Day Trading - Traits of a Day Trader - Part 1
The only thing you can expect with day trading is its constant change.
One moment you are profiting, another moment you are on your way to losing.
It all happens in a nick of time.
Anyone in this business understands that it's a very risky venture.
So, to help you learn the shortcuts we will share with you the common traits most successful day traders have.
They only use their risk capital for trading.
Traders should only use the money they can afford to lose.
They don't use the student's loan, the allowance for food or the mortgage payments.
Otherwise, they are trying to suicide.
They understand that the money they have now may be the money they will be losing a few minutes after.
If you have $10,000 in your account and that is all the money you have left in the world, you should understand that if you lose all of that in a day, you will have to live on food stamps.
So be sure that the money you use for trading gives you the leisure to trade.
That makes it a lot easier to take the risks and enjoy the winnings.
They accept that their losses as much as their winnings are their personal responsibilities.
Traders know the reality that it is their decisions that trigger all actions.
No one else is responsible for their wins or losses.
They cannot point a finger on somebody else and blame him for an untimely decision.
Every action a trader does is his own making.
Sometimes, even taking this principle to the extreme.
They understand that they should always be neutral.
Seasoned traders know for a fact that they could be winning hundreds of dollars now and lose thousands of dollars later.
On both occasions, they cannot celebrate or cry.
They have to remain composed and proceed as if nothing good or bad is happening.
Most novices think that the world is picking on them every time they lose and they advertise their winnings in every possible way.
It is OK to show some emotions but this should be a practice.
The problem with this is that emotions are really hard to control once they take over a person.
True day traders never let their emotions control them.
They keep a record of their activities Written records are some of the most reliable resources of what happened in the past.
Journals will help you keep track of what works for you, which market you are most comfortable playing with and what strategies give you the most profit.
One moment you are profiting, another moment you are on your way to losing.
It all happens in a nick of time.
Anyone in this business understands that it's a very risky venture.
So, to help you learn the shortcuts we will share with you the common traits most successful day traders have.
They only use their risk capital for trading.
Traders should only use the money they can afford to lose.
They don't use the student's loan, the allowance for food or the mortgage payments.
Otherwise, they are trying to suicide.
They understand that the money they have now may be the money they will be losing a few minutes after.
If you have $10,000 in your account and that is all the money you have left in the world, you should understand that if you lose all of that in a day, you will have to live on food stamps.
So be sure that the money you use for trading gives you the leisure to trade.
That makes it a lot easier to take the risks and enjoy the winnings.
They accept that their losses as much as their winnings are their personal responsibilities.
Traders know the reality that it is their decisions that trigger all actions.
No one else is responsible for their wins or losses.
They cannot point a finger on somebody else and blame him for an untimely decision.
Every action a trader does is his own making.
Sometimes, even taking this principle to the extreme.
They understand that they should always be neutral.
Seasoned traders know for a fact that they could be winning hundreds of dollars now and lose thousands of dollars later.
On both occasions, they cannot celebrate or cry.
They have to remain composed and proceed as if nothing good or bad is happening.
Most novices think that the world is picking on them every time they lose and they advertise their winnings in every possible way.
It is OK to show some emotions but this should be a practice.
The problem with this is that emotions are really hard to control once they take over a person.
True day traders never let their emotions control them.
They keep a record of their activities Written records are some of the most reliable resources of what happened in the past.
Journals will help you keep track of what works for you, which market you are most comfortable playing with and what strategies give you the most profit.
Source...