How to Day Trade
In order to make $200/day in the stock market you have to learn a successful trading strategy and you have to learn to follow rules. One of the biggest causes of loss among new traders is over trading and failure to manage risk. We teach our students to take 3-5 trades in the morning based on the trading strategies we’ve proven are successful, including the Gap and Go, Momentum Trading, and Reversal Trading strategies.
When you join the Warrior Trading team we take you under our wing. Our mission is to see you succeed as a trader. You will be able to watch and learn as we trade the markets in our live Day Trading Chat Room.
You will hear trade alerts, breaking news, and be able to chat with hundreds of other traders in real-time. In the evenings you are welcome to join us in our Trading Courses where we cover the advanced trading techniques I use to profit from the market each day. I would also encourage students to join us in our simulator.
We run a Demo Trading Simulator that allows you to practice trading with $50k in pretend money and is setup so I can monitor the trades of ALL of our students. That means when we see you making mistakes we can point them out immediately!
How to Day Trade a Small Account $1000 to $8653 in 1 Month
These are the results of my $200/day Challenge
1. Join the Day Trading Chat Room
The first step is to become a chat room member in the Warrior Trading Chat Room! This is where you will learn all the strategies we trade on a daily basis.
2. Learn the Momentum and Reversal Day Trading Strategies.
My absolutely favorite strategies are Momentum and Reversal Trading Strategies. I use these to make a living trading the markets. In our Day Trading Courses I will teach you all the details of these strategies.
3. Adopt a Trading Strategy and Write your Trading Plan
Once you’ve decided which strategy feels like the best fit for your risk tolerance and account size, you are ready to create a trading plan. A written trading plan is the documentation for how you will trade the markets.
4.Trade the Strategy for 1 month in a simulator
Before ever trading with real money you should trade in a Simulated Trading account for 1 month to test your skills. You goal is simply to maintain an accuracy level of at least 60% and a profit loss ratio of 1:1, meaning the winners are equal size or bigger than the losers). If you can achieve these bench marks, then you are going to be ready to trade live. During the 1 month of practice, try to take 6 trades per day as a starting point.
Remember to follow your max daily loss. You never want to have a daily loss that exceeds your daily goal. If you goal is $200 profit, your max loss is $200.
5. Scaling Out of Winners
I use an aggressive strategy of scaling out of winners. This means if I’m hitting my first profit target, lets say $100 on a trade, I always sell half, and adjust my stop to breakeven. That means even if the stock drops back down, I’ll still have a small winner. In other words, if I’m right on my entry and the stock goes up, it will always be a small winner. Instead of trying to hold the whole position and look for a home run, I look for small wins and consistency. This is a critical skill for a new trade to adopt.
6. Hitting the Daily Goal & Profit Loss Ratios
Lets say for example that you take a total of 6 trades each day with a $100 max loss and $100 profit target. If 2 traders are losses and 4 traders are winners, you will have about 65% accuracy. You will be down $200 in losses and up $400 in winners, giving you a net profit of about $200/day. We always want students to aim for a 2:1 profit loss ratio, risking $100 to make $200, but we understand that isn’t always easy, especially for a beginner. But just think, with a 2:1 profit loss ratio and 6 trades, your 2 losers would still be down only $200, but your 4 winners would now be over $800 in profits, giving you $600 in net profits! That is 3x your $200/day goal, and its’ simply the result of improved profit loss ratios. So if you aren’t able to improve accuracy, you can work to improve your profit loss ratios.
7. Maintain You Accuracy By Being Disciplined
In order to maintain long term success you have to be disciplined. That means following your trading strategy to the T. No short cuts! And no venturing outside your strategy because you think you see something that could be a big winner. Don’t let temptation allow you to break rules. I force myself to run 5miles when I break rules. Discipline is critical and you have to enforce it.
8. Increasing position sizes
Most traders start with small daily goals of $50-100 dollars, and then slowly work their way up to $200, $300, and higher. Currently I’ve scaled up to daily goals of $1k, but I know some traders who have daily goals as high as $5k. Many traders will end up finding their comfort zone in the 400-800 daily goal range and be perfectly happy with that. Our goal is to get you there as quickly as possible!