| There is excellent money to be made in day trading, | | | | a bit. |
| but, unlike what some may think, it is not a simple | | | | A third habit that breeds success for day traders is |
| job. To be successful, you'll need to put in some | | | | patience and the ability to make keen observations. |
| work. | | | | These habits must be combined with an excellent |
| Trading commodities and stocks is a day job, and a | | | | short-term memory. Patience can be tough to |
| challenging one at that. Though it can be lucrative, | | | | muster when you face the disappointment of missing |
| certain habits must be learned for success, and the | | | | a stock at its peak, or when you lose money |
| trader with particular traits is more likely to be | | | | because your low never came to pass. Try not to let |
| successful. | | | | these challenges drag you down. Also be sure to |
| Time management is the first important habit. You | | | | keep your cool when you score a winning trade. |
| must be able to wake up early and alert first thing in | | | | The fourth habit you'll need to cultivate is research |
| the morning and be ready to evaluate how you'll play | | | | skills. Day trading, thankfully, does not require the |
| the market that day. All of this must happen before | | | | same kind of in-depth numerical analysis as long-term |
| the opening bell, which starts at 9:00 a.m. in New | | | | investments, but you'll need a handle on the flow of |
| York, 6:00 a.m. in California, and 5:00 a.m. in Alaska | | | | information so that you can use this knowledge base |
| and Hawaii. Getting out of bed early is only half the | | | | when making quick judgments. Doing your research |
| story; you'll also need to stay on schedule and have | | | | ahead of time is the only way to make good |
| a good internal alarm clock. If you're the type who | | | | judgments quickly. But, don't get bogged down so |
| can't function before 11:00 a.m. or has to guzzle down | | | | much by research that you lose the ability to think |
| multiple cups of coffee before facing the day, day | | | | and act fast. |
| trading may not be the job for you. | | | | Remember that you don't have to do this analytical |
| The second important habit is good quantitative | | | | research on your own. High ranking day traders use a |
| analysis skills and the ability to think on your feet. | | | | variety of tools and have different research and data |
| Though "gut" decisions can help you make (and lose!) | | | | services at the ready. |
| money as a day trader, you'll need to be able to | | | | If you think you are ready for a career change and |
| make informed choices from reading, perusing, and | | | | that day trading may appeal to you, you'll need to |
| comprehending numbers very quickly. You'll need to | | | | start by creating a support team. At a minimum, you'll |
| be able to run numbers in your head quickly and | | | | need a broker, and a few investors willing to help |
| accurately enough to figure out if something is a | | | | you level the market. Realize ahead of time that it's |
| trend, or just an anomaly, and you'll need to judge | | | | hard work, and will require savvy, dedication, and |
| what to do with that information. | | | | focus. |
| Let me just point out that you don't have to be a | | | | If you think your skills are a good fit for day trading, |
| mathematician to be good at day trading. You can | | | | this can be an incredible way to earn great money. |
| learn certain quantitative skills, even if you were | | | | It's an enjoyable profession that can "enrich" your life |
| never that great at math. Certain numerical skills will | | | | as well. |
| seem automatic to you once you've practiced them | | | | |