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Day trading is a way out of the gray cubicle for some people. It is a chance for cubicle dwellers and bored office workers to put their office skills, like manipulating spreadsheets and reading complicated charts, to work. Interactive brokers can help people escape the gray prison of corporate America, creating an income stream that allows them to be financially independent.
The lie of workplace advancement and security is a powerful one. Many people believe that if they keep their head down, work hard and play by company rules, they can carve out a sustainable and safe existence. But corporations don’t have your best interests at heart. They have shareholder interests at heart. So the investor class is the the one that holds all the cards.
That is why working with interactive brokers and learning to make money as a day trader is the best way to secure your financial future. It takes hard work, discipline and dedication, but it is possible. You need to learn the proper strategies for day trading, like momentum day trade and gap and go, in order to make sustainable profits. You can’t just wing it out there on the market. You need to have a plan.
Which is where Warrior Trading comes in. The day trading education provider can teach aspiring traders to find the right stocks and trade them at the right times. That is the crux of gap and go trading, which was mentioned above.
Gap and go trading is based on finding gappers. Gappers are stocks that are gapping up from the previous day, which means that their price in pre-market trading is higher than the price they closed at yesterday. Finding those gappers in the morning and identifying the ones that are about to make real moves is very important towards winning at the gap and go strategy. Gappers with a breaking news catalyst, like a positive earnings report, coupled with float of less than 10 million shares are great candidates for the strategy. Less shares on the market means it is more likely that all of the shares will be traded in a given day.
When making day trades on the open market, you need some sort of risk management strategy. Talk to any traders out there using interactive brokers and they will tell you the same thing. Controlling your risk is the way to real profits. Putting stop-losses on your trades and making the risk management almost foolproof is an excellent way to make sure you don’t lose too much on one trade.
The fact of the matter is that you will make mistakes and bad trades. You will find trades that do not work and you will lose money. The key is to lose as little money as possible on those bad trades and maximize your ability make big profits on the trades that you hit. That is how you build a positive profit/loss ration every week, every month, every year.