Portal Olahraga.com - Characteristics of A Day Trader, Gain a Million Within a Single Day Trading. Day traders make millions in one day.
Professional day traders are people who trade for life, not hobby. They generally perform well in this area. They also tend to have a deep understanding of the market. These are some of the prerequisites for a successful day trader.
Knowledge and Experience in The Product Market
People who try day trading without understanding the fundamentals of the market usually lose money. Technical analysis and chart reading are good skills for day traders. But without a deeper understanding of your market and the specific risks that exist in that market. Charting can be tricky and you have to work properly and understand the specifics of the product you are trading.
Sufficient Capital
Day traders only use risky capital that they can lose. This not only protects them from financial damage. But it also removes the emotion of the trade. Large amounts of capital are often required to make good use of intraday price movements. Access to adequate funds is essential. This is because most daily trades use higher levels of leverage on margin accounts. And market volatility can cause huge collateral requirements in a very short time.
Strategy
Traders want to have an edge over the rest of the market. Day traders use a variety of strategies including swing trading, arbitrage and news trading. These strategies are refined until they generate consistent profits and effectively limit losses.
Punishment
Without discipline, profitable strategies are useless. Many day traders end up losing a lot of money due to unsuccessful trades that meet their own criteria. As the saying goes "Trading Plan Planning". Success is impossible without discipline.
Day traders rely heavily on market volatility to make a profit. Stocks can attract day traders if they move a lot during the day. This can happen for many reasons. including earnings reports from investor confidence or even general economic or company news
Day traders also like very liquid stocks because it gives them the ability to change positions without changing the stock price. When the stock price rises, traders can buy positions. if the price goes down, traders can choose to sell short in order to profit when the price goes down.
No matter what technique day traders use, they always aim to trade (very) moving stocks.