I talk a lot about all of the technicals that are required to be a day trader. I can tell you about exponential moving averages, simple moving averages, even VWAP and RSI indicators until I am blue in the face, but if you don’t have the right mindset then you will not be successful.
What mindset am I talking about?
Well that could mean a few things depending on what your goals are as a day trader. If you are day trading for financial freedom, then you should be focused on how to align your goals with that of day trading for your ideal mindset. If you just want to day trade to make extra money on the side, then you should approach day trading with that mindset of a side hustle.
I do want to caution you that day trading is not for the faint of heart, or for those who are not truly committed to learning everything that they can about the stock market.
Day Trading, like most activities that you can make money quickly from, is inherently risky. There WILL be some days that you lose money, and there will be some days where you do everything right and some trades just don’t go in your favor, but there is where your underlying passion must sign through.
I will go into the three main mindset tips that will allow you to be a successful trader.
Mindset #1: Have an underlying goal other than making money
In order to be successful, you can’t just be trading for the sake of making money. You will get burnt out very quickly, and you won’t be successful for very long.
My long term goals for trading is to be a teacher and mentor for other people to learn how to trade as well. I also want to create a portfolio of real estate and stocks that will allow me to reach financial freedom at an early age and escape the rat race that is common in the United States economy.
Mindset #2: Understand the losses are inevitable
To be a successful trader, you have to understand that everyday won’t be a profitable day.
The quicker that you can understand that, the more likely you are to be more consistent when doing your work.
Even the best stock traders have their bad days. Remember that.
Mindset #3: You won’t get rich in one day
It is a common misconception that you can make thousands upon thousands of dollars in the stock market every single day.
This is not typical. At all.
Me, being a somewhat experienced trader, only makes about $100 to $250 a day. I find that to be a realistic goal of mine, with a possible increase of my goal to $500 a day in the near future.
The point of sharing this is to get a realistic understanding of the type of money that there is to be made in the stock market before diving in with both feet.
If you want to learn how to make money from your phone or computer, like my Facebook Page The Centennial Investor and join our free private Facebook Group where you can connect with other stock traders like myself.
Thanks for reading!
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