What is the first thing that comes to your mind when you think of day trading? Is it excitement, a lot of money, and a lot of freedom?
You are quite there, but not entirely right.
The amazing perks associated with day trading are only a piece of the complete picture and not the whole picture.
The lifestyle of a day trader is fascinating and intriguing.
It comes with a lot of pros and cons, a vast level of freedom, but with a definite need for discipline.
As compared to a traditional job, day trading lifestyle is a whole different world.
It comes with fantastic advantages but also requires a major shift in habits and lifestyle.
Day traders have a privilege and freedom to work from anywhere and at any time; at the same time, it is the job that requires the maximum self-discipline.
Therefore, before you make the decision of becoming a trader, you must assess both the pros and cons associated with the profession and ask yourself the valid question of whether you have it in you to become one.
Day Trading Lifestyle: How Does It Look Like
A day in the day trading lifestyle begins according to the time zone of the market being traded.
The day trader must be up and about a couple of hours before the market opening so that he can prepare his strategies, check the account balance, and ensure that the trading platform is working well.
Day traders seldom miss the first couple of hours of market opening as they offer the best trading opportunities.
Day trading lifestyle also varies from trader to trader, product to product, and based on targets.
Some traders choose to keep trading throughout the trading day while others trade only for an hour or two and spend the rest of the day in analysis or other personal engagements.
Similarly, a day trader dealing in a more volatile product may need to keep a closer watch while a less vitality product can be watched more leniently.
It is to be kept in mind always that day trading is an entirely different ball game compared to investing.
Investing involves a longer-term timeline and requires qualities and characteristics that are way different from those needed in day trading.
Qualities Required for Becoming a Day Trader
The bottom line for all day traders is that they must be highly dedicated, resilient, and focused. Day traders must keep learning, implementing, analyzing, learning again from their mistakes, and then re-implementing and reanalyzing.
“I know everything”, said no day trader ever, or at least said no successful day trader ever.
On top of that, the most significant trait for being a successful day trader is emotional discipline.
A day trader must be able to manage his emotions in a positive manner and not get overpowered by emotions like fear and greed.
The losses from the previous trade or previous day must not make the trader so fearful that he stops taking the necessary risks.
At the same time, a top-notch last day or last trade must not make the trader overconfident and greedy, leading to unnecessary risks.
A day trader should always take as many risks as his risk appetite and financial capability can afford.
Making A Living Day Trading: Pros and Cons
Day trading looks very appealing to budding traders.
Many think that it is an easy way to make quick money; however, it is not always the case.
In fact, only 5% of the day traders end up being successful on a sustainable basis.
Thus, making a living day trading and day trading lifestyle come with their own perks and challenges.
The most significant advantage of day trading for a living is the lifestyle of freedom.
Traders can be sitting at a beach resort or the comfort of their home or basically any place with the internet and trade away.
At the same time, they also have the freedom to choose their trading duration, trading hours, and be their own boss.
Day trading lifestyle offers complete control over one’s choices.
Day traders control and manage every aspect of their business and do not have to be answerable or dependent on others.
They choose their trading software, brokers, amount of trading capital, trading product, and trading strategy.
They are also not liable to anyone for the outcomes of their decisions.
However, in addition to the advantages and earnings, day trading lifestyle is also associated with a few drawbacks and risks, the most significant risk being money and capital.
Day trading holds inherent risks of losing the entire capital with just a couple of wrong moves, and there will be no one that the day trader can share the loss with or hold accountable for.
Additionally, day trading lifestyle does not promise a regular income.
There is no fixed salary. Some months can bring in a large amount of money while a few others can be as dry as a bone.
Therefore, day traders must learn to use and allocate their earnings efficiently to prevent running into difficult financial situations.
Day trading lifestyle can also be a lot stressful at times, keeping up with the constant market movements and bearing the substantial impact of losses.
The adrenaline rush can become taxing at times while being exciting at other times.
Now, Should You Become A Day Trader?
Day trading lifestyle is one of the most exciting, yet most tiring ones.
It offers the freedom to choose the working hours, amount of invested capital, and also allows day traders to travel as much as they want without being restricted to an office.
Day trading life requires a lot of self-discipline to keep oneself on track and not lose focus.
Working without being answerable to someone and on one’s terms and conditions can be quite distracting and may lure the trader into a lack of discipline and self-control.
However, day trading lifestyle without discipline is a ship without a rudder.
Therefore, day traders must ensure that they embrace the day trading lifestyle entirely and wholeheartedly.
They must accept both the freedom and the need to exercise self-control, the upsides and the downsides, and the rewards and the risks.
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