Lifestyles of Day Trader
One of the key benefits of a trader’s lifestyle is flexibility. Traders can work from any computer in the world as long as it has an internet connection. They can choose how many hours they wish to work per week and take vacations when it pleases them (usually when the market action is slow). Some traders trade solely in the morning, some sleep late every day and trade only in the afternoon.
It is important to realize that the stock market spends most of its time trading sideways. So after a trader finishes playing a big move up or down, it is generally a good time for him to take his profits off the table and go on a vacation. The market tends to consolidate after any large move, so taking a large gain and then trading immediately afterwards is usually a costly mistake, since it is more difficult to make money in a sideways consolidation trend. Trading in this environment can be the easiest and fastest way to lose all your hard-earned profits. There are times when it is more profitable to stay out of the market and sit on the sidelines.
It is sometimes difficult for traders to plan a holiday. Often they will just wait for the market to tell them when to go. It could be any time of the year, but traders should expect to take off the entire month of August. This month is the slowest time to trade in the stock market because a large number of those in the industry are on summer vacation. As the market has a very low volume of transactions, it can be easily manipulated. It is therefore best to forget about trading in August.
Day trading as a job is very stressful for both the body and the mind, and regular breaks are essential. Enjoying a few vacations a year will actually make you more money than if you do not take any holidays. Trading when you should not be in the stock market will typically cost you twice as much as you would have spent on a nice vacation.
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