Keys to Successful Day Trading

Keys to Successful Day Trading By Toni Hansen and Brandon Fredrickson
The market is an ever-changing entity, presenting us every day with different and unique scenarios. Nevertheless, the market is more or less a reflection of people's ideas and attitudes and while it is also true that no two people are alike, each and every one of us has something in common with someone else, whether it be the way we get out of bed in the morning or the foods we prefer to eat. Additionally, we tend to repeat actions such as preferring to brush our teeth at a certain time of day or making sure we try to catch the Thursday night prime time television shows. No matter which angle you look at it from, humans are creatures of habit and this tendency gets reflected in stock movement. It's what makes technical analysis a reliable and profitable way to trade.

The ability to adjust to changing market circumstances is just one of the traits of a successful trader. In truth though, there are quite a few. Something that I've found helpful is taking the time to look at other successful traders and trying to identify characteristics that may have contributed to their success. In addition to being able to adapt there are about 8 more things I have observed which include the following:
1. They stay neutral;
2. They have a business plan;
3. They keep a journal;
4. They focus on 1 to 3 techniques that suit them well;
5. They are great money managers;
6. They are comfortable with risk and uncertainty;
7. They accept personal responsibility for all of their trading action; and
8. They use risk capital to trade.