We must understand that the demands of day trading dictate that not everyone can be a successful day trader. The most important characteristics of a day trader are:
Quick thinking: in the fast moving world of trading, we usually do not have the luxury of careful study and deliberation and we need to pull the trigger quickly, specially if things are really moving in the markets. Our trading day could be over in minutes and it is no exaggeration to say that those minutes can pack the energy and income of an entire work day in them! A lot of this will come from experience but it takes a certain kind of personality to take action quickly.
Decisiveness: we need to make things happen or they will not happen. The saying “there is more loss in not trying than in trying and losing” is the absolute truth! In the real world, no decision is perfect and in trading, we cannot afford to make perfect the enemy of the good. If we are afraid of making the wrong decision to the point of not making one at all, we will not make it as traders and if this is a real problem for you, it is best you look elsewhere.
Individualism: which is the most important characteristic for long-term success. Day traders are not team players, period! The best are acutely aware of the fact that the buck starts and stops with them and they enjoy this feeling of having total control over their own destinies. Many are not very sociable because they are in a very tough and unforgiving business and they need to be the same themselves to nurture the killer instinct. They enjoy being alone and depending on no one else. Please note that this is a characteristic that most also leave behind at their screens when the day is done! Nobody can last long in this brutal business if they don’t have a healthy outlook in general.
Jay has spent more than 2 decades in the investment industry and is now retired. If you found this article helpful, please visit his latest diversions at Cherry Bookcase and Cherry Wood Bookcase.
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