Day Trading Stock Tip - Common Characteristics Of Successful Online Stock Traders
In order to increase the odds of your having a successful online stock
trading venture, consider
incorporating the beliefs, actions and tools which most successful
online stock traders possess. We will cover
several of these traits on this website, but let us first mention many
of those common actions, tools, and beliefs which they share.
In no particular order, here are the common characteristics of those
who make successful stock trades, especially those who make
short-term stock trades or even day trade:
1) They have the willingness to go inside themselves and work on any
emotional issues. Trading your own account can lead
to all sorts of pre-existing self-sabotage tendencies manifesting and
affecting your trading and account size. Ask any
veteran day trader who has traded in a room
with fellow traders how possible self-sabotage
is. You may be surprised at the high frequency of self-destructive
behaviors.
2) They have learned that it is far better to "make money" than to "be right." If you are not familiar with the difference between these two terms, "being right" implies a need to prove yourself to someone; and that "someone" is usually non-specific. Saying that you were right has to do with emotion, ego, and other factors which are unrelated to proper trading. If you chose to make a trade and you had to exit it 3 minutes later because you were down a dollar per share should not affect you if you accounted for it in your plan. The focus should be on making money. Work on yourself to make your trading about results, not what you can say to other people about your decisions.
3) They keep some form of journal. You can write down your entry and exit prices, give yourself a "grade" on how well you entered and managed the trade, "grade" yourself on how you exited the trade, or even print out charts and mark the entry/exit points plus any emotions or what was happening in the market at the time. The point is that you should keep some form of end-of-day journal or trade tracking in order to help you improve and learn every day.
4) They all have some form of WRITTEN business plan. This could be a formal document, a one-page list of rules, or something in between. Nonetheless, successful traders have an "edge" and should work diligently to refine that edge or even develop a new one. Make sure that it is written down as it is way too easy to lose your discipline when staring at all of the market gyrations which take place during the day. Your business plan will have all sorts of rules which you set for yourself. Follow these rules as they enable you to have the best odds of accomplishing your goals.
There are other common characteristics, but start your journey (or even take a "refresher course"!) by mastering these four suggestions. They will go a long way to helping you become consistently profitable in your online stock trading pursuits.
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