Day trading is a fantastic method for increasing your bank account without competing for boring corporate jobs that you don’t even want. Do you want to be financially independent? Do you want a career without a boss and without annoying co-workers? Then you need to try day trading. And for that you are going to need an interactive broker like Ameritrade.
Ameritrade is an online broker that allows traders to put money into a brokerage account and to trade securities on the market. The Thinkorswim platform allows for traders to use state of the art research tools and risk analysis tools to find stocks on the market and trade them for profits. The Thinkorswim platform also offers livestreaming investment news and third-party research that can really make the difference with winning trades.
Before you start trading with Ameritrade though, you want to make sure that you are as prepared as possible to be a day trader. You need to take online day trading classes. The classes, along with time spent in day trading chat rooms will give you the foundation that you need to make money as a day trader. The strategies and techniques are there for you to learn and absorb, so that you can go out there and make profits. They have been hammered out over the years of trial and error by veteran day traders who have lost chunks of money and made the mistakes so you don’t have to.
Veteran day traders that have been through the ringer are really the best kind of instructors. Those are the ones that have logged enough screen time to be able to tell you exactly how to avoid the risky trades that will kill your monthly profits. Keeping a profit:loss ratio of 2:1 is key to being a successful day trader. You need to be able to search for home run trades that will double your money, while keeping your losing trades to as low a level as possible. The risk management of losing trades is very important.
No matter what broker you start with as a day trader, whether it is Ameritrade or some other one, you want to make sure that you have logged enough time as a paper trader. Paper trading is trading virtual currency in a simulated environment. The benefits are myriad. You want to be able to practice all aspects of being a day trader without losing any real money. And simulated trading environments will allow you to get used to the stock market and the speed of trading with little risk. It is a win-win.
When you finally open your Ameritrade account, you need to keep in mind one thing. The amount of commissions that Ameritrade charges might put a real dent in your actual profits. When Ameritrade racks up the commissions, that means that making lots and lots of trades on a daily basis can be bad for your bottom line. While the research and tools might be top notch for new day traders, the commission’s might not make the best business decision.