Day Trading Is Not All That (Part 2)

In the last post, I presented an excerpt from Louis Horkan Jr. seen on the About.com website a couple years ago. Today I will comment on that based on my personal experience.

Unlike Horkan Jr., I am not a day trader. What I do is better described as position trading. I prefer to check the markets once per day.

Having said that, I trade full-time for a living and I treat my work as I would any other business. I track my hours. I work a regular schedule. I work mainly from my home office as opposed to “anywhere [there is] an Internet connection.” No coffee shops unless I’m meeting another trader(s) after market hours to discuss strategy. No beaches (although I’m not in Florida or California). No trading at gyms.

Also pertaining to business is wardrobe. I work at home but I do not lounge around in shorts and flip flops. In the warmer months, I am usually barefoot! In the cooler months: sweats. I’ve heard a theory that when working routinely from home, a way to prevent losing personal “edge” is to dress the part of a professional. I think button-down shirts, slacks, and even a tie can psychologically benefit some people. In my case, I do not currently have a need to do so but I keep it in mind.

I agree that many people attempt trading as a business without an adequate understanding of capitalization, in particular. I strongly believe a full-time trader needs savings on which to live until profits are consistent enough to bear the burden of ongoing living expenses. When trading profits are required to pay the bills, pressure to perform can be substantial. This stress is enough to crack someone with inadequate experience who still has much to learn about the craft.

I will give some concluding thoughts in my next post.