Becoming a Successful Day Trader: Part 1

As I wrote in my last post, “How I Started Day Trading: A Beginner’s Story and Practical Tips”, I shared my journey of getting started in day trading. Now, I want to help you get a head start by sharing what I’ve learned so far about becoming a successful day trader.

Can You Really Make Big Money Day Trading?

Absolutely. There are real stories of people making substantial profits as day traders. Some focus on a single stock, like Apple, mastering its patterns and news cycles. Others use high capital for quick, small price moves.

While these stories are inspiring, it’s important to know that day trading is high-risk and requires discipline, strategy, and ongoing learning.

What’s the Secret to Day Trading Success? Find Your Edge and Stick With It

One successful trader I heard about focused exclusively on Apple stock, learning its seasonal movements, news impact, and technical patterns. This approach, mastering one “instrument”, allowed him to refine his strategy and persevere through market changes. Consistency and specialization can be powerful in day trading.

Understand Different Trading Strategies

There are many ways to approach day trading. Popular strategies include:

Day Trading

Buying and selling assets within the same day to profit from small price moves.

Scalping

Making many quick trades for small gains.

Momentum Trading

Riding strong price trends for short bursts.

News-Based Trading

Trading on the volatility caused by major news events.

Range Trading

Profiting from well-defined support and resistance levels.

Each strategy has its own tools and risk profile. The key is to choose one that fits your personality, risk tolerance, and schedule, then master it.

Learn the Basics: What’s a “Tick”?

A “tick” is the minimum price movement of a trading instrument. Some professional traders risk large sums for just a one-tick move, using automation to enter and exit trades instantly. This “in-and-out” approach limits exposure but requires precision and significant capital.

To dive deeper into this topic, check out Investopedia’s article on: Tick Size: Definition in Trading, Requirements, and Examples

Risk Management: The Foundation of Long-Term Success

No matter your strategy, risk management is essential. Top traders use techniques like:

• Stop-loss orders – Automatically exit trades at a set loss threshold.
• Position sizing – Risk only a fixed percentage of your account per trade.
• Diversification – Avoid overexposure to a single asset or strategy.
• Setting limits – Cap the number or value of open positions and total losses from any one strategy.

Discipline in following your risk management plan is what separates long-term winners from those who burn out quickly.

Getting Started: Practice, Patience, and Community

If you’re new, start with a demo or evaluation account like those offered by Apex Trader Funding to practice without risking real money. Use this time to refine your strategy, build discipline, and learn from both wins and losses. You can also visit NinjaTrader and open a simulation account to get acquainted with their platform and eventually trade with a live account. NinjaTrader has tons of resources to help you get started. They also have a YouTube show for daily insights.

Key Takeaways for Aspiring Day Traders

• Success is possible, but not guaranteed. Most day traders lose money, especially at first.
• Master one strategy or instrument before branching out.
• Risk management is non-negotiable.
• Continuous learning and adaptation are vital.

Ready to take the next step? Visit Apex or NinjaTrader and begin your journey with the right tools, practice environment, and support.