The lifestyle of a professional day traderAdmin@ | October 9, 2018 | 0 | Business
Trading is a good income source if you can cope up with the challenge of this business. It will give you different obstacles all the time. If you get bored with those and cannot overcome them, you will be stuck in the same position you have started in this business. There will be no improvement in your trading performance. And for even a decent income from this profession, you have to improve your game. Sometimes there are other variables that affect the growth of your trading efficiency too. One of them is not getting enough time to think about your strategies. We are talking about frequent trading here. More specifically, day trading is the topic of today. In this article, we are going to discuss the lifestyle of day trading what might be your experience if you choose it to be your method.
Hardly gets any time
It is clear that day trading means that, you are opening and closing a trade within a day. It won’t stay alive for any longer than a day. So, you might have to keep on trading every day for the rest of your career. Just imagine, how the situation would be if you trade like a day trader. Every day you would be busy with planning for a trade and open it. When a trade is live, your brain gets attached to it. It makes you tensed about your money. When you close that trade emotional attacks come from everywhere. You hardly get any time to think about yourself. Although it is better than ‘scalping’. But it is not that good of a trading method.
They have fixed goals
Trading is all about psychology. Sounds a little bit crazy? Majority of the retail Singaporean traders are losing money due to their lack of knowledge and emotional approach in the Forex market. Some people have very good skills in analyzing the market data but sadly they don’t want to accept the loss. They simply take a huge risk to earn huge amount of money within a short period of time. But this is where things are completely different in the professional day trader’s life. They use a simple strategy to filter out the best trades in their online trading platform. They have a fixed goal and never over trade the market. Even after losing a few trades in a row they never take any unnecessary risk. You must train your mind and understand the concept of losing in Forex trading profession.
Less profit target
Obviously, when you trade for a small amount of time, the change of pip will be less than a long-term trade. And when the pip is small, your profit will be small. Because profits in trades are calculated by multiplying the lot size with the amount of pip’s change. And when your trade is live for a very short time like a day, you will see a very small swing in pip. As a result, your profit will be less. Sometimes you might get lucky and get a good amount of money. But, that is not frequent in this business. The price swing I significantly large when the timeframe is large. So, you will get more benefit from your long-term trades.
We talked earlier that, a day trader hardly gets any time to think about anything but keeping on trading. So, he or she won’t spend much time on the trading strategy. And the strategies won’t be improved. Or new strategies won’t get time to get into your brain. As a result, your strategy will stay crappy as it was at the beginning of your career. And you know, for good trading performance, you will need good trading strategies. And, you have to acquire them all by yourself. If you can’t make out any time for your strategies, you are stuck with what you have from the beginning.