1. A system with an edge
2. Money management
3. Psychology - A faith in your system and not panicking because you know that this drawdown is part of your plan.
Take a read of the books by Brett Steenbarger. I'm going through them right now and wow they are good.
Hey AMR - which of Steenbarger's books did you think was better?
I thought the second one (Enhancing trader performance) was much better, more practical and applicable to trading. I'm only halfway through it, so I'll report back later
Disclaimer: Do not take my posts seriously. They are only opinions.
Not a great fan of the term "Day Trading". It sets you on a path that might not be ideal. If we called it "Active Investing" the "how" instantly widens in scope and probability. While I'll dig around for a quick buck with the best and worst of them, medium term trades are far more profitable me. Picking a strong trend is much easier to do when you aren't requiring a fast screen refresh to achieve a result. There are also some reasonable statistical and practical foundations that demonstrate TA working best in a moderate time frame - say a 12 month view. $200 per day is not a very tough ask, but the mindset of "per day" is the value destroyer. I recently cleared the sort of annual income he desires in a few months shorting a single share (MQG). My only goal was to make money and beat some undemanding benchmarks (interest rates, market indices). If the process was constructed as an amount of money or a daily target the results would have no doubt been much poorer.
Not a great fan of the term "Day Trading". It sets you on a path that might not be ideal. If we called it "Active Investing" the "how" instantly widens in scope and probability. While I'll dig around for a quick buck with the best and worst of them, medium term trades are far more profitable me. Picking a strong trend is much easier to do when you aren't requiring a fast screen refresh to achieve a result. There are also some reasonable statistical and practical foundations that demonstrate TA working best in a moderate time frame - say a 12 month view. $200 per day is not a very tough ask, but the mindset of "per day" is the value destroyer. I recently cleared the sort of annual income he desires in a few months shorting a single share (MQG). My only goal was to make money and beat some undemanding benchmarks (interest rates, market indices). If the process was constructed as an amount of money or a daily target the results would have no doubt been much poorer.
Yes, although more broadly Investing is my main source of income. Don't have a fixed modus operandi and am happy to turn a dollar by any ethical means. My methods tend to change by what the markets themselves facilitate (for instance I'm not a big fan of debt but have more recently made money shorting, using a facility that requires debt despite having matching funds available).
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