Forging your career path after college can be a messy and hard endeavor. There can be a lot of pitfalls, with plenty of time spent in dead-end jobs that you don’t love, mired with lots of terrible spreadsheets and boring tasks. So, learning how to day trade is very important to gaining the financial freedom to bypass the terrible times of terrible jobs and be your own boss. The rewards you can reap are enormous.
When you become a day trader, you want to be able to trade as quickly and efficiently as possible. That is where an interactive broker like Ameritrade comes in. Ameritrade and its Thinkorswim platform can be of great use to veteran trades and aspiring day traders. The value is in the research tools, the customizable interface and the ability to analyze trades before you make them. The Ameritrade features can save time and make trading easier to do. That is a very valuable skill set for an online brokerage that services day traders.
Day traders are always on the hunt for volatility. Finding stocks that are going to go up or down very quickly in the course of a day is like finding gold. The stocks that are jumping all over the place can be the best ones to jump on, because they can provide a savvy day trader with an opportunity to make a profit. There is no long-term investing when it comes to day trading. It is right there in the name. As a day trader, you are not concerned with competitive market share, business fundamentals or quality of management. What you are looking for is the technical indicators that make profits likely.
That is where Ameritrade comes in. With the research tools that Ameritrade offers, you can find those technical indicators that are about to break and show the volatility to come. The third-party research that Ameritrade offers can supplement the time that you are spending reading charts, searching for candles and finding gappers. That is part of the value that Ameritrade can bring.
The other part is the trade analysis that Ameritrade has in store for you. When you begin as a day trader, paper trading is a great way to get your feet wet. That is where you spend time in a simulated trading environment that allows you to trade virtual currency and, essentially, practice. Ameritrade has a feature that allows you to map out a particular trade before you pull the trigger. It is a great way to take into account what might happen before you even make the trade.
But the one mitigating factor for Ameritrade is the commissions costs. They can be pretty high, if you are not careful. And that will add up if you are making multiple trades per day. There is very little you can do to mitigate the commission costs on the Thinkorswim platform.
Being a day trader means making spilt second decisions that will result in great profits. But you need to be properly set up before you make those quick calls. So when it comes to choosing a broker, you want to take as much time as possible before you settle on one.