Futures/Forex Trading, Is It A Business or Is It A Monkey Business
Day trading is not some Get-Rich Quick scheme. You will not become a multi-millionaire overnight. Do not listen to those who tell you they turned $1000 into $2 Million in 1 year. DayTrading is not gambling. There is no casino.
Day trading is a business. The reason most people fail at trading is because they do not consider Day trading to be a business. Deciding to become a trader requires a life style change. This is especially true for those of you who work at home. Suddenly you are your own boss. You now work for yourself. There is no one to tell you what to do. There is no one to tell you when to do it. There is no one to punish you if you break the rules. The only one who cares if you are profitable is you!
Day trading requires self-discipline. If you were at a job, you would have rules to follow. You would arrive at your job at a certain time. You would work for a certain number of hours. If you performed your job well, you would receive a regular paycheck, perhaps a year-end bonus and maybe even a promotion. However, if you break those rules, you may get yourself fired. And it does not matter if you are day trading, night trading, stock trading, futures trading, ETF trading, etc.
To become a successful day trader, you must create rules for your business and have the stick-to-it-ness to adhere to the rules you create. Otherwise, your business may fire you.
You can learn all the rules to trading. You can develop a truly profitable trading strategy. If you do not have the self-discipline to follow your own rules, you will never be a successful trader. If you find you are not successful, you may need to take stock of your own strengths, weakness and your inabilities to maintain discipline. Focus on your strengths, overcome your weaknesses.
The Market does not care if you make money or you lose money. The market does not even know you exist. You can do anything you want while you trade. The Market has no control over you. It does not tell you if you are trading by rules, if you are trading correctly or incorrectly. The only limitation the Market (or your broker) imposes on you is the amount of money in your trading account.
For this reason, those who purchase trading software packages are rarely successful traders. A few instructions on a package do not make a professional trader. It takes time to be successful at any skill and trading is no exception. Software packages do not have anyone to explain to them that trading is a business and must be treated with the respect that any business commands.
Making day trading a business is especially difficult for those who have spent their lives as an employee. Suddenly, there are no weekly paychecks, no boss to tell you if you have done well or done poorly, and NO promotions. In fact, in many cases, there is no one to even talk with during the day. For many people, the lack of human interaction is by far the hardest part of trading. If you have a cat or dog, that may be the only one you will talk with (or at) all day. For those who have worked for a living and are accustomed to the daily human interaction found in a business environment, it may take time to transition to working at home.
Treat day trading as a business. After all, it is your own portfolio you are trading. I know someone who gets up every morning, puts on a business suit and tie, goes to the office in his home, and trades in a business-like fashion. If that is what it takes for you to be profitable, you'd best buy a lot of ties.
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