for people who.
Are struggling to grow their account or are beginners and. Just don’t want to deal with doing it alone the trait of you is the the course that we offer and the private tutor. And chat that we offer for you to be forged into a trader and work through all the gaps step-by-step-by-step well my point is find. The right community and find the right structure okay folks well I do hope this video is helpful if you have any questions feel. Free to reach out to us in the comment section below or join us on zip trader circle also fun fact one of my first and my most popular video of all time. Was my day trading for beginners video back in 2018 it’s fun to go back and compare how we’ve changed but anyways if you like this video make.
Sure you hit that ravishing like button make sure to comment below and let. Us know and I’ll see you in the next video. Also of course make sure to subscribe once you never forget to subscribe with that ravish subscribe button.