DAY TRADING 101
Jan 04, 2022
Day trading is the buying and selling of financial assets with the goal of making profit in the same day. It involves competitive retail traders and institutional traders that uses a marketplace called “stockbroker” where they place their orders. Fast execution in day trading is a must. Transaction happens very quickly, this can be hours, minutes sometimes even seconds. For this reason, a fast internet connection, execution, reliable stock broker and a decisive trader is a essential succeeding in this business. Tech savvy person plays a slight edge in computer setup but it is the trader’s strategy, psychology, risk management that makes a profitable trader.
Day trading is not for everyone, it is indeed a very attractive career since it can offer endless possibilities of time and financial freedom. It is the day trader’s lifestyle that makes everyone a day trader “wannabe”. Due to this alluring lifestyle, many attempts to become a day trader. Unfortunately, only 1 in 10 becomes a profitable one.
Just because a person can setup a trader station with multiple monitors or someone can open a Robinhood account does not guarantee one of becoming a profitable trader. Day trading involves a steep learning curve that includes investment in hours of learning strategies, understanding one’s emotions and formulating risk management. This learning curve can cost someone a huge chunk of his time and resources. Traders can even be surprised finding emotions of greed and fear within themselves while in the middle of the trade. Without someone’s mental state of resilience, focus, perseverance and determination, newbies will not be able to survive this competitive career of day trading.
I am not here to discourage you after all you picked this book hoping to learn to day trade. But it will be useless to sugar coat the reality that day trading is hard. It took me years to develop my own strategy, risk management and a sound mind to become a profitable trader. I needed to do my own research and learned it the hard way through trial and error. My hope is that this book can help you cut back that learning curve and save you emotional trauma in protecting your capital.
I will be teaching you everything that I have learned and had made me become a profitable trader. You have to keep in mind though that finishing this book will not make you a profitable trader. This gives you the foundation to be a trader. But you have to develop your own strategies, risk management, sound psychology and practice for months in the simulator before jumping into live trading. Afterall you are competing with the highly intellectual traders. remember, there are money to be made in stock market because at the other side of the trade is someone losing money. You do not want to be on the wrong side of the trade and be on the losing trade. So, you have to study and develop the skill needed in trading. I encouraged you to do your due diligence in studying the market. Research, read other books, practice the strategies that I will be discussing in this book, make your own playbook and have fun in the journey of becoming a day trader.
Finding the holy grail in day trading and making a one home run trade is not the key in becoming financially free. It is the consistency in trading that set apart the winners from the losers. It is not how much you have made today. But the consistency in making a profit and how much of that profit are you able to keep. There are hundred of strategies out there but I will emphasize it again, you need develop your own. Trading does not need to be complicated. You just have to master a set of strategies and just rinse and repeat those money-making strategies.
Day trading is a science and an art. It definitely needs a lot of time, practicing, you need to become self-discipline to be successful. Surgeons, engineers, pilots did not become successful just by reading a book. They needed to take years of education and training to become successful. Trading is no different, it involves lifetime learning. Why would someone expect to have six (or even more) figure career after finishing a book? If it is that easy then everyone would be doing it.
If 1 in 10 lose money that means we need to be that 1 in 10 to be profitable. This means that your goal should be to become part of that 10% who makes money. The first step in becoming part of that 10% is investing in your education. Just like in all success, foundation is the key. You need to have the best foundation for you to be a competitive day trader and my goal in life is to help you reach that goal.
Stay connected with news and updates!
Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.
We hate SPAM. We will never sell your information, for any reason.
