Many people like to imagine that they can make millions as a day trader, working only a couple of hours a day, and living a life of luxury. The harsh reality is that it doesn’t work out this way for the majority of traders, and they end up leaving the world of day trading for ever.
Why is this?
Well, one of the reasons is that they just don’t have the right kind of personality that is suitable for day trading. That’s not to say that they will never become successful in anything, it’s just that their personality might be best suited for another type of business.
If you want to become a successful day trader, then there are certain characteristics and traits that you must posses in order to see any real long term profits.
If you have seen any movies involving day trading, then you may have a vision of guys frantically rushing around, screaming and shouting, and basically being very impatient.
This is probably an accurate portrayal of people that work in the trading pit, but the average successful day trader is usually the exact opposite.
In fact, when you consider that the main activity of a professional day trader involves sitting in front of their computer, and waiting minutes, hours, and even days to identify a profitable trade, then you can definitely appreciate that one of the main traits day traders share is patience.
It also takes patience to stick to a day trading strategy and not be constantly distracted by bright shiny objects.
One of the key factors in any trade is knowing when to get in and when to get out. Being able to do this on a regular basis, without the need for hours of procrastination, requires the ability to be able to make decisions…FAST.
Remember, day trading is different to other forms of trading. A profitable situation can sometimes only last for a few minutes, which only gives you a small window of opportunity.
In this short amount of time you have to ask yourself one question, ìam I in or out?î Once you have made the decision then it’s all about taking action.
You might not get it right, but at least you made the decision. Many beginner day traders hesitate at that vital moment and don’t end up following through.
Winning and losing is all part of the day trading life. No matter how great you are, you will experience plenty of both.
The main problem with many traders is not the winning and losing, but rather their reactions to the wins and losses. One day they make a great trade and they are ecstatic and on top of the world. The next day things go wrong and they fall into depression and panic.
If you want to be a successful day trader then understand that the world of day trading is all about maintaining a balance in your way of thinking and with your emotions. Failure to do this will result in an erratic trading style that ultimately loses money.