How to Become a Day Trader with $100
Trading the financial market can be very tasking but the returns are worth it. How to become a day trader with $100 doesn’t even make it easier. It takes a lot of consistency; patience and determination to earn money from trading the stock market or in the crypto space. The fear or the actual loss of an enormous amount of money can stop you from investing.
In this article, I’ll show you that it is possible to trade with a little amount of money. We will be looking at how you can become a day trader with $100. But first who is a day trader?
What Does a Day Trader Do?
A day trader trades the financial market. He buys and sells securities e.g stocks or coins regularly during the day, and shifts no open situations to the following day.
A day trader is different from an active merchant. An active merchant trader holds his trades for many days, but a day trader holds his trades daily. If he places a buy/sell order and it doesn’t go through for that day, he cancels it. His order doesn’t push through to the next day.
How can I become a Day Trader with $100?
Trading with $100 is possible; it largely depends on the trading procedures you intend on using and your broker. With a good broker, you can start trading with $100 but success is determined by how effective your trading strategy is. It won’t be effective if your strategy is not carefully drawn.
To build an effective strategy, you need to do extensive research and learn about risk management. Study the stock market; you’ll need to understand it if you want to be able to predict it. Talk to fellow traders, and find out the strategies they’ve used that didn’t work out, and why they didn’t work out. If possible find out, the strategy they’re using that is working out for them. Even if you have to pay them to get this information, do it. With this information, you might be able to draw out a more effective strategy or just work with theirs.
You should also know that most traders pay for signals. You can also choose to pay to get trading signals from other professionals in the business. However, this is also risky as not all signals pull through.
With a proper and carefully defined trading strategy, trading with just $100 might not be as difficult and impossible as you think.
Read also: 5 Online Investments with Low Capital
Guide on how to become a Day Trader with $100
1. Find a Trusted Negotiator
As a beginner, keep in mind that your earnings won’t be much, so you have to find a negotiator who won’t charge you on commission but stretch the account.
2. Choose Securities
To successfully grow your account seek higher deals. This is why you’ll have to understand how stock works. Look out for good currency pairs (as a Forex trader) and coins with prospects (as a crypto trader).
See also: Surest way to invest 50k in 2022
3. Practice Money Management
Avoid all possible means to throw in more funds till you’re able to see the dividends of your first investment.
4. Start little and Expand
Since you’re just starting with a new strategy, don’t trade with huge amounts (the entire $100); grow the account little by little.
Conclusion
As you can see, it is not impossible to become a day trader with $100. With research, dedication, consistency, patience, and a well-drawn trading strategy you can do it.
