Many new traders get pulled into the trading world, thinking that it will make them an overnight millionaire or put them at the top of the food chain. Hollywood may portray the trader as someone who makes money without trying, but this couldn't be further from reality.
Trading for a Living
Whether investing, swing trading or day trading, you must commit considerable hours to make a living. Day trading involves hours at the trading station, swing trading requires a bit more work, and investing is as good for as much as you're willing to dedicate. It is important to realize that although you might be a world-class trader, you're not going to avoid work. Trading is as much as a job as any other position, but the biggest difference is that you are paid based on your returns. How good you may be at investing will directly correlate to how much you make. This is one of the few businesses that will pay you what you're worth.
Professional Trading
Trading likely didn't come easy to professional traders, and it won't come easy to you. Very few professional traders were profitable from day one; it's almost impossible to become profitable without taking losses in the beginning. Do not expect that the markets will be forgiving - losses do happen, but you'll get better with time. Consistent profits do follow losses, and you have to be willing to wait them out.
You Have to Study to Become Great
One of the biggest professional insider secrets is that you have to be willing to learn to earn. There are many resources available, from profitable trading strategies to step-by-step instructions on money management. Risk and money management tips are often the best areas to learn first, as budgeting is very critical to turning a profit with trading. You'll soon find that money management is on the top list for professional traders; risking too much money or to little can easily turn a complete trading plan into garbage.
Trading is Different from Person to Person
Developing your own trading style depends a lot on what kind of trader you are and what kind of risk you are willing to assume. Investing involves less risk than day trading because it works over the long term, but does not provide the instant gratification of day trading. Day trading can bring big profits in a matter of minutes, but can also be a very gut-wrenching career. You need to have your own trading style to work for you, rather than attempt someone else's trading style. What works for you won't work for others and vice versa.
About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading
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