It is estimated that of all the people who try day trading without a mentor, over 90 per cent lose money. Many people feel the percentage is higher because day traders are notorious for not publicly disclosing their true results. According to stock market regulators, even day-traders who are employed by day trading firms wind up losing money. Again, their rate of failure is 9 out of 10.
So, with those odds, why does anyone day trade at all? Well, the successful day trader develops an innate ability to work around the odds and put them in their favor. After all, 1 out of 10 win, right? But it takes tenacity, the proper equipment, and nerves of steel. I have been trading the stock market for over 20 years and have never been successful day trading on my own. I do not even attempt to day trade on my own. It makes me want to jump out a window. But in a 2 story house the results would not have the desired effect. Instead, I use a mentor.
A good mentor will show you the easiest and least expensive way to become a successful day trader. He or she will have already traveled the long and difficult road to becoming a successful day trader. A mentor has already done the costly experimenting and spent hundreds of hours and thousands of dollars learning his or her trade so that you won’t have to encounter the obstacles that cause most to lose money and ultimately fail as a day trader. A good mentor is worth much more than the amount of their fee.
When it comes to day trading, failure is more common than success. If you want to succeed, expect to work harder than you have on any other job you have ever done. plan on working and plan on working harder than you would in a full-time job in many other fields. The following points will help you become a successful day trader.
Learn From An Expert
Learn from a mentor that has years of experience. They have already been down the road paved with lost money and time. They have the knowledge that will help you avoid the mistakes they have already made. They offer the priceless opportunity to learn the best way to trade without simply repeating the same mistakes they have already paid for. Believe me, there is no better way to learn trading than with an experienced mentor.
Set Realistic Goals
You will never be a successful trader without goals. However, many people tend to set goals that are not attainable for a new trader. Never try to “break the bank” with any particular trade, no matter how good it might look. A trade can turn on you like a hungry tiger! Yes, you can adjust goals as you go along, but never get greedy with a trade. Establish a standing dollar amount or percentage (such as 5 or 10%) at which you will close a trade. Believe me, many small wins are better than a big loss!
Practice Good Habits
If discipline was a commodity, I would suggest that you buy as much as you can afford! However, it is something that you must learn on your own. I simply can’t stress enough how important discipline is in the daily life of a stock trader. If you are disorganized, you will eventually fail. Be prepared before you place a trade. Study the market every day. Read news articles that pertain to the stock market. Learn the market sectors and industries. You can never have too much knowledge about the market. As a trader, knowledge is money. Copy the habits of your mentor, because he or she is obviously successful.