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A Day In The Life of a Day Trader

A Day In The Life of A DAY TRADER A DAY TRADER, OR STOCK BROKER, IS SOMEONE WHO ATTEMPTS TO RAPIDLY MAKE TRADES OF STOCK TO GAIN PROFIT. CHECK OUT A TYPICAL DAY IN THE LIFE OF A DAY TRADER. THE TRADER AND HIS TYPICAL STYLE THE DISCRETIONARY MECHANICAL THE SYSTEM TRADER TRADER DISCRETION Makes trades based on Acombination of both that Based upon rules set by the system, often trades are determined by using computer software or analytical charts. uses a system or methodology they feel comfortable with but won't automatically take every trade thrown their way. information available at the time. More suitable for personalities that like complete control. More suitable for those who like speed and precision. PRE-MARKET HOURS (8:00-9:30 AM EST) Coffee and breakfast in hand, most traders use this time to catch up on yesterday's news and how that could be affecting the market today. Fire up computers and open up analysis/trading platforms. Note what analysts are saying Scan for potential trading opportunities. Write a trading plan. EARLY TRADING (9:30-10:30 AM EST) Precision and timing become increasingly important; many traders will avoid the first half hour entirely to allow the market to settle. RISING OPPORTUNITIES The trader must act quickly, as seconds can make the difference between winning and losing a trade . PROTECT AGAINST ADVERSE PRICE MOVES Designed to limit an investor's loss on a security position. LOOK FOR REVERSAL OPPORTUNITIES Can indicate the need for a different trading strategy. SECOND WIND (12:30-4:00 PM EST) When institutional traders return from lunch and meetings. Traders use this time to seek out additional trading opportunities. CONTINUE MONITORING OPEN POSITIONS For example, an investor who owns 300 shares of a certain stock is said to have 'open position' in that stock. CLOSE THE DAY AT 4:00PM Traders learn to neither celebrate large wins nor cry about losses, it's what happens over months and years that matter. OUTSIDE OF THE MARKET HOW A TRADER SPENDS THEIR TIME OUTSIDE THE MARKET CAN BE AS IMPORTANT AS WHAT HAPPENS FROM THE HOURS OF 9:30-4. TRADING JOURNAL Entry Price Kept to review all logs made in regards to: Trades Number of shares Set-up Additional intuitive notes (Why the trade was taken) about the environment of a trade Conducting Research Learning about the markets Experimenting with Honing Entry Skills Technical Indicators WHILE THE WORK CAN BE TOUGH, BEINGA DAY TRADER COMES WITH MANY ADVANTAGES Be your own boss Work from home Setting your own schedule Potential to unlimited profits BYLLS Sources ON WALL STREET

A Day In The Life of a Day Trader

shared by singlegrain2013 on Apr 24
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If you’re someone who relies on the consistency of a 9-5 job then you’re probably not cut out to be a day trader but, if you love excitement, and the challenge to push yourself to do better every ...


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