Since the 2008 US mortgage crisis, which resulted in a worldwide recession, markets have been extremely volatile and day traders have been making hay while the sun shines. We hear more and more about day traders and very often they are cast in very detrimental terms. Many people see them as opportunist, speculators and a pest for traditional long-term investors but they are a vital element of the market. Whether “traditional” investors like it or not it is very often the short term day traders who inject liquidity into the marketplace allowing others to trade more freely. So, what does it take to be a day trader?
Confidence in your decisions
If you ever come across a day trader they will seem very confident in their own decisions and often dismissive of other views. This is a vital component of the personality of the day trader, the ability to make snap decisions using limited information and have the nerve to act on them. Day trading by its very definition is often extremely quick with investors dealing on very small margins but regular traits. Continue reading “What does it take to be a day trader?”
