Why Joining a Prop Firm Is the Ultimate Side Job That Pays Like a Full-Time Job

f you're looking for a way to make extra money—without quitting your 9-5 job or taking on the stress of starting a business—then becoming a trader with a prop firm could be the perfect side hustle for you. Imagine being able to work from home, set your own hours, and even scale up your earnings based on your own skills and commitment. Prop trading is an opportunity to earn a full-time income (or more) without the usual barriers and risks of traditional day trading. Here's why it could be the ultimate side job, especially if you're just getting started.

What is a Prop Firm?

A prop firm (short for proprietary trading firm) is a company that gives individuals access to capital to trade financial markets—stocks, forex, or even crypto. In return, the trader shares a portion of their profits with the firm. The best part? You don’t have to risk your own money to get started. These firms provide the capital, and you get to trade with it, keeping a majority of the profits. It’s a win-win scenario!

1. Low Barrier to Entry: Start with Minimal Capital

One of the biggest advantages of prop trading is the incredibly low barrier to entry. Unlike traditional stock investing, where you need a large amount of money to make meaningful trades, prop firms typically offer low-cost evaluations or subscription fees to get started. Some firms even let you test your skills with a demo account before you start trading real capital.

This means that if you’re interested in day trading but don’t have thousands of dollars to invest, joining a prop firm could be your golden ticket. You can get started for as little as $100–$200 with most firms (depending on the firm and evaluation rules). No need to risk your life savings!

2. Test Your Strategy with Real Stakes, But Low Risk

The most exciting part about joining a prop firm is that you get to test out your trading strategy on a live account without risking your personal funds. The firm provides the capital, so if you have a profitable trading strategy, you can use it to scale up quickly. And while the stakes are still real, the risk to you personally is far less compared to using your own money.

Think of it like a training ground where you can learn, refine, and improve your skills with real market conditions. It’s the best of both worlds—you're getting real-time feedback on how your strategy performs, but you’re not exposing yourself to unnecessary financial risk.

3. Build Confidence and Psychological Resilience

Let’s be honest: day trading can be stressful, especially when you’re just starting. The pressure of making the "right" decisions in real-time, with real money on the line, can make it difficult to stay calm and focused. That’s where a prop firm’s evaluation phase comes in handy.

Most prop firms require you to pass an evaluation or challenge before they provide you with full access to their capital. This is a great way to prepare psychologically. Even though you’re not using your own money, the evaluation process forces you to follow rules, manage risk, and deal with the emotional rollercoaster of day trading. It’s a controlled way to test your ability to stay disciplined under pressure—something that will serve you well in the long term.

By the time you pass the evaluation and get funded, you’ll have a much better understanding of how you handle the psychological side of trading. You'll learn how to manage both your risk and emotions, two things that are absolutely crucial in day trading.

4. No Need for a Huge Time Commitment

When people think of day trading, they often imagine hours of staring at charts, constantly monitoring the market. But with prop trading, you can tailor your strategy around your schedule. If you already have a full-time job, you can trade during the hours that fit you best—whether that’s in the morning before work, during your lunch break, or after hours.

Plus, many prop firms allow you to trade in different markets and across various timeframes. This flexibility is perfect for someone looking for a side hustle that doesn't consume all their free time.

5. Scalable Earnings and Growth Potential

One of the most appealing things about joining a prop firm is the ability to scale your earnings. While you start by earning a percentage of your profits (usually anywhere from 70% to 90%), the more you trade successfully, the more capital you’re typically given to trade with. This means your earning potential grows as you gain more experience and prove your skills.

Many traders join prop firms with the goal of eventually going full-time, and some even build up enough capital to become their own independent traders. If you find success with a prop firm, the potential to grow your income—and eventually leave your day job—is very real.

6. It’s a Community, Not Just a Solo Gig

When you think of day traders, you might picture someone sitting alone in front of a computer, making decisions in isolation. But many prop firms offer a community aspect, where you can connect with other traders. This means you can share strategies, learn from others, and even get support on the emotional side of trading.

Building a network of like-minded people can make the trading journey much more enjoyable—and less lonely. Plus, you’ll have access to training, mentorship, and resources that can help you improve your skills and reach your goals faster.

7. A Safe Gateway to the World of Trading

If you’re new to trading, diving straight into the market with your own money can feel intimidating. The market is volatile, and the risks are real. A prop firm provides a safer gateway to start trading by minimizing the financial risk and giving you the opportunity to grow in a structured environment.

Even if you’re not ready to go full-time, trading with a prop firm could be the perfect way to ease into the world of day trading, at your own pace, without overwhelming financial pressure.

Final Thoughts

If you're searching for a side hustle that’s low-risk, flexible, and has the potential for high rewards, joining a prop firm could be the ideal choice. You get to test your skills, develop your psychological resilience, and build up your trading experience—all without putting your personal money on the line. It’s a safe, structured, and scalable way to explore the exciting world of day trading.

Ready to see if prop trading is the right fit for you? Take the first step today and start your journey toward financial freedom!

How to Start Trading with Just $100

Many people believe that trading requires a huge bankroll, but that’s simply not true. With just $100, you can start trading and gradually grow your account over time. Thanks to recent changes in the settlement period (now T+1 instead of T+2), you can trade every day with a cash account. Here’s how:

1. Trade with a Cash Account

Since the settlement period for trades has been reduced to one day, you can use a cash account to trade daily with your $100. This allows you to stay active in the market without the need for a margin account or pattern day trading restrictions. Unlike margin accounts, cash accounts ensure that you are only trading with the money you actually have, reducing the risk of overleveraging and accumulating debt.

2. Focus on Small-Cap Stocks Under $10

With a limited budget, it’s best to focus on stocks priced under $10. This way, you can buy more shares and take advantage of small price movements. Small-cap stocks often have higher volatility, creating opportunities for quick gains. Research is key—look for companies with a strong chart setup, good technical indicators, and positive news catalysts. Keep an eye on liquidity and volume so you can enter and exit trades efficiently. To ensure you’re picking the right small cap stock to trade, I recommend Trade Ideas - a scanner that tells you in real time which of these stocks is gapping up.

3. Pick a Commission-Free Broker

Since your capital is limited, avoiding commissions is crucial. Here are some popular commission-free brokers:

  • Webull – Commission-free trading with extended market hours and advanced charting features.

