Day Trading For Beginners: 6 Secrets To Consider Before Becoming a Day Trader (2 of 3)

What are the right attributes of a day trader?

Before you take the plunge, you should know whether you possess the right characteristics. In particular, you need to have mental discipline, the ability to think on your feet, and respond well to pressure. If none of these traits match up with your personality, you might not be suited for day trading. Another consideration is your current financial situation. To be in compliance with the Financial Industry Regulatory Authority (FINRA), you need to have a minimum $25,000 deposited into your account to engage in professional day trading. If you don’t have this type of money or would rather not risk your retirement or savings, you could instead opt for amateur day trading status and use a social trading platform instead. Although you would make less, you would also be risking less.

What are the core principles of day trading?

A successful day trader doesn’t simply pick from a list of the best day trading stocks. They also rely on the three Ps: planning, practice, and patience.

• Planning – Day trading requires weathering all the storms. Thus, you should develop a tried and true strategy where you determine when to buy and sell.
• Practice – Just like with any skill, you should practice your day trading strategy until you master it.
• Patience – Once your trading plan is ready to go, avoid the temptation to deviate.