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The Alpha 7 Proprietary Trading Academy moves theory to actual practice by giving students and experienced traders the ability to hone their trading and risk-management skills through one of the most intensive and well-renowned educational programs available for mastering the art of intraday... More
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  • Characteristics Of A Successful Proprietary Day Trader 0 comments
    Dec 19, 2013 2:25 PM

    There are many attributes that are needed to become a successful day trader or proprietary trader and one of the most important is the ability to see day trading as a day-to-day business. Similar to any business, a trader needs to make sure that revenues exceed expenses and a matter of fact attitude toward transactions.

    One of the biggest differences between trading as a business and say selling ice cream is that vendors who sell ice cream rarely expected to lose money on a transaction. Day trading does not have that luxury as there will be trading losses. The key is to move on to the next trade once the trade is considered either a failure or success.

    The best way to handle each day trade is to set a stop loss and take profit prior to the trade. Take profits can be a specific percent advance (or decline in a short sale) a point advance or a trailing stop loss. Stop loss levels can also be a percent drop from your entry point (or advance in the case of a short sale), a point advance or a trailing stop.

    Traders who do not get emotionally involved in gains or losses will likely stick to a plan that has a better chance of success than gut feel trading strategies or gambling strategies that do not have a prudent risk management approach.

    Developing a discipline and a process that conforms to a traders risk reward goals can be very helpful in generating profits. Experienced traders can define what they believe constitutes a trading setup that needs to be confirmed prior to pulling the trigger on any individual trade. In an effort to remain focused, successful traders rarely deviate from their plan.

    A trader should also know how well they perform on different types of trades and the average profit or loss per trade. Evaluating your track record and understanding how you generate income is important to maintaining a strategy that will last over the long term.

    One of the characteristics which you will common among successful day traders is their interest in continuing-education. The business world and in general, and in-turn the markets, are constantly changing. Breakthrough technologies in the realms of medicine, finance, education and business and consumer products constantly create paradoxes and place you in situations you won't be prepared for.

    In order to keep up with a changing market-environment, you should be taking as many recently-updated courses and participate in continuing-education programs such as free day trading webinars or by purchasing education written by reputable published authors. One of the authors is Jea Yu, a best-selling trading author who has over 15 years of participation in equities, futures, and options markets. Jea has published books under McGraw Hill, Bloomberg Press, John Wiley and others. You can find Jea's most recently day trading courses at the Alpha 7 Trading Academy.

    In a nutshell, traders who view day trading as a business and find strategies and risk management techniques that are sound, will likely be successful over the long term. One thing that is true is that traders who are careless and inconsistent will likely find day trading a difficult business to maintain over the long term.

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