Can You Make a Living Day Trading?

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Close – This is a good bottom line question. Can you make a living day trading? The answer a person gives will probably depend upon the view one has of a lone individual at a trade station scalping profits from price movement in the stock market. There is a lone cowboy mystique to the trader working at night, trading the Forex market in Tokyo, for example. This mystique, unfortunately, can entice individuals to start trading without sufficient preparation, training, and advice. Can you make a living day trading? Sure, this guy will say, until he get whipsawed on a market correction that he did not see coming. Anyone who has come in unprepared and lost his shirt will likely respond, to can you make a living day trading, with a resounding, heck no! That having been said there are folks who do make a living day trading and have been doing it for years. There are also many more individuals, who trade at times, when circumstances are conducive to profits, but also have another full time job. Can you make a living day trading? If one person can do so, then so can others. How to become a day trader, and a successful one, is like most jobs. It takes education, practice, diligence, and experience.

Choosing which markets to trade in is important. Can you make a living day trading in the commodities markets? You can if you have experience in, work in, or learn about commodities. Obviously farmers and ranchers have a first hand view of much that affects corn futures or live cattle prices. However, anyone can read a weather report, read Department of Agriculture crop forecasts, and do technical analysis if they devote the time and energy. The same sort of reasoning applies to asking can you make a living day trading stocks, options, or foreign exchange. Picking a market to work in where one has prior knowledge or experience will be useful, and probably profitable. Choosing a stock about which one is knowledgeable is also important to success. Sports enthusiasts will know about sports equipment and manufacturers. Pharmacists and doctors will know about medical products, and so forth. However, the fundamentals of any stock are typically well known. Thus, it is the ability to do timely technical analysis and to execute trades based upon that analysis that usually wins the day. This is what successful day traders do day in and day out. They approach their work in a disciplined manner and routinely review their results, both successful and unsuccessful. It is, in fact, the losing trade that will often teach the trader how to modify his strategy to be increasingly effective and profitable.

Can you make a living day trading, often correlates with if you can keep trading psychology under control. Day trading can have addictive qualities and those who approach the job like they would a poker game or slot machine will find that their own fear and greed are their worst enemies. Traders develop strategies in order to maximize there success. Following the trading strategy with discipline is essential to making it work and making a living at day trading. Whether the beginning trader is wondering how to trade penny stocks, how to trade oil stocks, or how to become a currency trader the same need for discipline applies. So, can you make a living day trading? Others do, why not you?