Day trading is not for everyone. However, for those who know what to do and don’t mind paying the fees associated with hiring a brokerage, it can be quite lucrative. However, before getting in too deep, it is a good idea for someone new to this concept to better understand the three types of traders there are. Here the three types are outlined and explained. For those new to the arena, getting as much information ahead of time as possible is the best way to find success.
Those who Bleed Money
These are the traders who are unable to find a winning streak. Regardless of what they do, they always find that the market – somehow and some way – has come out on top. In most cases, the majority of traders who are bleeding money are those who are new to day trading and who have no real market experience, but a ton of (soon to be crushed) optimism. This is why it is such a good idea to hire a brokerage firm to help with trading in the beginning.
The Boom-Bust Trader
This is where quite a few traders (even those who are now successful) spend quite a bit of time. These are the individuals who know what to do and when to make a move; however, they blow up an account that took several months to build in just a few days. There is good news if a person finds themselves in this cycle. They are just a few tweaks away from making it to a successful state.
The Money Makers
Unfortunately, this is an elite class that is only made up of about the top 10 percent of traders. These are the individuals who are able to consistently make more and more money, month after month. Reaching this level takes time and losses, so be prepared.
There is no question that day trading can help a person reap impressive returns. However, it is a process that takes time, effort and money. More information about day trading and how to make it to the top 10 percent can be found by watching the YouTube channel from Markus Heitkoetter.