For me, day trading is the best job ever! But, there is so much you need to know before you can start trading in the UK. Money, trading strategies, how to learn how to trade, where to trade, how to trade, what are the taxes, – there are so many things to know. That is why today I will cover everything you need – so as by the end you know how to start day trading in the UK.

If you are interested in knowing how to start day trading in the UK, there are 10 topics you need to master first.

They may seem complicated, and yes, of course, you can start trading in a few weeks!

However, to become a full-time trader with more profit than loss, you’ll need to understand these aspects of trading like you know the behaviour of your hair in different situations.

1. What is Day Trading?What is Day Trading

Let me paint you a picture.

Imagine you are single, and you date someone different every day. You are like a specialist in dating.

However, despite all your expertise, there still are a few dates that are awful and feel like a loss: of time, money, make-up…

This is the day trader’s life.

Almost every day, she trades and profits from the market fluctuations – the experienced ones win most of the time.

This is different from the investor, who is like a woman who wants to be married for life. Investments usually are a one-time transaction that you make to buy a share that will be yours for 20 to 40 years.

By the end, you’ll get your original investment + compound interests.

If you don’t want trade daily for many reasons, be a swing trader!

Swing trading is an excellent, time-friendly way to trade, in which you can hold your position for several days and sometimes more than a week. It’s terrific for those who don’t have the time to be a day trader but who don’t want to wait decades to get their money.

As odd as it may seem, I defend that everyone should invest but also trade.

Forget the metaphor for your real-life though – don’t cheat!

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  1. What can I Trade?

You can trade practically anything in the UK. It has incredible markets for day traders, with several available trading instruments.

  • Forex – Forex is an abbreviation of Foreign exchange, and it is the market in which banks, investors, institutions, and traders buy and sell world currencies. This type of trading is one of the most common in the UK, and the Forex market is one of the largest trading markets in the world.
  • Stocks – Stocks are parts of a determined company that are placed on the stock market for traders like you. When you buy an individual stock or mutual fund, you will choose when to sell it. The time you hold a share will classify your action as day trading or investment.
  • Indices – The plural of index, indices are a measuring tool for traders to understand the performance of an asset class or a segment of it. Some index-based instruments are futures, warrants, exchange-traded funds, and options.
  • Cryptocurrencies – I have several articles discussing these trading instruments. Cryptocurrency trading, like forex, is trading a currency for another – digital coins such as Bitcoin, Ethereum, and Litecoin.
  1. Which trading platform is best for beginners in the UK?Which trading platform is best for beginners in the UK

A well-known online trading platform, Plus500 is the best for beginners in day trading in the UK.

The Plus500 Webtrader Platform is intuitive, which helps those not so adept at technology.

They also offer a demo account option, which is a fantastic tool for beginners in day trading!

Plus500 provides several trading instruments options, like indices, individual stocks, and crypto, and if you’re low on the budget, know that Plus500 trading fees are inexpensive.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

4. What platforms can I day trade on in the UK?

Besides Plus500, there are several different platforms for you to choose from.

An example of a platform where you can trade many types of trading instruments is eToro, which allows you to view, follow, and copy the top traders.

For those who want to focus on Crypto trading, there is Binance, with the biggest range of altcoins available and the best crypto trading platform, in my opinion.

Other Crypto trading platforms are Bitmex, which is recommended for more seasoned traders who already trade with bitcoin cash as a form of currency, and Coinbase, considered as one of the most accessible platforms to buy bitcoins.

5. Get cash position ready

One of the first things to do to start trading in the UK, or anywhere for that matter, is to get your cash position ready.

First, you need to know how much cash you need to start trading, and then when to change from demo trading to real trading.

I’ve written two articles on these subjects. Read them here:

How Much Money Do You Need To Start Stock Trading?

From Demo Trading to Reality: How do I Know When to Trade Real Money?

Although £100 is a minimum for most stock trading platforms, you should save a little more while practising in a demo trading account.

After you feel ready, leave the demo and start trading real.

6. Get educated on trading

Get educated on trading

Those who see trading as a luck game would never understand why you should follow this initial step.

I say this is an essential first step, and you’ll never be able to effectively trade if you don’t go through this step and get educated on trading theory and on reading charts.

There are several great ways a beginner can learn day trading in the UK.

  1. Take the plunge – Trade with a demo account
  2. Read trading books – Don’t have the time to read trading books? Binge watch the best YouTube channels to learn day trading!
  3. Get a trading mentorInstagram has a lot of girl traders;
  4. Learn to read trading chartsThis article can help you!
  5. Take some trading courses – I have a full list with reviews for several courses here;
  6. Go through my extensive list of resources for traders – I’m sure you’ll find some meaningful content there.

I don’t think that any of these ways will educate you on day trading by themselves. You’ll need to find a combination of strategies.

To see more ways a beginner can learn day trading in the UK, check this article!

7. Set trading rules

Rules are essential for life. If you have a kid, you know what I mean, right?

We are no different. A day trader needs rules to start her career.

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Some examples of rules a day trader can set for her practice are:

  1. Using a trading plan
  2. Learn daily
  3. Listen to the trading charts
  4. Treat day trading as a business
  5. Document every trade

Trading rules are yours to be created, but the article Day Trading Rules for Beginners has a few more ideas of rules you can set for yourself as a trader.

8. Trading psychology

Trading psychology is indispensable, especially for us ladies who are usually not encouraged (and sometimes even discouraged!) to be part of the financial world.

There are several reasons why women are not the majority of traders and investors, but regardless of that, we all need to adapt our minds to trading before we trade.

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We must be prepared to lose money and to deal with tons of pressure.

Some of the most common mistakes beginners make are related do the psychological aspects of trading:

  1. Closing profitable trades too early – Due to the lack of confidence, lack of expertise, and a low risk tolerance, traders often keep themselves from profiting more.
  2. Gambling’ on losses open – Like those who stay in a toxic relationship, beginner traders often keep loser trades forever, in the hope that they someday magically win.
  3. Focusing on just the good trades – You. Will. Lose. Money. Everyone does. You can’t just focus on the good trades, always check what you did wrong on the losers.

Psychology is a massive factor in trading.

Check if you have the traits of a day trader personality here, and a few reasons why you might be losing money here.

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9. Journal your trading

Journaling isn’t only for our lives.

Therefore, trading also requires planning and checking, so I highly recommend that you use a trading journal from the beginning.

Check the article How a Trading Journal Helped Me Double My Profits to learn more about how journaling can help you as a day trader. You can learn more in my Edgewonk Trading Journal Review.

May be you’d like to learn how using a trading journal helped double my profits!

10. Know your tax treatment for day traders in the UK

In the article Tax treatment for day traders, there is a topic where I discuss UK’s tax treatment for day traders.

If you are willing to consider day trading as your job in the UK, you will probably be taxed as a regular independent individual – paying business tax and obligations commonly placed for those who fall under the third tax bracket.

Speculative traders are free from business tax, income tax, and capital gains tax.

Her Majesty’s Revenue and Customs (HMRC) usually knows the type of trader you are based on your trading activity.

How to start day trading in the UK

There are numerous steps for those who want to start day trading in the UK, but don’t be discouraged by that!

Always remember your motivations and what you want for your future.

  • Do you want to work for yourself?
  • Do you want to travel while working? Take a workation?
  • Do you want to earn a significative amount of money that will only depend on yourself?
  • Do you want to stay close to your kids and/or your husband?
  • Do you want to make your own schedule?

Day trading allows you to work anytime you want, anywhere you want. Do you know everything you need to know on how to start day trading in the UK? If not, let me know what else you’d like to know!

Happy day trading!


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