You want to know how to become a day trader? It’s not as complicated as you’d think. First you learn to read Japanese candlesticks i.e. basic charting, I recommend Steve Nison for this, then you study the basics of Level II which simply shows live supply and demand for a stock. Then you open an E*Trade account and fund it with however much money you want to game with ($25,000 will be necessary if you want to be a real day trader).
At this point you’re ready to buy and sell some stock. Now what you need to do is develop a watchlist and learn those stocks charts, pretty easy so far. Once you understand how your stock trades in relation to its own company news as well as the overall market, now you look for entries and exits you like and possible catalysts to help them along.
Case and point. Yahoo! Inc. (Nasdaq: YHOO) is constantly at the center of buyout hype and hype is known to move stocks. Chart wise support was put in around $13.10 and when the buyout hype accelerated I grabbed 1k shares at $13.54 and alerted my premium subscribers it was time to load the boat. Sure enough, despite the overall market getting hammered, YHOO is up over $1 per share already having met my target on the alert.
This is not complicated stuff and it’s certainly something I can teach you if you’re willing to learn. Where will YHOO go from here you ask? Well, the chart shows sound resistance at $15 to $15.50 so if it continues up, that’s where I’d expect a large amount of sellers to arrive. Will the buyout go through, odds are no and honestly I don’t care. I just trade the chart and hype combo for one win after another. Last week it was AOL, this week it’s YHOO and next week it’ll probably be some other struggling company.
Point is, you can do this too. Heck, I was a teacher unsatisfied with my income, now this is my job, trading but more importantly, teaching others to do the same… can’t beat that.