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what makes a good day trader
These are Five Attributes To What Makes a Good Day Trader
Successful day traders have discipline. Day traders who find success in the stock market have received some degree of day trading education in the past. This alone shows the discipline that a day trader needs to have and cultivate to succeed at day trading. It is very easy to start day trading without knowing anything about it. It can be as simple as downloading an app and throwing some money into a stock, and boom day trading.
However, disciplined individuals will know they need to look into educating themselves before jumping into the deep end with their hard-earned money. Watching others trade real money while you sit there and study charts and read about strategies, can be difficult. But this alone will help you grow in discipline, and it will help you master your emotions.
After one learns to trade which requires an immense amount of discipline. The next step is controlling one’s emotions and this requires the most amount of discipline anyone can help to show. This is why all successful day traders show a tremendous amount of discipline.
Long Term Focus
Another attribute of a successful day trader is a long-term focus. Day traders know what happens on January 1st when they take their first trade is irrelevant. Because what matters is what happens at the end of the year on December 31st, and how they closed the year. Whether they closed it red, green, or break even the close of the year is what matters.
Gathering all that data from 12 months of trading is what matters over the long-term career of a day trader. This is something everyday trader learns during their day trading education. Day traders focus on the long-term picture, often reciting sayings like “this is not a sprint it is a marathon”. Knowing that year after year their knowledge, wisdom, and discipline grow with every trade.
Being successful short term or failing short term is irrelevant what matters is consistency in trading over the long term.
Quick Decision-Making Abilities
Successful day traders have great discipline-making abilities. An experienced day trader can look at a chart, and most of the time formulate a trading plan in a few seconds to under 5 minutes. This is only possible after receiving a day trading education and a few years of daily market exposure.
Most people have a very hard time making simple decisions in life. An experience day trader is generally great at making fast efficient decisions all thanks to their training. It all comes down to all the exposure they have gotten from daily trading the stock market. Quick decision-making abilities are a solid attribute of any successful day trader.
Consistently profitable day traders are amazing risk managers. No one has a strategy that works 100% of the time. If there was a strategy that worked 100% of the time for day traders, we would have the world’s first trillionaire. Because no strategy works 100% of the time day traders have to be good at managing risk.
They manage this risk by only taking select trades based on patterns they might have learned during their day trading education. This would have been through courses and or their personal experience.
A successful day trader is more concerned with how much money they can lose on trade vs how much money they can make on the trade. This is because their concern is managing their capital. This teaches a trader how to manage their trades which often translates to managing other things in life. This is why successful day traders are great risk managers.
Successful day traders reach consistency via planning their trades and repeating the plans over a long-term career of trading. These trading plans generally consist of identifying an opportunity for a trade. Then establishing an entry-level they want to purchase along with a stop loss area where the trader will close out the position. This is normally done to avoid the trade going against them. They will also be identifying profit target areas where they will scale out of the position. Very important for locking profits along the way, in case the trade goes the other way. This plan might sound easy but it takes a lot of skill and experience to come up with it. And this all comes, from all the practice a trader has during their trading education. Over some time, they naturally become amazing planners in other parts of life as well.
What makes a good day trader? Simple, they must be disciplined, long-term focused, decision-makers, risk managers, and excellent planners.
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