Hopefully, you now have a better understanding of the day trading world and are in a better position to decide whether or not day trading is for you?
Before you make that decision, there are a few more factors to consider:
One of the biggest qualities of a day trader is their ability to keep an even temperament and control their emotions the majority of the time.
As mentioned earlier, day trading is not for everyone and if the thought of having real money involved in the ups and downs of a particular market freaks you out, then there is a very high chance that day trading will not be a good match for you.
The quality of keeping an even temperament is essential to success. If you don’t currently posses this trait then it is possible to work on it and try and improve your state of mind while trading.
One good way to do this is to just paper trade at first. This will give you a better idea of the swings involved in day trading, so you are better prepared to keep your emotions in check.
Do You Have the Time?
Another quality that day traders should have is the ability to properly manage their time, so that they have enough hours available to put the required work into making themselves successful.
Day trading has many different elements to it. You have to study about a range of topics, be constantly keeping your eyes on news and market trends, as well as the actual trading itself while sitting in front of the computer.
All of these things take time, and it can be months or years before you find yourself at a level where you really understand what you are doing and can make profitable trades on a regular basis.
Before you start, you should come to a realistic conclusion of just how much time you can devote to day trading. Many people have fallen in the past because they thought everything could be done in just a couple of hours a day.
Sure, it is possible to day trade on a part-time basis, just as long as you realize that the time frame in which you will see positive results would be greatly increased.
How Much Risk?
Everybody is different, and one of the main qualities of a day trader is their ability to accurately assess how much risk they are willing to accept.
Because of the many different methods of trading in the market, there are certain strategies that require a high amount of risk, while others that are much lower. You must be honest with yourself from the beginning about how much risk you are willing to take, so you can begin trading within your comfort levels from the start.
Risk management is a popular topic within the day trading community, and there have been many books and articles published on the topic.
As you gain more experience, you will learn more about money management and trade size and how it all relates to the level of risk that you accept in your day to day trading actives.
The Ability to Work Alone
If you have been employed in a job for the majority of your life, then becoming a day trader who works all day on his own can pose unforeseen challenges.
At the end of the day, not everybody is cut out to be on their own so much, and after a few months they can feel very alone and start to crave the company of co-workers.
Think about it, in your current job isn’t the daily office banter one of the highlights of the day, speaking with your colleagues about last night’s football game or organizing a night out at the weekend?
Of course, there are also many benefits to working on your own, but you should just be aware that the solitude of being a day trader is not for everyone, and you may end up finding out down the line that it’s something you don’t cope well with.