  • Fidelity – Offers great execution and commission-free trades with a strong research platform.

  • TD Ameritrade – No commissions and a variety of trading tools, including ThinkorSwim.

  • E*TRADE – Provides commission-free trades with excellent customer support and educational resources.

4. Use a Simple Trading Strategy

With limited funds, a smart strategy is key. Consider:

  • Swing Trading: Holding trades for a few days to capture market moves based on technical indicators.

  • Day Trading: Entering and exiting trades within the same day to minimize overnight risk. Focus on high-volume stocks and set clear stop-loss levels.

  • Trend Following: Identifying and trading in the direction of market trends, using moving averages and momentum indicators.

  • Breakout Trading: Buying stocks that break through resistance levels on high volume, signaling a potential price surge.

5. Manage Risk Like a Pro

Protect your small account by following these risk management tips:

  • Risk no more than 1-2% of your capital per trade to prevent large losses.

  • Use stop-loss orders to exit losing trades quickly and protect your capital.

  • Avoid emotional trading; stick to your plan and don’t chase losses.

  • Diversify your trades rather than putting all your capital into a single stock.

  • Keep a trading journal to track your trades, strategies, and lessons learned.

6. Take Advantage of Demo Accounts

Before trading real money, practice on a demo account. This helps you get comfortable with the platform and refine your strategy without financial risk. Demo trading also allows you to test different strategies and build confidence before committing real capital.

7. Follow Market Trends and News

Staying informed is crucial for making smart trading decisions. Follow financial news outlets, earnings reports, and economic indicators to anticipate market movements. Consider using platforms like Bloomberg, Yahoo Finance, and MarketWatch to stay updated on stock performance and breaking news.

8. Use Your $100 to Buy a Prop Firm Evaluation

Another great way to leverage your $100 is by using it to purchase a prop firm evaluation. Proprietary trading firms offer traders the opportunity to trade with significantly larger capital once they pass an evaluation process. One of the best options available right now is Apex Trader Funding, which provides access to funded accounts if you can prove your trading skills.

Apex Trader Funding is currently running a sale, allowing traders to get started with an evaluation for a discounted price. With my exclusive discount code BOB, you can get an even better deal. If you pass the evaluation, you’ll be able to trade with a much larger funded account, giving you more potential for profit than you would have with just your $100.

This is an excellent option for traders who have solid risk management skills and want access to more capital without putting their own money on the line.

9. Gradually Scale Up

The goal is to grow your account over time. Reinvest profits, continue learning, and maintain disciplined trading habits. Even a $100 account can turn into something bigger with patience and smart decision-making. Avoid withdrawing profits early and focus on compounding gains over time.

Final Thoughts

Starting with $100 might seem small, but with the right approach, it’s possible to build a solid foundation for trading success. Take advantage of the one-day settlement period, focus on small-cap stocks, use a commission-free broker, or consider purchasing a prop firm evaluation with Apex Trader Funding. Choose the right strategy, manage risk, and stay disciplined—your journey to profitable trading starts now!

The Beginner’s Guide to Trading: 10 Steps on How to Get Started from Scratch

Introduction: Why Trading?

  • What is Trading?
    Explain the concept of trading: buying and selling assets like stocks, options, cryptocurrencies, or commodities in hopes of making a profit.

  • Why People Trade:
    Touch on common reasons beginners get into trading (e.g., making extra money, building wealth, taking control of their financial future).

  • The Risk and Reward:
    Highlight that while trading can be lucrative, it comes with risks. It's crucial to be prepared and informed.

1. Understanding the Basics of Trading

  • What are Financial Markets?
    Explain what markets are (places where buyers and sellers meet) and provide examples like the stock market, forex market, or crypto market.

  • Types of Assets You Can Trade:

    • Stocks: Owning shares of a company.

    • Options: Contracts that give the right to buy or sell a stock at a certain price within a period.

    • Cryptocurrency: Digital currencies like Bitcoin or Ethereum.

    • Forex (Foreign Exchange): Trading currencies (like USD/EUR).

    • Commodities: Things like gold, oil, agricultural products, etc.

2. Choose Your Trading Style

Explain the different types of trading styles, so beginners can decide what might fit them best:

  • Day Trading:

    • Description: Buying and selling within the same trading day. Aimed at making profits from short-term price movements.

    • Pros/Cons: High potential for quick profits, but it’s time-intensive and high-risk.

  • Swing Trading:

    • Description: Holding positions for a few days or weeks to capture short-to-medium-term trends.

    • Pros/Cons: Less stressful than day trading, but still requires regular monitoring of the markets.

  • Long-Term Investing:

    • Description: Buying assets and holding them for months or years to benefit from long-term growth (ideal for stocks and ETFs).

    • Pros/Cons: Requires patience, but generally involves less stress and less frequent decision-making.

  • Scalping:

    • Description: Making small profits from very short-term movements, typically in minutes.

    • Pros/Cons: Requires a lot of skill, fast decisions, and frequent trades, making it very stressful.

3. Learn the Lingo: Trading Terms Every Beginner Should Know

  • Broker: The platform or intermediary through which you make trades.

  • Spread: The difference between the buying and selling price of an asset.

  • Leverage: Borrowing money to increase your position in a trade.

  • Stop-Loss/Take-Profit: Automatic instructions to close your position at a certain level to minimize loss or lock in profits.

  • Volatility: The degree of variation in an asset’s price; higher volatility can mean higher risk and reward.

  • Bullish/Bearish:

    • Bullish: Expecting prices to go up.

    • Bearish: Expecting prices to go down.

4. Setting Up Your Trading Account

  • Choose a Broker/Trading App:

    • What to Look For:

      • Commission-free trades (or low fees).

      • Security and regulation (check if the broker is regulated by authorities like the SEC in the U.S. or FCA in the UK).

      • User-friendly interface.

      • Access to the markets you’re interested in (stocks, crypto, etc.).

    • Popular Brokers for Beginners:

      • Webull (for stocks and ETFs).

      • Coinbase, Binance (for crypto).

      • Fidelity, Schwab (for a full-service experience with stocks, options, and ETFs).

  • Fund Your Account:

    • Explain how to deposit funds into your trading account via bank transfer, credit card, or other methods.

