Question: "Is Daytrading Right for Me?"

I truly do believe that daytrading is a superior way to play the market as opposed to a long-term investment strategy. Perhaps some of that thought comes from the fact that it's a better fit for my personality. However, in my opinion the potential to exponentially grow your account simply does not exist with a long-term investment strategy. That being said, daytrading can also be extremely risky and puts your capital at far greater risk than a long-term strategy. I believe that I've excelled as a trader because of a few key factors. Before deciding to pursue the path of a daytrader, you should honestly reflect upon your own situation and decide if this is right for you. There are three main factors that I think are necessary to give you a chance at succeeding:

• Ability to Watch Market Action During the Day

I consider myself extremely fortunate that I was able to dive straight into trading from home upon completing college. The previous summer, I had gotten a taste of what it was like trying to trade while simultaneously working a day job at State Farm. Aside from always looking over my shoulder worrying my bosses would notice I was off task, there was all kinds of software on the office computers blocking websites I needed, or the ability to download trading apps. I could have never succeeded as a daytrader had I been trapped in this reality.

If it had taken me longer to find success in the markets, my plan had been to find a night job I could do that wouldn't interfere with my trading. Today's world offers a vastly different opportunity for aspiring traders, with working from home quickly becoming the norm. A remote job would have provided me the ability to earn extra trading/living money, as well as stay in front of my charts and keep an important watchful eye on my plays. A good friend of mine put together a great course on how to find and quickly get interviews for jobs like this, so if working remotely while building your trading account sounds like a good fit for you, I highly recommend you check it out. 

• Ability to Stay Disciplined

I'll be the first to admit that I still have lapses in this area, and when I do it costs me money. However, I have overall been able to stay disciplined and stick to my set of trading rules. The ability to cut losses quickly, avoid over-trading, and not trade off of emotions (such as making a trade because you are "bored," or trying to make back losses) are absolutely essential to succeed in this field. Be honest with yourself, are you a disciplined person? Much like a poker player will go on "Tilt" after a bad beat, can you avoid getting emotional and reckless after taking a loss? This is a KEY area, so do not take it lightly.

• No Need for "Quick Money"

Daytrading is not easy, especially when you're first getting started. Everyone has a different learning curve, and I can only speak to my own experience; but when I was getting started, I took three months to watch video lessons before diving into the market. Despite this lengthy preparation, I found that once I was trading live it was a totally different game. Trying to identify setups in real time, plus battling against the emotions of having my own money on the line (this can really cloud your judgment in the moment), was not nearly as easy as I had expected. After four months of trading my small account, I found myself $1300 in the hole. From the day I watched my first video lesson, it took me a total of nine months just to claw back to break-even and another four months to have $10,000 in total profits. The point I'm making is do not expect to jump into this and be making thousands of dollars immediately. If you need fast cash, daytrading is more than likely not the answer.

Even if you meet these criteria, there are no guarantees in this game. I took a chance, and it worked out for me. There are plenty of experienced traders out there who are willing to try to help. But if you know that you can't stay disciplined or are just in this for a quick buck or out of desperation, in my opinion, your odds for long-term success are very low.