Some skills you can master in a short amount of time. Anyone can Google a makeup tutorial on YouTube or find an app to teach you a language, but the fact remains that some skills can’t be taught in short bursts or through free online resources. These skills, talents and crafts require months of hard work, years of discipline and the most intricate and valuable of resources in order to master them completely.
Day trading is exactly that kind of craft. You can look up simple blogs and videos on “6 Day Trading Tips You Need to Know Today,” but does that really help you? Does this give you the kind of knowledge required to actually become a tried and true stock trader?
No. Becoming a successful stock trader requires two main ingredients: the right attitude and the right resources. Here we’ll talk about both, as well as offer you helpful tips for starting on your stock trading journey.
The Right Attitude
First, it’s imperative that you understand there’s no “get rich quick” aspect to day trading. Once in a blue moon does a rookie come along and master the art of stock trading, and even then they’re likely just the victims of dumb luck. You don’t want luck – you want knowledge, you want experience, and you want an attitude that sets you up for success.
It’s been argued that learning the ins and outs of day trading is the easy part – but developing the right attitude and personality is what’s more difficult.
Stock trading is all about discipline. It’s about sticking to a long-term education plan and still craving more information. Stock trading is a craft that can never truly be mastered, simply because it’s constantly moving. With new businesses and new market patterns comes new information to learn. Even stock traders that have been in the industry for years are still constantly learning more about the market and how it works
Here’s a statistic to keep in mind – approximately 4% of all stock traders are successful. That means 96% of them will fail, and you don’t want to be lumped into that statistic.
Here are some basic concepts of your personality you’ll have to examine harshly before you become a successful trader:
- Your Flaws – Every trader has at least one flaw, and it’s something they must constantly be conscious of. Are you someone who’s willing to risk it all on a great trade; jumping at any chance to make it big? Do you look before you leap when you think a great opportunity is on the table? Assess your weaknesses – they can be your trading downfall if you don’t acknowledge them now.
- Your Discipline – Again, trading requires a lot of discipline. You must be willing to put your entire life into mastering the art of stock trading. This isn’t something you just learn on the weekends if you want to be successful at it.
- Your Honesty – There’s no hiding or lying in trading. If you make it a habit of cheating or lying in your personal life, it’s time to start breaking those habits. Successful traders are those who know and understand money and stocks have paper trails, and there’s no room for being non-transparent.
Once you analyze these aspects of yourself, consider these tips for further fine-tuning your trading attitude:
- Don’t be greedy. It’s easy to jump on any trade you think may do well, but it’s important to analyze decisions before you make them. Don’t bet it all when you’ve got bad cards in your hand.
- You may find that safe trading practices are boring, but consider this: the money you make through safe, thought-out trades will make you happier than any gambling rush ever will.
- Know when it’s time to start. Don’t get cocky and throw your hat into the day trading ring prematurely. Remember to stay disciplined and that your time will come.
- Ask yourself this: do you actually love stock trading? Is this something you could see yourself doing for a long time, or even for the rest of your life?
There’s a simple truth in the fact that none of us learn the same way. You may be an audio-visual learner, while your friend is more acclimated to memorization-based education. Because of this, it’s important to consider that your education style will suit one resource more than another.
At the same time, it’s good to have some variety and to try and utilize all the available resources you possibly can. Here we have a few ways you can start learning how to trade stocks:
- A Stock Broker Account.
Online stock brokers are all over the Internet, and it’s pretty simple to find a good one. They often offer free trading tools, and using their online platforms can help familiarize you with the layout and tools necessary to trade stocks.
- Create a Trading Library
There are thousands of books on the subject of day trading, and they can range in price from cheap to fee on sites like Amazon, or even at your local used book store. Here are 20 to add to your shelves to start you off on the right foot.
- Read Blogs and Articles
You won’t get all the knowledge you need from blogs, no. They shouldn’t be your main educational resources – but accredited or credible trading blogs can give you insider knowledge and tips you won’t get anywhere else.
- Learn from the Greats
Incredible investors of the past include Warren Buffett, Jesse Livermore, Peter Lynch and Paul Tudor Jones. If you study what they did, as well as read anything they’ve produced about trading, you’ll be armed with great trading knowledge.
- Stay Dedicated to Market Research
Set Google Finance as your browser homepage. Always visit Bloomberg and read the reports. Turn on CNBC as you get ready for work. Absorb as much information about the stock market as possible. It’s not hard, considering it’s always changing and always available.
- Seminars and Classes
Your best bet when it comes to learning to be a stock market expert is to go for a full-blown degree, but everyone has to start somewhere. If you’re just starting on your journey, try one-off classes, course packages and seminars, like what we at Live Traders offer. These paid-for courses stand alone and can cover both basic and advanced trading topics.
- Use Simulators
Finally, try using stock market simulators. Just like a lemonade stand can teach a child life and business lessons, you can learn from a no-risk simulator. Let it be your lemonade stand. Practice, try out different techniques and see how you do playing the game with fake money.
You now know the kind of attitude necessary to become a day trader, as well as a list of ideas for how to start getting your toes wet. Go forth – see what you can discover, both about day trading and yourself.
Becoming a stock trader isn’t an easy task, but with the help of Live Traders, the above resources and the right attitude, you have an incredible chance to succeed in at a craft that is extremely demanding and difficult. Now is your time to shine – train your mind, begin learning and start succeeding today.