Day trading is an excellent way to make good money, but if you\’ve heard it\’s easy or a form of passive income, you\’ve heard wrong. You need to put some work into it.nnDay trading stocks and commodities is really a highly lucrative job. Just like a regular job, it needs you to have a number of traits in order to succeed, as well as a number of firmly ingrained habits.nnThe first thing you\’ll absolutely need is a good sense of time. The kind of person who\’s not good in the mornings or needs that morning jolt from coffee will only make themselves miserable trying day trading. That\’s because the best time to decide how you\’ll be playing the market today is right before opening bell. That\’s at nine in the morning in New York and six in the morning in California. If you\’re living in Hawaii or Alaska, it\’s five am. Of course, just being an early riser isn\’t enough. You\’ll also need to have a good internal clock and a solid scheduling system.nnThe second necessary habit is having good quantitative thinking skills. Working on hunches will allow you to make or lose money in day trading. You need to be able to read and understand the numbers without thinking about them if you want to make good decisions. You have to be able to convert and analyze the numbers in your head carefully, so you\’ll be able to tell if something is a blip or a lasting trend, and you have to be able to act accordingly.nnOf course, that doesn\’t mean you have to be a trained mathematician. You can learn how to deal with numbers correctly, even it\’s never been your strong suit. Some numerical skills can almost become second nature once you get going.nnSuccessful day traders also have to have patience and skills of observation, and combine them with a short memory. This can be pretty hard to learn, since you have to avoid feeling disappointment when you don\’t catch a stock at the top, or when you lose money because the short you\’re intending just never shows up. Don\’t get caught up in things when you lose, and don\’t allow winning to take over your life, either.nnHabit number four is dedicated research. Day trading won\’t require going through accounting statements to the degree that conventional long term investing does, you do still need to have a constant inflow of analysis and data. You also have to be proactive about the shares you buy and sell. That means making quick, accurate judgments and acting fast. The only way to make the correct judgment calls is researching properly. However, you shouldn\’t let the need for research paralyze you.nnYou should also keep in mind the fact that much of this analysis isn\’t directly done by you. The best traders always keep lots of tools available, and can quickly access a number of different data and research services.nnIf you\’re thinking about getting into day trading, you\’ll also need to build up a support network. That requires dealing with a broker, as well as finding investors who will help you apply leverage to the market. You have to understand that this is work, and that this kind of work requires intelligence, focus, and a strong will.nnIf you believe that you have all these skills, day trading offers an exciting and fascinating way to make a huge income. It\’s a job you can honestly consider fun, and if you have what it takes, it\’ll be pretty enriching, too.
