The Benefits and Risks of Lucid Dreaming: Is it Safe?

Benefits and Risks of Lucid Dreaming

Before learning how to lucid dream, there are a few things people want to know:

  • What is a Lucid Dream?
  • What are the Benefits of Lucid Dreaming?
  • What are the Dangers of Lucid Dreaming?


What is a Lucid Dream?

Lucid dreaming happens can become aware that you are dreaming while asleep, and increase this awareness into control.

A lucid dream can be interpreted as a gateway to communicate with your own subconscious mind. It will allow you to gain valuable insights into your deepest fears, desires, as well as problems.

10 Benefits of Lucid Dreaming

lucid dream mind

1. Learning to Manage Your Thoughts

Perhaps the most significant benefit offered by lucid dreams is a fact that they help us to control our thinking process. To lucid dream you literally train your mind to dream as you want. Meditation becomes your friend and will guide you to unlocking your mind. You learn to paint your dream scene and to direct it how you want.

2. Enhances Practical Skills

It has been shown by studies that lucid dreams can help to improve your practical expertise significantly. This implies any sort of activity including playing any musical instrument or even playing sports. By controlling one’s dreams, one will be able to practice virtually any sort of skill and also start seeing remarkable results within a short span of time.

3. Reduce or Eliminate Anxiety

Lucid dreams will likewise help us to get rid of stressful situations and tense moments without much problem at all. All individuals suffer some sort of anxieties in their daily lives because of the hectic lifestyle that is being led by them. You will not be an exception to this and lucid dreams will help to minimize your stress in any particular nerve-wracking situation including public speaking.


4. Helps to Conquer our Fears

Another notable benefit offered by lucid dreams is the fact that you will be able to get rid of your fears that might be affecting your waking life out there. Your subconscious mind might like to help you and make an attempt to play out any fear drama while you are sleeping; however, in case you are not present there to witness them, it will be extremely hard for you to experience any benefit.

While having a lucid dream, you will have the opportunity of experiencing and also processing those fears which your mind might attempt to get rid of. Many individuals have succeeded in alleviating their fears and stressful situations while experiencing a lucid dream.

5. Remembering or Reuniting With Loved Ones

It might be the fact that you have lost any friend or relative during the last few years. Lucid dreaming may help you to reunite with that person or persons once again. Obviously there are no guarantees, but some claim to relive memories and have new experiences with those who have passed on.

Problem Solving

6. Enhance Your Problem Solving Skills

When it comes to solving problems, try to imagine solving any complicated equation while you’re sleeping. It does happen. In fact, numerous discoveries have taken place while individuals were sleeping because of the fact that our brain has the ability to work out some breathtaking stuff while we are taking a nap. 

7. Enhances Your Motor Skills

Lucid dreaming will also help to enhance our physical rehabilitation to a great extent. As a matter of fact, individuals suffering from physical impairments might practice their motor skills while having lucid dreams. However, it has also been revealed that individuals without any sort of physical disability can likewise use lucid dreaming for improving their motor skills significantly.

good sleep

8. Enhance Your Sleep

Lucid dreaming will help to bring more awareness to your slumber and will provide you with a more restful sleep for a considerable period of time. A person has to become aware of their own sleeping patterns and the importance of sleep to truly take advantage of all that lucid dreaming has to offer.

You will be able to relax effectively in any situation when relaxing and maintaining consciousness is possible simultaneously. This is what lucid dreaming is concerned about in a nutshell. In fact, individuals who are known to practice lucid dreaming usually discover that they are able to interact with their slumber in a better way than before.

9. Improves Your Self-Confidence

Lucid dreams will help to solve your problems and become self-assured in your practical life. It will help us to concentrate much better and will also reinforce our memory significantly. Apart from this, it will help us to improve our ability to adapt as well. Lucid dreams will help us to sleep much better, as mentioned before, and thus we will be full of energy so as to become productive in our practical life. It will also help to enhance our confidence to a great extent and we will be able to accomplish our objectives with greater ease. 

10. Allows us to do anything while dreaming

In our daily lives, we all have different types of desires and aspirations. While lucid dreaming, it will be possible for any individual to satisfy these desires such that there is no need to obsess over them. You might experience anything that your deepest fantasy might be talking regarding discovering something like Einstein, having a picnic in the middle of the ocean, and so on. One can fly, go to any particular time in the past, or even interact with any version of his personal waking world where he has full control of the surroundings. You can easily fulfill all those desires in your dreams and lucid dreaming will enable you to do just that.


These are some of the most significant advantages offered by lucid dreams to any person.

The benefits of lucid dream can be breathtaking and it can affect everything in the life of any particular individual. In one particular study, it has been revealed that approximately 20% of the individuals have this kind of dream once every month. Interestingly, lucid dreams have lots of benefits when it comes to our health.

In a nutshell, self improvement is the focus and goal of learning to lucid dream.

Risks and Dangers of Lucid Dreaming

The dangers of lucid dreaming are few in number and none are really that serious. There are many who question if lucid dreaming is even real.

It is real and not dangerous, especially for the mentally stable, but it has its risks that you should know about.

Sleep Paralysis

What happens when you fall asleep is that the mind temporarily renders you paralyzed. This is so that you can’t act on the perceptions coming to you.

Pretty much everyone experiences sleep paralysis; it’s just that you don’t know about it because your consciousness is gone.

For the lucid dreamer, however, they may have a heightened state of awareness in this state of temporary paralysis. However, they too may not be able to do anything about it since they are asleep.

Sleep paralysis can be frightening, as the sleeper attempts to move but they can’t.

It can lead to panic attacks and mild hallucinations. Experts, however, say this is not something to be alarmed about as there are ways you can get out of this state and that it doesn’t last long.

Sleep Paralysis

It Can Affect Your Quality of Sleep

Attempting to control the narrative of one’s dreams can require great focus and effort, and can be draining.

As it is closely connected with sleep paralysis, you may experience this with interrupted sleep.

It is important if you are learning how to lucid dream that you make sure you are getting the proper amount of rest.

As one gets more comfortable with

You Can Confuse Dreaming and Reality

Experts warn that if you have certain mental health conditions, you should not pursue lucid dreaming.

For people with schizophrenia, for example, lucid dreaming exacerbates the condition where one fails to distinguish between imagined and real-life events.

It makes everything realistic; even one’s fears.

While lucid dreaming is pursued its VR-like effects where one can explore desires: happiness, sex, and more, the opposite happens too such that fears, sadness, and pain are possible.

Therefore, the thing making lucid dreaming magical is also its pitfall, negative feelings are possible. However, don’t worry, death won’t get you in there.

Lucid dreaming is some form of escapism into some virtual reality to explore one’s desires while asleep, but it can force one to lose touch with reality too.

Things can get addictive once you start taking on those superpowers and controlling the things you have no power over in reality.

Lucid dreaming can also get addictive making you do it all the time to escape reality. Experts, however, say the lucid dreaming addiction can be stopped easily.

Dream Claustrophobia

Dream Claustrophobia

On the heels of sleep paralysis, dream claustrophobia is getting lucid in a dream scenario you can’t control. Getting stuck in a nightmare, you are aware of but cannot awaken from or manipulate the worst fate lucid dreaming can condemn you too.

However, like sleep paralysis, dream claustrophobia won’t last the whole night, and it’s also not that different from the normal dreaming that other people do.

How Avoid or Stop Lucid Dreams

If you find yourself in a lucid dream, the best thing is to avoid freaking out as things can get messy via sleep paralysis and night terrors.

You can prevent Lucid dreams by:

  • Trying to fall asleep in your dream

To fall back to sleep in your dream involves taking away your mind from the narrative and focussing on other things. You could, for example, think of your daily chores so that you get bored. You may then lose the sense of self-awareness in your sleep and drift back to the unconscious state.

  • Sleeping on Your Side

Lucid dreams happen mostly when you sleep on your back because you’re most likely to fall experience sleep paralysis and out-of-body experiences. Sleeping on your side minimizes the chances of such phenomena.

  • Have a Regular Sleep Pattern

Getting a decent night’s sleep will help you forget lucid dreaming episodes. As they get out of your mind, the phenomena will wear down as your body clock adjusts to your sleeping pattern. Develop a regular sleep pattern and stick to it.

  • Avoiding Recording or Recanting Your Dream

Going through the dream you had last night increases the chances of you getting into vivid dreams. Help your body clock adjust by forgetting about your dreams and focusing on a regular sleeping pattern.

  • Avoid Alcohol and Caffeinated Drinks, Especially Before Bed

In the heels of getting a decent night’s sleep is avoiding drinks that tend to mess up with the regular sleeping pattern.

Coffee and alcohol may cause you to wake up frequently in the night, and you may start awaking in your dreams too; avoid such arousals around bedtime.

In Conclusion

While lucid dreaming seems magical, and without dangers, lucid dreaming does possesses certain risks.

Overall, there is not much to worry about when you considering learning an art like lucid dreaming.

Is Lucid Dreaming Real? The Truth Behind Controlling Dreams

Is Lucid Dreaming Real

Showing that people believe lucid dreaming is real, is not that difficult. But some will not ever believe until they experience it for themselves.

The lucid dreaming phenomenon occurs naturally during REM sleep, but some people are able to train themselves to experience it in a higher degree.

Certain people experience this kind of an awakening or awareness when they’re asleep and dreaming.

Is Lucid Dreaming Real?

The truth is that many people just become skeptics of what they don’t understand.

As far as we can tell, lucid dreaming is a concept that has been around for centuries now.

It was first featured in the essays, On Dreams by the Greek philosopher Aristotle in which he describes a state of sleep in which one becomes self-aware and starts taking over the narrative of his/her dream to control its content.

There are many fan-favorite lucid dreaming movies, such as Inception, where feats that seem impossible in real life are embellished. In the movie, the characters can not only control their dreams, but they can enter other people’s dreams and manipulate them too.

Is Lucid Dreaming Safe

At first glance, lucid dreaming can be misunderstood and even considered to be scary. See, dreams are able to bring our greatest fears into a virtual world designed in our brains while sleeping.

The scary part is, you won’t even realize it’s not real. This coupled with the lack of control you have over your environment and body makes it a terrifying place to be in.

