There is excellent money to be made in day trading, but, unlike what some may think, it is not a simple job.
To be successful, you'll need to put in some work.
Trading commodities and stocks is a day job, and a challenging one at that.
Though it can be lucrative, certain habits must be learned for success, and the trader with particular traits is more likely to be successful.
Time management is the first important habit.
You must be able to wake up early and alert first thing in the morning and be ready to evaluate how you'll play the market that day.
All of this must happen before the opening bell, which starts at 9:00 a.
m.
in New York, 6:00 a.
m.
in California, and 5:00 a.
m.
in Alaska and Hawaii.
Getting out of bed early is only half the story; you'll also need to stay on schedule and have a good internal alarm clock.
If you're the type who can't function before 11:00 a.
m.
or has to guzzle down multiple cups of coffee before facing the day, day trading may not be the job for you.
The second important habit is good quantitative analysis skills and the ability to think on your feet.
Though "gut" decisions can help you make (and lose!) money as a day trader, you'll need to be able to make informed choices from reading, perusing, and comprehending numbers very quickly.
You'll need to be able to run numbers in your head quickly and accurately enough to figure out if something is a trend, or just an anomaly, and you'll need to judge what to do with that information.
Let me just point out that you don't have to be a mathematician to be good at day trading.
You can learn certain quantitative skills, even if you were never that great at math.
Certain numerical skills will seem automatic to you once you've practiced them a bit.
A third habit that breeds success for day traders is patience and the ability to make keen observations.
These habits must be combined with an excellent short-term memory.
Patience can be tough to muster when you face the disappointment of missing a stock at its peak, or when you lose money because your low never came to pass.
Try not to let these challenges drag you down.
Also be sure to keep your cool when you score a winning trade.
The fourth habit you'll need to cultivate is research skills.
Day trading, thankfully, does not require the same kind of in-depth numerical analysis as long-term investments, but you'll need a handle on the flow of information so that you can use this knowledge base when making quick judgments.
Doing your research ahead of time is the only way to make good judgments quickly.
But, don't get bogged down so much by research that you lose the ability to think and act fast.
Remember that you don't have to do this analytical research on your own.
High ranking day traders use a variety of tools and have different research and data services at the ready.
If you think you are ready for a career change and that day trading may appeal to you, you'll need to start by creating a support team.
At a minimum, you'll need a broker, and a few investors willing to help you level the market.
Realize ahead of time that it's hard work, and will require savvy, dedication, and focus.
If you think your skills are a good fit for day trading, this can be an incredible way to earn great money.
It's an enjoyable profession that can "enrich" your life as well.