hey everyone thanks for checking out this video my name is Travis rose and
the creator of the master the market education that you can find link below
in the description I wanted to put this video together to kind of start off a
series that I want to do here on the channel to take traders step by step
from the absolute basics of day trading and actually end up getting into some
more complex topics and get into some real trading strategies that I
personally use to trade stocks full time so this is of course just part one of
the series and as I mentioned we're gonna start with the basics and
gradually in future videos we're gonna get more complex so that way this can
kind of be a step-by-step guide to learning how to day trade stocks for
beginners and really that is just the goal of the series when I first got
started trading I was really looking for something that would teach me
step-by-step how to get into day trading and gradually got more complex and
taught me the strategy step by step later on in that series or later on in
that course I mean really I couldn't find anything at least for an affordable
cost so that's kind of what I want this series to be about something that is
free for everybody to watch and that is gonna start from the very basics and
gradually teach day trading for beginners
okay so whether you're somebody that knows nothing about trading at all or
even if you've been trading for a few years at some point within this series
you should be able to take something apply to your trading and benefit from
it okay so first and foremost because this is a series about day trading and
as I mentioned we're gonna start from the very basics what is day trading and
how does it differ from other types of trading and investing well day trading
is when you close a position the same day that you opened it and this can be
either buying and selling which is typically what you think of when you
think of the stock market you know that you want to buy low and later on sell
high or this can also be short selling and buying to cover and this is
something that we're going to talk a little bit more about in the future of
this series but just to give you an idea of what it is short selling actually
allows you to profit from stocks going down and the way that it works is you
still want to buy low and sell high but with short selling you're simply
selling high first and then later on buying back those shares ideally at a
lower price but the moral of the story with daily trading is that any position
that you close within the same day that you opened it
is going to be considered a day trade and this is going to differ from swing
trading because swing trading is any position that you hold for a few days
all the way up to a few months before closing and of course this differs from
long-term investing because an investment is typically considered a
position that is held for an entire year or even longer before you close it or
exit your position and like anything else in the world there are of course
pros and cons to each of these and one of the big pros of day trading is day
trading actually gives you the ability to make very significant profits and
only a very short period of time so if we take this example this is actually a
screenshot of one of my recent trades I made about six hundred and fifty five
dollars in under an hour of trading and this actually happened to be a short
position rather than a typical buy and sell this is one where I sold short and
then later on bought to cover and this is the stock symbol l.e.d.s so you can
see that I short sold six thousand shares total at an average cost of about
two dollars and 33 cents later on the stock fell down a bit and I was able to
cover 4,000 of those shares at two dollars and twenty four cents and the
other two thousand at two dollars and seventeen cents and that of course gave
me a profit of six hundred and fifty five dollars and forty cents and really
these kind of profits are possible with any kind of trading or investing but the
beautiful thing about day trading is of course because you're dealing with more
volatile stocks and because you're specifically looking to get in and out
of a trade in a very short period of time many times in under an hour you're
able to make these profits in a very short period of time so you don't have
to wait days months or even years to lock in those profits like you would
with swing trading or even longer term investing another big Pro about day
trading is that you don't have to worry about any news being released overnight
and negatively affecting your position if you've been trading for a while this
may be something that you learned the hard way and I personally had to deal
with this many times as I got started in my trading career as well but the
reality is is that overnight news can have a huge effect and cause huge losses
on your positions that you hold overnight so if your swing trading or
long-term investing I to worry about overnight news can have a
huge impact on your trading and again that's a big benefit to day trading
because you're closing out those positions before the market closes and
companies are going to release news either after hours when the market
closes or before the market opens the following day you're not going to have
to worry about your positions being affected by that news because you
already closed out your day trade positions okay now with that being said
they're also of course are a few cons to day trading and the first one of those
is what is known as the pattern day trader rule also commonly referred to as
the PDT rule and what this rule does is limits us-based traders to only three
day trades or five business days if their trading account balance is less
than $25,000 and realistically of course most new traders do have less than
$25,000 so they're going to fall under this PDT rule this world was put into
effect by the SEC to quote-unquote protect traders but at the end of the
day what it really does a lot of times is causes traders to end up having to
hold positions overnight that they would rather sell and exit out of that day
because of the fact that they don't have any day trades left so having to deal
with this world is a big negative to day trading but you do have to keep in mind
that you still do have three day trades per five business days so if you take
the quality over quantity approach to your trading you can definitely make
good use of those three day trades also with that being said there are a few
ways that you can kind of get around the PDT rule and one of them is actually by
opening a brokerage account that happens to be offshore of the US now I know that
sounds a little bit sketchy but as long as you're opening an account with a
reputable offshore broker you have nothing to worry about and of course by
doing so you're able to legally avoid that pattern day trader rule so with
that being said here's a list of some of the common brokers that we see in both
the US and outside of the US so in the u.s. we have TD Ameritrade e Trade Robin
Hood weevil fidelity and so on and so forth and for offshore brokers we have
trade net CME or capital markets elite group you stock trade and again so on
and so forth so of course these are just a few of the many many brokers that
there are available and something to keep in mind is that
everybody is of course going to have their own preference when it comes to
brokerages because certain brokerages are going to have features that others
may not and everybody of course has their own preferences and things that
they do differently when it comes to their own personal trading so when it
comes to opening a brokerage account these are just a few I recommend doing a
little bit more research on these before opening an account and even looking at
some other ones and see which one is going to best fit your trading style
with that being said if you do want to go with the offshore route I personally
have worked with trade net in the past and I do still trade with them on a
pretty regular basis so if you want to check them out and learn a little bit
more about what trade net is and how you can avoid the pattern day trader rule by
opening an account with them I'll have a link down below in the description to do
so anyway the next question that most people have is how much money do you
actually need to start trading and really the answer for this is as little
or as much as you'd like different brokers are of course going to
have different account minimums but most of them are as little as $0 so if you
want to start with just $50 or maybe a few hundred dollars or even a few
thousand dollars you can feel free to do that I personally always like to
recommend traders to start small I'm especially while you're still learning
and getting the hang of things it's best to start small and have less money at
risk than to start with your full life savings and to put all of that at risk
while you're still learning how to trade and while you're still learning the
basics remember you can always of course add more to your account in the future
once you're more confident and once you understand how the market operates a
little bit better alright that's going to be a wrap on the first part of this
series again this is the first of many episodes of the series and we're going
to start from the basics here and gradually get more advanced and go
through some more complicated subjects and actually teach some of the real
trading strategies that I use to trade full time so if you enjoyed this please
make sure to give this video a like and of course subscribe to the channel so
you don't miss out on part two of the series also if you want to avoid waiting
for the following parts and you want to learn day trading swing trading an even
longer term investing strategies step-by-step along with 70 practice
quizzes and access to our trading chat room with over a thousand active traders
I highly recommend checking out the first link down below in the
to learn more about all of this on my website master the market but anyway
thanks again for watching I hope you enjoyed and I'll see you in part two