Top Tips For Independent Day Traders

Day trading can seem like an impossible struggle for the newcomer. Yet by following a few simple guidelines it very quickly becomes a way of life and a great way to earn money and success.  To the outsider, it all seems very risky, yet with patience and dedication, the process can be very rewarding. In this article, we will give some top tips to traders with financial knowledge looking to start trading independently. These points will give advice on how to keep ahead of the competition and keep focused on the job to become a profitable and successful trader. 

Hard work  
It seems obvious to point it out, yet the hard word is the most important part of becoming a trader or succeeding in any profession. The benefits of hard work and discipline are the development of self-confidence. Gaining confidence in your ability to do the job and hold your nerve when things go wrong is the key skill for a new trader. Working hard will give you the edge over your competitors. This also includes learning parts of the trade that you don’t consider to be important to you. The more you know the better prepared you will be. Confidence in ability is essential but it can also lead to over confidence, which can lead to big mistakes and financial losses. Over confidence is often a sign of success without the hard work.

Know the market  
A day trader must not only be knowledgeable of the markets but must strive to always be adding to that knowledge. A lot of people outside the industry imagine you are Wolf of Wall Street style hunched over a computer in a large office. Yet many traders work on an individual basis and can do this because they are knowledgeable and disciplined enough to work for themselves. Knowing the market means that you have the insight and have done the homework to know when to push and when to cut the losses. 

Trading Style 
What sort of trader do you want to be? For a trader, their style is especially important from a lifestyle perspective. As an independent trader, you have the advantage to make the job work for you, whether you trade every day or trade every month. For example day trading means you will be at your computer for a long time while long term trading can be done over months. Being in control of your time, rather than trading for a large corporation, has the benefit of reducing stress and allowing you to use your time more wisely. 

Right equipment 
One part of being a trader that is often overlooked is the equipment used. With technology advancing every year keeping up with the latest developments is vital to succeeding. Out dated equipment will hinder a trader’s ability to interact with the market efficiently. FXCM a leading market insight company recommends regularly testing computer hardware and Internet connectivity.  They also advise replacing equipment on a regular basis, at least every four years, to stay current and relevant with industry trends.