How to Be a Day Trader

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How to Be a Day Trader NEW SCHOOL - Learn to Earn Thousands a Trade, Hundreds of Thousands a year - Day Trading Stock with your master COACH

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Becoming a Day Trader

Learn How to Trade Stocks with a Master Day Trading Coach

How to Be a Day Trader, NEW SCHOOL


Day Trader – Competence:

Like any journey or long trip, say like driving a car across the country, you need a map – as a guide.

Day traders also need a guide to gauge competence to learn how to trade stocks all over again: how to day trade stocks, how to be a day trader, to become a day trader winner – a competence map is just such a guide to assist in shifting from OLD School to NEW School, stocks day trading.

As an example, say you are about to take a trip along the California coast, we need a map so we can plan the road trip or journey, it should include:

  • Agree on the destination,

  • How we will get there?

  • What resources are required to learn how to trade stocks?

  • What outside help is needed (like an auto club or maybe a GPS system)?

We’ll use the map (few paragraphs below – “Levels of Day Trader Competence“) to be sure we stay on track and to get to the

destination – peacefully, safely, successfully, and on time.

Likewise, for every day trader, he or she needs a career competence map to become a consistently profitable winner – which

involves how to day trade stock, how to be a day trader as opposed to an investor or swing trader, to become a day trader wealth builder.

Back to the trip, we also need a map to spot the attractions to make the trip a series of valuable learning and fun filled experiences.

We can even use the map to avoid the noise; this is similar to how a map limits any driver or passenger doubts or to resolve travel disputes.

Concerning how to day trade stocks, of course, we need a map so we can avoid known risks like: big money losses, distractions,

especially the chatter going on around you and in your head – the noise.


How to Be a Day Trader – Career Competence Map

While day trading, developing your career as a day trader, we also need a map, what I refer to as the Day Trader Competence Guide.

We need a trader competence map to learn how to trade stocks:

  • Avoid getting lost,

  • Maintain trust and confidence,

  • Develop consistently profitable performance results,

  • Shift from losing to winning, to consistently winning, then wealth building winning – with your master day trader coach


We need a day trader competence guide to get and stay on a winner’s track, especially when we find ourselves lost, distracted, big money losing .

We need a map to learn how to day trade stocks masterfully – competently.

My invitation to you is to use this guide to avoid getting lost as you advance your day trading career – your competence, confidence and

financial performance results.

We can also use the guide to:

  • Maintain trust and respect in our trading relationship,

  • For learning – to shift from trading old to new school,

  • To see where we need to be next – performance gaps that must be bridged,

  • To avoid confusion, overwhelm, and big money losses – along the way toward mastery.

You can use the daytrader guide as assurance or insurance that we get you where you want to be as a winner – so you can achieve all your trading

career aspirations as effectively and profitably as your potential allows.


How to be a Day Trader – Competence Map



Levels of Day Trader Incompetence

[Day Trader Suffering – both personal and financial]

Day Trader Bull – unconscious

(unaware – danger to self/others):

  • Blind – unaware of danger – to self and other day traders

  • Innocent – doesn’t know or recognize he doesn’t know

  • Suffering – the consequences old-school day trading


Day Trading Jerk – conscious

(aware of dangerous actions, need for change):

  • Aware – he is in trouble, or a trouble maker

  • Ignores – cares less, does nothing to resolve or prevent

  • Closed – to any possibility for learning

  • Suffers – both emotional and financial consequences


Levels of Day Trader Competence

[Learn How to Day Trade Stocks – NEW School]


Beginner Day Trader – new unsettled, lacks direction,

seek help (also: neophyte, novice, naive, ignorant):

  • Humility – humble, less pretense/arrogance

  • Knows – what’s missing, how to be effective

  • Commits – declares incompetence and commits to learn

  • Trust – sincere, competent (keeps promises)

  • Performance – gets results, but, still losing more than winning


Minimal Competent– context, direction, support:


  • Effectiveness – becoming effective, yet still a danger  (big money losses)

  • Anticipates – beginning to anticipate opportunities

  • Relationship – building trusting/valuable relationship with coach


Competent  – able to perform effectively, Winning:


  • Change – open for change, Winning more than Losing

  • Identity – building an identity, keep ego in check

  • Confidence – more settled, takes care of self

  • Thinks – still needs support, still thinks things over

  • Winner – trading well, gaining winner competence


Highly Competent day trading success

(takes care of all trading concerns, intuitively):


  • Winning – less guessing, disciplined, consistently winning, big money winning

  • Gaining mastery – knows strengths & weaknesses

  • Grateful – thankful for the opportunity to learn

  • Contributing – using what he knows to help others in the trading room


Virtuoso – acts competently with ease:


  • Courage – face and overcome fears

  • Vigilance – managing self (energy) and building wealth

  • Excellence – peak performance

  • Instinctive – little need to think, intuitive

  • More Detached from outcomes – financially and emotionally


Day Trader Master – a Day Trader Legend:


  • Learn how to trade stocks – NEW School

  • Serving – learning, contributing, philanthropy

  • Invents – new practices, reinvents the game itself

  • Detached from outcomes – financially and emotionally


Wikipedia – How to Become a Day Trader:

“During the heyday of the tech bubble in the late 1990s, day traders made easy money buying and selling Internet stocks It didn’t take much skill to succeed in those days. In just a 17-month period, from October 1998 to March 2000, the Nasdaq Composite Index skyrocketed from roughly 1,344 to an all-time high of around 5,132. All you had to do was ride that tidal wave to rake in the profits. Many of those traders made just as much shorting the index on its way down to a low of about 1,108 in October 2002, losing 78% of its value in 31 months.”
Wikipedia Image - Computer + Cash
“Once the bubble had fully deflated, the easy money dried up. Many of those who had profited through good luck and timing left trading and looked for other work. They discovered that day trading, like any other profession, requires education and skills to consistently make a living.”