But what if we told you that there was a way you could change all this; a way to tilt the odds in your favor and have full control over everything in your dream.

Today we are going to change your perception and prove to you that it is without a doubt a real thing.

Scientific Proofs of Lucid Dreaming

So we’re going to jump straight to the point and give you the much sought after evidence. The following are some of the scientific research done over the years that show just how real lucid dreaming is.

Dr. Keith Hearne’s experiment

This experiment, done in the year 1975, was the first proof of lucid dreaming and marked the beginning of several other scientific studies which would be done in the future.

Dr. Keith Hearne made this groundbreaking discovery while experimenting on a lucid dreamer (Alan Worsley) in the sleep laboratory situated in Hull University.

At this time, lucid dreaming could not be verified because there was no way one could tell the time at which it was occurring during the dream.

Dr. Keith came up with a way in which the lucid dreamer could signal to him when in a lucid dream. He asked the subject, Alan Worsley, to make around 8 left and right eye movements when the lucid dream began.


To his surprise, the subject did exactly that at 8 am in the morning. The sequences of eye movements could be seen on the Electro-oculograph through a series of long zig-zag movements.

See, whereas the rest of the body is paralyzed during sleep, the eyes are not and therefore can be used to indicate a state of consciousness. Biologically, it is during the rapid eye movement stage of sleep that humans dream.

In the year, 2006 we also had an experiment done to prove the concept of lucid dreaming. In this experiment carried out by a German researcher earphones were used to send certain tones to the dreamers.

Although asleep, the lucid dreamers could hear these tones in their dreams and responded through eye movements which could be seen by the researchers who were awake.

Munich’s Max Planck Institute of psychiatry experiment

Dr. Keith’s experiment may seem old and outdated but fast forward to 2012, and the conclusion still holds.

This recent experiment employs a more advanced piece of equipment known as the FMRI brain scanner to further support Keith’s research.

These scanners are usually used to measure the speed at which blood flows to the different brain areas thereby conveying information about what one is thinking and doing through an image sequence.

In the experiment, the subjects were asked to clench and unclench their fists while awake. As they did this, the researchers used the FMRI scanner to spot which parts of the brain showed any signs of activity.

Some vital parts of the brain lit during the experiment which was an indicator of neural activity.

Soon after, the subjects were asked to sleep and dream about clenching and unclenching their fists.

Remarkably, the same spots which showed neural activity in the brain while they were awake did so again while they were asleep. This objectively proves that lucid dreaming is indeed real.

Lucid dreaming research on the Brazilian population

Numerous studies on dreams and lucid dreaming have been conducted on the Asian, North American and European population but limited studies have been done in South America.

Brazil being by far the most populated country in South America was the best place to carry out the experiment.

An online survey was done on 3427 people in the country. The median age was 25 years. The results showed that at least 77% of the people in the study have had a lucid dream.

This is a large number to ignore and therefore further supports the reality of lucid dreaming.

Lucid Dreaming Benefits

Experts have hailed lucid dreaming for therapeutic applications in:

  • Dealing with recurring nightmares so that they may not affect the quality of one’s life. The lucid dreamer can decide to get out of the dream or take on some superpowers and confront the attacker. It is believed that lucid dreaming can help with treating ptsd nightmares.
  • Creating pleasant experiences – kind of a virtual reality where the dreamer can explore whatever they desire.
  • Resolving fears and exploring one’s inner self.

According to Dr. Denholm Aspy, a specialist in lucid dreaming from the University of Adelaide, the most important benefit of lucid dreaming is the ability to control nightmares and mainly the frequent ones. This can be very essential to a person’s life.

Nightmares normally make us undergo an unnerving experience that leaves us terrified even while going on with our daily lives.

Lucid dreaming can help solve this by giving you exclusive control over your environment. You can simply snap your fingers and turn an evil clown into a bouquet of roses.

Some people boast that you can re-unite with your loved ones, while others practice some of the real daily skills like playing the guitar and best of all have fun.

Lucid dreaming makes you a God in your dream and eliminates any fear you might have while dreaming because you know that nothing can hurt you. This trickles down to your everyday life because you wake up a fearless and happy person.

The Dangers of Lucid Dreaming

There benefits of lucid dreaming definitely outweigh the minor dangers it There isn’t a lot to worry about when it comes to the risks or side effects of lucid dreaming.

Dangers of lucid dreaming may include:

  • Sleep Paralysis – This can be a scary experience, but not really a big deal. If you learn more about sleep paralysis you can actually learn how to turn it into a lucid dream.
  • Confusion– Sometime you can confuse reality with the dreams, because they can seem so real. You can wake up with some confusion, but that happens with normal dreaming as well.
  • Less Quality Sleep–  The main thing to pay attention to is that you are getting the proper amount of sleep.

How to Induce Lucid Dreaming?

If lucid dreaming is real, the next step is to learn how to do it.

Some can simply induce a lucid dream at anytime they want. Others do it while half-asleep, while others can simply wake themselves up on realization that they are in a dream.

As mentioned earlier, you dream during the Rapid eye movement stage (REM) and this is also when lucid dreams happen. The experience varies in most people and each person has a different degree of influence over it.

All these shows that you are aware that the environment you are in is not real and hence a lucid dream.

People can generally induce lucid dreams through some specific triggers that help you realize you are in a dream.

Some things that can help induce lucid dreaming are:

  • Music – Binaural beats
  • Sleep Masks 
  • Health supplements
  • A dream journal
  • Meditation


More and more research is being carried out on the subject matter and many people are seeking this incredible power and control over their dreams.

With the right stimuli and mindset, you too could be able to alter your dream into a virtual heaven every time you go to sleep.

The best way to find out if lucid dreaming is real is to start learning how to lucid dream for yourself.

How to Lucid Dream Tonight In 7 Easy Steps

Lucid Dream Tonight

It takes less than an hour to prepare to have a lucid dream tonight, so why not give it a try.

Lucid dreaming is when you become so self-aware during your dream that you know you are, in fact, dreaming. As well as this, some dreamers can go on to have an element of control over what happens in their dream.

From its name, you would think lucid dreaming refers only to dreams that feel particularly realistic or that you remember clearly.

While this is true, in part, there is far more to the notion of lucid dreaming, which is becoming increasingly popular among all age groups.

This consciousness while dreaming creates heightened perceptions and sometimes stronger emotional feelings during the dream. It has been mentioned in history, as far back as Aristotle, and is a feature of some Hollywood blockbuster movies today.

While some people often claim to remember their dreams, it would seem lucid dreaming happens by chance; however, there are some steps you can take to increase your chances of having lucid dreams more regularly.

There is proof that lucid dreaming is real and if we can learn to control our dreams, we might be able to avoid nightmares as well as more fully enjoy living daydreams.

STEP 1: Prepare Your Mind

The first thing you need to do is envision and believe you can have a lucid dream tonight.

You need to put into your mind the idea that you are going to dream and be aware of doing it.

You can’t just lucid dream anywhere, even if you have an extremely powerful mind. Meditation and visualization can take you out of your current environment, but to have the best chance of a lucid dream you need to arrange your bedroom to help you.

Total relaxation is vital, therefore it is best to either sleep alone or make sure your mattress is designed so that excessive movement on your partner’s side will not affect you.


Lucid Dreaming Preparation Tips:

  • Write down any pressing worries down on paper or in a journal
  • Take a shower or bath- getting clean and feeling fresh can help
  • Prepare your room – make sure it is a clean and comfortable environment
  • Get rid of distractions – silence phones, turn off things that may interrupt
  • Uses binaural beats – relaxation music designed to relax and enhance the mind
  • Take a natural sleeping or lucid dreaming supplement like melatonin.
  • Kindly ask roommates or family members to help by reducing noise.

When you are ready, start by laying in a comfortable position in which you won’t have to adjust often.

sleeping on back

TIP: Laying on your back seems to be the best position, if possible.

Throughout the following steps the whole goal is to keep your mind focused even as your body is falling asleep.

STEP 2: Use Mantras and Meditation

Linked to the use of mantras, using meditation techniques is a helpful way to help your body achieve a state of relaxation similar to sleep while awake. This will help link the boundaries between your conscious and unconscious mind.

Practice breathing techniques and visualization to make sure your body is fully relaxed and your inner eye is given freedom to explore.

A mantra is a words or sounds repeated to help concentration or meditation. Some experts recommend using a mantra just before you go to sleep to will your mind into being aware during your dreams.

For example, you could try repeating to yourself: “I will be aware in my dream tonight”, or “I am going to have a lucid dream”. Preparing your unconscious mind to interact with your reality can help you to engage more fully in your dreams.

You could also try counting down from 100 or 50, but while inserting the mantra after each number.

For example, “100, I am going to have a lucid dream, 99, I am going to have a lucid dream”.

You can do this until you fall asleep. Just remember to do it calmly and try not to force it. Believe in it and take it slow.

While in this meditative state you can be painting and focusing on a dream you want to have.


Mindfulness meditation is a bit different from regular meditation because the objective is to become the observer. You’ll want to lay or sit in a comfortable place, close your eyes, and breathe slowly.

Make sure that your focus is directed towards your deep breathing. It is okay if a thought naturally enters your mind. Acknowledge it, but do not interact with it.

Then, refocus back to your breathing. By doing this as a practice, you will eventually find that you can think more clearly and rationally. Dreams will be less chaotic, drama filled, and easier to control.

You don’t want to ignore or avoid any thoughts that come up during meditation because it creates greater resistance.

STEP 3: Practice Reality Testing

Experts suggest that we need to build in regular reality tests throughout our day in the hope that we may reenact these reality tests while we dream. This will help us become aware of when we are actually dreaming.

The old fashioned “pinch yourself” technique might work for some, although you might want to avoid anything that could wake you up.

Instead, think about trying to read something, like words in a book or on a poster, in your dream. In real life, you will be able to read normally, but in your dream, the letters and words could be jumbled up.

Other tests could be as extreme as trying to fly or trying to pass your hand through something solid, even another part of your body.

Make sure you practice these reality tests throughout the day, about once an hour or so. This way, it will become second nature for you to try them out while you are dreaming and suddenly become self-aware during your dream.

Throughout the following steps the whole goal is to keep your mind focused even as your body is falling asleep.

