Can I Really Make a Living Day Trading Online?

The answer to this question is a qualified yes. Many people make a great income day trading the E-mini contracts from their computer at home. That being said, there are some important prerequisite skills you need to develop before you make your first foray into the trading world, and the first question you need to ask yourself is “Am I committed to learning how to day trade?” If you don’t have a high level of commitment to the task of learning, you should shelve your plans to day trade. The markets can be very unforgiving to those who think they can start a trading account and the markets will reciprocate and fill their account with cash. Trading is a skilled profession, but the skills can be readily learned. Like any profession, your commitment is all that is needed to master the skills of day trading.

What do you need to learn to day trade?

There are several things you can do to hasten the learning curve in day trading, but first you will need some basic necessities.

1. A reliable computer with at least 2Gb of RAM.
2. A high speed Internet Connection, preferably through the cable company, but DSL will work.
3. An office in your home or somewhere you can work uninterrupted.

That takes care of the physical necessities, which is the easiest part of your preparation to trade. It is important that your computer is in great working condition and your Internet connection is reliable and fast. How to Invest Online A dial up connection will not work in day trading, as the speed required to execute trades is insufficient. Cable modems are optimal as the speed and throughput is superior to anything else on the market.

Next you will need to learn a system and practice for a time. There are several reputable and scores of disreputable trading education firms out there and I have a favorite I reference in the resource box below. I don’t recommend buying a book or two and then trying to tackle the markets. Learn from a good firm and develop a mentoring relationship with the firm. I think this is one of the most important aspects of trading; most good traders had someone who served as a mentor to them and a backstop when they get in a rut or simply have questions about the market. Know your trading system inside and out, then spend some time and trade on a demo account to learn how the trading platform works.

You will want to establish a working relationship with a futures brokerage, and an individual broker in that firm. Many of the brokerages have substantial online and off line resources that can be of great help in your trading. Usually your mentor will have a suggestion for a good brokerage, and quite possibly an individual broker in that firm who has been helpful to his past students. As I said, I always cultivate a good relationship with my broker as they can be very helpful in your trading and account management.