Day trading can be considered as one of the most rewarding careers on the planet. It is probably the only business out there that has literally no overheads and also unique because a trader unlike a regular worker can pick and choose his or her trading work hours.
Because trading can be started so easily as a business, it tends to attract people from all walks of life very easily. It also has a high failure rate because people that are drawn to it approach it without much thought. The biggest reason that leads to about 90% of traders failing is because of the inability of these people to deal with trading losses.
Trading, like all other businesses has to deal with losses that come naturally as a cost of doing business. This very ability to deal with trading losses brilliantly is what separates the 10% of successful traders from the rest who do not make it. So how do these professional traders handle their trading losses? Below are just some of the things that these successful traders do that keeps them going in this business for a very long time.
1) Patience and Discipline are of utmost importance. They follow their plan that they made for themselves very religiously. They know they do not need to take every setup and wait very patiently to take only those trades that meet their trading rules.
2) They are confident in their trading systems. They know that every system will go through a drawdown at some point. Their ability to navigate around those tough periods is what makes them winners.
3) Professional traders refrain from overtrading. They avoid it like the plague. Overtrading is the easiest way to run a trading account into the ground. They know that being in the market all the time increases the chance of being blown out too soon. They only trade one or two markets and do not overstay their welcome either.
4) Professional traders keep a detailed log of all their trading activity. They realize their trading losses as mistakes and work hard to not repeat them again. They also do not aim to make large sums of money in any one or two trades. They prefer to make small sums of money on each trade where possible. They know that even small consistent winners can add up to something big at the end of the trading quarter or year. After all trading is a journey, not a race.
5) Professional traders have the mindsets of athletes. They are always working on their game and never give up. They are always looking for ways to improve their performance. They know they need to work very hard at trading to achieve some great results. They also know when not to trade and take a break from trading when it gets too overwhelming for them.
Good luck with your trading journey.