Watch our video on becoming a trader if you want to know what is a trader.
You might be asking yourself, what is a trader? Well, next to parenting, I think trading is one of the most significant personal endeavors a person can take on in their lifetime.
I say this because of how difficult and all-consuming it can be at times. And, it is one of the last professions that who you are, and your work ethic is reflected directly back on you in your equity curve.
I can honestly say as I write this article that the one thing that determines whether I make money trading boils down to my ability to stick with my trading rules. Throughout this article, I will walk you through the five questions you should ask yourself before deciding to take the plunge.
What is a trader? Investopedia defines it as an individual who engages in the buying and selling of financial assets in any financial market, either for himself or on behalf of another person or institution.
Basically, when you're trading, you're trying to make money by buying and selling stocks. That sounds simple enough right?
However, it's not. Stock market trading takes determination and willingness to put in work. Our service doesn't sugar coat the fact that it's not easy.
What is a trader also means you know what trading companies to use and how to use stock alerts properly.
The success rate for day traders is estimated to be around only 10%, so … 90% are losing money. You don't want to be in the 90%. That's why it's essential to take some times to honestly answer these questions so you can avoid being another statistic:
Will you be patient enough to wait for the right trade set up? More than 50% of the time, the market runs sideways and even a longer time to fuel a trend momentum. And when the momentum comes, it's short and sweet - if you're patient enough for it to arrive. In short, trading is boring, and you need the patience to wait - even if it means sitting on your hands.
Are you able to make a trade decision in one or two seconds? The market is dynamic. Unlike swing trading where there is plenty of time to make a decision, there is hardly any time to decide if you want to catch a momentum ride up. In such a situation, can you make trading decisions in seconds? If not, that's okay as well you have lots of other options such as swing trading. Check out our swing trade room.
Are you willing to wait until a valid buy/sell signal is triggered? No surprise here, but premature entry into a trade will make your trading life miserable.
Not to mention your life in general as your account balance dries up. If your valid entry signal has not yet triggered, there's a high probability that your trade may go in the opposite direction you want.
Can you place and execute your orders before the price moves away from the entry price? Once a trade entry is triggered, you only have a very short time before the price reaches the target.
To put this in perspective, I've seen the target price reached in under 60 seconds. Translation: This requires fast decision and fast action on your part. Take our basic stock trading course.
Can you focus on your trade without any disturbances, until the trade's completed? By disturbances I mean Facebook, phone calls, your spouse entering your office, your cat, anything.
Because once you enter a trade, anything, and I mean anything can happen. What if you entered on a false breakout and the price immediately reverses.
If you're too busy checking your Facebook notifications, you'll miss your exit trigger. The moral of the story is this: Treat day trading as a business and give it your undivided, undisturbed, attentive trading mind until the trade's completed.
Check out our trading rooms to practice trading.
I hate to break it to you, but there's no magic bullet for success in the trading world. You've got to embrace the learning curve and dare I say, enjoy it.
You can't escape the hard work it takes to see your equity curve increase. Every incredibly successful trader you see today has been through the tedious, mundane, time-tested process that eventually brings success.
So please, stop looking for "quick hacks" that bring faster stock trading results. Instead of trying to find the latest and greatest tip or secret, focus on doing the actual work. You can't achieve tremendous life success with a quick fix; nobody gets it that easy.
Most people, 90%, will fail when they start day trading because they don't take the time upfront to learn what they need to learn. Whether it is choosing the right market(s), the right trading strategies or proper risk management, without putting some thought into these matters, you'll be in the 90%. Check out a list of the top trading companies.
Luckily, Bullish Bears is here to guide you in answering these questions. We are not here to give you the quick tips and tricks, call out the hot trades.
No, we want to empower you to make informed trading decisions. Because mastering anything usually involves exploration, adjustment, improvisation and most of all, time.
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