    • Start small: Recommend starting with an amount you’re comfortable losing to reduce the risk of overexposure.

5. Create a Trading Plan

  • Define Your Goals:

    • Are you looking for long-term growth, or do you want to make short-term profits?

    • Are you aiming for steady, modest returns or trying to maximize risk for higher rewards?

  • Risk Management:

    • Use a Stop-Loss: Protect yourself from huge losses by setting a stop-loss order.

    • Risk Only What You Can Afford to Lose: A key principle to follow when you start.

  • Keep Emotions in Check:

    • Explain how trading can be emotional (fear and greed). Discipline and a well-structured plan will help.

  • Track Your Trades:

    • Keep a trading journal to learn from both your successes and failures.

6. Getting to Know Technical and Fundamental Analysis

  • Fundamental Analysis:

    • Definition: The study of economic and financial factors to determine an asset’s value (e.g., looking at a company’s earnings reports or news about a cryptocurrency).

    • Example for Stocks: Analyzing a company's earnings, growth potential, and industry.

    • Example for Crypto: Studying the utility, adoption, and market news surrounding a cryptocurrency.

  • Technical Analysis:

    • Definition: Analyzing price charts and using indicators (e.g., Moving Averages, Relative Strength Index, MACD) to predict future price movements.

    • Example for Stocks: Looking at stock price charts, volume, and patterns (e.g., support/resistance lines).

    • Example for Crypto: Using chart patterns and technical indicators to predict short-term trends.

7. Start Small and Build Up

  • Paper Trading (Demo Accounts):
    Many platforms offer demo accounts where beginners can practice trading with virtual money. This helps build confidence without risking real capital.

  • Start with Small Investments:

    • Emphasize starting small to minimize risk while learning the ropes. Gradually increase the amount you trade as you gain experience.

  • Diversify Your Portfolio:
    Don’t put all your money into one asset. Spread out your risk across different types of investments (stocks, bonds, crypto, etc.).

8. Be Prepared to Learn and Adapt

  • Stay Educated:

    • Books, Courses, and Blogs: Encourage them to learn continuously. Resources like “The Intelligent Investor” by Benjamin Graham, or free content from platforms like Investopedia, can be great starts.

  • Follow the News:

    • Keep an eye on economic news, earnings reports, and global events, as they can influence the markets.

  • Join Communities:

    • Engage with other traders through online forums, Reddit, Discord groups, and social media to learn from their experiences.

9. Common Mistakes to Avoid

  • Overtrading: Trying to trade too frequently or with too much capital.

  • Chasing Losses: Don’t try to make up for a loss by risking even more.

  • Ignoring Risk Management: Not setting stop-losses or taking profits when needed.

  • Following “Hot Tips”: Be wary of trading based on rumors or tips from unverified sources.

10. Conclusion: Embrace the Journey

  • Patience and Practice: Remind readers that trading is a long-term skill that takes time to master. They won’t be successful overnight.

  • Consistency is Key: Regularly practicing and refining strategies will lead to better decision-making and more consistent results.

  • Start Your Journey Today: Encourage them to take their first steps cautiously, but excitedly, and stay dedicated to learning.

How to Pass a Prop Firm Challenge: A Proven Step-by-Step Guide for Aspiring Traders

If you’ve ever dreamt of trading professionally without risking your own capital, joining a prop firm is one of the best ways to turn that dream into a reality. But there's a catch: before you can trade with their money, you have to pass a challenge.

It’s not a walk in the park. But with the right approach, a clear strategy, and mental discipline, you can crack the code and get funded. This isn’t just about making money—it’s about proving you have the skills, discipline, and patience to trade professionally.

In this article, we’ll dive deep into the exact steps you need to take to pass a prop firm challenge, avoid common pitfalls, and set yourself up for long-term success.

What Is a Prop Firm Challenge?

A prop firm challenge is essentially a test that assesses your ability to manage capital and trade profitably under pressure. Prop firms like Apex Trader Funding, MyFundedFutures, and Trade Day offer traders the opportunity to trade with their capital—but only after you prove yourself through a series of objectives.

The challenge typically includes:

  • Profit Target: For example, achieving a 10% profit in 30 days.

  • Max Drawdown: You can’t lose more than 5% (or less) of the initial capital during the challenge.

  • Daily Loss Limit: Often set at 1-2% per day to ensure you're not risking too much in one trade.

But passing this challenge is not just about being a good trader. It’s about mastering risk management, staying disciplined, and following the rules to the letter.

Step 1: Master the Prop Firm’s Rules and Requirements

Before you even think about opening a position, know the rules inside and out. The key difference between those who pass and fail is how well they follow the firm’s guidelines.

Key Things to Know:

  1. Profit Target & Timeframe: You’ll usually have a set timeframe to hit a profit target—let’s say 10% over 30 days. Make sure you break this down: don’t try to hit the target all at once, and don’t rush it. You can take small, steady wins.

    • Example: If you're aiming for a 10% profit in 30 days, target a 0.33% return per day. This helps you avoid going for big wins that could blow up your account.

  2. Max Drawdown: This is one of the most crucial rules. Exceeding the max drawdown (usually 5% of the starting capital) means you’ll fail the challenge. Never risk more than 1-2% on a single trade.

    • Example: On a $50,000 account, you can't lose more than $2,500. If you’re risking 1% per trade, that’s $500. This means you can take 5 losing trades in a row before you hit the max drawdown limit.

  3. Daily Loss Limit: Most firms impose a daily loss limit of 1-2%. This means if you lose 1% in a day, you need to stop trading immediately. This forces you to maintain strict discipline.

    • Pro Tip: Set an alert or reminder on your phone so that you’re aware when you’re close to the daily loss limit.

Step 2: Develop a Specific, Repeatable Strategy

In the prop firm challenge, consistency is king. You’re not looking for home runs—you’re looking for steady, repeatable profits.

How to Build a Trading Strategy That Works for the Challenge:

  1. Focus on 1-2 Trading Setups: Choose simple setups that you can repeat over and over. This could be a basic trend-following strategy, breakouts, or a scalping method. Don’t complicate things.

    • Example: A moving average crossover strategy (where a shorter-term moving average crosses above a longer-term moving average) can work well for swing trading. It's simple and gives you clear entry and exit signals.

