How to Become a Trader
It’s not easy to learn how to become a trader so you can start day trading for a living. When someone who’s new to the market wants to become a successful (and licensed) trader, there are many steps to take. If this sounds like you, fear not! By taking the time to visit this website, you’ve already started the process and we have plenty of resources at your disposal to help you on your path to profitable day trading. But first, here’s a list of some of the main steps that will have to take on your way to day trading for a living.
- Educate Yourself. The most important thing a new trader can do is get educated about the language of trading and basic market concepts. There are a lot of terms and concepts to learn, but taking the time to understand them will be a major help to anyone hoping to learn how to become a trader.
- Get Licensed. Once you’ve learned enough about the market to know that you want to start day trading for a living, you have to get licensed. No proprietary trader is allowed to trade without passing the Series 56 Exam. The Series 56 tests your knowledge of securities markets, investment strategies, and the current regulatory policies.
- Practice. Use demo platforms to get a handle on what it’s like to actually execute a trade. New traders should try a variety of Order Execution Platforms and go through the basics of each system before deciding on the one they like best. Before going live, all new traders should be comfortable with placing and executing orders, back-testing strategies and managing their emotions throughout the trading process.
- Go live (with some help). Once a trader is completely comfortable with their demo software, it is time to go live. But new traders should not trade alone. A mentor can help a new trader stay focused and give structure to the trading day, assuring that the new trader is growing with each passing day. Oftentimes mentors will utilize a virtual trading floor; it’s a way to be in a group environment to share ideas with other traders while receiving valuable insights and advice.
- Continue to grow. It’s a huge milestone for a new trader when they make the transition from consistent losses to consistent profits. But as big a milestone as that is, a trader’s journey is far from over at that point. People who make a living out of day trading know the value of a diversified skill set. All traders need to constantly educate themselves about the market and develop the tools and the know-how to adjust to the ever-changing conditions.
It’s not easy to day trade for a living; it takes time and a lot of hard work. But Wall Street Trading is here to help: we have the education platform, mentorship, and community necessary to take you through the process and position you for a successful career as a day trader.