Day trading 101, education and knowledge keys to success. In the world of finances there are many things to be aware of before making that first, initial trade. While that is true with all types of trading, it is especially true for the day trader. There is no way to just "feel" your way through day trading, especially with all of the new regulations and rules that seem to be handed down and changed daily. What was permissible yesterday is a SEC violation today- not knowing is not an excuse, especially when we are talking hundreds of thousands of dollars here. There are many things to know to be a successful and above the board day trader, not knowing them can mean more than financial loss.
Of course, you know among the styles of trading, day trading is considered one of the riskiest- it is a fast paced, white knuckled ride in a Lamborghini Diablo, where other styles of trading can be more like a sedate cruise in a Cadillac. Either way, you have to nowhere you are going lest you wind up broken down along side the financial highway. Education is the key that will allow you to drive that supercharged roadster right to the gates of financial success.
Make sure that you know what will designate you as a day trader- the ruling on that changes frequently, so keep current. There are pages of requirements and guidelines to follow as well, so remain vigilant. Any ruling that is handed down that may have the slightest impact on you as a day trader needs to be read and understood thoroughly. Know what your day trade power is and what the minimum equity requirements for your day trade account are. Do you know what to do if there is day trading "call" placed on your account? Do you know what that even means? If you cannot answer any of these questions, you should reconsider day trading at this time until you can answer them all without hesitation. You do not want to find yourself being prosecuted because you did not "know" something, remember, in federal court, ignorance of the law is not a defense.
As previously stated, day trader rules and regulations change frequently, so consider using a system that will alert you to any impending changes so that you can educate yourself about them before they are even signed into existence. This preemptive education can also give you a leg up on your competitors in a highly cutthroat profession. Any advantage (within the law) is a good one.
If you take away anything from this www.wid88.com article it is you need to gain the necessary knowledge to become a successful trader. That means books or research on the stock market and trading itself. One of the best ways to be successful in the market is to invest in a system that can help you trade the market, if you trade within the systems guidelines and keep your emotions out of the trade you will be successful.