How Fast Can You Learn To Day Trade?

Many people are of potential high returns and a good trading experience. But signing up for day trading means learning the introductions of the process and getting ready for different challenges. It is natural for a beginner to wonder how long the entire process will take. Day trading is something which requires expertise in a specific context which can take many years to master.

However, the years spent while preparing to be a day trader can be different from person to person depending on their preparation for the same. It is important to know the entire process in order to make it profitable. In this article, we will outline what day trading is and how a beginner can start with the learning process.

What is Day Trading?


Day trading for any beginner is a process in which opening and closing of a trade happens on the same day. On any given trading day, the beginner could buy and sell within the same 24 hours. They may use a strategy to take a short position before covering it eventually but within the same day.

Nothing should go on to the following day which classifies what day trading is. Today, day trading is permeating through different markets but it is the most common with foreign exchange and stocks.

When we talk about the foreign exchange market, it offers many opportunities to beginners and experienced traders. It is a decentralized market which operates at different hours of the day depending on the participant countries. The hours during which it operates represent different financial centers across different countries based on their time zones. Learning forex trading for beginners gives expertise to regularly buy and sell from Monday to Friday to maintain profitability.

The stock market of each country is centralized and operates in certain hours only. A trader from a particular country will only stock trade within their country. So if the stock market operates for 6 hours per day in New York, that is the window offered to all the people buying and selling. The forex market offers a lot of flexibility as compared to the stock market.

What Do You Need To Know?

We have already established that it might take a while for any beginner to learn how to master the art of trading. However, this does not mean that one can go and blind. There are certain specific skills and knowledge that has to be gland by any beginner before they can even think of stepping into the trading scenario. Here are some of them:

The Fundamentals


The emphasis on the fundamentals will always be essential to learning a new skill. The best approach is to learn the fundamentals by reading newspapers or internet articles. The basics will include common terms that are used everyday by day traders.

One will also have to be ready with the trading approaches that range from fundamental to technical analysis. These statistical and overall analysis is very important to learn and is included in the basics. Researching into the main operations and understanding how to fit into a larger machinery of the market is very important for any aspiring trader.

The Key Strategies


Trading can simply not occur without the use of the right strategies. Beginners cannot depend on flukes. This is why they need to understand exactly how an experienced trader will go about the entire process. It is important to use different strategies and different times to get more profit by the end of the day. Not all strategies might be important or even effective so researching the market before choosing anything is essential.

The Record Keeping

A trading journal is something most dead readers keep to have a clear record of every month. It is a great way to track progress especially if you are new to the market. It is also great for future analysis because the previous practices can help in predicting the market trends of the future. Keeping a trading journal might also indicate certain great strategies that you can also use later.

The Psychology


Apart from mastering the knowledge and skills related to the market, one also needs to be in control intrinsically. They should never let emotions take control of the process because it can impact that strategy and all the things you have learnt so far. They can also lead to serious mistakes if not controlled initially.

The Risk Management


There is always the possibility of risk during buying and selling which is why money management is very important. Money management refers to the effective use of leverage to generate more profit with each move.

It goes hand in hand with risk management and can be changed to minimize the risk on each transaction. The stop loss strategy is crucial for better risk management. Whether you are in the forex or stock market, you have to be very careful with the money and how you are handling it.

How Long Till You Learn?


After mastering all of the aspects mentioned above, it is time to jump into the day trading process. There are different time friends for it depending on a person’s adaptation to learning and whether they are going into detail or not. The shortest time frame may be anywhere between 7 to 12 months.

However, this is the shortest time frame because a person dedicates their entire day continuously towards learning the basics of analysis and researching the market. If a beginner is holding on to a job while they plan to be a day trader in the future, it may take them longer than a year to fully master the fundamentals. Perfecting the strategies will also fall in this time frame but the hour put in everyday reflects on how long it will take.

The Takeaway

As long as one is ready to learn, they can be profitable sooner than anticipated. Keeping in touch with the market is key to not losing your acquired skills.