The internet is chock full of hundreds of day trading courses that individuals can sign up for to help them learn how to day trade and conquer the capital markets on a daily basis. For most, the process of choosing the right course is confusing but there are a number of steps an investor can take to determine the right course for them.
The first step is deciding if you plan on becoming a professional day trader. This means that the majority of your business-related time will be spent researching, studying and trading the capital markets. If your goal is to become a professional day trader, then you can focus your attention on day trading courses that are intensive and give traders a feel for the process of real-time trading.
Courses that are focused on one time seminars or trying to simply learn from reading books are likely too shallow of an approach for those who are looking to become professional day traders. Seminars usually are conducted by professionals who are looking to promote a lengthier course and would like to use the live day trading seminar to promote their brand. This type of course might be satisfactory for those who are looking to dip their toe into day trading, but will come up short for those who are looking for intensive training and the goal of becoming a professional day trader.
Day Trading Risk Management
One of the most important skills that a robust day trading course will focus on is risk management. This process will combine the amount of capital that should be risked on each trade with the market risk management which includes stop loss levels and prudent take profit point. Even more important than a trade entry strategy, risk management is the key to successful trading as it allows a trader to live through rough stretches and profit when the market moves in a well-defined pattern.
Day Trading Education
The best intensive programs focus on strategy development, risk-management, and trading-psychology. One of the first concepts taught is technical analysis and how to incorporate it into your trading or investment strategy. Technical analysis is the study of historical price action and is an excellent broad study of how past price action can predict future price movements. A concrete understanding of technical analysis can allow a day trader to develop sound strategies focused on initiating positions and managing risk. Technical analysis can range from pattern recognition to statistical studies that are geared to many different financial securities.
Programs that also cover the psychology of trading are key to long term success. Unfortunately a large percentage of traders who are self-taught fall victim to the ebbs and flow of the capital markets as market movements over the short term generally move in the direction that will cause the most traders the greatest amount of financial pain. Educating traders about the intricacies associated with market swings can help prevent failure.
Education that focuses on online courses as well as content including videos, webinars and presentations, in a format that allows investors to learn at their own convenience and pace, will provide the best environment for timely learning. Platforms that provide access to a training portal anytime and anywhere across different devices such as your PC, tablet or mobile phone are now considered the best trading educational platforms.
Many trading courses offer trading room style access where traders will discuss specific financial securities and strategies while the markets are open and moving. This real-time environment helps new traders get a feel for the fast paced movements of the capital markets and how best to handle new market situations.
The most interesting attributes of well-designed day trading courses is placement assistance. The more robust companies will offer students placement assistance if they complete their course. Upon completion of the intensive training program the course administrator will help students be placed to trade firm capital on behalf of an investment advisory firm, hedge-fund or proprietary trading firm Through a network of partners students will interview and find a home as a day trader. Individuals who are specifically looking for work as professional day traders should analyze the partner networks of day trading course providers to ensure that they have access to reputable firms that are interested in hiring.
What To Look For
When choosing a day trading course, the most important questions to ask are relating to credibility. Before registering for any course, be sure to do your due diligence. Ask who the instructors are and what their background is with trading. Preferably, you will find an instructor with adequate publications such as published books or journal entries.
Here are a list of the some of the most prominent day trading courses available: