| One of the most popular internet search topics is | | | | account and have a winning strategy then and |
| day trading. Unfortunately people don't start | | | | only then are you ready to attempt your day |
| looking to swing trading as an alternative income | | | | trading career. |
| source until they need income. This is the absolute | | | | So just how much money do you need to start |
| wrong time to consider day trading. Honestly, | | | | this day trading career? In my experience a |
| what you are really considering is gambling, day | | | | realistic trade strategy for a day trader new |
| trading just sounds more justifiable the roulette. | | | | comer will have 2% of their account at risk with |
| Day trading involves finding a statistically small | | | | an average win to loss ratio of 3:1 and a win |
| advantage and repeating your strategy with | | | | percentage of 50%. Unless you're scalping which |
| extreme precision. Here is the problem with small | | | | will have a much different win / loss statistics, |
| advantages; they require really large bankrolls to | | | | you'll probably only find one or two trades a day. |
| make a decent income and a really large bankroll | | | | So if you want to make $100 a day and your |
| in order to survive draw downs. | | | | average 4% on each trade then you need to |
| Trading on a tight budget requires you to trade | | | | trade $2500 each time. Since you're putting 2% |
| hoping for the long tail of the statistics where you | | | | of your account at risk you need $1250,000 to |
| get a hot streak. Unfortunately if you're running | | | | safely trade this strategy and earn your daily |
| near odds win / loss trade strategy you are just | | | | wage (which wasn't that high of a wage.) |
| as likely to catch a long losing streak. These long | | | | Please don't use short term trading as an escape |
| losing streaks will take you out of the day trading | | | | from your money troubles, but as a goal for your |
| game. You will be much further ahead to open a | | | | future. Taking three to five years of practice and |
| practice account and look for a regular job. If | | | | learning while you build your war chest up is the |
| over the course of saving your first trading | | | | best thing you can do for your trading career. |
| account you still enjoy trading your practice | | | | |