Review of discount online brokers::What Does a Stock Broker Do - Ask Jeeves
Daytrading can be a great way to work from home and work your own hours.
I have been doing it for about 7 years now and have had a great time doing it.
The fantastic part about it is that you can set up your own strategy and have the satisfaction of being rewarded for your efforts!
Firstly, to begin with you have to ask yourself am I daytrading material?
It can be very nerve racking watching a stock that you just bought for $15 a share go to $14 in ten minutes.
You have to be able to stomach the ups and downs of the market.
Another factor is the amount of privacy you have at home.
You need to have a distraction free workspace so that if you need to make a trade, nothing will prevent you from doing so.
Fortunately enough, the speed of the internet doesn't seem to affect your ability to access the sites and trade.
I believe that it is even possible to it with a dial up connection. Secondly, you need to have the financing available to get started.
I think that the minimum that you should consider is $30,000.
Any amount lesser than that, I believe is too little to be able to have enough trades in the hopper to be effective. Lastly, you need to set up an account with an online discount broker.
Personally I use Ameritrade but you can get started with any one of the major online brokers.
The reason that I like Ameritrade, is that they let you get started with 30 free trades the first month and I think that the fee they charge of $9.99 a trade is very reasonable.
The important thing is that you use a discount broker.
I've tried using full service brokers and they don't seem to do much better then I do at selecting stocks, and all they really seem to be good at is taking a large portion of your profits!
Okay now your ready!
Your first month is going to be very critical because it will determine your success for the rest of the time that you are going to be trading.
Devise a strategy based on what You think will work.
There are many strategies out there so find one that you are comfortable with and run with it!
I find that trading in 100 increments is a good place to start because it is enough to make a little money in a trade but is not so much that if the 100 shares goes down to bad it won't wipe you out.
I try and stick to stocks trading at $30 or less, that way I can have at least 10 trades going at any given time.
I think that stocks are priced very well right now, and if you have the courage to get going, it would be a great time to get started in daytrading.
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