STEP 4: Learn to Recognize Your Hypnagogia

This is a crazy word, I know, but this can be the most critical part of learning to lucid dream.

When you are falling asleep you should pay attention to your hypnagogia.

Hypnagogia is some sensation or hallucination that may occur close to the time of falling asleep.

This can be a visual color pattern, an audible calm buzz, or just a dreamy sensation.

It can be hard to describe, but it can be helpful to identify and learn your own. Take notes of what you feel before sleep as well in your dream journal.

Hypnagogia can appear in a swirling patterns you see before your eyes with your eyes closed, often just before you fall asleep. Sometimes, these twisting colors can be almost fluorescent.

Combining approaches will be really helpful here. Think about your breathing to keep yourself relaxed, and a mantra can also be useful.


As you watch your hypnagogia, begin to try to control the patterns.

Darkness is also important. Blackout blinds can be very effective, or you could use a comfortable eye-patch to keep out any potential unwanted light.

Think about merging a visualization into the patterns, either within the patterns themselves or beyond the patterns using your inner eye.

If you do this just before you fall asleep, you might begin to have some control over your dream or even begin to dream about the scene you have created.

It can feel quite easy to fall asleep at this stage, but that might not result in a lucid dream.

You need to keep your consciousness immersed in this state of near-sleep so fight hard to stay awake while giving your full concentration to the images in your hypnagogia.

Keep breathing gently. Try to begin to awaken the other senses – sometimes, the hypnagogia can trigger sounds as well as visual patterns.

STEP 5: Lucid Dreaming Techniques – Wake Back To Bed

“Waking Back to Bed” means waking yourself up in the middle of the night. The intention is not to get up, but simply to wake up and go back to sleep to alter your sleep cycle and give you a better chance of experiencing lucid dreams.

As your mind drifts in that semi-conscious state between sleep and wakefulness, the boundaries between sleep and reality become blurred and you have a stronger chance of being fully conscious in your dream.

You want your body to stay relaxed and in its sleeping position, if possible. It is best to learn to wake up with your eyes still closed, and to keep them closed.  Stay awake for a few minutes, and you have a higher chance of going straight into REM sleep and straight into a lucid dream.

Set an alarm to wake yourself up somewhere between 4-6 hours from when you plan to fall asleep.

lucid dream alarm

You can name your alarm something like “Lucid Dream” to remember why you set it.

When you wake up you have a couple different options:

Scenario #1:

If are wide awake or need to use the restroom then it is probably best to get up for a bit. While you are up for a bit, remember to use the mantra and to focus on lucid dreaming.

It is good to stay up for about a half hour but try not to exert too much energy. Stay calm and think about what you want to dream about.

You can then go back to bed and repeat the mantra and/or counting techniques just as before.

Scenario #2:

If when you woke up you were still sleepy, try not to move too much. Just shut off the alarm and go straight into the mantra and counting techniques.

Meanwhile picture what you want to dream about and start forming the scene in your mind.

TIP: Many people believe in focusing on the third eye, or the space between your eyes on your forehead. This can be a great focus point for meditation.

STEP 6 – Stay in the Dream

The main goal of having a lucid dream relies heavily on the fact that you must first have a dream. All the preparation, relaxation, and meditation is designed to help you enter a deeper sleep in which you can have dreams.

Some people claim they never dream, but it is most likely that they simply don’t remember their dreams when they wake up. If you go through the normal cycles of sleep each night, it is impossible to avoid having at least some REM sleep (Rapid Eye Movement), which is when dreams occur.

The hard part that takes the most work is learning to become aware in your dream and being able to continue in that dream. Think about your mindset, and your desire to stay in the dream. Most people wake up a short time after realizing they are in a dream.

STEP 7 – Reflect in Your Dream Journal

Simply telling someone about your dream as soon as you wake up is enough to begin to etch it into your memory so that your dreams start to become a normal part of your life.

dream journal

When you write down what you remember of your dreams, you find you begin to recall more and more each time. Very soon, you will be able to recall a number of dreams from the same night.

Think carefully and give yourself time to focus on small details, especially the senses. Try to remember specific sounds, smells and even what you could taste from the dream.

Take notes of what happened in your dreams and what degree of control you had in it. How long did it take you to become aware that you were dreaming? What do you think you could do better next time?


RECAP: The 7 Simple Steps to Have a Lucid Dream Tonight:

  1. Prepare – Clear mind, and get rid of distractions
  2. Meditate – Meditate and focus on mantra
  3. Test – Use reality checks to recognize sleep vs. reality
  4. Control – Start recognizing and controlling your hypnagogia
  5. Experiment – Experiment with lucid dreaming technique such as a “WBTB” to build conscious dreaming
  6. Stay – Experience a dream, and desire to stay there so that you have a better chance of increasing awareness and control
  7. Reflect– Focus on your feelings and experiences by recording them in a dream journal


It is best to start with these steps first and then worry about improving your lucidity later.

This is all about just developing your own habits and techniques first.

Some people can naturally lucid dream on a small scale. For most becoming lucid when you are dreaming, however, is still like a muscle that needs to be exercised to maintain or grow.

Tips for better lucid dreaming:

  • Try different lucid dreaming supplements – supplements can work a little differently for each person.
  • Keep track of your sleep patterns and the amount of sleep you are getting. Using a Fitbit or some other tracker can help you learn your sleep cycles and help make sure you are getting enough sleep as well.
  • Learn more about sleep paralysis, which is the closely related to lucid dreaming
  • Read more and study more about lucid dreaming. Have fun learning about it too.
  • Invite a friend to try lucid dreaming with you! You can share experiences and learn from each other along the way.

The 5 Best Types of Throwing Cards

Types of throwing cards

Throwing cards are cards that are actually designed to be thrown. Card throwing is an awesome skill where a person learns to throw a card with great force and skilled accuracy.

Learning how to throw a card is a fun hobby to pick up, but the process can take a toll on the cards you throw. You don’t want to throw cards that are too damaged because it can affect the flight of the card, and make them harder to throw.

That being said, it is not a bad idea to pick up a few extra packs or try out some new types of cards that are specifically designed for throwing.

Best Types of Throwing Cards

    1. Regular
    2. Whizz
    3. Banshee
    4. Banshee Advanced
    5. Falcon
    6. Metal Throwing Cards
    7. Other Great Options

Regular Playing Cards

Bicycle Playing Cards

The beautiful thing about throwing cards is that it can be a really entertaining and cheap hobby. Most people at least have one pack of cards hanging around somewhere. However, if for some reason you don’t, you can get packs for just a few dollars.

The standard Bicycle brand makes solid playing cards that work just fine for practicing your card slinging skill. It is good to have a few extra packs of playing cards as throwing them will naturally wear them out faster.

You want to be throwing cards that are straight, and not damaged in any way. The reason for this is, of course, that they will not fly as well or at all. You will have an easier time when your cards smooth and flat.

Whizz Throwing Cards

Whizz Throwing CardsThe Whizz cards are not playable cards but rather uniquely designed for throwing.

Main Features:

      • Made of durable plastic to last longer
      • Aerodynamically designed specifically for card throwing
      • They make “Whizzing” sound effect when thrown

These feel very nice in your hand and are visually pleasing, but they don’t stand out as any better than any of the other throwing cards.

Banshee Throwing Cards

Banshee Throwing CardsBanshee cards are probably the most well-known brand of cards designed specifically for throwing.

When switching from regular playing cards to banshees, you will definitely notice the difference. It is easier to get them to fly how you want them to, and easier to throw them faster.

These also are not playable cards, instead of face cards they have measurement marks to show how far you are putting a card in a target.

The banshee and banshee advanced are always a good choice for those looking to step up their card throwing game.

Banshee Advanced Throwing  Cards

Banshee Advanced Throwing Cards

The banshee advanced throwing cards are probably just as you assume, an upgraded version of the banshee card.

These are also plastic, but slightly thicker for more weight, and faster-throwing speed.

You basically pay a little more for a better, and more durable material in this card.

If you throw this card right, it also makes more noise.

Falcon Throwing Cards

Falcon Throwing Cards

The signature card of Rick Smith Jr. who holds several card throwing world records. These are some of the nicest cards out there. 

With these cards you are really paying for the design, but the slight extra thickness in the card does make a difference.

These are a great addition to a growing throwing card arsenal. 

The main features of the Falcon Throwing Cards:

      • Real usable playing cards with a unique beautiful design 
      • White tipped on two sides for better throwing visibility
      • 3 Star System on each card to tell how far you are throwing into targets
      • Thicker card stock to allow for harder and faster throwing


And an extra for those who like a little more excitement in life… 

Metal Throwing Cards

Metal Throwing Cards

Even though these are not super sharp, the extra weight of the metal makes powerful tossing a bit easier. These are obviously not going to fly the same way a regular card will, but they will provide a good time. These metal throwing cards make a better weapon against harder object likes wood.

These are better designed for outdoor throwing, as these will obviously do some damage inside the house. As regular cards are easily affected by the wind, these make for an awesome outdoor activity.

Another benefit of these particular metal cards is that they also can be used as a bottle opener. The center of these metal throwing cards is hollow so you can crack some bottles.


Other Fun Cards To Throw

You may have more cards laying around your house, and waiting to be tossed than you think. Here are some easy to find cards that most people have, but may not think about.

      • Old Credit Cards
      • Old Identification Cards
      • Used Gift Cards

Just like metal ones, these have a totally different feel than regular playing cards. These can do a little more damage with less effort, just remember to watch where your throwing. Safety goggles may not be a bad idea for you and those watching in case of a missed throw, or bounce. You don’t want to throw any eyes out. Or do you?

Happy Throwing!

How to Throw Cards: The Beginner’s Guide

How to throw cards

Learning how to throw cards is not just a fun skill to learn, it is really an art form. Card throwing is the art of throwing cards with a high level of force and accuracy. 

Why would someone choose to learn to throw cards?

