www.World Day Trading.com

Advertise with Us
Bookmark and Share

Defining Day Trading Success

How do you define success? Is it by the cars in your driveway? Your kid’s performance in school? Your sexual prowess? Day trading professionals also measure their success but not always in ways that are completely clear. Sure, making money off of flipping a particular stock is one way, but there are other factors that determine whether a day trading professional is successful at what he does. Read on and we’ll explore just what they are.

The Flipper â€"It’s as easy a buying low and selling high, a day traders dream! Defining a low price is considered to be a science all by itself. Sometimes hard analysis reveals that fact, while other times only a guess can be taken. Either way, the person who flips the stock does so in hopes of making a profit but not necessarily getting one.

The Analyzer â€" This person hopes and intends to make money on every stock, but many times the analysis of trends becomes a big part of the equation. Successfully anticipating company earnings, profits, ratios, and more is a big part of understanding a stock. Hoping that the price will quickly rise hours later is another.

The Historian â€" History repeats itself in trading, past trends can affect future performance. At least that is what some say. Sometimes the opposite is true and only a good historian who fully understands the market and all of its whims can truly grasp this concept, more specifically a day trading historian.

The Closer â€" When is it the best time to sell? Well, always before the close business for the day trading professional. Exactly when is another thing. Do you sell at 12 when the stock is up 50 cents or wait until 3 when the market has had time to absorb the latest company news or stock analysis? Indeed, your success or failure is dependent on how well you close the deal.

Day trading success must be calculated beyond one sale, or one day, even several sales. Generally, weeks of day trading transactions will only be the beginning determinant whether the day trading professional is a success or not. Balance it all out and most day trading professionals will see a string of hits followed by a string of losses or some variation therein. Added together and these transactions will be the deciding factor in the success or failure of any day trading professional.