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Qualities of a Day Trader

Qualities of a Day Trader

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:

Temperament

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.

Qualities of a Day Trader

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.

What’s a Broker Account and What are the Different Types?

What’s a Broker Account and What are the Different Types?

Gebyar4D – In order to start day trading, you will need to register for a broker account with one of the many brokerage firms operating online and offline.

Before choosing which broker to do business with, you should take your time to look at the available options. Like anything in the world, there are brokers that are good and brokers that are not so good. Finding a broker that suits your own personal day trading style is the key to a successful relationship.

Broker Fees and Commissions

Every trade that you make a profit on, you will be subject to broker fees and commissions. With this in mind, it is sensible to look for a day trading broker who offers low fees and competitive commissions.

The commission percentages vary with each brokerage firm. Some brokers offer a flat rate commission structure that stays at the same level no matter what the size of the trade, and can end up working out at only a few dollars for every trade.

Other brokerage firms have a sliding commission structure in place, where the amount you pay depends on how small or large the transaction is.

Two Different Types of Broker Accounts:

Regular Broker Account

A regular broker account is great for beginners to get started with. In these accounts, you are limited to only trading stocks and ETFs, and because you are limited in your position sizing, it greatly reduces the amount of risk you take on with each trade.

Margin Account

If you were to open a margin account with a brokerage firm and then deposit some cash into the account, the firm would then supply you with your own line of credit which would give you a greater buying power. If you are interested in trading FX, commodities or futures, then you will require a margin account.

What’s a Broker Account and What are the Different Types?

How to Choose a Broker

One way to find a good day trading broker is to ask around and get some word of mouth recommendations. If a friend or colleague has had a good experience with a particular firm, then they will definitely let you know about it.

Also, check places such as online forums and blogs to read some unbiased reviews about the different brokerage companies.

Another factor to take into consideration is how many years they have been operating and their level of experience in the day trading world. Do they have a proven track record of being reliable and efficient? Is there any testimonials on their website from satisfied clients?

Lastly, you should check to see if they have a good level of customer support.

For example, can you reach them at all times of the day via the telephone, and actually speak to a real person? And is that person knowledgeable about day trading?Also, do they have other lines of communication open such as email and Skype, and are they fast to respond to queries.

Being with a broker who quickly answers your questions and can help you with problems makes a big difference to your day trading business, as you can quickly get issues sorted and turn your attention to more important matters…such as making money.

What Makes a Successful Day Trader?

What Makes a Successful Day Trader?

Many people like to imagine that they can make millions as a day trader, working only a couple of hours a day, and living a life of luxury. The harsh reality is that it doesn’t work out this way for the majority of traders, and they end up leaving the world of day trading for ever.

Why is this?

Well, one of the reasons is that they just don’t have the right kind of personality that is suitable for day trading. That’s not to say that they will never become successful in anything, it’s just that their personality might be best suited for another type of business.

If you want to become a successful day trader, then there are certain characteristics and traits that you must posses in order to see any real long term profits.

Patience

If you have seen any movies involving day trading, then you may have a vision of guys frantically rushing around, screaming and shouting, and basically being very impatient.

This is probably an accurate portrayal of people that work in the trading pit, but the average successful day trader is usually the exact opposite.

In fact, when you consider that the main activity of a professional day trader involves sitting in front of their computer, and waiting minutes, hours, and even days to identify a profitable trade, then you can definitely appreciate that one of the main traits day traders share is patience.

It also takes patience to stick to a day trading strategy and not be constantly distracted by bright shiny objects.

Making Decisions

One of the key factors in any trade is knowing when to get in and when to get out. Being able to do this on a regular basis, without the need for hours of procrastination, requires the ability to be able to make decisions…FAST.

Remember, day trading is different to other forms of trading. A profitable situation can sometimes only last for a few minutes, which only gives you a small window of opportunity.

In this short amount of time you have to ask yourself one question, ìam I in or out?î Once you have made the decision then it’s all about taking action.

You might not get it right, but at least you made the decision. Many beginner day traders hesitate at that vital moment and don’t end up following through.

Maintaining Balance

Winning and losing is all part of the day trading life. No matter how great you are, you will experience plenty of both.

The main problem with many traders is not the winning and losing, but rather their reactions to the wins and losses. One day they make a great trade and they are ecstatic and on top of the world. The next day things go wrong and they fall into depression and panic.

If you want to be a successful day trader then understand that the world of day trading is all about maintaining a balance in your way of thinking and with your emotions. Failure to do this will result in an erratic trading style that ultimately loses money.

The Basic Day Trading Strategies

The Basic Day Trading Strategies

There are many different day trading strategies that people use to trade in the markets. Here are some of the most common and basic ones.

Scalping

Scalping is a very common day trading strategy as it employs a ìget in and get outî type of mindset towards trading. Basically, day traders who follow the scalping method look to sell once the trade starts to show profitability.

Daily Pivots

Another of the basic day trading strategies is daily pivots, which looks to profit from the daily volatile trends in a particular market. For example, a day trader following this strategy would attempt to buy at the lowest price point during the day, and then sell at the highest price point during the day. These are often referred to as (LOD) low of the day, and (HOD) high of the day.

Fading

Known as a risky strategy, fading is the act of shorting stocks once they start to experience rapid gains. The main theory behind fading is that the stocks are over-purchased and many early traders will be looking to sell. Fading can be very profitable when used at the right times, but also comes with many dangers.

Momentum

If the thought of riding trends interests you, then momentum trading could be the strategy for you. Day traders who employ this method keep a close eye on current news releases, and are always on the lookout for trends which are being supported by a high volume of trades. They will continue to ride these waves until signs of reversal start to become apparent.

The Basic Day Trading Strategies

More About Day Trading Strategies:

Stop Losses

Day trading is very prone to sharp price movements, which is why the use of stop losses is beneficial in order to avoid huge losses in a short amount of time.

The first type of stop loss is a physical stop loss order, which is set at a price which you are prepared for the trade to drop down to. Basically, this is the amount you are willing to lose on any one trade.

The second type of stop loss is mental stop loss, which is set to come into play if the entry criteria is violated. In simple terms, this means that if your trade were to make a sudden and unforeseen turn, then you will get out of the trade straight away.

Evaluating a Day Trading Strategy

A lot of beginner day traders think that a day trading strategy is going to be the magic wand that makes them rich with a minimum amount of effort. In other words, they falsely believe that a strategy will do the work for them.

Actually, the main secret of successful day traders is that they are constantly evaluating and tweaking their strategies, and also adding elements from other strategies into their plan. This takes work and constant trial and error, and is far from being the easy road to riches.

Many elite day traders end up with their own unique day trading strategy w88, which they have honed and perfected over years of testing, and has shown consistent profits in a variety of market conditions.

Day Trading Software Forces you into Top 5% of Day Traders?

Day Trading Software Forces you into Top 5% of Day Traders?

Day Trading Software

As you are probably already aware, day trading is a risky activity, where thousands can be gained or lost in the blink of an eye.

This is why it’s essential to gain as much advantage as possible, in order to limit losses and maximise gains. One way to do this is with day trading software.

Day trading software offers many exciting features that can help you break away from the herd and become part of the top 5% of day traders.

Things such as intelligent market research, ongoing education, charting tools, fast trading platforms, the ability to create watch lists, alerts for your mobile, and much more.

Quite simply, day trading software is the kind of tool you need to maximise your income potential.

Day Trading Software Pricing

There are many different software programs available online to help you with your day trading activities, and they all come with their own unique pricing structures.

In order to choose the right software for you, it is wise to conduct some of your own research before you pull out your wallet, so you can weigh up the pros and cons and form a decision.

For example, some day trading programs offer just a one time fee, which entitles you to full use of the software for life, while other programs you can pay for by the month. If budget is one of your major concerns, then it will probably be cheaper to go with one of the monthly services at first.

Day Trading Software Training

If you are new to day trading then it will help you tremendously if you get software that comes with in-depth training from experts.

Some software programs really excel in this area, while others are not so good and may even hinder your progress.

When assessing potential software, one of the main things to look for is access to forums and blogs, which is updated frequently and populated with people who know what they are talking about.

Day Trading Software Support

Sometimes day trading software can be buggy. It happens to the best of programs. That’s the reason why you should check they have full customer support before parting with your money.

In a perfect world, you would want email, phone, and chat support, with a guarantee that they will aim to respond to your questions or concerns within a certain time frame. Usually, the faster the better. The world of day trading hangs around for nobody and you don’t want to get left behind.

IMPORTANT:

Although day trading software is a great tool to have in your arsenal, it won’t do everything for you.

You will still have to educate yourself, read books, gain experience, and ultimately…make your own decisions. Also, you and you alone, have to deal with things such as high emotion and failure. Things won’t go your way everyday, and a day trading software program can’t help you with that.

At the end of the day, you have to decide how much you are willing to risk and what strategy to follow in the long term. That’s what day trading is all about.

Do You Make These 4 Forex Day Trading Mistakes?

Do You Make These 4 Forex Day Trading Mistakes?

The 4 Biggest Day Trading Mistakes

Why is it that some people fail miserably in the world of Forex day trading? Is it because they just have bad luck? Probably not. The main reason is because they keep making the same mistakes over and over again.

Many people enter the world of Forex day trading because they falsely believe it to be easier than other types of day trading. They see it as a quick path to riches, where in the space of just one day a single trade can make them rich.

It never happens though, as they keep making mistakes like these:

Not being well prepared

It’s impossible to make the right decisions on a consistent basis if you are not well prepared  at the beginning of a day of Forex trading.

Some people start their day in a bad mood. Others are still angry about the trade that went bad yesterday.

If any issues are still affecting you mentally before you start trading, you need to clear your mind. If you don’t have a clear mind then you are more likely to make bad decisions which lose you money.

Not having a trading plan

Many beginners to Forex day trading don’t have any kind of plan at all. They mistakenly think that the real money is in that one big trade, and they spend all their time chasing it.

Day trading is just like a business, and it needs to be treated as such. Having a plan in place keeps you focused and accountable. At the end of days trading you can see exactly what you have achieved, and where your strong points and weak points are.

Not having patience

This one is big. Unfortunately, there are not many Forex day traders who display much patience. They want to start making huge amounts of money…and they want it NOW.

Having no patience leads to a shotgun approach, with your attention being pulled in lot’s of different directions and the anxiety building up with every trade that doesn’t hit it big.

Instead, you want to get rid of any outcome dependency, and start to have more patience with your Forex day trading strategy. This will increase your focus and actually increase your profits faster.

Reacting to news stories

A lot of Forex day traders seem to base their entire strategy around entering the market right after a big news headline breaks.

Sure, this can be a solid strategy…if you know what you’re doing and you have a solid plan to back up your actions.

However, most people have no real clue what they doing, and in a time when the marketplace experiences very large swings, it’s a recipe for disaster.

Even a trade that is a “sure-thing” can turn extremely quickly, often bringing huge losses to people who expected a windfall.

Conclusion

It’s okay to make the above mistakes. Just about everybody does at first, and even the most successful Forex day traders still do from time to time. Nobody is perfect, we are all human and make mistakes.

The key is to realize when you are making these Forex day trading mistakes, and then course correct to a better approach.