Some of the reasons to learn the skill of card throwing are:

  • It is a very accessible hobby you can do at home, and great for nearly all ages
  • It is a low-cost hobby, as most people already have cards lying around, and new packs of cards are only a few dollars
  • You can get significantly better in a short time period
  • It is a fun skill that you can share with your friends and family

Main Goals of Card Throwing

Some of the main goals people have when throwing cards are to:

  1. Throw Cards Fast and Hard: This is typically the main goal for most who take up card throwing. There is something exhilarating about taking a peaceful and passive object and turning it into a projectile. When you learn to throw cards fast and hard you can start sticking cards into targets and intimidating others with your new-found power.
  2. Throw Cards For Distance: There is just something about being able to take a thin playing card, and being able to send it smoothly cruising away. The hard thing about distance throwing cards is that the wind has a lot of effect on the card. It is very hard to throw outside if there is any kind of breeze. That is what makes this a little bit harder of an area of focus because cards are usually thrown indoors. That being said, working on your distance when card throwing can be extremely fun.
  3. Throw Cards Accurately: Some people just want to be able to throw cards with supreme accuracy. After you feel the sweet satisfaction of slinging a playing card into the center of a bullseye, you will be hooked. Not to mention being able to release the need to slice and dice fruit with cards like your a chef. What? You haven’t made a fruit salad using only cards. Well, you’re in the right place to learn.

Learning How To Throw A Card 

When a person first attempts to throw a card it is like watching a cat claw a string that is always just out of reach. Don’t get discouraged when you first start throwing because the skill will come faster than you think. Most people on their first try can send a card a few feet at most. However, after only a few failures and adjustments, one may be able to send a card part of the way across a room. 

Now, think about this for a second. Rick Smith Jr. holds the card throwing world record for the fastest throw clocking in at over 91 MPH. With that same throw, he also set the card throwing world record for the farthest throw at over 216 feet. Talk about a literal card throwing machine. Crazy huh?

While you think you may never break a world record, who’s to say you won’t. There is more power in your hands than you think and with a little guidance, you’ll find your card throwing abilities increase drastically in a short period of time. With more practice, you will be able to throw harder, farther, and with more accuracy. 

With that being said, let’s dive into one of the most common card throwing techniques!

How To Throw a Card – Gripping the Card

Card Throwing Grip 2

First of all, there is no one exact way to throw a card, as there are many different ways that will work. We will cover a few of the best-proven and best beginner card throwing techniques.

Here are two examples of how you can grip a card before preparing to throw it.

The Straight Cut

Start by imagining your fingers are a pair of scissors. You want to start by pretending you’re cutting the card on the very end. This first grip is what we call the straight cut. You simply put the edge of the shorter end of the card between your index and middle finger.

The Corner Cut

The second option for a card grip is just a slight alteration from the straight cut. You want to pretend like you are going to cut the corner of the card off with those pretend finger scissors.

Card Throwing Grip 1It doesn’t need to be a perfectly straight corner cut. The main thing to focus on is that there’s a slight space between the inside corner of the card and the base of your fingers.

For both of these, you don’t want to be squeezing the card super hard. You just want enough grip between the two fingers that you can’t easily pull the card out with the other hand. If that is confusing to understand, just pick up a card like your playing any regular card game. Unless you are in a heated game of rummy at a retirement home, you won’t be gripping the card with a sweaty passion.

You usually grip it just hard enough to keep it level and out of the sight of others prying eyes. Gripping the card level will help you have a better chance of it staying level when you release it during the throw. The more level you release it, the better your card throwing results will be.

The Finger Placement and Curl

How to throw a card

Now that you know some methods of gripping the cards, we will now look at what to do with your other fingers. You simply want to put your thumb on top of your index finger, and have your ring and pinky fingers tucked in and out of the way.

Grip Recap:

1. Card between pointer and middle finger

2. Thumb on top of index finger

3. Ring and pinky finger pressed lightly against palm and out of the way of the card

The easiest way to figure out throwing part for this throwing technique is by now pretending your hand and fingers are a gun.

You want to curl your wrist and try to aim at your pretend gun at your own bicep. The reality is that you will probably just be able to point at your shoulder, but trying to point at your bicep will help ensure you tuck your wrist and arm properly. You are basically in bicep flexing position with a finger gun in your hand. However, your ammunition is deadly, deadly cardstock.

Card Throwing Techniques

Arm Movement

The arm movement goes from basically touching your shoulder to firing your gun at the target. Act as if you are in a wild west shootout and go from flexing with gun in hand to one deadly shot.

Instead of the gun actually firing the bullet for you, you should act like your flicking a bullet out of the barrel at your target. For this to make more sense, try practicing a few throw and coming back to this.

The main area of focus with the arm movement is that you wait  to turn the wrist fully until at the last second. Also remember to release the card as flat as possible.

how to flick a card

Perfecting The Flick

Once you get an idea of how your arm movement is going to work, you can start to focus on flicking your wrist.

Have you ever rolled up a towel and whipped somebody or something with it before?  If you said no, your a liar, or maybe you were sadly just on the receiving end. If you said yes, harness your inner immaturity once more and imagine with me for a second.

Envision that card is a wet rolled up towel and your target is the innocent unsuspecting victim who is just minding their own business. You really want to make this victim pay, and you want to get the best whip for maximum sting.

You keep you card gripped, but your hand and wrist is relaxed. The only difference is that you are kind of letting go of the towel at the end of the whip. That whip and flick of the wrist is what produces the power behind a good card throw.

ACCURACY TIP: For increased accuracy you want to be aiming your fingers at your target. Keep your eye on the target and as you go through the arm motion you should end up pointing right where you want the card to go. Accuracy is the part of card throwing that takes the most time to learn.

If you are still having trouble throwing a card remember these card throwing tips:

  1. First try slow flicking by just flicking wrist, then try to pick up the speed later with more full arm movement
  2. Think about your grip, and how hard you are pinching the card between your fingers
  3. Keep experimenting and throwing, things will start to make more sense with practice

Happy Throwing!

5 Ways to Find A Stock to Day Trade

find a stock to trade

Trying to find a stock to day trade is arguably the most important part of your trading day, but it can also be the most frustrating part for many traders.

However, there are a few things you can do to make the process of finding stocks to trade a lot easier.

Finding a stock to day trade is a lot easier than people think!

So let’s look at 5 cool ways to find a stock to trade!

1. Find Stocks Using Scanners and Screeners

The ability to scan for stocks to trade is a must-have skill for any day trader.  You want to learn how to use a stock scanner because it is a fast way to find good stocks to trade based on your criteria. It’s great to get some ideas from others on what to trade, but things change fast and stocks can pop up out of nowhere. Traders should be constantly scanning for more opportunities as they are waiting for a setup to enter a trade.

There are a ton of free stock scanners and screeners, but what is the difference?

A stock scanner is used to filter out and search for stocks with live active data. While a stock screener is more for research purposes when the market is closed and don’t use live data.

Before you go looking for that special stock, you need to have an idea of what you are looking for.

Things to Look for When Scanning for Stocks to Trade:

  1. Price – You can filter and search stocks based on their price. Before you start trading with real money, you should study trading risk management. Learning this risk management will help you figure out the general price range of stocks you are looking for. Most day traders look for stocks that are under ten dollars because they want to be able to get a decent amount of shares to trade. Of course, your price range will be based on your budget and how much you are willing to risk on a certain trade.
  2. Volume – The main thing you are searching for is high volume. The volume is how much a certain stock is being traded in a specified time period and is a solid indicator showing how much attention the stock is getting. If you trade a stock that has too low of volume, you run the risk of getting into a dead trade. A low volume may take forever for it to move and may be harder to buy or sell. This is because volume affects liquidity and liquidity affects your ability to get in and of the stock. In a nutshell, the more people to buy, the quicker you can sell — or vise-versa!
  3. Percentage of Change – You can scan for stocks by searching the percentage of change. This is how much a stock price has changed based on a chosen percentage and is a great way to find stocks that have moved or ones that are still moving.
Stock Scan
A basic example of a ThinkorSwim stock scan

You should also check the float of a stock before trading it. The float is basically the available amount of public shares to trade. The amount of shares a stock has to trades is important because it gives you an idea of how fast stock price might move. The lower the float of a stock, the easier it is to move the price by trading it.

For example, if a stock has 100 available shares to trade, you could move it one percent by trading one share. While if a stock has 1,000,000 shares to trade, it takes more trading action to move the price. If a stock has a super high float, it is going to take a lot more volume to move the price.

2. YouTube

YouTube is a very easy way to find stocks!

There are several day trading YouTube channels that go live before the market opens daily to share what stocks they are looking to trade. Some of these channels will even have links to watch as they trade that day.

At the end of the day, many of these traders will post a recap for the day. Watching these will not only give you valuable insight into trading but also some ideas for stocks to trades.

Recommended day trading YouTube channels:

You want to find and learn from the best. Following successful day traders and learning from their success and mistakes is a fast road to getting better!

3. Check Daily Trading News

Trading news can be tricky. There are some obvious pieces of news where you can tell it is going to impact a stock in a certain way.

However, it can still be extremely hard to know exactly how specific news will affect a stock. But regardless, you can still check the news is to find stocks that might be moving. You may not be able to tell if the news is good or bad, but you can still get an idea for a stock that might have the potential to move big. Sometimes news comes out right before market open or close and affects prices greatly.

You should also be aware of news announcements scheduled to happen like earnings. Companies occasionally report their earnings, which is basically a report on how the company is doing. Checking the news for earnings can help you know when to avoid certain stocks. These earnings can affect a stock price greatly as people are trying to figure out how the earnings are going to turn out.

In the end, paying attention to the news and learning how certain events affect certain stocks is a valuable skill to learn. Cause and effect is a valuable skill to learn in trading!

4. Join Stock Chat Rooms

There are loads of free stock trading chat rooms that anyone can join. The main purpose for a stock trading chatroom is collaborate and communicate with other traders. Traders with all sorts of different experience levels join these chat rooms.

The main benefits of a stock chat room are to gain experience and learn from others. Traders share trading ideas, charts, and even post their exact trades. There are so many different stocks moving at the same time that it is impossible to be watching everything. Other traders in chat rooms can call out stocks that you may have missed, or share some news that you haven’t heard.

Here are a few tips if you join stock chat room:

  • Remember that most of the traders in these chat rooms are not experts, even if they claim to be.
  • Don’t trade or buy a stock just because someone else is. It is best is to get ideas from others, but then research those ideas for yourself.
  • Don’t just watch and hide in the background. Participate and share ideas that you have with others. The reason this is so important is that someone may see something in your trade idea that you didn’t. You can learn from others’ critiques.

