Day Trading - What Does It Take?
Day trading: an exciting world of tense drama as traders make or lose a fortune every day. Day traders make split second choices based upon their analytical skills, always hoping to beat the market - the great leveler! The success of a trader depends upon his alertness, risk-taking ability and analytical skill, but in the final analysis, the successful day trader is above all else lucky!
What are the characteristics of a day trader?
Bear in mind that a day trader believes in the saying ‘all is fair in love and day trading.’ Right from holding positions on long trades (buying first at low prices to sell later at higher prices) to short selling (the exact reverse of long trades; selling first at high prices in the expectation of covering when prices fall later in the day) to speculating wildly, unworried by the fundamentals and hardly ever, giving a glance to the technical aspects of his trades.
Let us look at some more of what it takes to be a day trader:
Day Traders:
want to finish the day with no open deals
try not to listen the many rumours that float around
are strong in analytical skills - usually not just in their own field
Are not distracted by market sentiment
are active in both bull and bear markets and know how to profit from each
are good at math
keep abreast of the latest regulations, taxes, trading fees, , etc.
are not worried by the movements of financial indicators such as NASDAQ or DOW JONES). They are confident in their own skills.