The Reality of Day Trading – What It Takes To Be Successful?
In trading anyone can be a successful trader, but most people who enter the world of trading fail as they do not have the discipline and patience to practice a strategy till the time those strategies produce a consistent profit. They switch to another strategy and they fail. However, all the novice traders are warned before that they will not become successful overnight, but still many traders do not actually believe that.
It is said that 90% or 95% of trades lose money or some other seemingly high statistic. This statistic is very high but it is accurate.
The reason for failure is that people do not stick to one time horizon. You must keep in mind that sticking to one time horizon is the basic principle of trading. A trader must define their time horizon and must ensure that they close out their positions by end of day if they are a day trader, as a loss-making position carried into the next trading day will go into more losses. Being a long term trader, you must not close out loss-making trades the next day.
Another important reason for being an unsuccessful trader is that you are not disciplined in executing day trading strategies. You must never think that you cannot try out Intraday trading on your own. Learn with your mistakes and only few things you need to keep in mind is never risk more than 2% of your trading capital on every trade. The study proves that no one will go bust in trading if they trade with proper risk management.