Recommended Stock Chat Rooms:

1. Tech Bud Solutions – Free

2. Warrior Trading Chat Room – Not Free

5. Build a Watchlist

As you are going through all these ways to find stocks, you should start to build a watchlist.

This is a list of stocks that you want to keep an eye on because they show some kind of potential for trading.

Creating a watchlist is super easy.

You can create your own on a notepad or use the ones built into trading platforms. There are benefits to having them both written down and in your trading platform.

Within your trading platform, it makes it easy to select and access different stocks quickly.

However, having a written watch list can provide the opportunity to write down notes and reasons for why a stock is on your watchlist. This can come in very handy as watchlists can grow quickly, and it may be hard to remember exactly why you added a stock to your watchlist.

Remember to maintain your watchlist and keep it organized. It is a good idea to have multiple watchlists to prioritize the stocks on them or even their market sectors. You can have a current watchlist for the stocks you are looking at today and one for those you just want to keep an eye on.

You can also ask other traders for their lists. Genius, huh? Most people don’t hoard the stocks they are trading like a pile of gold.

An example of some types stock watchlists











Looking for setups and stocks that work for your personal strategies is important to think about. Traders should put time into finding and testing the best day trading strategies for themselves. As you gain more experience searching for patterns and entries, they get easier to notice.

Using all the ways we covered here will make finding stocks to trade a lot easier. Experience is the key and will be the difference maker in helping you identify the potential “big ones”. Even if you don’t get the biggest ones of the day, there are plenty of opportunities everyday to day trade.

REMEMBER: Beware of FOMO, or the fear of missing out. Missing a big stock move can put traders in a negative state of mind where they may become quicker to rush into trades. Of course, nobody likes missing out on huge trades and profits. Realize there will be another opportunity. You can’t let missed opportunities affect your ability to stay disciplined and focused on your plans.

Is Day Trading Gambling? An Honest Look

is day trading gambling

Many people believe that day trading is just another form of gambling. Is this true? The answer is yes, if you do not properly plan and prepare before you trade. While day trading and gambling have many similarities, they have important key differences. To understand the difference between the two, you have to know how both of these things work.

Quick Navigation

How does Day Trading Work?

day trade

Trading is the process of buying and selling stocks, or securities. Day trading is trading one or more times within the same day. Learning how to start day trading, for beginners, can seem like an opportunity to get rich quick. The truth is that is not that easy to be consistently profitable.

Day traders make money by buying and selling securities at different prices. Day traders don’t usually hold their positions for a long periods of time. The preferred goal is to take advantage of quick price movements in the market.

Traders’ opponent is the market, which is made up other traders and businesses all trying to make money. When someone makes money in the market, the money has to come from somewhere else in the market. More simply put, when a trader makes money on a trade, other trader(s) lose money.

How Does Gambling Work?

gamblingPeople usually are referring to slot machines, blackjack, and/or roulette when they talk about gambling. Most gambling is 100% luck, or chance based. The house, or the casino/business where you are gambling, is always designed to have an edge. This edge is a statistical advantage that they will win more than they payout. This means when you play blackjack, roulette, or slot machines, the odds are always against you.

Sports gambling is also slightly different because there is no house edge. It is is luck based, but you may be able to improve your odds with your knowledge of sports. The house, or the sportsbook, makes money off the commissions from losing bets. Another exception is live poker where you are playing against other players.

It is true there are ways to lessen the house edge through things like card counting and basic strategies. The bottom line is that house is a business and they are going to always have an edge. This doesn’t mean you can’t win big, because people do. It means the more you keep playing, the better the chance you have of losing money over time. So if you win do big, run away…fast.

Similarities and Differences of Gambling and Day Trading


  • The opportunity to make money fast, may be the main reason so many people are attracted to gambling and day trading. For this reason, both can be addictive.
  • They both involve risking money to make make money.
  • There are people that gamble for a living, as there are those who make a living day trading.


  • When gambling, players usually just play against the house (casino). However, in day trading you are trading against other traders, so trading can better to be compared to poker.
  • With most gambling games, you have to play exactly to their rules. While there are basic market rules in day trading, you still have more freedom in day trading.
  • You can always choose your own risk/reward ratio when day trading. With gambling, this not always the case.

The Day Trading Edge – Think Like a Casino

There is a reason that casinos consistently make money. When they make less money, it is just due to less people gambling. Casinos have figured out how to reduce and eliminate risk until they have edge. How do they do this? They examine risks, and create rules and strategies until they develop a consistent edge. Your best chance of finding an edge in market is use strategies and trading risk management to do the same.

trade like a casino









Many traders believe that there is such thing as a traders edge. This is some secret or combination of strategies that put the odds in their favor. The reason is that markets move because of emotion, and how people think certain things are valued.

There are no real trading secrets or specific edges that work for everyone. There are few things that may be the key to helping you find your own personal edge: Studying risk/reward, testing trades to find the best trading strategies, and learning manage your own emotions.


The official definition of gambling is betting on and playing a game of chance, or taking a risky action with hopes of a desired result. As there is risk involved, day trading can be considered a risky action. It is not, however, considered a game of chance. Day traders don’t look at it as a game, they look at it as investing. When you look from afar, or even compare side by side, it is not hard to see why people believe day trading is just gambling. There are a lot of similarities, and the way some people trade is basically gambling.

Gambling is designed to be a fun experience even if you lose a little money. There are tons of shiny lights, drinks, and prizes to win. Most people probably don’t give day trading a fair chance. That is probably the reason most traders lose money. Trading takes a lot of more work to even get started in. There are many traders who quit at soon as they lose any amount of money. Either they thought it would be easier, or they realize they don’t want to put the effort in to get better.

For those people who have a decent amount of experience with both gambling and day trading, it is not as hard to see the differences. However, it can be hard to fully understand the differences until you have experienced both. The verdict is then, that day trading is gambling in a way, but then so is any investment that you make. Day trading is more like poker in the sense that there is a lot you can learn to get better, and a lot more to it than just mere chance.

20 Ideas for Trading Risk Management

trading risk management

The ability learn and focus on trading risk management can be just as important as learning how to day trade. Planning with risk management in combination with using tested strategies is how you find an edge in the market.


What is Trading Risk Management?

Trading risk management is identifying the risks of trading and then planning ways to eliminate them, or lessen their impact.

Risk management is like the safety equipment for a day trader. You can put on every piece of safety gear, but that doesn’t mean you won’t get in an accident. The idea is to lessen the frequency and severity of these accidents. You want to use every tool available to minimize losses and maximize profits.

Here are 20 ideas to help you improve your trading risk management.

1. Always Plan Trades

A good general rule is to know your exit before you enter a trade. Lets face it though, anyone can put money into an account, randomly hit buy and sell, and possibly make money. Yes, you can make money without a plan, but the key is consistency. Trading with no real real plan or risk control is not smart trading, it’s just gambling. When you follow set rules and guidelines you have structure an idea on how you can repeat success.”Just winging it” can be fun and exciting, but it won’t get you very far in the stock market.
Risk-Reward Ratio Chart

2. Risk/ Reward Ratios and Win Rate

This is where it just doesn’t seem to click for many traders. The risk/reward ratio is how much you are risking in a trade, compared to how much your hoping to get. Your win ratio is, of course, how many trades you win out of all the trades you take.

The power of these ratios when considered with your win rate is amazing to consider. The higher your win rate, the lower your risk/reward can be. Do you realize that you can be wrong 3 out 4 times on trades and still be profitable with the right risk/reward ratio? Now realize that you can be right 3 out of 4 times on trades and still lose money because of bad risk/reward ratios.

Consistency with risk/ reward ratios and sticking to your planned rules can save you from blowing up your trading account.

3. Daily Limits

You shouldn’t limit yourself right? Wrong! Well, kind of. Some find a set a daily loss limit helps reduce the chance of blowing an account on a really bad day. This is the max amount you can lose before you stop trading for the day.

Other Limits That May Help Reduce Risk:

  • A set limit you can lose before you switch to paper trading for the day.
  • A set amount you can lose before you cut your position size in half.
  • A set limit of profit give back before you are done for the day. An example is a 50% profit give back limit. With this limit, if you make $100 you have to stop for that day if you lose $50 of that profit.

Sometimes you just have off days or have days you shouldn’t be trading for some reason anyways. These limits can help you focus, and the reduced risk may calm you down.

4. Have a Bottom Line

In addition to limits, you should consider setting a bottom line. This is the set amount you are willing to invest and possibly lose in the stock market. A bottom line helps manage the risk of possibly going overboard and losing an unreasonable amount. You shouldn’t invest more than you can afford to lose.

A bottom line can help in unexpected ways. If you take a big loss or approach your bottom line, it can help you take what your doing more seriously. It may provide more motivation and help you apply yourself so you canstay in the game.

5. Trading Goals can be a Risk

Goals can definitely be good for motivation and direction. For trading, however, it is good to not goals too serious. You don’t want to allow them to influence the way you trade too much. For example, you don’t want to get too aggressive if it’s the end of the week and you are way behind your weekly goal. Increasing risk in some way to meet a goal is trading based off hopes or emotions, and not a real plan. That being said other goals like always planning, and preparing for trades can be super helpful.

6. Managing Trading Emotions

emotion trading

Many traders don’t realize how much of a risk your own emotions can be. From the fear of missing out to revenge trading, is it not uncommon for traders to let their emotions get the best of them. So, how does one manage their emotions?

Tips For Managing Emotion While Trading:

      • Remember that there will be another trade, don’t get obsessed with one
      • Get proper rest, exercise, and try to eat before trading
      • Use a Stop-Loss and Take-Profit to eliminate emotion
      • Try not to get mad, because you might get careless
      • Learn to stick to and trust your trade plan

7. The Importance of Stop-Loss and Take-Profit

For day traders especially, the market can move faster than you can think. If there is a big sell off and you didn’t have a stop-loss, you are now in a tough position. You should sell, but you think to yourself that it might come back. Traders get stuck babysitting losing trades in hopes they will come back up. You waste time watching it, and there is an increased risk that it will go down as it most likely has lost its’ momentum.

