Daily trading is not just about finding a strategy, putting it into practice, and then making lots of money. Daily traders are required to develop certain characteristics, which in turn enable them to implement strategies effectively, in all market conditions.when someone starts trading, it is unlikely they will have all these qualities. They may be strong in one, two, three, or even four of these qualities, but may be weak in other qualities. That is good news. That means a successful trader is not achieved instantly; they develop through hard work that embraces these qualities.
Discipline is the main trait that is needed by every trader. The market gives you unlimited opportunities to trade. You can trade hundreds of different stock and warrant issuers, every second of the day, but very few of them provide great trading opportunities.if a strategy signals about five trades a day, and the stop loss and take profit areas are automatically set for each trade, then you only need about five seconds of actual trading activity during the day.every other second is an opportunity to confuse the five trades, take more trades than they should, divert or skip trades, exit trades prematurely, or hold trades for too long.
That does not mean that your trade only lasts for five seconds.five seconds of activity means that it only takes one second to place an order, and then you just have to sit and wait again. If you adjust your stop loss and profit target, this may take a second more.
But the point is that your actual trading time is very small every day, even if you are an active daily trader.the remaining time you need is just to sit down and be disciplined waiting for the next trading signal. When trading signals appear, you must act without hesitation, according to your trading plan.
Traders need discipline not to do anything when no buy signals appear but must still be on the alert for potential opportunities.then, they need discipline to act instantly when trading opportunities occur. When entering into a trade, traders need discipline to follow their trading plans.
Patience is related to discipline. As discussed above, daily trading (and all types of trading) requires a lot of waiting.when a trader enters or exits the market at the wrong time, they will often say "My timing is off" or "My patience is off". Entering or leaving trading too early or too late is a widespread problem among new traders.
They have not yet developed their patience to wait for proper entry and exit timings.this is in line with discipline, and you need to be patient until there is a signal to act, then you need to have enough discipline to act without hesitation.
Traders need patience in waiting for the ideal entry and exit point (based on their strategy), but when that time comes, they must act quickly.there is a constant ups and downs between long periods of patience, followed by a split second action, which is then followed by patience, and so on.
You will never see two trading days that are exactly the same. This creates a problem when someone only sees an example in a strategy book.when they go to implement it, everything looks different from the one in the example.there may be more volatility, less volatility, stronger (or weaker) trends, or sideways.
Successful traders are able to apply their strategy in all types of market conditions and know when they should not use their strategy (for example, during the sideways period if they use a trend following strategy). This requires mental flexibility.a trader must be able to see price action every day and determine the best way to implement (or not implement) their strategy, based on the conditions that occur that day.
Traders must be able to implement their strategies in real-time, in all market conditions, and know when to stay away.not being able to adapt to current market conditions will often result in rapid losses.