how do i day trade

[rooky]

hi there. i am interested in day trading. i know absolutely nothing.

how much money do i need to begin? i am in australia. can i only play aussy stocks or can i play in the us/ international markets.

what hoops must i jump through before i can start playing this game? what software do i need, how do i start, etc?

thanks very muhc for your time..

[Robert2617]

Scottrade (basic web based trading platform) account is free with a $500 minimum to open an acct. TradeStation which is one of the preferred Day Trading (full software running on your computer) and brokerage services has a $5,000 minimum to open an account and also live data will cost a minimum of $105 a month unless you trade 5,000 shares a month and then they wave $99 of the monthly fee.

Be prepared to lose all of your startup money. You can avoid losing it all if you go very very slow and small and also add to your account when possible. At first the risk is high because you don't know the pitfalls to avoid but after a while after you have stepped in a few, you start avoiding them. You still get your feet wet every once in a while but not as often.

I'm not an expert by any means but I have been reading and studying a lot. I consider myself a noob. Best thing to do is read read read and study charts for hours a day until you can start recognising patterns. At that point, keep doing it.

I think it is fun and exciting.

Oh, and you can trade US or any other markets.

[rooky]

thanks that is sort of relieving i'd heard mention of 25k minimum for an account with day trading behavior and there is no way i can afford to risk that much money.

excuse my ignorance but what is the function of a broker and is it necessary t ohave one?

also, do you know anything about forex? from the small amount i have read this seems easier to understand. how easy is it to trade currency on forex - is it a similar sort of setup like trading stock? and is it recommended or easy to grasp for someone who is willing to learn but has v little economic knowledge and experience?

thankyou

[Soultrader]

rooky, I want to make sure you take the right path for your trading. Take a look at this article here first: http://www.traderslaboratory.com/for...isdom-633.html

Day trading requires a min of 25k for stocks and usually around 5k for futures. The leverage on Forex is insane that I never recommend anyone with a small account to attempt trading the Forex markets.

What you need to do is to grab a few books and understand how the markets work including all the technical stuff about brokers, margins, etc.. After that you need to study the mechanics of trading. Strategies, tools, methods, etc.. After that is picking what works for you and adapting to fit your trading style. You also need to pick the right market for you.

[Robert2617]

Yes, SoulTrader is correct. I'm sorry, I should have been a little more complete in what I said.

The dollar amounts I quoted above are correct in order to open an account. However, opening a minimum trading account only allows for 3.5 round trips on a security in any 5 day period. If you hit 4 round trips within 5 days, at that point the broker would classify you as a "Day Trader" and require the $25,000. Actually Scottrade would require $25,000 and TradeStation would require $30,000 to be in the account.

The minimum $ accounts are good for learning how to trade and also for some Swing/Pivot type trading where you hold the stock or security overnight.

A "round trip" is when you buy a stock and sell it in one days trading session. So you could do a little day trading but it would be limited. Some Day Traders do 4 or 5 round trips every day. Some do 1 or 2. Some do a lot more. But you could get started with a minimum account. And the guys will tell you that for futures, there are no round trip limits.