Emotion and human error are the main reasons the stop-loss and take-profit are so important. The take-profit allows you to lock in profit, and having it set gives you a better chance of exiting a trade when the price ismoving fast. These two things help you control the risk of a trade.

8. The One-Percent Rule

This is the idea that you don’t risk more than one-percent of your account total in a trade. For example, if you are trading with $1000 you would not risk over $10 per trade. Some traders may look at this rule as too conservative, but you really should consider it. Naturally, the one-percent grows as your account grows. So, in essence, as you get better you are allowed to trade with more capital. Big money traders do, in some cases,
move up to two-percent instead if the one.

9. Be Accountable

Accountability is possibly the most underrated and important risk management idea. Being accountable in trading is accepting responsibility for your trades. When you make a mistake you need to identify it and own it so you can learn from it. There are traders who don’t study, or even keep track of their trades. When you don’t learn from past trading mistakes, there is a good chance you will make them until you do. Studying your trades is a big part of trading accountability. Remember to keep everything transparent and in view so you can use it to quickly get better.

10. Averaging Down Rules

Averaging down is when you already have shares of a stock, and buy more shares of a stock after the price drops. This decreases the average price at which you bought the stock, but increases your share size. This can increase your risk greatly, but at times help you reduce or eliminate a loss. This is something to be aware of, and make your own rules for. You need to plan for this risk, because there will be many times you want to do it.
position size

11. Position Size

Position size refers to how much capital you have in a trade. The theory is if you start small and get consistently profitable, you should have no problem increasing your position size. There are many reasons why this is not always the case.

Obviously, the more money you have in a trade, the more risk you have. When there is more risk, it usually affects the emotions a little more. Also as your positions size grows, you have more shares your trying to trade. It might take slightly longer to buy and sell stocks as your orders do not always fill at the exact same price.

12. Trading Slippage

Trading slippage is any situation in where a trader receive a different price that what you planned on in a entry or exit of a trade. It is something that can be really hard to avoid. Market orders are one of the main causes of slippage. Limit orders specify a certain price that will only allow the trade to execute at a that price or a better one. Every type of order has it’s uses, however. There are some cases where you need to usemarket orders to get in or out of a trade fast, and have to the settle with the priced you get. Using limit orders, when you can, will help you reduce the risk of slippage.

13. Consider the Time of Day

When reviewing your trades, and before entering a trade, consider the time of day. Most day traders thrive in the opening hour of the market. This is where a lot of action is and where big moves happen. Some traders, however, don’t trade at all in the first minutes of the market. This is because they view it as too wild or unpredictable. Trading close to the end of the day may be risky as the trade may not have the proper time toplay out before the closing bell. Not everything is going to be the same every day. It is good to take note of the similarities, and to just be aware of the risks certain times of the day can bring.

14. Duration of Trade

One of the main reasons people love day trading is because of the ability to get in an out fast with profit. The longer you are in a trade, the longer you are at risk. This especially true if you don’t have set stops.You want to try and avoid babysitting a trade. This is when you watch a trade way too long, or stay in a losing trade and let it consume your trading day.

15. Monitor Trading Volume

trading volume

Volume is the amount that a stock is being traded in a certain period. Volume is force behind the price movement that traders are looking for.

Checking relative volume can help you know what the normal volume of a stock is. Relative volume is comparing the average volume for a certain time of day in the past with the current time.

Paying attention to the volume of a stock is not only critical before entering, but also throughout the trade. Monitoring the volume constantly will be invaluable to your risk management. It can help signal if your in the right place and when to watch closely.

16. Scaling In and Out of Trades

Scaling into a trade is starting with part of your intended position, and then waiting for more confirmation before adding the rest. Traders then add more when a target is hit and the trade still looks to be going in your favor.

Scaling out of a trade is selling part of your position as you hit a target, but leaving some in, if the trade still looks good. You are locking in profit, and still have the ability to make more.Learning to scale in and out of trades can reduce risk and help maximize profits. You just have to stick to your position size rules, or the one-percent rule to avoid adding too much to your positions.

17. Be Aware of Earning Calls and Other News

Trading a stock near an earnings call can have added risks. An earnings call is a public conference where a company reports the financial results of a certain periods. Sometimes a stock can be a little more unpredictable in the days before an earnings call. This happens as traders react to news or what they might be the result of the call.

Sometimes the reactions to earnings calls make no sense at all. For example, there are companies that report good earnings with no issues, and the stock will still plummet the next day. It is a good idea to check the newsand alerts provide for a stock, as news can have the same effect as earnings call.

18. Testing Day Trading Strategies

Finding and testing the best day trading strategies can help you manage your risk. As you test strategies, you get more comfortablewith them, and learn why they work. Having a strategy helps with trade planning and can help you feel more comfortable with a trade. A good strategy is a good plan, and a good plan helps manage risk.

19. Broker Risks

Order execution is how fast or well a broker can complete your trade after you click buy or sell. While order execution is something to consider, but there may not be much you can do about it. There is no real way to directly compare the execution of one broker to another. You also have to consider the quality of the platform and tools they offer.

Some traders don’t think much about how much difference a broker can make in a traders’ experience.“What you get is what you pay for”, is a saying that definitely used to apply to stock brokers. Most brokers are now commission-free for most of the stuff that normal day traders do. Commission free trading is a great place to start for most. There are some brokers who have a seemingly better execution reputation and still charge commissions.

20. Mobile Day Trading

mobile trading tips

It always brings tears to the eye when you see someone trying to day trade on a phone. Swing trading or entering a position for a long term investment may be no problem on the phone. Yes, people can and do make money day trading on the phone. It is just going to be slower, no matter what.

We are talking risk management, and you want reduce risk wherever you can. You don’t have to have a 4 monitor setup with your computer, but you need more space than a phone can offer. You also face the risks of getting notifications, texts, or a phone call while trying to make a trade. A real computer can usually offer a better internet connection, more space, and better trading platforms.

The 5 Best Day Trading Strategies

day trading strategies

Learning day trading strategies is a crucial part of becoming a profitable day trader. Not every strategy is created equal, however, and some may not be right for you. The best thing to do is to test different day trading strategies until you find the ones that work for you.

What is a Day Trading Strategy?

A day trading strategy is simply a plan for direction and action when trading stocks. A successful day trading strategy is exactly what consistent and profitable day traders look for.

As a day trader, of course, you want to be prepared and ready to know how to make a successful trade. It makes life a lot easier when you have rules to follow, and things to look for that can signal it is time to trade.

Before we look at some great day trading strategies, there are a few things you need to make sure you know first.

How to Identify Support and Resistance Levels

The ability to successfully identify the supports and resistances of a stock price, is a major key in many trading strategies.

A support is a low price, level, or area that a stock hits over a certain period of time.

A resistance is a high price, level, or area that a stock hits over a certain period of time.

To fully grasp the importance of supports and resistances, you have to think about what is actually happening in the minds of traders. The more the price keeps confirming a support or resistance, the stronger it is. The stronger they are, the more traders start to notice these areas and use them to enter or exit trades. There are traders waiting to enter the trades as it comes to these areas, because they know there will be action in these area.

There are two basic types or ways to establish a support or resistance. This can be done with either a horizontal or diagonal line on a chart.

Horizontal Lines

stock support example
This a real example of a horizontal support line. Stock Ticker: NFLX (Netflix Inc).


horizontal resistance example
This is a real example of a horizontal resistance line. Stock Ticker: AMD (Advanced Micro Devices).


Diagonal Resistance and Support Lines

diagonal support and resistance
This is a real example of a diagonal support and resistance lines. Stock Ticker: AAPL (Apple Inc.)

These diagonal lines can also be considered trend lines.

TIP: Many traders focus on zones, or areas, rather than an exact price. This is because not everyone interprets these levels of supports and resistances the same way. You are not likely going to be able to identify an exact price where a breakout will occur. You have better chance of finding a zone or area where one might occur. 


Here are the 5 of the most common and best day trading strategies:

1. Momentum Trading Strategy

Momentum trading is entering a trade when a stock begins to make a big move and then exiting when it loses its’ momentum.

This is probably the most exciting of the day trading strategies, especially for those beginners learning how to start day trading. The reason is that the goal of this strategy is to make profit fast from quick moving prices. When one stock has seemed to lose it’s volatility, the momentum trader moves on to the next.

The good news is that there are stocks that make pretty big moves everyday, you just have to find them.

How to Find Momentum Stocks

Traders use stock scanners and other charting tools to find stocks that show sign of gaining momentum. The basic goal is too find stocks with high volume and volatility on a lower time frame.

Volume: The number if times a stock is bought and sold in a certain time period.

Volatility: This is how much the stock price actually moves. Volume is usually the main cause for volatility.

Low Time Frame: When studying a chart for a specific stock, you have the option to look at the chart on different time frames. Usually day traders use the 5 min or 1 min charts for momentum trading, but not always. This means every candle you see, for example on a 5 min chart, represent 5 minutes.

More Specific Criteria For Momentum Stocks:

  • Greatly Increased Relative VolumeRelative Volume is the volume for the stock at that time of day compared to other days
  • Repeatedly Making New Highs
  • No Close Resistances 
  • Reasonably Low FloatFloat is the number of total shares available in the public market to trade. Traders look for low floats, because less shares means the stocks can make bigger moves. You have to keep in mind liquidity, however, which is basically the ability get in and out of a trade quickly. It can depend, but a example of a good range for a reasonably low float would be somewhere in between 50-100 million shares.
  • Price Catalyst – Sometimes you can look for a price catalyst, which is something that drives the stock price to move. This can comes in the form of any announcement or news about the stock.
stock price momentum
An example of signs showing stock price momentum. Stock Ticker: PHAS (Phasebio Pharmaceuticals Inc.)


Obviously traders love to catch these big momentum trades for huge profit. This momentum strategy is number one because the rest of the strategies we cover are basically just ways to find and trade smaller bursts of momentum.

2. Breakout Trading Strategy

Breakout Definition: A breakout happens a stock price breaks out or passes an established price level, resistance, or area of support. A breakout that goes up is often referred to as an upside breakout. When a breakout goes down it is called a downside breakout.


breakout trading example
This is a real example of a downside breakout. Stock Ticker: GPRO (GoPro Inc.)