  2. Don’t Overtrade: Prop firms want to see that you can manage risk. Overtrading—making too many trades, especially when the market doesn’t fit your setup—can be disastrous. If you’re not sure whether a setup is good, skip it.

    • Pro Tip: Set a limit for the number of trades per day, such as 3-5 trades. This helps keep you focused and reduces the chance of unnecessary losses.

  3. Trade with the Trend: The safest way to trade is by aligning with the market's overall trend. Don’t fight it. For example, if the market is bullish, focus on buy setups, not shorts.

    • Example: In an uptrend, look for pullbacks to enter long positions rather than trying to sell short.

Step 3: Simulate the Challenge with a Demo Account

Before jumping into a real prop firm challenge, practice under realistic conditions. Use a demo account that mirrors the rules of the prop firm you want to join.

What to Do in the Demo:

  • Replicate the Exact Rules: Set up your demo account with the same profit target, drawdown limits, and daily loss limits.

  • Track Your Performance: Treat this as a dry run. Track your win rate, average risk-to-reward ratio, and how often you hit the max drawdown or daily loss limit.

  • Test Your Risk Management: Set strict rules about how much you’re willing to risk per trade and practice sticking to them—this is crucial for success in the challenge.

Step 4: Cultivate Mental Discipline and Avoid Emotional Decisions

One of the biggest pitfalls traders face in prop firm challenges is emotional trading—making decisions based on fear, greed, or impatience. The key to success is learning how to control your emotions and stay mentally disciplined.

How to Stay Mentally Strong:

  1. Use a Trading Journal: Keep track of every trade—why you took it, the outcome, and how you felt. This will help you identify patterns and improve.

    • Pro Tip: Write down your emotional state during trades (e.g., were you feeling nervous, overconfident, or frustrated?) so you can recognize emotional bias and correct it.

  2. Set Realistic Expectations: Don’t expect to double your account overnight. In fact, small, consistent wins are often the key to passing the challenge. If you’re up 5-6% after two weeks, that’s great progress.

    • Pro Tip: Focus on hitting small daily targets rather than trying to reach your overall profit target too quickly. This prevents you from taking unnecessary risks.

  3. Follow a Routine: Start and end your trading day at the same time. Have a set routine that includes pre-trade analysis, a break after each trade, and post-trade review. This structure helps keep your mind clear and reduces emotional decisions.

Step 5: Stick to the Challenge Rules—No Exceptions

The most important factor in passing the challenge is following the rules without exceptions. Prop firms are strict about the max drawdown, daily loss limits, and other parameters for a reason—they want to see that you can trade responsibly and consistently.

  • If you hit your daily loss limit, don’t try to make it back with high-risk trades.

  • If you’re near your profit target, don’t risk it all by making a “big bet” on one trade. Consistency is better than a big win.

Final Thoughts: Your Path to Becoming a Funded Trader

Passing a prop firm challenge is more than just a test of your trading knowledge. It’s about demonstrating that you can follow rules, manage risk, and stay disciplined.

Here’s a quick recap of how to succeed:

  • Understand the firm’s rules and trade with them in mind.

  • Develop a repeatable, low-risk strategy with clear entry and exit points.

  • Practice rigorously on a demo account.

  • Manage your emotions and stick to your plan—no exceptions.

  • Stay patient and consistent; remember, the goal is steady profits, not home runs.

You don’t need to be a trading genius to pass a prop firm challenge, but you do need to be consistent, disciplined, and able to follow the rules. If you can do that, you’ll be well on your way to becoming a funded trader and turning your trading passion into a career.

Recommended Prop Firms:

Apex Trader Funding: Enter BOB for best deal available

MyFundedFutures: Enter BREAK for best deal available

Copy Trading for Prop Firms: A Beginner’s Guide to Maximizing Profits

If you're dipping your toes into the world of trading, you might have come across the term "copy trading" and wondered what it's all about. For traders working with a proprietary (prop) firm, copy trading can be a game-changer, allowing you to potentially 3x, 4x, or even 5x your profits. Let’s break it down step by step so you can understand the concept and see how lucrative it can be.

What Is a Prop Firm?

A proprietary trading firm, or prop firm, provides traders with access to significant capital to trade the financial markets. Instead of trading with your own money, a prop firm gives you a funded account, often after you pass an evaluation process. The firm takes on most of the financial risk while splitting the profits with you.

This setup is particularly attractive to skilled traders who may not have enough personal capital to trade at scale. However, to be consistently profitable with a prop firm, you need to master a solid trading strategy.

Why Mastering a Trading Strategy Is Key

Trading successfully with a prop firm requires discipline and a well-defined strategy. This isn’t just about luck; you need to:

  • Understand the markets: Whether you trade forex, stocks, or commodities, understanding price action and market trends is essential.

  • Backtest your strategies: Use historical data to see how your strategy would have performed in the past.

  • Stick to risk management rules: Prop firms usually have strict drawdown limits, so keeping your risk per trade in check is crucial.

Once you’ve achieved consistent profitability, the real magic begins: scaling your earnings through copy trading.

What Is Copy Trading?

Copy trading allows you to replicate trades from one account to another automatically. For example, if you execute a trade on one account, the same trade is mirrored on multiple other accounts. This is where having multiple prop firm-funded accounts can multiply your profits significantly.

Imagine this:

  • You have one prop firm account making $1,000 a month.

  • By copying trades across three accounts, you could potentially make $3,000 a month.

  • Scale it further to five accounts, and you’re looking at $5,000 a month, assuming consistent performance.

The best part? The effort remains the same since the trades are automated across all accounts.

Setting Up Copy Trading with TradingView

When it comes to charting and trade analysis, TradingView is one of the best tools in the market. It offers an intuitive interface, powerful charting capabilities, and access to a community of traders. Here’s how you can leverage TradingView to set up a trade copier:

  1. Analyze Your Trades: TradingView’s charting tools allow you to identify trade opportunities with precision. You can use features like customizable indicators, drawing tools, and multi-timeframe analysis.

  2. Automate Trade Execution: Once your strategy is solid, you can connect TradingView to third-party trade copier tools or brokers that support automation. TradingView's webhooks and alerts can trigger trades that get copied across all linked accounts.

  3. Monitor Performance: With TradingView’s detailed analysis features, you can track how well your strategy is performing across multiple accounts and make adjustments as needed.

