Day trading is not an easiest job to do,There have been studies to prove that only 10% day traders actually make money. 7% of those day traders are breaking even and 3% are the traders that are actually making money. Let me share my experience what qualities a trader require to be a professional day trader
1. Beware of People selling Software
Most of traders are interested in Buying AFL for Amibroker , Program from Metastock or any xyz software which gives automatic Buy and Sell signal. What looks so easy is the most difficult thing to follow. Think logically if it was so simple buying a software program and to trade why 90% of trader lose money doing day trading ?
The biggest problem with such software is they cannot adapt for changing market dynamics and which lead to huge losses to traders. So avoid buying exhortation claims that XYZ AFL can double your money in 5 months etc.
Buy any educational program that you think is worth it But please, please, NEVER buy anything with software in the title.
2. BE YOURSELF
Trade the quantity you are comfortable with , For example If you are comfortable in trading 10 lots that be with it. Do not compare yourself with your friend / colleagues who regularly trades 100 or 200 lots per trade. Its possible you, didnt possess the emotional or psychological skill set necessary to trade such big size. Thats OK.
Traders should know their comfort zone Typically, if trader goes above his comfort zone that trade mostly end up in loss as Emotionally trader could not handle that size. The trade would inevitably turn into a loser.
Learn to accept your comfort zone as it relates to trade size. You are who you are.
3. Trade Indicators Instead of The Market
Anyone can take indicators away from you, no one can take away a true understanding of the market
This is the sole reason why I try to teach all my traders involved in the training program how to understand how the market works. All indicators that are available today are lagging, in other words, indicators react to price.
We trade the market not indicators
So why would you put together fancy colors in order to hide what’s really important? Take off the rainbow from your charts and start paying attention to wants important, the market. There are no magic indicators, fancy bright lines, or arrows to tell you when to get in and out, that is going to replace a true understanding of the market.
4. Never trade Without A Plan
Day trading isn’t that difficult; buy a decent laptop, pay a guru for some training, and voilah! Your making money day trading.
In order to make money in the stock market we have to think analytically. It is harder to think analytically when money is involved. We all work hard for our money and most of us had to work sweat and tears for it, to risk it and lose it the stock market hits home for everyone.
When you anticipate what the market is going to do you are prepared for anything the market can throw at you. The ability no, the feeling and ease that arises from knowing that you are prepared for any situation puts our emotions at bay.
If you are ready you know how to react, if you know how to react you know you will lose only a minimal amount of money. If you are know you are only going to lose a minimal amount of money you will only lose a fraction of what you could when day trading.
Be prepared for anything, don’t react to the market.
5.The Misleading Notion That You Need To Make A millions
Stock market is a perfect way to lose millions of hard earned money in matter of days but to make millions will take lots lots of time. It requires you to be perfect is all 3 aspect of trading ie. Mind, Method and Money. You miss one and market will Kick you out of market. Get rich slowly but with consistency.