My comments – those in the know, market makers, wealthy traders also got caught up in losing during this perion so they turned to software engineers to prevent those big money losses by designing software scanning, charting, and trade ececution software that gave them a distinct competitive edge. To this day, investors and traders engage the markets thinking they will gain wealth using rules, strategies, and systems of the past thinking they will eventually become rich again and it never happens. Why. The game has changed and they need to not only catch up with this change, learning the new game – this time, not on their own, but with a NEW SCHOOL day trading coach.

“A pure day trader buys and sells stocks or other investments and ends the trading day in cash with no open positions. If a position is held overnight or for several days, it’s called a swing trade. Most day traders use both approaches, depending on their trading style and the nature of their investments.”

My Comment: In my view, holding post market for whatever period of time is a set up for sure failure, sooner or later. I experienced losing like this over 10 years ago and I talked with hundreds of other trader who learned the hard way that change is mandated for winning in this business.

“Day trading requires a professional software platform and a high-speed Internet connection. While it’s possible to design and build your own trading platform, most traders use a prepackaged setup provided by their brokerage or a specialized software company. It’s best to have a powerful desktop with at least two monitors, and preferably four to six. You need multiple screens to display the charts and technical indicators that will provide your buy and sell signals.”

Comment: I don’t think all the above is what you need to win, big money winning. Traders these day need to cut to what they need to trade to win – and 80% of the rest, like 6 monitors is simply overkill and a huge distracting from what you really need: a day trading coach, and winning systems with 80% of the noise designed out. The game and tools have changed and so should you.

“When you use a brokerage platform, ensure that real-time news and data feeds are included in the package. You’ll need that data to construct charts that expose trends and portray the time frames and trading strategies you want.”

Technical Indicators
“Familiarity with stocks and market fundamentals isn’t enough to succeed as a trader. You should understand technical analysis and all of the tools used to dissect chart patterns, trading volume and price movements. Some of the more common indicators are resistance and support levels, moving average convergence/divergence (MACD), volatility, price oscillators and Bollinger Bands.”

Comment: Most of the above will just keep you busy in a brain game, not a day trading WINNING game. Again you need NEW School: perspective, a trading coach to bring forth that fresh perspective and the day trading systems, strategies, and tools to learn to win all over again. That’s my view and experience as a day trading consultant/coach applying these new ways of trading stocks.

“Learning and understanding how these indicators work only scratches the surface of what you’ll need to know to develop your personal trading style. Hundreds of books have been written about day trading, and you can also take classes online or in person.”
Comment: And what I want you to know so you don’t blow all your resources on dated books and courses mentioned above is simple – they are old, obsolete, and mostly disconnected from real, big money winning.

“Trading requires sufficient capital to take advantage of leveraging fairly large positions. Most traders make their money on relatively small price movements in liquid stocks or indexes with mid to high volatility. You need price movement to make money, either long or short. Higher volatility implies higher risk, with the potential for greater rewards and losses.”

Comment: Right on – right to the point: you need money to make money, you need a coach to learn this, and you need the courage, risk tolerance, and NEW School trading savvy to become a big money winner.

“Unless you can buy several hundred or more shares of a stock, you won’t make enough money on trades to cover the commissions. The lower the price of the stock, the more shares you’ll need to gain sufficient leverage and total price movement.”

“The key to successful trading is developing techniques to determine entry and exit points. Most traders develop a style that they stick with, once they are comfortable with it. Some only trade one or two stocks every day, while others trade a small basket of favorites. The advantage of trading only a few stocks is that you learn how they act under different conditions and how movement is affected by the key market makers.”


“Develop a process and try it out with fictional trades. Refine the process and find what works for you. Only then should you put real money on the line and start actively trading the markets. Experienced traders define what constitutes a trading setup and the pattern and indicator combination they want to see before pulling the trigger. They rarely deviate from those setups in order to maintain focus and keep their emotions at bay.”
Comment: Don’t even think of doing this on your own – just like a golfer or tennis player on the world circuit, you need a day trading coach.
“Once you enter a position, stops should be placed to get you out of that position when a specified loss threshold is reached. If a trade is going the wrong way, hope and prayer will not help turn it around. Exiting the trade frees up your capital to redeploy to another more promising trade. You want to exit losers as soon as possible and ride the winners as long as they’re profitable.”
Comment: Your coach may think differently.The Bottom Line

“The success rate for day traders is estimated to be around only 10%, so if 90% are losing money, how could anyone expect to make a living this way?
The answer lies in professional training, diligent research, refined skills, great discipline and the ability to admit mistakes and cut your losses. You have to be prepared to make split-second, unemotional decisions based on information that is sometimes incomplete, contradictory and changing by the second. The statistics prove it’s clearly much easier said than done.”
Comment: you’ve got that right.Day trading is not for the faint of heart. A winning strategy may involve executing many trades in one day, while avoiding the trap of overtrading and running up huge commissions. Day trading can be fun, as well as profitable, if you learn the ropes and set realistic goals.

Read more:

Read even more:

Becoming a Day Trader 


Day Trading Success



<a href=””>John McLaughlin, StockCoach</a>


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