Why Use TradingView?

Even if you’re not using it for copy trading, TradingView is a fantastic platform for:

  • Charting: Its clean interface and wide range of chart types make it a favorite among traders.

  • Community Insights: Follow other traders, share ideas, and learn new strategies.

  • Accessibility: TradingView works seamlessly across devices, so you can stay on top of your trades anywhere.


Final Thoughts

Copy trading for prop firms is an excellent way to maximize your earnings once you’ve mastered a trading strategy. By scaling your efforts across multiple accounts, you can significantly increase your profits without additional workload.

Using a reliable platform like TradingView makes the process even smoother. Whether it’s analyzing charts or setting up automated trade copiers, TradingView equips you with the tools you need to succeed.

Ready to take your trading to the next level? Start small, refine your strategy, and explore the power of copy trading—your future self will thank you!

10 Ways You Can Make Money in the Stock Market

Investing in the stock market can be a rewarding way to grow your wealth over time. However, it requires strategy, patience, and knowledge to maximize returns. Here are 10 specific and detailed ways you can make money in the stock market:

1. Dividend Investing

Dividend-paying stocks provide a steady income stream in addition to potential capital appreciation. Look for companies with a history of consistent and growing dividend payouts. Dividend Aristocrats, companies that have increased their dividends for 25 consecutive years or more, are often a good starting point.

2. Growth Investing

This strategy focuses on companies expected to grow at an above-average rate compared to their industry or the overall market. Growth stocks typically reinvest earnings into the business rather than paying dividends, making them ideal for long-term capital gains. Popular sectors include technology, biotech, and renewable energy.

3. Value Investing

Value investors seek stocks trading below their intrinsic value. This involves identifying companies that the market has undervalued due to temporary challenges or market sentiment. Tools like the price-to-earnings (P/E) ratio and price-to-book (P/B) ratio can help uncover undervalued opportunities.

4. Index Fund Investing

Index funds track the performance of a market index, such as the S&P 500. They offer diversification, lower fees, and long-term growth potential. Investing in index funds is a passive approach that requires minimal effort but can yield solid returns over time.

5. Swing Trading

Swing trading involves taking advantage of short- to medium-term price movements. Traders use technical analysis and market trends to predict price changes. This strategy requires active management and a good understanding of market indicators like moving averages and relative strength index (RSI).

Best charting software: TradingView

Best Trading Journal:
Tradezella

Best Trading Scanner:
Trade IDEAS

BEST PROP FIRMS:
APEX TRADER FUNDING (ENTER BOB FOR BEST DISCOUNT)

Best Prop Firms:
MyFundedFutures (enter break for best discount)

6. Day Trading

Day trading involves buying and selling stocks within the same trading day to capitalize on small price movements. It requires discipline, technical analysis skills, and the ability to act quickly. While it can be profitable, day trading carries higher risks and may not be suitable for beginners.

7. Investing in ETFs (Exchange-Traded Funds)

ETFs are similar to mutual funds but trade like stocks on an exchange. They offer exposure to a variety of assets, including stocks, bonds, and commodities, providing instant diversification. Sector-specific ETFs can be a great way to target industries poised for growth.

8. Options Trading

Options provide the right, but not the obligation, to buy or sell a stock at a specific price before a set date. Strategies like covered calls or cash-secured puts can generate income or hedge against downside risk. However, options trading requires advanced knowledge and risk management.

9. Investing in IPOs (Initial Public Offerings)

IPO investing involves buying shares of a company when it goes public. While IPOs can offer high returns if the company succeeds, they also carry significant risks due to limited operational history. Research the company's financials and industry prospects before investing.

10. Real Estate Investment Trusts (REITs)

REITs allow you to invest in real estate without owning physical property. They generate income through rents or property sales and are required to distribute at least 90% of taxable income to shareholders as dividends. REITs provide a way to diversify your portfolio and earn passive income from real estate.

Bonus Tips for Stock Market Success

  • Diversify Your Portfolio: Avoid putting all your money into a single stock or sector.

  • Stay Educated: Continuously learn about market trends, financial analysis, and economic factors.

  • Manage Risk: Use stop-loss orders and position sizing to protect your investments.

  • Be Patient: Successful investing often requires a long-term perspective.

By leveraging these strategies, you can create a tailored approach to achieve your financial goals in the stock market. Remember, all investments carry risk, so do your due diligence and consult with financial advisors when necessary.

How to Read a Stock Chart in 5 Easy Steps

Understanding how to read a stock chart is one of the most fundamental skills every trader or investor needs to master. Whether you're planning to trade short-term or invest long-term, knowing how to interpret stock charts is essential for making informed decisions. In this guide, we'll break down how to read a stock chart in 5 easy steps, even if you're a complete beginner. Plus, we'll show you how you can use TradingView—one of the most popular and user-friendly charting platforms—to help you in your analysis.

Step 1: Understand the Basic Components of a Stock Chart

Before diving into the details, it's important to understand what a stock chart is showing you. A stock chart displays a visual representation of a stock's price over a specific period of time. The basic components you'll see on most stock charts are:

  • Price Axis (Y-Axis): The vertical axis on the right side of the chart. It shows the stock's price range. This could be anything from a few dollars to hundreds or even thousands, depending on the stock.

  • Time Axis (X-Axis): The horizontal axis at the bottom. This shows the time frame for the chart, such as 1 day, 1 week, 1 month, or 1 year.

  • Candlesticks: These are the colored bars or "candles" you see on the chart, representing the stock's price movements over a set time period (e.g., 1 minute, 1 hour, 1 day).

Using TradingView:
On TradingView, these components are displayed clearly and can be customized easily. You can select the time frame that fits your strategy (1 minute, daily, weekly, etc.) and zoom in or out on the price axis for a closer look. TradingView also offers multiple chart types—candlestick charts, bar charts, line charts—so you can choose the one you’re most comfortable with. Candlesticks are the most popular for traders, as they show detailed price movement over each time interval.

Step 2: Learn to Read Candlesticks

Candlesticks are the building blocks of most stock charts. Each candle provides information about the stock's price movement for a given period. Here’s how to read them:

  • Open: The price of the stock when the time period begins.

  • Close: The price of the stock when the time period ends.

  • High: The highest price the stock reached during that period.

