There are many folks out there today that would love to become full time traders and day trade for a living if possible. After all anyone with a brokerage account and a connection to the Internet can day trade stocks, options, futures, commodities or forex currencies online from the comfort of their home. For what it is worth, it is way easier said than done.
In order to become a successful day trader and make a living from day trading, a person must be prepared to put in the hard work, time and effort required to succeed as a day trader. A trader has to master all the skills required to be successful. The biggest skill to be mastered is in the form of emotions and it is probably the hardest of all to come and master. That is why it is always better to learn day trading from a mentor who has been trading for a while. A mentor is always the preferred route compared to just reading some books on trading or buying a black box system. The training received from a mentor can be expensive but invaluable at the same time. One must always look at the background of the trading mentor before choosing one.
It is always a smart idea to start trading with money a trader can afford to lose. Paper trading works well too, but lacks in the strong emotion building process required to be successful as a trader. A trader must always use risk capital to succeed at day trading for a living. Using money kept aside for immediate day to day expenses or money borrowed from a credit card is a recipe for disaster. Scared money never wins the trading game.
A day trader must keep a track of all the trades placed in a journal. This journal must be updated on a daily basis. This will help the day trader immensely as he will learn from his mistakes and always keep working on getting better. A day trader has to keep his expenses low to make money in the long run. To do so, he must wisely choose his trading software, broker and his Internet Service Provider. A day trader must also learn to read the market well and know when to take trades and when to stay out. Following other traders or gut instinct can have negative consequences on the day trader as well as his account. It is always better to trade well as per the rules set out and come back to fight another day than to lose it all in one day.
It is possible to make a living at day trading if all the rules are laid out in a trading plan by the trader and followed religiously by the trader.
Source : enzinearticles
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