Day Trading Frequently Asked Questions

» How much profit can I make day trading?
» How long will it take me to learn how to day trade?
» Is my day trading capital guaranteed from loss?
» Should I quit my day job or business to day trade?
» Can I day trade if I live outside of the United States?
» Do I have to pay taxes in day trading?
» I heard that day trading currencies has more tax benefits than day trading stocks. Is this
   true?
» Can I open a trading account from any country?
» How long should I do paper trading before day trading with real money?
» What is the minimum account you recommend to start day trading?
» Should I day trade with all my money?
» How much will it cost for me to learn day trading?
» Should I trade from home or from a trading room?
» Is day trading with a laptop better than with a desktop?
» Do I need more than one monitor?
» Do I need DSL or Cable Modem service?
» Can day trading be treated as a career?
» Is there a "best time of the day to day trade?"
» How much capital do I need to day trade?
» Should I paper trade on paper?
» What can a day trading software cost me?
» Is it a good idea use trading systems or daytrading entry/exit point generated by trading
   systems/ websites?
» I have invested in stocks in the past. Will day trading be easier for me to learn?
» Should I pay thousands of dollars for a day trading course?
» How can I predict what prices are going to do while day trading?
» Can I day trade only a few hours a day?
» Why all the fuss about having a day trading strategy?
» Is day trading online safe?
» What is the best way to learn day trading?
» Is day trading for beginners?
» Where can I find a good day trading company?
» Should I use news to day trade?

How much profit can I make day trading?

This is a very common question among novice traders. It is really impossible to answer because it varies so drastically from individual to individual. Imagine if you were the coach of a new, professional basketball team and you were given the authority to recruit all the players under one condition. If you answered the "simple" question, "How many points is each player going to score a game?" Not only is this question impossible to answer in basketball, it is even more difficult to answer when it comes to day trading because novice traders do not have any prior experience. A new trader can become a huge success by applying to perfection a system he is taught or by even developing his own winning, trading system. A novice trader can also fail miserably for many reasons, not just because of a lack of discipline. There are so many physical, psychological, and emotional variables involved that it is really futile to try to determine how profitable a new trader will be. Nevertheless, human beings don't like uncertainty. They want a daily percentage, a monthly dollar figure, something they can visualize and project to infinity. Unfortunately, this is not reality. If done correctly, day trading can become one of the most lucrative businesses in the world, but no one could answer for sure how profitable anyone could become.

How long will it take me to learn how to day trade?

This depends on the amount of time you put in studying the markets and practicing daytrading. This also depends on individual skill, interest and the tools that are used to learn daytrading. For example trading simulators like RapidSP can make the learning curve shorter while practicing at market speed might take you longer to learn to daytrade.

Is my day trading capital guaranteed from loss?

Wouldn't it be nice if we could lose all our money day trading and then have some organization giving it all back to us? Could you imagine? We enjoy all the fruits and someone else takes all the risk. Nice, right? Not even in fairy tales does that happen. No broker or expert can guarantee that you won't lose your money when day trading. Remember, if you want to become a day trader, you will have to call the shots. You will make the decision to buy and sell. You are in control of your own destiny and responsible for your own losses and gains. If anyone guarantees that you will make money day trading, they are lying to you. Do you know for sure if you will make money when you start a new business? Day trading is a business like any other. There are no guarantees. Nevertheless, because businesses cannot be guaranteed does not mean that they shouldn't be started.

Should I quit my day job or business to day trade?

No! Wisdom is a necessity in the business world. Before a drastic financial move is made, a lot of planning is required; that is, if we care about the final outcome. Day trading is not for everybody, just like brain surgery is not something everyone could stomach. Before you sell the house, wife, and kids and take an eternal day trading sabbatical, make sure you first start small and slow. You don't have to quit your job or close your business and dedicate yourself fully to the world of day trading. In fact, since the general public now has access to the 24-hour currency market, new traders can day trade during convenient hours, based on their schedule (without having to quit their jobs). Don't get greedy or anxious about it. Test the waters before you jump in. Then you will know if a career in day trading is for you.

Can I day trade if I live outside of the United States?

Yes. In fact, the Unites States has many laws that offer incentives to foreign investors. All you need to start day trading is a computer and an Internet connection. Through the Internet, you could trade from any part of the world. That is one of the greatest advantages of having a day trading business. No matter where you are or where you go, as long as you have access to the web, you can run your business. What we do recommend is that you try to trade through a broadband (DSL or Cable Modem) connection rather than through a dial-up connection (56Kbps), no matter which country you are trading from.