By the thinkBIG Team
As Christine Stavropolus discovers Lachlan Elsworth is a passionate day trader and international advocate of the opportunity day trading offers even the smallest of investors, he talks about what it takes to become a day trader.
I'm a passionate convert to the freedom of day trading," says Lachlan. "Day trading in a + $40 Billion USD daily market used to be reserved for the big boys of the industry. Brilliant innovation and even smarter technology is now opening up this daily opportunity to new traders and seasoned traders alike. Everyday people are now being offered a brilliant opportunity and this is where the day trading journey begins."
Christine Stravopoulos: Before considering day trading as a hobby or as a home based business opportunity, what should new traders consider?
Lachlan Elsworth: Trading the market on a daily basis is as much a function of realistic expectations, as it is a function of discipline, patience, strategy and most importantly, education. New and seasoned traders alike, appear to be flocking to Day Trading in droves. Why? Traders are demanding more flexibility in their trading; they want transparency of performance and a better trading education. Traders want to take advantage of the current unprecedented economic conditions and they want to take advantage now.
Potential investors and traders worldwide understand that the world's financial markets offer a huge opportunity, but they just do not know how to take advantage of this opportunity. Investors generally are less complacent and more pro-active, seeking information and new strategies. All that said, before a trader joins the herd, there are a number of key home truths about day trading that must be considered.
CS: What is a realistic expectation and what should new traders look for to give them every possible advantage in the market?
LE: For good traders, a realistic daily performance expectation is one of the foundations of a great strategy. Set your goal at up to 5% return on your traded position and then find a strategy to suit. Sounds ambitious for the unanointed, but these opportunities are passing by every day.
As an example, the S&P500 can return 5% on your invested position every time the Index moves a point in your favour. On the big days, the S&P500 can move up to 60 points in the trading day, bouncing up and down as the weighted average value of the top 500 shares in the US change their value. The S&P500 Index is just one of the Index day trading opportunities passing by each day that is actually tradable almost 24 hrs per day.
CS: What to look for - Live trading results in live trading rooms?
LE: Live daily trading results are the true acid test of any day trading strategy. When you choose an educator, ensure that they publish their results every day, and that ultimately these results are traded live in front of you in an online trading room.
In my experience, live trading rooms are a great tool to help new traders understand a trading strategy in real time, live in the market as it happens.
Live results and live trading rooms are a powerful educational tool that you may be able to use to your advantage. Use a successful strategy, in a successful room, as the grounding for your trading education. My opinion – having your buy and sell signals marked for you live is a distinct advantage when you are learning to trade.
A word of caution – watch out for trading rooms that record profitable trades while their trading rooms are closed! Also watch out for trading rooms that do not mark their losing trades……
CS: What have you learnt about Day Trading since you started trading and educating?
LE: That is a great question. Five absolute must considers….
Lachlan Elsworth is an international speaker, international day trading coach, and Managing Director of Traders International Australia and New Zealand.
