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How to Day Trade – Starting Points

How to Day Trade – Starting Points





Full Transcript

How to Day Trade

Today, I’m going to be talking about the most basic question I get asked whenever anybody is interested in trading. Brokers, commissions and platforms.

Where do I start? So this is a really good question because there are hundreds and hundreds of brokers out there charging different commissions and. A ton of different platforms, some that are free and some that you will need to pay for. So this is really important to start.

What we’re going to do here is there are several brokers that I personally would recommend and there are hundreds of boutique brokers. Right. You just don’t know their credibility.

You’re not unless you really, really know the person who owns it or the company that owns it. It’s better to go with the bigger names, right. So I personally am a futures day trader. That means I trade the futures market, the commodity market. I personally trade the.

Yes, money and futures is quite different than, let’s say, stocks and bonds and options. There are a million different instruments that you can trade. However, there’s not that many brokers that are really that are really helpful or that are super credible.

Related Read: Can You Start Day Trading With $500?

So let’s just talk about brokerage companies. Ninja trader, which we will go into a little bit more, is also a trading platform. But they have recently opened up a brokerage firm and they are actually really reliable because of the amount of people that they have using their platform.

And also they offer the best commissions for future traders. I’m gonna go more into commissions and a little bit. Another really reliable futures broker is AMP.

This is actually my original brokerage company before ninja traders started to help their own because I used the ninja trader platform for my day trade. But we’ll go more into that in a little bit. So if you are trading stocks and equities of any sorts and many other things, Ameritrade is an incredibly credible company.

They do. Also futures, but it’s not their specialty. They have tons of different tools that they work with. They are really good. Their commission rates are a little bit higher than, let’s say, somebody like E-Trade, which is also a very reputable company and scotch. Right.

So the majority of the banks that you also probably have accounts with, they also offer brokerage company. So the thing with them is, is the commissions.

That’s the big thing is the commissions. So let’s focus on the next main thing, the broker. OK. So how do I know who to work with? First of all, decide who. What are you going to be trading? Are you?

Because if you did trade, it’s not at all like long term investing. You really should focus on a specific instrument. If you’re trading stocks, obviously, you should focus on the different stocks are going to be trading futures.

There are a ton of different instruments you could be trading. I am a very simple laser focus. I only trade the ESM many, but there are tons forex. There’s so many that I don’t want to go into. So you should really decide that. And then you need to figure out who is the best for your day trading company. As far as brokers. Right.

So I mentioned that there’s future broker accounts of brokerages. Then there is the equity ones. Right. So now we’re going to go on to the trading platforms. And this is really important because.

There is not a single day trader that does not work from a platform.

It’s kind of like a musician that does not use notes or music paper to write their music. I mean, so few that do it without music. But you need to see what you’re doing, where you’re working. So I use ninja trader. They are my chosen.

Platform and like I mentioned before. If you use their brokerage brokerage and I would highly recommend so since they have the best commissions. The platform is completely free.

OK, so before they open up their platform for free, including their brokers, I was with AMP and I had to buy the platform license through them. Now I am much more smarter about this. That’s why I’m making this video to help you.

So E-Trade and Sky Skytrain, they don’t have their own good platform. They just have charts, OK? Their charts are quite basic. I would not really recommend for a full on hardcore day trader to do that without working on some platform.

So Ameritrade has their own platform.

This platform is open to anybody. It’s called a sink or swim platform. It is really good. It’s not great for futures. I personally love nature trader because I get to work directly from my right here. I could take trades literally right here without going to my brokerage account. And that is huge, huge for day traders because you don’t want to skip a single moment of what’s going on. Right. You have to be here in the present.

So think where swim is a great, great platform for especially for equities. However, if you are not with Ameritrade, you’re going to have to peak back and forth. Right. So you need to find a platform that works with your company that you could also directly trade from on and off. Right.

So that’s something you need to keep in mind. OK. Next one.

Commissions, OK, so you don’t want to be losing the farm with your commissions alone. And day traders, let’s face it, we spend a lot of money on commissions. OK.

So there are several different types of commissions that work here. If you are trading equities, right, which is stocks, 80s, those types of funds that you could trade as was like the way you trade the stocks.

Normally the different companies I’m showing you here, Skytrain, E-Trade, Ameritrade, every single time you buy something, you enter a trade is between seven to 10 dollars.

And every time you exit that trade, it’s between seven and ten dollars for stocks. If you buy a hundred stocks with one trade, you only pay that seven dollars. But if you want to add onto the same position, that’s an extra seven to ten dollars each way.

Right now, if you go through your bag and if you use your brokerage company in that respect, they could charge you up to twenty five dollars per entry and per exit. So you really need to work on that. Day traders normally do not do that.

Those are mainly for long term investments because you buy it once and you hold for several months, years, whatever you choose.

So futures is quite different. Futures we call it round trip, each one trade. The entry and exit is called the round trip and you only get charged that one time. So the thing with the big companies such as Ameritrade. E-Trade. Sky.

Trade all those. This is not their platform. They charge all looked a lot per round trip app and ninja trader are very close in prices. Ninja trader is a little bit cheaper and every penny eventually counts, right?

They are between three dollars and 60 cents to four dollars and 20 cents. It depends on how many trades per day per month you do, how much you have and they count. You need to figure that out, and you need to really understand the futures market in that respect. Right.

You do not want to be paying eight to 10 bucks every single time you do a futures round trip. It’s a big, big deal.

So last thing we’re going to talk about. Is how much money do you need to start?

For futures, honestly, more than two thousand dollars isn’t necessary. I recommend two thousand dollars. Both of those platforms that I showed you.

Excuse me. You could start with 500 dollars, but it’s just good to have at least two thousand dollars. And also for equities, it’s a good round about no. Right.

So between two thousand dollars and five thousand dollars is usually the good starting point.

So hopefully this helps.

How to Day Trade

If you want to learn more about my journey and how I started day trading you can read it here or you can watch on my YouTube channel.

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How to Day Trade - Starting Points