Day trading has changed a lot in the last 30 years. Nowadays you don’t need to leave your house, and your entire empire can be run from the comfort of your computer.
Back in the 80′s things were a lot different. If you wanted to trade, then you would have become very familiar with the “trading pit,” where trades where made amidst the hustle and bustle of people shouting and frantic phone calls being made.
In order to make a trade, it would have required you to get on the phone to your broker, who would then relay the information to one of the floor traders in the trading pit. If the trade was made, the floor trader phoned the broker back, who would then give you a call to let you know the details. And on and on it went.
Things in the trading world have come a long way since then… thanks in no small part to the internet.
The main problem with the old way of trading is that it wasn’t particularly quick. In day trading, the ability to act fast is crucial, and the difference between making a score or losing your shirt can be a matter of seconds.
Now, with online trading, everything is available at the click of a button. No more endless phone calls and waiting around for further information. You can buy and sell in an instant, while sitting at home in your pyjamas.
Because it is now so easy to get online and start trading, there has been a significant rise in the number of people trying to grab their share of the pie.
You don’t even need to commit any real money into the market, as many part-time enthusiasts prefer to reduce their risk by just making paper trades. In fact, this can be a good way to get started, and then once you start to feel comfortable you can start with using real money.
How much money do I need to start day trading?
Unfortunately, there is no clear cut answer to this question. You see, the number depends on lot’s of different variables. Which market do you wish to trade in? Are you going to use a broker?
For example, if you want to start trading in the stock market, then you would need a nice lump sum of money to get started. Specifically, around $25,000 at a minimum.
If that sounds a bit out of your league at the moment, then you might want to consider something like Forex day trading.
Forex focuses on trading different currencies, and there are a range of brokers online that you can get started with. The best part is that there are brokers out there that require no minimum deposit, which realistically means you can get started in Forex trading with just a few hundred dollars.
The best way to start trading Forex is to keep your trades small at first. Then, once you gain experience, you can begin to increase the amount of money in your account.