How Day Traders Make Big Money - Their Secrets Revealed!
A job as a day trader is a great way to make money in a very lucrative field. It is not, though, an easy way to get rich quick. You will need to put effort and work into it.
Day trading stocks and commodities is a great job and a quite profitable one as well. It requires certain traits for success, and certain habits will need to be internalized.
A good time sense is the first important habit. Day trading is not the job for people who drag themselves out of bed in the late morning and can't think before their second, or third, cup of coffee. Day traders must be up and alert before the opening bell. In New York, trading opens at 9 AM. This is 6 AM in California, and a very early 5 AM in Alaska and Hawaii. The best time to plot trading strategy for a given day is before the opening bell - you'll need to not only be awake by then, but alert and thinking on your feet.
A second critical habit is a good set of numerical analysis skills. Making and losing money based on gut hunches is a given, but you'll also need to make educated choices based on what you've read, summarized, and synthesized so that you can make good judgments quickly with this background knowledge. All of this needs to be done fast, and you'll need to quickly judge trends in financial markets and apply these snap analyses to your trading decisions.
Although you'll need some good quantitative skills, you don't have to be a mathematician to be a successful day trader. You can cultivate your quantitative skills with just a bit of practice.
A third important habit for day traders is observational skills combined with good short-term memory. You'll also need patience. Keep your cool even when you miss catching a stock at its highest point, or when you lose money because an anticipated low never arrived. Likewise, you must stay calm when you make a big winning trade as well.
Dedication to research is a fourth important habit. You won't need to pore over accounting statements like professionals in long term investing, but you will need to analyze trends that appear in the constant influx of information. You'll need to take an active role in decision-making, and choose trades based on this background knowledge. You can't make good judgments without the right research; but don't let an obsessive need to research cripple your ability to think and act on your feet.
Remember that you don't have to do all of this research and analysis alone. High level traders have many research tools and tricks, and various data analysis tools close by.
If day trading is a career that appeals to you, start by building a support network. Your team will include a broker, and investors to help you gain leverage in the market. Bear in mind that you will need to work, and word hard. You'll have to show intelligence, drive, and focus to succeed.
If, after reading the skills listed above, you think you have what it takes to be a successful day trader, day trading may offer you a challenging and fun way to make a great living. It's a job that can be a ton of fun, and can provide tremendous riches - in more ways than one.
If you want to learn day trading try to learn it bit by bit - there's so much information out there that it can get overwhelming!
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