This little bit of information is important because US Citizens are subject to the Pattern Day Trader Rule. This rule restricts anyone who has less than a $25k Margin Account from placing more than 3 day trades within a rolling 5 day period. If you break this rule, you will be forced to swing trade ONLY until you deposit $25k into your trading account.
Want to know how to get around the PDT Rule? Click Here
Day traders usually fall into 2 categories: Long-biased traders and Short-biased traders. Most of us here at TradeBuddy are long biased traders, but we do have some amazing short biased traders. Its good to learn both types of trading so that you can use reverse psychology to find exactly where the ‘other side’ of the trade will act the most emotional.
There are a ton of different trading setups and strategies that people use to do this, but it’s important to understand that just because a setup works for someone else, does not mean that it will work for you. Traders are individuals who have different ways of thinking and perceiving information, which can greatly affect how you will trade compared to someone else.
Some strategies contain a ton of risk, while others have less perceived risk but require to you be lightning fast. Others can be slower trades altogether; there are a thousand different ways to make money in the market and your only job is to find a few ways to do it consistently. It takes time to develop your own setups that best fit your personality, which is why we highly recommend Paper Trading before risking your hard earned cash.
