Trading can be really exciting for a day trader. He enjoys many benefits compared to other approaches to trading. Among them, and probably the most noteworthy is the peace of mind that comes from not having any open market positions at the end of the day.
But to enjoy the benefits and perks of day trading, one must first put in the work necessary to get there, develop the attributes required for trading profitably, and having the tools to facilitate it. So on your way to becoming a day trader, make sure you have the following:
- a very solid, back-tested, and proven strategy. It needs to be written down and it must have well-defined rules and guidelines. Specifications such as times of entry, exist, take-profits and cutting losses are mandatory.
- a trading platform is obviously required; usually, it is provided cost-free by the broker. The most popular trading terminal is MetaTrader4 and is adequate for most retail traders or small institutional investors.
- a trustworthy source of reliable and accurate information. This will help the trader learn about upcoming events which might affect his daily trading. The weekly economic calendars are free and adequate for most retail traders.
- PATIENCE and DISCIPLINE – these two traits need to be exercised at all times. Wealth isn’t built in a day or a week – it is slowly accumulated with consistent trading strategies.
This sums up the required tools and attributes that will help you along the way. But ultimately, you should want to day trade because you like it, not just to get rich. Remember that anyone can become a day trader given enough time and dedication.
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