At The Close by Don Bright
Starting To Trade For A Living
Ever thought of trading for a living and didnít know where to start?
receive dozens of phone calls and hundreds of emails each month from those who think they want to get involved in trading for a living. So much of our industry is simply misunderstood that I thought it was time for an analysis, hoping to help those in their quest.
RETAIL ACCOUNT TRADING
Not much has changed over the years in the retail world. Basically, investors/traders can open up an account with any of the multitude of retail brokers available. The services vary widely, and each person should first determine what they are going to be doing with this retail account.
The days of broker assistance is pretty much over, morphing into individual online access. The investor will likely look more to financial advisors for advice rather than a stockbroker. For active trading, the novice may want to look for something like the ability to short stocks easily. The world of buy & hold has pretty much gone the way of telephone service from a broker. Youíll want to be able to receive interest on your short stock sale monies. Youíll also need to qualify as a pattern daytrader (Pdt) if you plan on making a few trades in the same stocks each week. This requires a minimum balance of $25,000, and allows for 4:1 margin vs. the standard 2:1.
Be sure youíre using capital, not just overleveraging yourself with additional shares and additional risk. Itís hard to make an actual living with accounts like these. What kinds of groups are out there for traders?