Here’s the story of how I made almost $1,000/day in the stock market, for 30 days and what I learned from the experience…
I’m not new to investing in the stock market. I started investing a portion of my online business earnings in stocks back in 2016 and it was the best thing I’ve ever done, but day trading was a whole new experience for me which made my days way more interesting!
I have talked about the stock market and investing on my YouTube channel and even on here, the Aversity blog. It’s usually not my main area of expertise but with what was happening back in March 2020, it’s impossible to avoid it these days.
So here’s the story of how I turned $30,000 into almost $55,000 in a month in the stock market and what I learned from it.
#1: You Need the Nerve to Day Trade!
Investing in the stock market is easy. I do it all the time. You can join a company like Robinhood and buy stocks in seconds but day trading is different.
For day trading, you need to be active, focused and more importantly, you need to be calm.
If you’re new to trading in general and using your hard-earned money to day trade, it won’t be easy. The moment those numbers go up or down, you can freak out, and exit a position with a loss while you could wait a bit longer and earned a significant amount of money from that trade.
Here’s what I recommend to get yourself mentally ready for day trading:
Start with general investing. Use a company like Robinhood to buy some stocks once a week. Start from small stocks and work your way up. I recommend buying stocks with high dividend payouts.
Dividents are small amounts of money you get directly from a company for just being a shareholder! It’s free money and you can use it to buy more stocks!
The idea is to get you comfortable with the stock market, and the fact that stocks will go up and down and there’s nothing wrong with that.
Then, start learning to day trade.
I’m assuming you already know a bit about it, but if you don’t, I recommend checking out these resources to learn some basics of day trading.
Learn a little and start training with a paper account.
A paper account is a training account that will allow you to trade like you have a certain amount of money (you can set that up) in realtime. This will allow you to put your strategies to test and get comfortable with day trading.
#2: Trade Inverse ETFs for Maximum Profit
I want to ask you something. What if there was a way for you to almost predict a stock price? Obviously, that’s impossible, but there is a way to predict the price direction of some stocks based on the movement of other stocks! They are called Inverse ETFs and they are one of the easiest ways to make money on the stock market as a newbie. Here’s how they work:
There are some stocks that track the direction of a specific commodity, such as oil, gas, or even gold in the opposite way.
For example, if the gas price goes up, this inverse ETF (basically a stock) comes down, so you can use this movement to place trades and enjoy the profits.
Here’s an example of my favorite inverse ETF: UGAZ and DGAZ:
The chart below shows UGAZ, an ETF that tracks natural gas prices and it’s going up…
While the chart below shows DGAZ, an inverse ETF that tracks the opposite of natural gas prices (short) in 3x:
So based on my basic knowledge of the stock market, if I could find out when DGAZ reaches its support line, I could place a trade and buy the stock at low and sell when it reaches a higher price.
Here’s one of the ETFs I use to grow my account, and how on average, I grow my account from 1% to 4% on a daily basis, no matter which direction the market is heading.
Thank you for reading this post. I’m don’t consider myself an expert in day trading at the moment and that’s why I don’t have a course or even a training video for it but this simple day trading strategy is growing my account like nothing I’ve seen before. I hope everyone else gets good results from it as I do.