What you need to start

You don't need a wall of screens to start day trading. You need a short list of tools and two things most people skip: a fixed time slot and a written plan. The tools are the easy part. The plan is what makes the tools useful.

This lesson goes through each piece in the order you'd set it up. I won't recommend any company. I'll show you what to look for instead.

The tools

A regulated broker

For stocks, you need a brokerage account. For futures, you need a futures commission merchant, or FCM, often through an introducing broker. In the US, an FCM must be registered with the CFTC and be a member of the NFA. You can check a firm's status yourself in NFA BASIC. Compare commissions, fees, margin rules and how easy it is to reach a real person.

A charting platform

This is the software where you see charts and send orders. Many brokers include one, and some traders use a separate platform that connects to their broker. Make sure it supports the order types you need, such as brackets.

Market data

Real-time prices come from the exchange, and there is often a monthly fee. Delayed data is free but useless for day trading. Check whether your data is real-time before you trust any chart.

A computer and a steady connection

A normal modern computer is enough. What matters more is a reliable internet connection and a backup plan. Save your broker's phone number, so you can close a trade if your connection drops.

The two things people skip

A quiet time slot

Pick one session and protect it. For me, that is the New York session in Nasdaq-100 futures. Trading in random gaps between meetings or school runs leads to rushed, sloppy decisions. A fixed slot also makes your record easier to compare from day to day.

A written plan

Your plan should fit on one page. It answers a few plain questions:

• Which market and which setup will you trade?
• Where does the stop go, and how much is that in dollars?
• How many contracts or shares, every time?
• When do you stop for the day?
• What will you write down after each session?

Make the numbers concrete. "A 20-point stop on one MNQ contract is $40" is a rule you can follow. "Keep losses small" is not.

Prop firm evaluations

Some people start through a prop firm evaluation. You pay a fee to trade a simulated account under set rules, such as a daily loss limit. If you pass, the firm may offer you a funded account under its own terms. It is one route among several, and the rules, fees and payout terms vary a lot.

An evaluation is still a paid test, and you can fail it. Read the full rules before you pay. If you want to compare firms side by side, Prop Firm Duel (my own site) lays them out in one place.

The takeaway

You need a regulated broker, a platform, real-time data and a reliable computer. You also need a protected time slot and a one-page written plan. Most people who day trade lose money, and good tools don't change that on their own. Set up the tools, but spend most of your effort on the plan.

Do this today

• Choose the one session you could protect every weekday and write down its start and end time.
• Draft a one-page plan that answers the five questions in this lesson.
• Look up any broker you're considering in NFA BASIC or FINRA BrokerCheck and note its registration status.

Check yourself

Answer each one in your head, then open it to check.