Categories
3. Day Trading Rules For Beginners

Have Another Income Source to Start

Most traders blow up a few times before they become consistently profitable. Unprofitability and losses are a part of learning the markets, so consider your losses tuition and learn from them.

With that said, reloading your account with more funds will probably be necessary at one point, so you’re going to need some income coming in, not only to fight off the net worth losses you’ll be experiencing due to your trading losses but also when you inevitably blow up your account. If you have no income, that’s game over.

For those of you who are students, get a part-time job. And definitely don’t blow all of your part-time income on beer or eating out. Put aside money every week before you start spending.

There’s an interesting behavioral finance phenomenon at play when you automatically save, where you adjust to your new weekly balance without noticing a difference.

Further, try to think critically about your spending. When paying $12 for lunch, think about how that might set your trading back. How this saving could compound in a profitable trading account, and how as a beginner, you’re likely to blow up your account at some point, so it’s best to set aside as much as possible for such events.

You can do so by cutting your spending wherever it’s possible.

Leave a Reply

Your email address will not be published. Required fields are marked *