  • Low: The lowest price the stock reached during that period.

The candlestick is typically colored to show whether the price went up or down during that period:

  • Green Candlesticks: These indicate the stock closed higher than where it opened. This is considered a bullish sign (price is rising).

  • Red Candlesticks: These indicate the stock closed lower than where it opened. This is considered a bearish sign (price is falling).

 
 

Using TradingView:
TradingView makes it easy to spot and interpret candlesticks with its intuitive interface. When you pull up a stock chart, TradingView automatically displays candlesticks for each time period you select. By hovering your mouse over a candle, you’ll see details like the open, close, high, and low prices for that specific time period. Plus, you can toggle between different chart views, like Heikin-Ashi candles, which are great for smoothing out price action to make trends easier to spot.

Step 3: Identify Support and Resistance Levels

Support and resistance are key concepts in chart analysis that can help you determine where prices might stop or reverse direction.

  • Support: This is the price level where a stock tends to find buying interest, preventing the price from falling further. Think of it as the "floor" for the stock price.

  • Resistance: This is the price level where the stock tends to encounter selling pressure, preventing the price from rising further. It acts like the "ceiling."

You can identify support and resistance levels by looking for price points where the stock has bounced up from (support) or fallen from (resistance) multiple times.

Using TradingView:
On TradingView, you can easily draw support and resistance lines using the platform’s drawing tools. Simply click on the line tool and drag it across the chart at the price levels you identify as key support or resistance zones. TradingView even has an auto trendline tool, which automatically plots trendlines to help you visually track price movements and major levels. These tools are especially helpful for pinpointing where the price is likely to reverse.

Step 4: Recognize Patterns and Trends

Stock charts often form specific patterns over time that can give you clues about the future direction of the stock's price. The most common types of patterns you’ll encounter are:

  • Uptrend: A series of higher highs and higher lows. This suggests the stock is in a bullish phase (rising).

  • Downtrend: A series of lower highs and lower lows. This suggests the stock is in a bearish phase (falling).

  • Sideways Trend: When the stock price moves within a defined range. This indicates the stock is neither trending up nor down and is consolidating.

Additionally, there are specific chart patterns like Head and Shoulders, Triangles, and Double Tops/Bottoms that traders use to predict potential reversals or continuations in price movement.

Using TradingView:
On TradingView, spotting trends and patterns is simple. The platform allows you to zoom in on any section of the chart and easily spot trends, from short-term fluctuations to long-term movements. TradingView also provides a wide array of indicators and drawing tools that help highlight patterns like triangles, channels, or the popular head and shouldersformations. You can save your chart setups and patterns for easy reference, and TradingView even offers pattern recognition tools that automatically detect certain formations for you!

Step 5: Use Technical Indicators to Confirm Your Analysis

While candlestick patterns and support/resistance levels can provide a lot of insight, technical indicators can add additional layers of confirmation. These are mathematical calculations based on the stock's price, volume, or open interest, and they help traders predict future price movements. Some popular technical indicators include:

  • Moving Averages: These smooth out price data to identify the direction of the trend. A simple moving average (SMA) or exponential moving average (EMA) is often used to gauge whether a stock is in an uptrend or downtrend.

  • Relative Strength Index (RSI): This indicator helps you determine whether a stock is overbought or oversold. An RSI above 70 indicates the stock might be overbought (potential sell signal), while an RSI below 30 suggests it might be oversold (potential buy signal).

  • MACD (Moving Average Convergence Divergence): This is a momentum indicator that helps traders spot trend reversals by comparing the difference between short- and long-term moving averages.

Using TradingView:
One of the biggest advantages of TradingView is the wide range of technical indicators available at your fingertips. You can apply various indicators to your chart with just a few clicks. Whether you’re using RSI, MACD, or Bollinger Bands, you can customize the settings for each indicator to suit your strategy. TradingView also offers real-time data and backtesting features, which allow you to test your indicators and strategies before applying them to live trades. Plus, the Indicator Library includes thousands of public and custom indicators created by the TradingView community, so you can discover new ways to analyze charts.

Conclusion

Reading a stock chart may seem intimidating at first, but once you break it down into simple steps, it becomes much easier. Start by familiarizing yourself with the basic chart components, then learn how to read candlesticks, identify support and resistance levels, recognize trends and patterns, and finally, use technical indicators to confirm your analysis.

With TradingView, you can seamlessly implement all these steps using powerful tools and resources to improve your charting skills. Whether you're a beginner or an experienced trader, TradingView makes it easy to track price movements, draw key levels, and apply indicators to make informed decisions.

Happy trading, and remember that the key to success in the markets is continuous learning and practice!

How to Start Day Trading: 5 Essential Steps Every Beginner Needs to Know

Day trading can sound exciting, but for beginners, it often feels like a steep mountain to climb. The good news? With the right approach, the right tools, and a little guidance, you can make the journey smoother and more manageable. In this article, we’ll break down 5 smart steps to help you start day trading, with a particular focus on risk management and strategies that work for new traders.

So, if you’re ready to start your trading journey, let’s dive in!

Step 1: What Is Day Trading and How to Choose the Right Platform

Day Trading Explained: Day trading involves buying and selling financial instruments like stocks, futures, options, or even cryptocurrencies within the same day, typically aiming to profit from small price movements. To succeed, you need access to a reliable broker and, depending on your style, potentially a prop firm.

Choosing the Right Platform:

Before you start trading, it’s crucial to select a broker and platform that suit your needs. Your platform is where you’ll execute trades, analyze market data, and monitor your positions.

  • For Beginners:

    • Schwab’s ThinkOrSwim: If you're just getting started, Schwab is a great broker for beginners. Their ThinkOrSwim platform is user-friendly and packed with tools for charting, market analysis, and executing trades—all available for free simply by being a Schwab client. ThinkorSwim is a solid choice for learning and testing strategies.

    • Why Schwab? Schwab offers low fees and integrates smoothly with ThinkOrSwim, making it easy for new traders to manage their accounts and access the resources they need to grow as traders.

  • For Active Day Traders:

    • Interactive Brokers (IBKR): If you're moving beyond the basics and ready for faster execution and more advanced trading tools, Interactive Brokers is a fantastic option. They provide access to global markets, low commissions, and a high-performance platform that's perfect for active day traders. The Trader Workstation (TWS) platform offers advanced features like algorithmic trading, customizable charting, and real-time market data—key tools if you plan to scale your day trading.

