It’s very common for newer traders to come to the profession of stock trading for a living with the money mindset that they grew up with; that of getting paid dollars per hour. The harder you work the more you should earn. Unfortunately in trading this doesn’t work. You are being paid by the month, not by the hour. As a stock trader, your job is to manage risk and leverage through the six and a half hour trading day. Your job is to find high percentage opportunities, the higher the probability the more leverage you should allocate to the trade.
Time after time we see new traders who feel like they “have” to be in the market at all times. Well the fact of the matter is that there is NOT something to do all the time, especially this time of year (middle of summer). You must also never forget that entering the trading arena means you are opening a business for yourself. You need to learn how to run your business in order to make money. That doesn’t happen overnight.
In order to succeed as a trader you need patience in the following areas:
- waiting for a good trade
- holding on to a good trade
- developing your trading skills, learning from your mistakes
- recognizing your own trading personality, scalp, momentum or trend trader?
Can you make it as a professional trader? I say absolutely! Just give yourself a chance, be patient.
By Mark Marchi