There’s no question that day trading can bring you excellent profits and a rewarding lifestyle if done properly. First things first, you have to be ready for the rollercoaster. Day trading is an up and down game, and if you’re not prepared for the occasional slump then don’t bother coming out. If you are, then trading stock and commodities could be the job for you.
Here is a list of 5 traits and habits of highly effective day traders for those of you thinking about throwing your skills into the mix:
1.)You need to be a morning person. Mornings are the most important time of the day for traders. The best time to decide how you are going to play the market is before the opening bell goes off. If you don’t have a carefully prepared game plan for the day you’re on the road to failure. Needless to say, in this profession, the early bird really does get the worm most of the time.
2.)You should be good with numbers. There is no way around having a basic understanding of the figures you will be looking at all day. You don’t necessarily have to be Isaac Newton but having a strong set of quantitative skills will allow you to analyze stocks and eventually pick winners by developing a “6th sense” if you will.
3.)You must have patience. You’re not going to pick winners every time. The best way to go about it is to forget about your losses and move on with a level head. The best traders combine skillful observation with a short term memory and realize that it’s overall profits that matter most.
4.)Successful day traders do their research. Day trading is about being able to read and react on data. It is important that you are proactive about researching shares you’re interested in. The only way you’ll be able to make quick judgements on a day to day basis is if you’ve done your due diligence beforehand.
5.)Use your tools. There’s no need for you to do all the legwork with tons of available tools and support networks out there. Specifically, things like data and research services, as well as a broker and other investors to help you are very useful and can save you a lot of time and frustration.
Hope these tips help, because day trading can be a very fun and rewarding job if it’s right for you. Thanks for reading, and happy investing in 2009. You can also read this related articles in our website.