Breakout Trading Strategy Basics

  • Not everyone identifies or sees the same exact support and resistance levels. This can be a factor in helping cause a false breakout, or a fakeout, as it is called. There is always a chance of a false breakout occurring.
  • This trading strategy is used successfully on many different time frames. This means it is used not only in short term day trading, but also in long term trading.
  • The price often will come back to where a stock originally broke out before continuing in the direction of the breakout. When this happens, it confirms a strong breakout.
  • Focus on the volume of the stock as it approaches support and resistance levels. An sharp increase in volume, for example, may indicate a better chance that the stock breaks out. While the opposite, a decrease in volume, may signal a failed one.
Breakout Trading Tip: The biggest issue with the breakout strategy is that false breakouts are very common. Nothing is 100%, but paying attention to volume is usually the best way to identify false breakouts.

3. Bull Flag Trading Strategy

A bull flag is just a candle formation on a chart that appears to form a pole with a flag on it. This is a very popular signal that many traders recognize and trade.  It can be considered its own strategy or part of a pull back or a breakout strategy.

The formed picture of a flag really means nothing at all, its the what it reveals is happening in the market that is important. The pole is formed from upward momentum price move, while the flag is the result of consolidation or a pullback.

The straighter the pole goes up, the stronger the momentum is. Then the price only retraces far enough to form a flag often means that it is just a brief rest before continuation in the trend upward.


bull flag trading example
Real example of bull flag pattern. Stock Ticker: VFF (Village Farms International)

How to Trade a Bull Flag Pattern

  • Use a trend line to define the trend or flag pole part.
  • Not everyone is going to draw the flag the exact same way.
  • Rather than getting fixed on exact price, try to focus on areas of resistance and support.
  • Watch the volume while monitoring the price action near the trend areas.
  • Look for price to squeeze or breakout on this flag resistance area.
  • Remember risk/reward ratio when entering trade and for setting stop-loss.
  • Possible entry can be when price breaks out of flag, and exit can be new high above flag.

4. Reversal Trading Strategy

A reversal in trading is when a price of a stock switches directions completely. The main goal of reversal trading is to identify when a price is going to completely change direction, and take advantage of it.

While it has a lot in common with the pull back strategy, it is different. The pull back can be looked at as a rest in the trend, or a failed reversal.

To trade reversals, you must first be able to identify which way a stock price is going currently. Once you figure out the current trend or direction of a stock, then you use can use tools to find out when a stock price might reverse.

To figure out a direction or trend in a stock, you can use trend lines. A trend line is basically a diagonal support or resistance line.

A downtrend is when a stock price starts to hit lower lows and lower highs. In a uptrend, of course the opposite, a stock price starts to hit higher highs, and higher lows.

reversal trading strategy example
Real example of the reversal trading pattern. Stock Ticker: GM (General Motors)



Reversal Trading Tips

  • Reversals an require a little more patience than other strategies, because you need to make sure it’s not just a pull back before you just hop in.
  • Remember you don’t have to predict the exact price point where the reversal switch is flipped, and price changes direction. Traders refer to this as “trying to catch a falling knife”.
  • There is less risk when you wait for confirmations of reversal.
  • Entries and exits can be based on new big trends forming, or on breakouts of smaller trends, supports, and resistances.

5. Pull Back Trading Strategy

A pullback is basically a mini reversal. Traders using this strategy mainly look for a brief rest in a big move, believing that it will eventually pull back for at a least a short period of time.

This strategy is used when you are predicting the trend is going to continue. The reason for waiting for a pullback is for a better entry price. Entering during a pull back reduces risks if you are wrong, and puts you a better position if you are right.


pull back trading example
This a real example of pull back trading pattern. Stock Ticker: TSLA (Tesla Inc.)

The hard part is knowing exactly when the stock is done pulling back. A traders nightmare is to buy a stock, and then watch as it keeps pulling back into a full reversal. A pullback can be any number of candles, traders just use supports and resistances help find trade entries and exits.

With pullbacks, just like when you are trading reversals, the trend is your friend. Even though day trading is primary focused on low time frames, it can help to look at other time frames as well. Look for the overall trend in multiple time frames, and then look for major supports and resistances.

In Conclusion- Finding the Best Day Trading Strategies

There are many day trading strategies that get created or altered each day. It is hard to say which strategy is the best, or if there even is a best strategy. You have to find what works for you and what fits your trading style.

The best way to test strategies is to practice analyzing and using them while paper trading. Another great way to experiment with strategies is to backtest them.

How to Backtest A Trading Strategy

Backtesting is studying and applying strategies to old chart data, not a live market. Backtesting is similar to paper trading, except you can pause or slow the data because it is not happening live. This is a great way to practice trading when the market is closed, or when you feel like going at a slower pace.

Manually Backtesting a Trading Strategy

Step 1: Find a stock chart you want to test, and make sure it is on your desired time frame.

Step 2: You can manually backtest on any chart by scrolling back on any chart to old data. Simply click and drag or scroll to a chosen point in time.

Step 3: When you are ready you just slowly drag the chart until the future candles appear one by one. You watch for setups and can stop to draw lines if needed.

Step 4: Test strategies by identifying possible setups and by trying to predict what will happen next.

Step 5: Record outcomes and notes on each specific strategy.

How to Backtest Using TradingView

Backtesting is easier when it is automated. There are platforms like TradingView that make it easier to backtest data. You can pick a certain date back in time and it will let you hide the future candles and have them appear at your desired speed. Then you simply do what you would for manual testing, except TradingView automatically moves the chart at specified speeds for you. You can sign up for an account with TradingView for and get a 30 day free trial to start backtesting.

How to Start Day Trading For Beginners: 10 Steps

Day trading for beginners, is exciting but can seem overwhelming. There is a lot to learn, and it can be hard to know what is essential and what is not.

But don’t worry, we got your back!

Here are ten steps that will guarantee any beginner gets on the right track.

1. Learn The Basics – Stock Market Terms and Rules

Introduction to the Stock Market

A stock, also called a share, is something that shows some part of ownership in a company. When you purchase a stock, you are, in essence, buying a small percentage of a company.

The term “stock market” is usually referring to one of the major indexes of the stock market.  The NASDAQ Composite, Dow Jones Industrial Average, and S&P 500 are the major indexes in the United States. Stock indexes are just stocks that have been grouped together to make them easier to keep track of.

While most food markets invite all to come and buy, the stock market is a little different. You can only buy stocks through a licensed broker. A stock broker basically buys a stock on your behalf, at your request.

A broker essentially buys and sells the stock you choose, on your behalf. They provide you with a platform and tools to make the trades. Usually, a broker makes their money by charging you a commission for every trade you place. Most brokers now, however, offer no commission trading.

This means you can trade most stocks for free without being charged. These brokers can make money other ways through lending money, and through different types of trades that still have commissions.

There are designated times that you can buy and sell in the American stock market, called the New York Stock Exchange (NYSE).

What Are The Stock Market Hours?


9:30 AM to 4 PM(EST) Eastern Standard Time 

8:30 AM to 3 PM (CST) Central Standard Time

7:30 AM to 2 PM(MST) Mountain Standard Time

6:30 AM to 1 PM(WST) Western Standard Time

What Days Is The Stock Market Closed?

  • New Year’s Day
  • Martin Luther King, Jr. Day
  • Washington’s Birthday
  • Good Friday
  • Memorial Day
  • Independence Day
  • Labor Day
  • Thanksgiving Day
  • Christmas

NOTE: Sometimes the the market will close early the day before or after a holiday, such as Christmas Eve or Black Friday.

Basic Stock Market Terminology:

BUY/LONG– Buying a stock anticipating that it increases in value is called going long.

SELL/SHORT– Selling a stock anticipating that it decreases in value is called shorting.

DAY TRADING– Buying and selling the same stock on the same day. You have to buy and sell a stock for it to be considered a full trade.

SWING TRADING– Entering a trade, by either buying or selling, but not completing it. Swing traders hold on to stocks for days, weeks, or even longer.

OPEN- The price that a stock is at when the market opens.

ASK- The lowest price a seller is asking for a stock.

BID- The highest price a buyer is willing to pay for a stock.

STOP-LOSS-A target price at which you specify your trade to be closed to stop the loss of profit.

TAKE-PROFIT- A target profit price at which you specify your trade to be closed. The amount of money you want to make in a trade.

BEAR MARKET- A market that favors sellers, and is mostly trending down.

BULL MARKET- A market that favors the buyers, and is mostly trending up.

Other Stock Market Slang:

MOMO- Another way to say momentum, or to refer to the momentum day trading strategy.

FOMO – Fear of missing out. This refers to being afraid of missing a big trade or being upset that you did miss one.

BABYSITTING – This refers to holding onto a losing trade for an extended period of time while hoping it turns around.

2. Check out Different Trading Brokers

Many beginning day traders don’t realize you can’t just throw a hundred bucks into the stock market and trade with it as much as you want. Like we mentioned before, you have to go through brokers and follow specific rules.

The PDT rule, for example, discourages many new traders from continuing on the path as a day trader.

What is the PDT rule? One of the most important rules that affect traders is the PDT, or Pattern Day Trader Rule. This is a rule implemented by the Securities and Exchange Commission(SEC). This states that you can’t make more than three trades a week in a margin account unless you have a balance of $25,000 or higher.

How do you avoid the PDT Rule? You can avoid the PDT rule by using a foreign stock broker or by trading with $25,000 or more in your account. The problem is that U.S. brokers now how no commissions, and the foreign ones do. This means that when you use an international broker, you will have to pay each time you make a trade.

Things to Remember about Brokers:

  • It does not cost anything to sign up with a broker
  • Different brokers have different fees
  • You can use foreign brokers or U.S. brokers to trade on the New York Stock Exchange (NYSE). Foreign brokers don’t require you to follow the PDT rule but usually have higher fees.
  • You will need a valid ID and Social Security Number to sign up for a brokerage account. They need this information for identity verification and tax purposes.
  • Many brokers offer one or more free stocks to sign up with them. These will usually only be worth a few dollars but could be worth more.
  • At the end of the year, a broker will provide you with, or have available, the appropriate information for you to do your taxes.

