How exactly do you start day trading as a complete beginner this year?
Now this is what I would personally do If I could go back to seven years ago,
and restart my trading account from scratch
I’ll be teaching you the 4 steps to get started as a beginner day trader.
Hello everyone my name is Shay, aka Humbled Trader. I’ve made many mistakes when i first
started, many of which costed me thousands of dollars. So if you’re
thinking of getting started with trading, I want to make sure that doesn't happen to you.
So if you’re a new trader, and you want to save your small trading account. Make sure to keep
on watching. And don’t forget to hit the like button at the bottom of the video. That’ll tell
me you like these step by step tutorial videos on trading, and I will make more in the future.
As a token of my thank you I’ll sprinkle a few bad jokes throughout the video and cat photos as well.
The first step to start day trading, is to open a paper trading account
with a broker. Paper trading means you are trading fake simulated money. Like these ones over here.
That you can get for like 20 bucks on Amazon. Look at me, I'm rich.
And for beginners day traders, many of us
are always blinded by the crazy ads or social media videos about getting rich day trading.
And that's simply not the truth. Please stop drinking those koolaids. I didn’t get rich
quickly trading when I first started. In fact, I lost all of my trading account when I first
started within a couple of months. I don’t wish any trader to lose money, but the reality is,
if you’re brand new to trading. You are probably going to lose money first.
I’m just giving you the ugly truth here. And really that's what every day
trader has to go through. It's the rite of passage.
That's the reason the first step I recommend any new trader
is to open a simulated trading account. Why would you risk your real hard earned money
and dive right into trading with the money, when you have no idea what you’re doing.
I know your follow up question must be, okay Humbled Trader,
which broker do you recommend to start with paper trading. And boy do I have a list for you.
My first recommendation would be, TD Thinkorswim. For the Americans, and after you deposit $100,
you can call them to turn on live market data, which is essential to paper trading and start
learning about the markets. Because you don't want to be that person trying to buy the stock at $10,
when it had already started tanking from $10 to $5 to $1 15 minutes ago.
So that’s the reason even when you are paper trading make sure you are using live market data.
Unfortunately for my Canadian viewers,
TD is longer an option. But I’ll have another recommendation later on.
Thinkorwsim is a very user-friendly platform for beginners to get started with charting,
building watchlists, scanners etc. And many many other features as well.
But I don't recommend using them for live trading.
Moving on to the second recommendation broker for paper trading, is Webull, which
is a free commission broker platform. While I do not recommend $0 dollar
commision brokers like webull, robinhood and a few other apps for live day trading,
for paper trading it’s totally fine for beginners to get started.
The user interface on Webull is very beginner friendly. I personally use their mobile app
to track the stocks watching on the go. Webull offers free live market data so that's definitely
a bonus. They also have a decent desktop trading platform that is compatible for both PC and MAC,
which is something very very hard to find nowadays. So I will definitely recommend using
Webull for paper trading. And is accessible for Canadians and many other international traders.
But the live trading account is only available for the American trader. So keep that in mind.
Another good option for paper trading is Interactive Brokers which is available for both US
and Canadians. With Interactive Brokers you need to purchase their data subscriptions in order to
receive live market data. Which adds up to about 20 US dollars a month, which is not bad at all.
I personally have accounts with three of the brokers I mentioned today. And
once you are ready to move on to open a live trading account at a broker,
you can check my video here on the best broker for day trading.
Now that you have your paper trading account set up, it’s time to move on to step 2.
Step 2 to start day trading as a complete beginner. Go to this website,
startraininglambosdotcom. Time to purchase some chat room alerts and start banking easy money.
Stop it! If you actually were about to purchase at that website, I'm disappointed in you.
Yes this is totally the bamboo stick my teacher used to hit me with.
Now i'm going to hit you if you try to find shortcuts in day trading.
Yes i'm going to be that trading mom you never asked for, but one you definitely need.
I hate to break it to you, if you go down that path of chat room alerts, copy trading,
you are essentially ending your own trading account before you’ve even gotten started.
Most people out there buy into the kool aid that trading is easy,
you just spend $200 on alerts for one month and you’ll make thousands of dollars easily,
working 1 hour a day and from anywhere in the world.
Let me reassure you, after trading for 7 years now, the reality is far
from that. Trading is NOT easy, controlling risk,
maintaining discipline and focus on just your set ups is a constant battle on a daily basis.
I have so many free videos on my channel
for you to start actually learning about day trading. You have no excuses.
This will be your step 2, learning about day trading basics
with free resources here such as How to draw support and resistance, How to buy the dip,
How to create a watchlist and trading plan and how to set up your indicators and start trading.
