The market is perhaps, one of the most dynamic mechanisms that ever existed in the human history. Day in day out, it presents us ever changing scenarios, which are unique and challenging. That way it is perhaps best reflection of all of us. We all are so unique blend of likings and habits and all this uniqueness is reflected in the in the movement of the stock market.
Stock market is driven by consumer demands. Consumer demands have direct link to the individual likes and dislikes. This direct link gives us one of the dependable and fruitful methods of trading. This method is known as technical analysis which forms the basis of day trading success.
Technical analysis has its own shortcomings and under certain conditions it may not provide desirable or predictable results. Technical analysis helps us in trading by providing patterns of stock movement based on certain parameters. These patterns help us take better decisions for trading. Some times these patterns may not be optimal. Let me explain by an example. I usually look for 3-5 day pullback for a stock showing upward trend. This analysis helps me analyze my buying options.
Normally new traders may get in trouble if they follow the advice. They may end up in long trading. So there are exceptions to many scenarios. Only way to become familiar to these exceptions is learning. This learning is crucial if you want to become a successful trader. You should under stand the patterns of technical analysis and use them, but do no forget to take a broader look at the picture.
Successful trader is one who is flexible in his decisions and changes his decisions as par the requirements of the market. Over the years I have observed many successful traders. I was always, curious to know the traits that make them special. I had the opportunity so I used it to study those traits that made them special or different from other no successful in trading. A successful stint at Day trading success largely depends on these eight traits, as I see it. You can try these and find out for your self. These are:
- Stay neutral
- Do make a business plan
- Maintain a journal
- Focus on, 1 to 3 techniques
- Develop the qualities of a money manager
- Do no be afraid of risk and uncertainty
- Take personal responsibility for your decisions
- Make use of risk capital for trading
Tags: Day Trading Success, Technical analysis
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Related posts:
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment