Being able to trade stocks full time is not an easy job to accomplish it takes months to years of preparation and practice to be consistent enough to trade full time. Below is a list of differences on how a successful trader handles a situation and how a losing trader will handle the same situation.
ST= Successful Trader
LT= Losing Trader
ST= This trader wakes up at 7am and prepares for Pre Market action. Most news will start coming out at 7:30am-8am, a successful trader will constantly be looking through their scanners for recent news. If they find some hot news, they can get a jump on trading in Pre Market for some easy profit before the Stock Market even opens.
LT= Will wake up at 9:20am and will have only 10 mins to prepare and get ready to trade at 9:30am when the Stock Market opens.
Slow Trading Session:
ST= Will sit on his hands and wait for a play to develop. Right when you notice the day is slow this trader will atomically lean towards shorting or bounce plays, all positions will be on a smaller size than usual. If no stocks bring in volume or develop nicely, this trader has no problem not trading.
LT= Must trade everyday. Everyday to them is the day that they think they will make $5,000 off one trade. This trader lets emotions take over their trading.
Handling A Loss:
ST= Takes that loss as a lesson. It is only a failure if you are not willing to learn from it, Every loss is a lesson to be learned. This trader understands that they made a loss for one reason or another, if they can correct this mistake it will limit future losses.
LT= Gets mad, turns off computer, walks away from their computer without benefiting from the experience
Preparing For An Upcoming Trade:
ST= Studied the stocks fundamentals, chart pattern, looked over any news, and is making a trading plan. This plan will cover the entry, exit, stop loss and any unexpected breakouts and crashes. No matter what this trader is prepared.
LT= This trader reads message boards all day and takes advice from traders pumping the stock for their own benefit. Most messages will look something like “Buy now before its to late, You are crazy to miss out on this easy money making machine!”
Trading A Stock
ST= While trading, this trader is collective and focused. Constantly adapting to the stocks movement and changes. This trader plays the chart, not the emotion.
LT= Notices a stock has just spiked $2 and decides to jump in because everyone is buying. While in they are nervous, have anxiety, and do not have a plan. They are letting emotions, greed, and fear determine their trading.
ST= Locks in profits and takes the win. A win is only good if you can be consistently winning in the Stock Market. This trader knows it is time to get back to studying and it is time to set new goals to reach.
LT= Will lock in small profits and rush into another trade without preparing because they want more. Greed takes over.
Ending The Day:
ST= Will look over the Top Gainers and Losers for that day. This trader will study why these stocks spiked or dropped the way they did. They will look over news, chart patterns, and review their trades.
LT= 4pm hits and its time to catch up on some sleep!
ST= Sacrifices a few hours a day to watch video lessons, listens to a webinar, reads a stock related book. This trader stays focused even on their day off.
LT= Time to Party Baby!!! No studying is done at all.