So if you are new, start utilizing these free resources online and actually start learn
and stop looking for shortcuts.
I'm very positive that after watching some of my Youtube video, most new traders would actually
think...H@#$%^&, I have to actually prepare hours of work before the market even opens?
You mean, I can’t just wake up 5 minutes before the open and start banking lambo money? Day
Trading ain’t for me. I'm gonna try flipping houses instead. Fun fact I tried, it wasn’t fun.
By this point you’ve only done step 1, paper trading with simulated money
and step 2, learning from my free resources.
Even if you give up right now, it’s a risk free experience. And it never hurts to try.
I have a no BS approach when it comes to my day trading content,
whether that's in my free YouTube videos or premium education program. I don’t
feed you the koolaids, only tough love. And I get it, tough love and
bad jokes are not for everyone, just like day trading isn't for everyone. It is what it is.
Step no 3. After you’ve started paper trading and learning some
setups and strategies with free resources, the next step is to smash that like button
to make it rain lamborghinis. Smashing the like button is the only proven way to make
easy money. Copy trading, following alerts, pumping stocks… Those are so old school.
Ok seriously for real now. Step no 3. It’s time to journal and track your trades,
yes even while paper trading. That means spending 5 to 10 min each day
writing down your entries, exits, and the set ups from your day trades.
And yes, you heard me right, even if you’re just paper trading,
it’s still very important to be tracking your trading setups. And here’s the hard truth.
If you can’t follow your own trading set up and establish actual consistency in risk reward
with fake money? What makes you think you can do so with real money,
when actual emotions of fear, greed and anger are involved.
Adding on to the previous, step 1 about paper trading,
the point of doing so isn’t to make big money, but to provide yourself enough
data and start understanding your strengths and weaknesses in trading.
It's only by tracking your trades, that you can start seeing whether you are betting at going long
or short, whether you are better at trading large caps or small caps.
And what kind of risk reward do you have in your trading setups?
Trading should be very personalized and narrowed down. These are all the important
questions you’d need to find out for yourself from the data in your trading journal. Sure,
you can see what other people are doing on social media,
using vwap, ichimoku clouds and hundreds of other indicators, or shorting penny stocks.
But what works for all these other traders, is most likely not going to work for you,
exactly. You need to find what works for you and how to personalize your own trading.
You can get a free copy of a trading journal to get started if you sign up
to my email down below. You’ll also receive a free weekly watchlist from me sent out every
single sunday. So that's step 2 and 3 right there. The link to sign up for my watchlist
is in the description below. As well as all the recommended brokers I mentioned earlier.
Now after you’ve done step 1 paper trading, step 2 learning from free resources to get your feet wet,
and step 3 tracking your trades. It's time to move on to step 4.
By this point after a few weeks or a couple of months, you should know whether this day trading
business is something you really want to take it even further and start devoting more effort into,
or for most people 90% of new traders, this is the point where they realize,
trading is not for them, its too much time and effort, to much work, and they give up. And
that's totally fine and to be expected actually, like we talked about earlier, it's risk free.
But for the rest of the 10% of beginner traders who want to start taking trading more seriously,
now's the time to start looking for a well structured
trading education program to continue learning more in depth.
No, I'm not talking about joining places where they alert you to buy and sell or courses that
promise you the easy way to get rich. That defeats the whole purpose of learning to trade
for yourself, and eventually turning this part time hustle into a full time job.
Getting started by Learning from these short and condensed videos on Youtube is a great way
to get a taste of the nature of day trading, all the volatility, and ups and downs for free.
But without proper structure during the initial learning process,
this is where many new traders will start jumping from one strategy to the next,
trying out one indicator today, another one tomorrow, and varying their share sizes and
risk profiles …. All because they see other people doing it on social media.
And unfortunately this overwhelming amount of information on social media,
will most likely lead to analysis paralysis for beginner traders,
and causing most to lose all the money in their accounts from DIY trading.
You cannot build a roof on your house until you’ve had a solid foundation. Personally, it's only once
I've invested my “market tuition” with losses in my first year, and then finally some structured
programs, that I started to finally put together. This are all the very important new nuances
in trading such as press release analysis, risk management, trader psychology and many many more.
Again, always make sure to start learning from my free resources first.
I’ll put all the links and a playlist day trading for beginners below. And once you’re
ready to take your trading to the next level, you can visit my website, humbledtrader.com.
Nothing worthwhile ever comes easy. Trading is hard work, but if you’re willing to put in the
time and effort, it can be done, slowly but surely. If you enjoyed this video,
please make sure to drop a like and subscribe if you want to see more trading tutorials like this