Why Day trading is Tough and only 2-3% are successful

[Smart_trade]

Lots of focus is necessary for daytraders. Watch each price bar...try to see what it is telling us in terms of supply/demand equation. Lots of screen experience is also necessary. This is the reason I find how so many daytraders continuously chit chatting in TJ and daytrading successfully.I come to TJ and post only when my trade moves sufficiently in profit, I have booked part of my profits or after closing the trade or market is not doing anything..In active markets just cannot take my eyes and thoughts chain off from the charts and price.When the trade is in initial stages, no TJ posts ( which are highly distracting), no skypes...full concentration on the charts.

Smart_trade

 

[jagankris]

Lots of focus is necessary for daytraders. Watch each price bar...try to see what it is telling us in terms of supply/demand equation.
Smart_trade

Dear Smart Trade,

Please explain what supply/demand equation means ?
TIA.

 

[Smart_trade]

One has to take our job of daytrading very seriously. It is a profession we have chosen ourselves in preference to other vocations in life...it is not forced upon us..so we have to be very professional with it.

Daytraders fight, post irrelevant posts, get into arguments which is absolutely unproductive.Trading is a lonely profession so some light chit chat for commaraderie is fine..but that when one is not in the trade.Have you seen a surgeon fighting with other doctors while doing surgery or an advocate chitchatting and not giving full concentration when he is presenting a case to a judge ...it does not happen because they take their professions very seriously.With excess chitchat, fights etc one looses focus and misses a trade or enters late missing an ideal entry point.

Smart_trade

 

[msri]

Dear ST,
I am too interested to know about supply/demand equation. Pl. explain in simple terms
Regards
msri

 

[Smart_trade]

Dear Smart Trade,

Please explain what supply/demand equation means ?
TIA.

If you see any chart, throughout the day bulls and bears are in constant fight to get hold on the prices..so at some point you will actually see the balance of power changing hands from bulls to bears and vice versa. At some points bulls put all their strength to work but unable to move price up by a fraction and there the demand is exhausting and supply gets into the market and the bears take over at that point...same happens when bears loose their power and bulls gain control and supply exhausts and demand enters the markets...for alert traders they can actually see this happening.

ST

 

[amandeep86]

Lots of focus is necessary for daytraders. Watch each price bar...try to see what it is telling us in terms of supply/demand equation. Lots of screen experience is also necessary. This is the reason I find how so many daytraders continuously chit chatting in TJ and daytrading successfully.I come to TJ and post only when my trade moves sufficiently in profit, I have booked part of my profits or after closing the trade or market is not doing anything..In active markets just cannot take my eyes and thoughts chain off from the charts and price.When the trade is in initial stages, no TJ posts ( which are highly distracting), no skypes...full concentration on the charts.

Smart_trade

Other than TJ ,i get even distracted by family ,TV,fatigue/sleeping and many other things which i keep when not in trade,I found i miss most of the trades due to this.

Tried a lot ,reduced but not able to eliminate completely,I think this is the disadvantage of us working from our home....

 

[manishchan]

Other than TJ ,i get even distracted by family ,TV,fatigue/sleeping and many other things which i keep when not in trade,I found i miss most of the trades due to this.

Tried a lot ,reduced but not able to eliminate completely,I think this is the disadvantage of us working from our home....

Keep a seperate room for trading. If u are serius, u hv to treat it like a business... keep a seperate room...put a proper trading desk with your laptop, desktop....if u hv sm printed/writtrn rules etc...pen papers...calculator...power backup..net back up etc. Yeah...water bottle nd sm snacks to munch on (very imp )

Also, you must restrict your family members from disturbing you between 9-3... dont attend calls guests etc.

These are first things a daytrader needs. Concentration on charts..entry..exit..profit loss comes after this

 

[Smart_trade]

Other than TJ ,i get even distracted by family ,TV,fatigue/sleeping and many other things which i keep when not in trade,I found i miss most of the trades.

Tried a lot ,reduced but not able to eliminate completely,I think this is the disadvantage of us working from our home....

Why distraction from family ? One must have a separate room or atleast a place in the house where he is not disturbed by postmen, courier guys, wife asking to bring provisions during market time...let your family know that you are not available during market hours...tell them that you will talk to them after the trade is over.

Fatigue and sleeping ? Boss take full 7-8 hours sleep at night and be fresh and alert while trading....traders have to be mentally and physically fit like sportsmen .Tired mind and sick/unhealthy body will not make a good trader.

ST

 

[TraderRavi]

Other than TJ ,i get even distracted by family ,TV,fatigue/sleeping and many other things which i keep when not in trade,I found i miss most of the trades due to this.

Tried a lot ,reduced but not able to eliminate completely,I think this is the disadvantage of us working from our home....

we had a teenager trader here , uski mom trading karte samay usko samose lane bhej deti thi , he was like yahan mera trade phansa hai , inko samose ki padi hai :rofl::rofl:

 

[Smart_trade]

I have read an interview of a very successful scalper turned daytrader in US markets. He being successful daytrader he used to get invitation to lots of traders and hedge funds late night parties. But he had a rule that he will not drink if he has to trade the next day and he will not stay awake late at night...

But he could not totally avoid these parties else he will be considered as wise man not mixing type..so he used to go there, have a drink served to him and then go around and chit chat with his trader friends making sure he chit chats with every one...by 9:30 or 10:00 he will throw the drink in the wash basin and go home, have simple food at home and sleep ...while the trader party continues till midnight with traders talking their millions made or lost, their frustrations etc

Next day he will get up at 5:30 does his excercise , has a look at the charts and he is fully alert for trading when his other daytrader friends are having hangover, headche, bad stomach, drouziness while trading....some sleeping till late hours....the whole day is spoilt for these guys.

That is the kind of committment one needs to his profession.

ST