As a weekly guest contributor over at Trader’s Library, I pay attention to articles written by fellow contributors, one of which was Timothy Sykes’ recent post entitled “24 Reasons to Day Trade”. Although written as a rebuttal to James Altucher’s recent “8 Reasons Not to Daytrade” my focus here is on the words of wisdom from a fellow trader. Although I am not considered a day trader, I believe we can all learn from others, whether we agree with their methodology or not. Let’s see what we can learn from a few of the reasons listed. The ones I like, and tend to especially agree with, are in bold. You may disagree…but that is what makes a market and makes us all different.
1. There are few greater thrills in this world than winning on a big trade in the stock market.
2. Forget trading win thrills, even when you lose trading is exciting intellectual gambling at its finest.
3. Neither intelligence nor potential is required to be a consistently profitable day trader.
4. This is an enviable time in history where you can use veteran traders to cut your learning time dramatically.
5. True day trading is unhealthy as ever, but if you’re getting really fat due to eating too much, you probably lack discipline so you won’t be a great trader anyway.
6. Trading isn’t just about making money. It’s one of the best endurance tests and mental challenges around.
7. Gossip is for the bored and happy hour characters who are trying to relive their college days; at least in trading when you waste your days away, it helps you improve over time.
8. While 90% of traders lose (academic studies), if you are part of the magical 10%, you don’t need to read about celebrities and day dream.
9. Experience and logic tells me that many more than 1 out of every 100 veteran traders is a millionaire.
10. Tape reading, while boring and time consuming, teaches you a TON about the stock market and investor psychology…in trading, there are lessons everywhere.
11. As a veteran trader, your body knows when a trade is very wrong; it’s a biological warning system trading has helped you develop reminding you to cut losses quickly!
12. Skill is required to survive over the long term.
13. If you focus on ideal trading setups you don’t need to sit in front of the computer every second.
14. Traders are the unappreciated oil that powers the engines of the financial markets.
15. Since so many traders do lose money, surviving comes down to who wants it the most.
16. The best trades usually present themselves at the market open and near the market close.
17. If you become an expert trader in a niche, it’s pretty difficult to lose.
18. Trading is a battlefield and veterans understand this.