More to Day Trading than Strategy and Adrenalin
Many day traders are lured into this approach to investing not only by the expectation of personal gain – although that is admittedly a significant factor – but also by the anticipation of fast-paced, adrenaline-pumping trading action. One consistent attribute of day traders is the development of a personal philosophy toward trading and selection of trades.
Some inherent philosophies demonstrated by many day traders:
Keep an open mind – some of the most profitable ventures may be those that you would least expect. Review the facts including trends and indicators impartially and base your decisions and trades on actual information.
Leave out emotion – gut feels and your personal feelings about a company can take you off track and result in negative returns that drain your brokerage account. This can also cause you to miss great opportunities for profit when you rule out trades just due to a company name or personal opinions. Emotions have no place in day trading. A company and its stock price or investment value are totally different things.
Decide as part of your philosophy what your limits are for the amount of capital you’re willing to risk on an individual trade, and at what point you must cut your losses. There are times that you will be wrong, but you don’t want to be drastically wrong.
Be content with modest profits. Realizing gains that outpace losses is the name of the game. No one is right 100% of the time – just check the stats of seasoned analysts. Making money means you’re doing something right, and experience will increase your percentage of successes.
Persevere – day trading can be complex with the various rules, types of investments, market volatility, political influences in play, and numerous other factors. Don’t expect to turn yourself into a millionaire in a couple of weeks. But don’t throw in the towel after a couple of losses either. Read respectable articles and books on the subject before jumping into day trading to give you a background of what to expect and how to proceed with caution until you develop a level of confidence in your decisions.
Exercise discipline – there are always temptations to invest more when a particular stock or other investment just seems ‘right’. Avoid the urge to dive in over the pre-set limits that you’ve determined for yourself. Discipline will pay off long term.
Some day trader philosophies may seem to be investment strategies, and there is indeed a fine line between the two. Regardless of your developing strategy toward investing, stick with your basic philosophy for longevity in the world of day trading.
Putting Day Trading Philosophy to Work
Successful day traders apply their personal philosophies in developing investment strategies that consistently perform for them. Putting the combination of philosophy and strategy to work requires the services of a reliable online broker to analyze investment choices and execute trades quickly and efficiently.
SureTrader is a leading online broker with the tools and news sources that help day traders exercise their philosophy and strategy for investing success. SureTrader provides friendly and courteous support available to our clients on a 24×7 basis to answer any questions and resolve problems.
SureTrader’s desktop and mobile applications ensure timely and flexible access to SureTrader services – iOS and Android platforms are each supported. Global access to services enables quick and easy trades even in after-hours trading.
Contact SureTrader right away to get started doing online trading with the best in online brokers.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.