That so few succeed with daytrading is largely about many of them lacking the right qualities. Personality is an extremely important part of successful day trading.
“You have to be dictated and persistent but above all have an interest. It is a high threshold for profitability, and in order to get over it you have to spend a lot of time”.
Then it is important to have a good strategy, to look for wrong pricing is one of my favorites, to analyze the flow another.
“What is wrong pricing or not is individually assessable. One can say that you become better at discovering them the more experience you have ”.
But as important as it is to have a functioning strategy, it is to protect his capital. I rarely takes positions greater than 10 – 15 percent of equity.
A position can be from a few seconds to several weeks, but the goal is to own a securities as short as possible. There will be around 500 – 1 000 partial terminations, usually in 30 – 50 different companies every day.
I deals mostly, but mostly on slightly smaller lists. Then I also have some long-term defensive holdings. “I own these instead of having cash. The reason is that both are traded at high net worth, at present 18 percent, but it changes daily.
The long-term equity portfolio also includes holdings in some unlisted companies that are not close to a stock exchange listing for quite some time, and so some swing positions in a few weeks’ time. The distribution is about 80 percent long and 20 percent short.