Chat Room & Education Questions
How do you rate the quality of a chat room?
We rate chat rooms on a variety of criteria, some general and some specific to the service we are reviewing. We account for:
- Quality of Chat Room Alerts
- Frequency of Quality Alerts
- Credibility of Chat Room Posters
- Chat Room Experience & Functionality
- And more..
Will I make money if I join one of the services?
Maybe – maybe not. Trading services should not be viewed as money-making machines (regardless of how they are marketed). Use trading services as tools for educational purposes or for access to more data (i.e. alerts). Trading is difficult and expecting to make money in your first few months is unrealistic.
Are all chat rooms and education services scams?
No. Like any industry, there are good companies and bad companies. This is why we review chat rooms to help you make smarter decisions.
If these guys are such good traders, why do they run services?
This question is generally asked cynically. The phrase, “those who can’t do, teach” probably comes to mind, but doing and teaching are not mutually exclusive. Just look at any Fortune 500 CEO who wrote a book. Experience brings lessons that can be shared with others. Is there a profit motive? Of course – everyone expects to be compensated for their time, especially high-performers. There can, however, still be value to many of the chat rooms.
Why is your review positive and another negative (or vice versa)?
Perspective, preference, and experience. It’s the same reason one of your friends loves his new iPhone and the other thinks its garbage.
No company has 100% positive reviews, especially in an industry with such a high failure rate. We outline our experiences with the services we review and welcome others to do the same. Our reviews are designed to be unbiased. We evaluate companies on their quality and their ability to deliver on what they promise.
What is the benefit of paid courses over free education?
There is a ton of great material available for free on the internet, but a lot of it is disorganized. Premium courses can add structure to your education. It’s the same concept as higher education. Nearly every lesson in a college textbook is available for free online. You’re paying for the curriculum.
How do I know which chat room is best for me?
First, be aware of your own personal trading style (or planned style, if you haven’t started yet). Next, find a chat room that best matches your style. For example, if you plan to use a technical swing trading strategy, find a chat room with like-minded traders. This will ensure you get more value out of the service. A few other considerations are:
- Chat room cost relative to your trading capital (i.e. don’t spend $2000 on a chat room membership if you have $4000 to your name)
- Chat room teaching style (i.e. do the main instructors provide lessons that resonate well with you?)
Many of these service providers also have free content on YouTube and social media so you can get a taste for the service.
Which broker do you recommend?
We don’t recommend one specific broker for every trader. Every trader will have different needs. We review all of the top brokers so you can choose which is best for your personal needs.
How are Stock Brokers rated?
Stock brokers are rated based on a long list of criteria, including:
- Mobile Options
- Customer Service
- Short Lists
- Account Fees
- And more
We do our best to review each broker based on its main appeal. For example, a day trading broker may have higher monthly fees but better short lists and routing options. A discount broker may have slightly better commissions but inferior software. We take these factors into account and make recommendations accordingly.
What are some of the main differences between brokers?
The main difference fall into three categories:
- Fees – Commissions, account fees, routing fees, platform fees, etc.
- Tools – Trading platforms, mobile platforms, research tools, etc.
- Features – Short lists, leverage, locate services, etc.
How do I know which broker is best for me?
Every brokers has its pros and cons. Define what you need out of a broker and find the broker that is the best fit.
For example, if all you care about is commission fees, choose the broker with the lowest commissions.
If your strategy is based around short selling, choose a broker with better short lists.
General Day Trading Questions
How much money do I need to day trade?
There is a common misconception that you need $25,000 to day trade. While the Pattern Day Trader rule will limit traders with under $25,000 to three day trades in a five day period, this does not mean you cannot trade with under $25,000. You can place overnight trades or simply stick with your three trades per week (which may be beneficial as you are learning).
It’s recommended to have at least $5,000 to start (more is better). Can you trade with less? Sure, but it will be difficult. Smaller accounts will get eaten alive by commissions. Do yourself a favor and save up some capital. In the meantime, you can focus on your trading education.
Can I day trade part-time?
Yes, but be careful. You should never leave intraday positions unattended. For example, you don’t want to place a trade before work and then wait to see what happens.
If you are attempting to trade part-time, tailor your strategy around your schedule. You may decide to trade market open or market close, or you may choose to hold positions for a few days at a time.
What’s the fastest way to get started with day trading?
There is no shortcut. Don’t try to cut corners when your money is on the line. A simple mistake could cost you big.
The fastest way to learn is by dedicating the time. The following strategy can be helpful:
Learn – Study as much trading education as possible until you feel prepare to place trades.
Test – Apply your newfound knowledge in a paper trading account. See how your strategy would have worked if real money was on the line.
Repeat – This is a never-ending process, even for experienced traders. Of course, the “Test” step can eventually transition from paper trading to real trading when you are ready.
How much can I expect to make from day trading?
This is an odd question – as if there were an answer that would mean trading is not worth your time.
The first question you should ask (albeit rhetorical) is, “can I make money trading?” Many traders fail, so achieving any level of sustained profitability means you’ve outperformed most traders. As for how much you can make, it depends on the trader, the strategy, and the portfolio size. There is no definitive answer.
What are the basic tools I will need to day trade?
You will need an internet connection, a stock broker, and some form of data (i.e. news, charts, level 2, etc). The data needed will vary by trader. Most traders require a trading platform with real-time data. You can add tools to your toolkit as you need them – no need to pay for every service before you need it.