    • Why IBKR? IBKR’s fees are low, especially for high-volume traders, and their platform is robust enough for serious traders. They also offer paper trading to practice your strategies before committing real capital.

    • LightSpeed: Another broker that’s ideal for day trading is LightSpeed. Their platform is highly customizable, with low-latency execution and tools designed specifically for fast-paced day trading. LightSpeed is a great choice for active traders who want real-time data, advanced charting, and quick order execution.

    • Why LightSpeed? LightSpeed is optimized for traders who require speed and precision. Their low-fee structure and top-notch platform make it an excellent choice for professional traders looking to scale their day trading operations.

Prop Firms: A Great Alternative to Trading Your Own Money

While brokers like Schwab, IBKR, and LightSpeed are essential for trading with your own funds, there’s another option to consider—prop firms. These firms provide you with capital to trade without risking your own money, which can be especially appealing for new traders who are still learning or those who prefer to limit their personal risk.

A proprietary trading firm (prop firm) like Apex Trader Funding offers funded trading programs. Here’s how they work:

  • You can trade their capital (funded accounts) and keep majority of the share of the profits (90%).

  • The firm has certain evaluation processes or challenges (like a demo phase), and once you pass, you’ll be given access to larger amounts of trading capital.

  • It’s a great option for those who want to leverage capital and avoid the financial risk of using their own funds.

Why Apex Trader Funding?

  • No risk to your capital: You trade with the firm’s money and, if successful, keep a percentage of the profits.

  • Easy entry: Apex offers a simple evaluation process, making it easy to get started with a funded account.

  • Focus on strategy: Instead of worrying about losing your own money, you can focus on refining your trading strategies.

If you’re someone who doesn’t want to risk your own funds, a prop firm like Apex Trader Funding can be an ideal way to begin day trading.

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Step 2: Coming Up with a Trading Strategy (And Why Risk Management is Key)

Building a trading strategy is arguably the most critical part of becoming a successful day trader. Without a clear strategy, you're simply guessing. A well-thought-out strategy gives you a blueprint for entering and exiting trades based on specific criteria, helping you stay disciplined and avoid emotional decisions.

But even the best strategy can go awry if you don’t incorporate risk management. In fact, risk management often makes the difference between profitable traders and those who lose their shirts. Here’s how to develop a strong trading strategy with risk management built into it.

Key Elements of a Trading Strategy:

  1. Trading Style: Your trading style will largely depend on how much time you can devote to trading and your risk tolerance. The major styles in day trading are:

    • Scalping: This involves making quick trades to profit from very small price movements. Scalpers enter and exit positions within minutes or even seconds, often executing dozens or hundreds of trades in a day.

    • Momentum Trading: Momentum traders seek stocks or instruments that are moving strongly in one direction and try to capitalize on these price moves. They typically hold positions for minutes or hours.

    • Trend Following: Trend followers look to catch and ride trends, buying when prices are rising and selling when they start to fall. This strategy requires patience and can often result in holding trades for several hours or even days.

    • Range Trading: This strategy focuses on identifying price ranges where an asset trades between specific high and low points. Traders sell at resistance (the upper range) and buy at support (the lower range).

    • Breakout Trading: Breakout traders look for price levels where an asset’s price has been “stuck” in a range but is now likely to break out in one direction. Traders use indicators or chart patterns to predict when these breakouts will occur.

  2. Key Indicators and Tools: Your trading strategy should involve specific indicators or tools to guide your decisions. Here are some commonly used indicators and tools:

    • Moving Averages (MA): These smooth out price data and help you spot trends. The 50-period MA and the 200-period MA are especially popular. When a short-term moving average crosses above a long-term one, it signals a potential buying opportunity (bullish crossover).

    • Relative Strength Index (RSI): RSI indicates whether a stock is overbought or oversold, helping you identify potential reversals. An RSI above 70 signals overbought conditions, while below 30 signals oversold conditions.

    • MACD (Moving Average Convergence Divergence): MACD is used to identify changes in the strength, direction, momentum, and duration of a trend. It’s especially useful in spotting bullish or bearish crossovers.

    • Bollinger Bands: These bands are used to assess volatility. When the price moves outside the bands, it can signal the start of a new trend.

    • Volume: Pay attention to volume because price movements on low volume can be misleading. High volume indicates strong momentum and can confirm the validity of a price move.

  3. Setting Entry and Exit Points:

    • Entry Points: A clear entry point is crucial. This could be when a stock breaks above resistance (breakout), when the RSI dips below 30 and then starts to rise (reversal), or when a stock bounces off a moving average (trend following).

    • Exit Points: Deciding when to exit a trade is just as important as when to enter. You can exit a trade at a pre-determined target (e.g., a certain percentage profit or a resistance level) or based on a stop-loss (e.g., exiting if the stock drops below a certain price level).

    • Stop-Losses and Profit Targets: These are your safety nets. A stop-loss ensures you don’t lose too much on a bad trade by automatically selling when a certain price level is hit. A profit target helps you lock in gains when the price moves in your favor.

  4. Risk Management:
    No matter how confident you are in your strategy, risk management should always be a priority. Proper risk management helps you protect your capital from big losses.

    • Risk-to-Reward Ratio: A good rule of thumb is to aim for a 2:1 risk-to-reward ratio. For every dollar you risk, you should aim to make at least two dollars in profit. This ensures that even if you have a losing trade now and then, you can still be profitable over time.

    • Position Sizing: Never risk more than 1-2% of your trading capital on any one trade. For example, if you have a $10,000 trading account, risking 2% means you’re willing to lose $200 on a single trade. By limiting how much you risk on each trade, you protect yourself from wiping out your account during a losing streak.

    • Avoid Overtrading: Stick to your plan and resist the urge to take unnecessary trades. Overtrading can quickly lead to losses due to exhaustion, emotional decisions, and higher commissions.

Popular Day Trading Strategies:

Now, let’s dive into some specific strategies that are popular among day traders, with an emphasis on risk management:

  1. The Opening Range Breakout (ORB):
    The Opening Range refers to the price range of the first 30 minutes to 1 hour of trading. Once that range is established, the price is expected to break out of it, either upward or downward. Traders use this breakout to enter trades.

