What Does it Take to be a Stock Trader?
It takes a total mental commitment to the task. It becomes a complete way of life. You cannot be a part timer. You cannot work at a regular job and trade stocks successfully.
When you decide to make your living this way you must be willing to work365 days a year, 7 days each week, 24 hours every day with no time off. Iknow.
How do I know? As an exchange member for 17 years and a floor traderI can personally tell you there is no time off. Never. Almost every wakingmoment is given to thinking about your current positions. Where should Isell? Should I move my stop up a little more? There are 3 more trades I'dlike to make, but I need to save some extra cash in case I need it for amargin call. It is hard to pass up a trade that looks as good as XYZ, but Ihave to maintain my trading discipline. And so much more.
These are just a few of the thoughts that run through your head. Youare constantly being torn by the natural enemies of fear and greed, yet youmust hold your equilibrium to try to make dispassionate decisions. The firstlaw of trading is to protect your capital so that any single trade will not haveyou going home broke.
If you are working a regular job or you own a business you cannot bea trader. One or the other or both of these pursuits will suffer. When Iowned my brokerage company I did not make one single trade for 8 yearsbecause I understood the commitment necessary to be a successful trader.
Why am I telling you all this? Because I don't want you to lose yourmoney in the market as so many people do and I especially don't want you tothink you can be a day trader. You can still make money in the market andbeat 90% of the Wall Street experts. Here's how.
First you must learn that you CAN time the market even though yourbroker and all those "experts" will tell you that you can't. There areseveral good timing advisory services that you may subscribe to or you candevelop you own method.
Second, don't believe all that horsewash about research. That isWall Street smoke and mirrors. Don't try to pick individual stocks. Stick tono-load mutual funds with a discount broker and buy only the best performingfunds during the past 6 and 12 months. When they quit being in the top 1%sell them and find new ones that are going up.
There isn't enough space here to give you the details, but I want you torealize that you can safely make plenty of money in the market without devoting 365/7/24.