Day trading stock online allows you the freedom to trade from wherever you’d like. A majority of day traders are doing their trading from the comfort of their own home. Leave the process of elbowing others out of the way and shouting all over the place to the dinosaurs on the floor of the NYSE.
Day traders are better off trading stocks the NASDAQ anyway because the entire market is electronically based. That isn’t to say you can’t day trade NYSE stocks, you certainly can, and you can catch some great moves in those stocks. The NASDAQ, though, offers a day trader full visibility of every trade in the market (supposedly – barring dark pools and other methods of market manipulation that are seeing greater proliferation). Considering the day trader’s best weapon in his battle to pull earnings in swift moving markets is their tape, this full visibility is vital. You can also day trade other securities, but stocks are my strength, and I’ve dabbled in the Forex. I’ve never day traded options, or futures (like the E-mini S&P), but as I look to gain more information about day trading in general, I might begin to trade these as well.
Most brokers you’re going to come across offer day trading online. You do, of course, have to qualify for day trader status, and some brokers may impose additional requirements on top of that. These online stock brokers also have different barriers of entry. Some online brokers, like Zecco, require no minimum deposit, while TD Ameritrade requires an initial deposit of $2000. Both require a $2000 account minimum to trade on margin. Interactive Brokers is popular amongst day trader because they are a no-frills, no BS broker with low fees for high volume, and active traders. Their minimum deposit (for most purposes) is $10,000. Considering most day traders are going to qualify as pattern day traders ($25,000 k minimum, etc), then none of these minimum deposit amounts should be an issue.
Day trading online doesn’t necessarily have to take place at home. Anyone who is not actively trading on the floor of a stock market could be considered as someone who is trading online, I suppose. Even traders for major brokers, and prop shops are day trading stocks online, but I prefer to do so at home. It’s nice to be able to sift through stocks while eating a bowl of cereal without having to worry about morning strategy meetings. When you’re doing your online trading from home, you’re only accountable to yourself (and your wife, of course. You know she’s the real boss anyway.). This is a situation that some people may enjoy and thrive in, while others may find that they do better in a team environment that is full of open competition and accountability.
Day trading stock online is a great way to make a living untethered to any particular location. As long as you have internet access, you can trade. The only tether you have is the market hours; which makes me feel a bit sorry for those suckers in California who are waking up at 5-6 am to being researching their trades for the day.
