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What makes a good day trader
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An Analytical Mind – You have to process a lot of information as a trader. If you like analyzing problems and situations, looking for trends an anomalies, day trading is a great job for you.
Level-headedness – Confidence might even be the right word. It’s a tough call. You need to be rational and thoughtful about the decisions you make. You need to control your emotions most of all, or at least not react to them, which means fighting against your natural makeup.
Patience – Making money takes time. The get rich quick schemes you come across – day trading isn’t one of them – are probably scams. Anyone who says they got rich overnight and that they made no effort to do so, their either lying or they’ve completely forgotten all the hard work they had to do.
Consistent – To win as a day trader, you need to follow a strategic plan. You need to follow it, for the most part, even when it looks bleak or things just aren’t going your way. In fact, it’s those times that your plan matters the most and most people make the mistake of thinking that when things are going really bad or really well is when they should improvise and think on the fly. Not so.
Avoiding the Perfectionist Mentality – If you have a perfectionist mentality, you are setting yourself up for failure when it comes to trading. You will experience losses along the way when you’re trading. It’s a probability game, which means, at some point, you have to lose. You can’t be a perfectionist and a great trader. That never works. As a day trader, your objective should be excellence in trading, not perfection.
Only Trade If You Enjoy It - Some people really aren’t meant to be traders. It’s not that they don’t have the raw ability to do the work, it’s generally that they aren’t the right sort of person; their personality isn’t suited to trading. Some people who like trading don’t like the fast-paced activity of day trading. They prefer a slower market and they perhaps like to hold on to stock and watch it mature. That’s fine. There’s nothing wrong with it. Know your personality, your strengths, and your limitations. Find the market that suits you.
Give Care and Attention to Your Start-Up - You need to have the best possible resources to work with. Research your options for trading, the companies you can work with, the different plans they offer. If they offer advice or tutorials, it’s a good idea to have your hand held in the beginning.
What makes the best trader is a willingness to learn. If you decide to go into day trading, then this should not be the first time you read this book. Nor should this be the only book you read. Not by a long shot.
To make good money day trading and to become very skilled at the job, you need to continue your education well beyond this point. A great truism: Only perfect practice makes perfect. The more you study the market and trading, the better you will be at your job.
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