The Day Trading Game
The Day Trading Game - no, it's not a new reality TV show yet. But, using the game concept creates a solid framework for getting started as a day trader. I've organized this site around this idea.
First, you have to know the rules of the game. Since day trading is a serious enterprise, you need to be very familiar with the S.E.C.'s regulations and the broker's rules where you have an account. We can speak of a day trading game - but, this game is pretty serious.
Click here to learn more about the rules and regulations of the day trading game.
Second, you need to build a team. Though you won't need to hire any employees, you will need to gather together brokers, charts, and instructors to help you with your performance.
Click here to learn more about building a winning team.
Third, you need to learn the basics of day trading - learn some of the language of trading.
Click here to learn more about the basics of day trading.
Fourth, every game requires strategy. Yet, many day traders play the day trading game without one. They have no system for trading and they suffer financial loss as a result.
Click here to learn more about day trading strategies.
Fifth, you get better at a game by practicing that game. A person who just learned how to throw a football does not belong in the NFL. So, take some time to practice. There are many ways to do this, including virtual trading. Some of these virtual trading sites have games you can play for cash prizes. You can compare your winning portfolio with other traders in these virtual games. And some brokers are creating social networking capabilites on their sites so that competing portfolios can be shared with other members.
Click here to learn more about practice trading and how you'll know when you're ready to trade with real money.
Sixth, you learn to keep score. Every game has winners and losers. Other than your bank account, is there a way to tell if you're making progress in the day trading game?
Click here to learn more about keeping score.
The seventh and final step is the inner game of trading. It's not as easy as just following a set of rules and strategies. You also have argue with yourself and decide the right thing to do in each moment...buy, sell, short, long, hold...you decide.
Click here to learn more about the inner game of day trading.
Once you've gone through these seven steps, you will be much more knowledgeable about day trading. You may even be ready to play the game using real money.
If you want to watch another day trader play the game, then you can subscribe to my day trading blog. It's listed in the menu to the left of this page. Several times per week, I'll let you in on the trade I made that day and how it worked out. Then you can follow along with your own charts. Sometimes it's helpful to look over the shoulder of someone else while you're learning how to play a new game.
Good luck to you.