Day trading is very different from regular trading or investing. This is why it requires a special type of personality and set of skills to make it. The setup you use also must be different since you have to process lots of information and be able to capitalize on market movements fast. If you were thinking of becoming a day trader, you should know and acquire some of the traits needed to be successful and know what you need on the technical side to even start trading.
The Right Setup and Platform
The first thing you will need is a proper setup to conduct fast trades. You will also need tools that will allow you to gather and visualize information from different sources. This is why many day traders have a two or even three-screen setup. You don’t need to go that far, however.
A tablet could be a great alternative to a second screen, for instance. Or you could use a laptop as an additional screen to do some trades on the go and get a powerful desktop computer for trading with a top-of-the-line processor and RAM.
As far as the trading platform goes, make sure that is reputable. You may want to upgrade your internet connection and switch to cable so it can be more powerful and stable as well. We also suggest that you go for a wired connection over a wireless one for your router, as it will be much faster and more reliable.
Discipline is probably the number one trait all successful day traders possess. Without discipline, you will eventually stray and make moves out of panic. A disciplined day trader spends months and even years practicing with mock trades or small positions until they have their craft down. They document everything too. If you aren’t ready to do that, you’re probably not ready to be a day trader in the first place.
Being patient is also important, and impatience is one of the most common reasons why people fail on trades. This is why you’ll often hear about people coming into trades too early. If you’re naturally impatient, you’ll need to first assess if day trading is for you and spend some extra time on practice.
Someone with a rigid mind will never be able to make it as a day trader. No two days are the same when you day trade. You can go in with a strategy, but whether this strategy is efficient will be dependent on market conditions. Textbook strategies should serve as a foundation, but they don’t apply all the time and you’ll need to choose when you should and shouldn’t use them depending on the situation in real-time.
Becoming a successful day trader is not easy, but it’s possible if you have what it takes and are ready to do the work. Look into the ins and outs of day trading right away and see if you have the skills and aptitudes to make it in this field.