The two basic account types that you can open with a broker are Margin and Cash.

Margin Account– You can trade with borrowed money. For example, if you only have $2000 in your account, you can buy $3000 worth of stock. It just borrows from your broker.

Cash Account– You can only trade with the amount of money you have in your account.

The PDT rule applies to both of these types of accounts until you have a minimum of $25,000 in the account. With a margin account, you can trade with borrowed money, but only have three full trades per week. With a cash account, you have unlimited trades with your own cash, but you have to wait a day for that before you can use that amount to trade again.

Here are a few brokers that will give you free stocks for signing up with them:

That being said, our recommended broker and day trading platform for beginners is Think or Swim by TD Ameritrade. It has more tools and better charting than most, but is still beginner friendly.

3. Practice Live Day Trading – Paper Trading

Paper trading allows you to practice trading the real stock market without using real money. However, to get the most out of paper trading, you have to treat it like it’s real money. If you don’t it just becomes a game. You want to make your paper trading experience the closest. One of the best and most commonly used platforms for Paper Trading is Think or Swim by TD Ameritrade.

5 Steps To Start Paper Trading With Think or Swim

  1. Go here –  TD Ameritrade. Then most people will select Individual brokerage → Open an individual account 
  2. After signing up, download the THINK OR SWIM desktop trading platform under the Trade tab and then under Trading Platforms on your main account page. (There is also a mobile version)
  3. After downloading, you enter in username and password at this screen. You then select the Paper Money tab, and click log in.

  4. Then you have to call TD Ameritrade and simply ask them to switch your paper trading account to real-time data. (By default, your account is set to “delayed,” and you are not trading real-time data.)
  5. You know you are good to go when your screen says this in the top left corner- “Simulated Trading, Connected, Realtime Data.”

Benefits of paper trading include:

  • Less stressful practice
  • The ability to test strategies and theories
  • Getting comfortable with the market
  • Build trading confidence
  • Doing all this without risking your own money

TIP: While many traders find paper trading useful, some swear it doesn’t help them at all. If you start to feel this way, try trading with a few real shares. This way, you are only risking a few dollars but will get more of the real money feel. Over time, as you get better, you can increase your share size and risk.

4. Study Your Trades/ Test Strategies

Studying your trades will help you learn from your mistakes, and how to hopefully not repeat them. Traders study their trades and charts for the same reason that sports teams watch game film. You want to learn what you are doing right and wrong so that you can continually get better.

Things to consider when studying your trades:

  • Why did I get into the trade?
  • Why did I get out of the trade?
  • What patterns am I seeing?
  • Did I stick to my plan?
  • What did I do wrong?
  • What did I do right?

Being honest with yourself and taking each trade seriously will help you learn from your mistakes and get better much faster.

Studying your trades can help you find the best trading strategies that work for you.

Basic Day Trading Strategies

Momentum Trading: Finding stocks to trade that are the big movers of the day or have the most movement in price. Traders use technical analysis and metrics, such as volume and price range, to analyze big movers and if see if they will keep their momentum.

Reversal Trading: With reversal trading, you look for stocks that stretch to new highs or lows. The rubber band example is often used in trading. This example is that if a stock goes up and up, it must rest at some point and come back a little or a lot.  Traders using this strategy look to take advantage of reversal, and enter the trade as the price goes the opposite way.

Pull Backs: A stock often has a few price pullbacks when it has or is gaining momentum. When trading pullbacks, you find a stock that is a big gainer for the day and way to enter a trade on its first couple pullbacks. It can get riskier as the stock has more pull backs, as it’s a sign that it may lose momentum and reverse.

5. Watch Others Day Trade

Getting into the action and trading is the best way to learn. However, the second-best way and without risking your own money is to watch others do it. You can gain stock trading experience without the nerves and worries. We all learn how to do things through experience and trial and error.

The internet and YouTube have loads of free content related to the stock market, and people trading it live. The problem is there is a lot of fluff, total nonsense, and people specifically just wanting to sell you something.

It is good to watch and learn how others do things and what they are thinking while trading. Learning how people think while trading stocks can help you better predict what will happen next.

Recommended Stock Trading Youtube Channels For Beginners:

  1. Warrior Trading – Ross Cameron trades daily and provides loads of free quality videos, webinars, and classes. Ross has a more aggressive style of trading but is always open and honest.
  2. Timothy Sykes – His YouTube videos are more motivational than technical in showing you how to trade. He interviews a lot of successful traders who share tips and advice.
  3. Ricky Gutierrez – Ricky is the creator of TechBud Solutions, a free online community for beginners to get together and learn. He has good videos for beginners.

With all the useful videos, free webinars, and other info, everyone will try to sell you something. Most of these courses are expensive and unnecessary for success. They will probably help, no doubt, but don’t waste too much on these courses. Take in everything you can, and realize that no one person has the secret to successful trading.

“Everyone has the brainpower to make money in stocks. Not everyone has the stomach.”

-Peter Lynch

6. Develop a Trading Plan

Anyone can get lucky here and there, but you want consistency when learning to day trade stocks. To get consistent, you should consider making a trading plan.

Some things a Trading Plan may include:

  • Reasons for entering/ exiting a trade
  • How much you want to risk on each trade
  • Daily research planning – Daily News/ Chart study
  • Mental preparation – What to do to get your head in the game
  • Physical preparation – Time to trade/ Proper Rest, Eliminate Distractions

The market is pretty chaotic, as you may know, or will soon learn. Planning your trades is critical to seeing past the roller coaster of emotions you may experience daily. If you do not prepare and plan properly day trading is just gambling. With no preparation it is just like throwing your money into a slot machine. When this happens you are not learning, you are not improving, you are just hoping for success.

When you are planning a specific trade, you need to at least plan where you will have your stop-loss set. This is the price where you want to cut your losses and accept the trade as a losing one. The reason you want to set one is so that if the stock drops rapidly, you won’t be in a panic trying to figure out what to do. Setting a take-profit will get your stock sold when it hits the target goal price.

The reason for setting a stop-loss and take-profit is to reduce risk, and help take the emotion out of it. Bad things can happen if you change plans mid-trade, due to emotion, and take too long making a decision. 

It is impossible to always predict what the stock market is going to do next. To be a consistent and profitable day trader, however, you must know how you are going to react to what it does next.

7. Study Risk Management

Trading risk management is assessing trade risks so that you can figure out how to minimize or eliminate them.

Risk management is perhaps the most important thing to learn and to keep focused on as a trader. If you learn to manage your risk correctly, you can reduce the chance that you lose money or even blow up your account.

“Risk comes from not knowing what you’re doing.” 

– Warren Buffett

A good general rule with money is never to invest more than you can afford to lose. When you feel you are ready to trade for real, keep track of how much you make or lose daily. Many successful traders have daily goals set for how much they can lose before they are done trading for the day. You have to accept this so that you don’t get discouraged and quit or end up going all in.

Risk Management Ideas For Day Trading

  • The  1% Rule – This is the idea that you never risk more than 1% of your account total. For example, if you are trading with $5000 you would not risk over $50 per trade.
  • The  2% Rule – The idea that you never risk more than 2% of your account total. For example, if you are trading with $5000 you would not risk over $100 per trade.
  • Focus on Risk/ Reward Ratios – If you’re risking $50 on a trade, a 1:2 risk/reward ratio would call for your profit goal to be $100. A more conservative risk/reward ratio would be 1:4, in which you’re risking $50 in hopes of making $200. Risk/reward ratios can help if you are planning your trades well.

8. Set Reasonable Goals / Make a Budget

Setting reasonable goals can help keep you excited and motivated for personal growth as a day trader. You can slowly increase your goals as you get better, or take a step back and slow down after a rough stretch.

Some of the basic goals traders set include:

  • Daily Profit Goal
  • Weekly Profit Goal
  • Monthly Profit Goal

Other, more personal goals may include:

  • Ability to stick to a plan
  • Know when not to trade

For example, while most traders hope to be right on their trades 8 or 9 times out of 10. A more realistic goal is just to be profitable and be right 6 out of 10 times.

While goals are great, you cannot allow them to force you into extra risk. Forcing yourself to get an exact amount every day or week can do more harm than good. If your way behind your goal, for example, you don’t want to risk everything just to meet your goal.  Learn to accept that you are going to have losing days, and probably even losing weeks.

Trading Budget Tips:

  1. Start trading with a lower amount and work your way up
  2. Pick the max amount you can lose daily or weekly, and stop if you hit it
  3. If you start to feel extra financial stress, take a trading break, or just paper trade for a while.

9. Know Your Opponents, Know the Odds

The odds are that most traders are not successful long term. You should always know the odds, but don’t let them discourage you. Knowing the odds will help you keep your expectations realistic.

The reality is that most traders fail because they want it to be easy. Most failing traders make the same mistakes over and over.

Top Reasons Why Day Traders Fail

  • Have Too High of Expectations
  • Lack of Planning
  • Give Up When They Don’t Get Rich Quick

Your opponent may be other traders like yourself, and maybe some with a little more experience. Most of your toughest competition comes in the form of professional traders who have been trading successfully for years. It is essential to try to learn how others may think and how they react to certain things in the market.

It may sound silly or cliche, but most often you will find that you will be your own biggest opponent. You will find yourself asking, “why did I do that?”, probably more than once. Whether you are risking too much or just not selling as the price falls and falls, it will happen.

“The most important quality for an investor is temperament, not intellect.”

-Warren Buffet

10. Dive in, Stick With it

You can sign up with a broker and download a trading platform in minutes. If being a consistently profitable day trader is what you want, start immersing yourself in the market. It is easy to get started and can be a very exciting and rewarding thing to be a part of.

Sticking with it doesn’t mean you have to pour endless amounts of money into the market after losing time and time again. You have to be smart and find your pace. If it gets challenging don’t give and keep pushing and learning every day. The stock market isn’t always hot and easy to trade every day. Some days it is better not to trade and when you aren’t feeling it simply watch instead. Remember there will be another trade if you miss one and that every single trader has days that they lose.

If there is something related to day trading that you don’t understand, or haven’t heard of, start researching it.

“I love quotes… but in the end, knowledge has to be converted to action or it’s worthless.”

– Tony Robbins