    • Why It Works: The market often shows clear direction after the opening range, so the breakout strategy capitalizes on early momentum.

    • Risk Management Tip: Place your stop loss just outside the opening range to limit losses if the breakout fails.

  2. Pullback Strategy:
    In this strategy, traders wait for a pullback (a temporary reversal) in a trend, and then enter the market once the trend resumes. It works well in strong uptrends or downtrends.

    • Why It Works: Pullbacks offer a lower-risk entry point while still allowing you to ride the main trend.

    • Risk Management Tip: Use Fibonacci retracement levels to identify where the pullback may stop and resume in the direction of the trend.

  3. News Trading:
    Some traders use economic news or earnings reports to trade stocks. The idea is that certain news events can move prices sharply, and by staying informed, traders can enter positions in anticipation of big moves.

    • Why It Works: Market-moving news can create substantial volatility, providing opportunities for quick profits.

    • Risk Management Tip: Use tight stop losses and avoid trading during low-volume periods to prevent slippage and excessive risk.

  4. Momentum Trading:
    Momentum traders look for stocks or instruments that are showing strong trends in one direction. They aim to ride the momentum as long as possible.

    • Why It Works: Stocks that are moving strongly in one direction often continue that trend for some time.

    • Risk Management Tip: Momentum trades often carry more risk, so ensure you use trailing stops to lock in profits while protecting against reversals.

  5. Scalping:
    Scalping involves making small, frequent trades to capture tiny price movements. It requires quick execution and lots of practice.

    • Why It Works: The smaller the trade, the lower the risk, and with a consistent strategy, scalpers can make a lot of small profits that add up over time.

    • Risk Management Tip: Because of the frequency of trades, it’s important to keep transaction costs low (like commissions) and avoid excessive risk on each trade.

How TradingView Helps Implement These Strategies

To implement all these strategies effectively, you need a robust charting and analysis tool, and that's where TradingView comes in.

TradingView is the go-to platform for day traders because it provides a comprehensive, real-time charting experience with advanced technical indicators, drawing tools, and customizable layouts, making it ideal for executing the strategies discussed above. Here’s how TradingView can help:

  • Customizable Charts: Whether you're using Moving Averages, RSI, or MACD, TradingView allows you to customize your charts with the indicators you use most. You can overlay multiple indicators to get a clearer picture of price action.

  • Real-Time Alerts: Set up price alerts for specific conditions, such as when the price breaks above resistance or when an RSI value crosses certain thresholds. These alerts help you stay ahead of market moves and act quickly when a trade setup forms.

  • Drawing Tools: Use tools like trend lines, support and resistance zones, and Fibonacci retracements directly on your charts to visually identify trade setups.

  • Backtesting: TradingView allows you to backtest your strategies using historical data. This is invaluable when you want to test out whether your strategy works in different market conditions without risking real money.

  • Paper Trading: Practice your strategies without real money by using TradingView’s paper trading feature. This is perfect for refining your approach and getting comfortable with your trading system.

  • Community and Ideas: TradingView also has a strong community where traders share their ideas, setups, and trade alerts. You can learn from others and adapt their strategies to your own style.

By incorporating TradingView into your day trading routine, you can seamlessly apply the strategies mentioned above, track your performance, and make data-driven decisions with confidence.

Try TradingView and start building your strategies

Final Thoughts on Strategy and Risk Management

A trading strategy without risk management is like a ship without a rudder. It might move forward, but it can also easily sink. Therefore, make sure you test your strategy, use proper position sizing, and always have a stop-loss in place to protect your account from major drawdowns.



Step 3: Practice in a Simulation and Prove Your Strategy Works

“Practice makes perfect” is especially true for trading. Jumping straight into live trading can be daunting, so it's essential to first test your strategy without risking any real capital.

Why Simulation Is Important:

Using a simulated trading environment allows you to:

  • Learn the platform: Get comfortable with the interface, order types, and trade execution.

  • Test your strategy: See how your trading strategy plays out in real market conditions without losing money.

  • Build confidence: Start small, and gradually scale as you get better.

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  • Why It’s Great: These platforms allow you to hone your skills, refine your strategy, and build your trading confidence in a risk-free environment.



Step 4: Picking a Reliable Scanner to Spot Trading Opportunities

A scanner is a tool that helps you find the best trading opportunities by filtering through thousands of stocks, futures contracts, or forex pairs in real-time.

Why You Need a Scanner:

  • Save time: Instead of manually searching for trades, a scanner does the work for you.

  • Find potential setups: Identify trending stocks or instruments based on specific criteria like price movement, volume, or volatility.

Recommended Scanner: Trade Ideas

Trade Ideas is one of the most powerful and popular scanners available for day traders. It automatically scans the markets for you and sends alerts when it spots potential opportunities based on your specific trading criteria.

  • Why It’s Great: Trade Ideas has AI-powered algorithms that continually monitor the market and alert you to high-probability trades. This tool is ideal for beginners who want to spot potential setups without having to spend hours at their screens.

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Step 5: Log Your Trades to Learn From Your Mistakes

If you want to get better at day trading, you need to track and analyze every trade you make. This will help you identify what works and what doesn’t in your strategy.

Why Logging Your Trades is Essential:

  • Spot patterns: Maybe you notice you’re losing more on Fridays or your momentum trades are more profitable in the morning.

  • Improve strategy: By reviewing your trades, you can tweak your strategy over time.

  • Control emotions: Trading is not just about numbers; it’s also about psychology. Logging your trades helps you track your emotions and prevent impulsive decisions.

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  • Why It’s Great: Tradezella makes it easy to understand why a trade was successful or failed, so you can continually improve and get better as a trader.

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Conclusion: Start Your Trading Journey With Confidence

Now that you know the 5 essential steps for getting started with day trading, it’s time to put this knowledge into action. Day trading isn’t an overnight success, but with the right mindset, strategy, and tools, you can make smart, calculated moves to grow your trading career.

Remember, Apex Trader Funding can help you get started without the initial capital risk, Trade Ideas helps you spot trades quickly, TradingView is an essential charting platform, and Tradezella lets you track your progress and optimize your strategy.

Ready to start trading with the best tools by your side? Don’t wait—get started today and turn your trading dreams into reality.