Many people who have tried and fail at day trading will be the first to tell you that it is all just luck, or it’s closer to gambling than buying and selling, but is that really true? Is it just on big black jack, poker game that favors the lucky and punishes the unlucky?
Well there are those who would argue that even professional poker player make a decent 6 to 7 figure income and that it has more to do with skill, experience and technique than luck, and that day trading is similar in this regard, taking each trade individually, and isolating it I would tend to agree, but collectively, and comprehensively, day trading has more to do with skill, knowledge and experience than luck, even when compared to poker playing at a professional level.
Day trading is just like any other business venture, whether real estate or opening a restaurant, at the end of the day there are risk involved, so the majority of the time managing your risk is the most important component of business what ever that business may be, the same is true for day trading. Day trading is different than investing and should not be confused with investing. Day traders are not investors, they are traders.
All the various components that goes into long-term market trends, market conditions and long-term investing is not what the day trader is after. Going to newspaper clippings and getting the latest news from here and there, studying graphs and charts and doing hours of research will do the day trader no good. Listening to brokers analyst this company and that company trying to predict how the market will more with this rumor are that rumor is not what day trading is all about. Most of the time the main concern for day trader is the next 5 to 10 minutes and usually nothing beyond this.
Every trade that the day trader make is well calculated, and precise, with one thing in mind to make a quick and easy profit as fast as possible. The main goal is still get in a trade make a profit and get out putting very little money and time at risk at any given moment.
Sure there will be trades that did not go according to plan and you might lose a few dollars here and there, but this scenario can be the same for any business venture that I can think of. The mean goal is to end the day with a profit. And there are quite a few day traders that do this day in day out reaping seven figures and even becoming millionaires.
I always tell people that Luck is preparation and opportunity in action. If you are prepared to take action when the opportunity arises then you can create your own luck. There are opportunities every day so everyday I am prepared to take advantage of them.