As a day trader, you may have studied extensively to acquire all the knowledge and skills you will require in your work on the market. However, there are still several basic things nobody would have taught you – and it is extremely vital to know these basics before you proceed.
Day trading is extremely risky
Your training manuals and online tutorials may have coached you on every aspect of transacting business as a day trader, but there must have been a curious lack of insight on the very nature of the activity. Day trading is an extremely risky proposition at the start of one’s career; it yields very little Return on Investment (ROI), the trader may lose millions by making the wrong decisions, and it can be months before he or she crosses over to the profit side of trading.
Other problem areas
Another thing day trading training doesn’t prepare you for is the sheer numbers of trading firms promising quick returns. Before working with any trading firm, the trader must conduct basic research on the profile of its clients, how many have benefited from being associated with the firm and how many have lost a chunk of their money. Traders can decide which firm they want to work with based on the overall financial health of its clientele.
Day traders must also be wary of experts’ seminars and webinars, which often do not share any generic tips or information but which actually peddle their own products. The Internet is chock-a-bloc with several hundred free training tips and tools, but only a vigilant trader can separate actual usable information from sales gimmickry. Day trading training must equip traders to stay away from cleverly disguised sales pitches by ‘sources’ – if nothing else, they must confirm the information they give and find out if they are being ambushed by paid advertising agents.
Read more about being a pattern day trader on SamuraiTradingAcademy.Com