As you probably know, AI tools like ChatGPT can be extremely helpful for many things.
So I decided to ask ChatGPT to give me a 2 year blueprint for becoming a successful day trader.
Why 2 years?
Because that seems to be the average time it takes for someone to become a successful full time trader.
Here is what ChatGPT told me to do:
Year 1: Building Foundations and Developing Skills
Months 1-3: Basic Education and Market Understanding
- Learn the Basics of Stock Markets and Trading: Understand how the stock market works, different types of stocks, market indices, and trading fundamentals.
- Understand Day Trading: Learn what day trading is, its risks and rewards, and how it differs from other types of trading.
- Study Basic Financial Instruments: Get familiar with stocks, bonds, commodities, Forex, and cryptocurrencies.
Months 4-6: Technical Analysis and Trading Tools
- Learn Technical Analysis: Understand what technical analysis is, study chart patterns, indicators like RSI and MACD, and how to read price charts.
- Get Comfortable with Trading Software: Start using trading platforms in demo mode. Understand their features and tools.
- Introduction to Trading Strategies: Learn basic trading strategies and how they are implemented.
Months 7-9: Practice and Paper Trading
- Paper Trading: Start practicing with virtual money. Apply the strategies you’ve learned in a risk-free environment.
- Record Keeping: Start maintaining a trading journal. Document your trades, strategies used, and lessons learned.
- Join Trading Communities: Engage with online trading forums, social media groups, and local trading clubs for networking and knowledge sharing.
Months 10-12: Advanced Concepts and Strategy Refinement
- Advanced Trading Concepts: Learn about advanced strategies, risk management, and portfolio diversification.
- Refine Your Trading Strategy: Based on your paper trading experience, refine your strategies.
- Continuous Learning: Keep up with financial news, subscribe to trading newsletters, and attend webinars/seminars.
Year 2: Real Trading and Professional Development
Months 13-15: Transition to Real Money Trading
- Start Small with Real Money: Begin trading with a small amount of capital. Continue using the strategies that worked during your paper trading phase.
- Risk Management: Apply strict risk management rules to protect your capital.
- Gradual Increase in Investment: As you gain confidence and experience, gradually increase your trading volume.
Months 16-18: Strategy Optimization and Consistency
- Evaluate and Optimize Strategies: Regularly review your trading strategies based on performance and market conditions.
- Maintain Consistency: Focus on maintaining a consistent approach to trading.
- Advanced Risk Management: Enhance your understanding of risk management techniques.
Months 19-21: Scaling and Diversification
- Scale Your Trading Activities: If consistently profitable, consider scaling your trading activities.
- Explore Diversification: Look into diversifying your trading across different instruments or markets.
- Continuous Improvement: Seek feedback on your trading strategies from mentors or experienced traders.
Months 22-24: Professional Growth and Long-Term Planning
- Professional Development: Attend advanced courses or obtain certifications, if beneficial.
- Long-Term Planning: Develop a long-term plan for your trading career, including financial goals and strategies.
- Networking and Mentorship: Continue to build your network and seek mentorship opportunities.
Throughout this journey, it’s crucial to remember that day trading involves significant risks, and it’s important to only trade with money you can afford to lose. Always prioritize learning and risk management over quick profits.
My Day Trading Plan
The 6 month blueprint that I will be following can be found here.
My personal plan is based on advice from the Reddit group called RealDayTrading.
If I were to compare the plans, they’re quite similar, which shows you how good ChatGPT can be. In fact I’m incorporating a few recommendations from ChatGPT, specifically regarding learning the basics of various markets.
Here are the 4 main similarities between what ChatGPT recommends for the first 6 months, and what real day traders from the Reddit group recommend:
- Foundational Education: The first priority is acquiring a strong understanding of the stock markets, how trading works, and the specifics of day trading. This foundational knowledge is crucial for everything that follows.
- Practical Application: Both plans recommend starting with paper trading (practice trading with virtual money). This allows you to apply what you’ve learned without financial risk.
- Technical Analysis: Learning to read and interpret charts, patterns, and indicators is highlighted as a critical skill that needs to be developed early on.
- Getting Comfortable with Tools: Familiarizing yourself with trading platforms and tools is essential for practical application. This includes understanding the features and functionalities of chosen trading software.