There is a lot to learn when it comes to being a successful day trader. Many people get into dray trading (or consider it) because they think that it is a quick and convenient way to make a lot of money in a short period of time. However, the opposite is true. To make a lot of money day trading, it takes serious time, training, patience, and practice. There are also different aspects of the trading process, and it is unlikely that you will be great at both. For example, in order to trade, you must be able to analyze the market to determine which trades to make, and you must also be skilled at managing the trades, themselves. These two functions are referred to as analyzing and trading. Are you and analyst or a trader? Read on to figure it out:

What does an analyst do? There are two types of analysis: fundamental and technical. Both are necessary to successful trading. Fundamental analysis requires that you study what is going on in the particular market sector that you wish to invest in. For example, if you are looking into pharmaceutical stocks, then you will need to read magazine articles, study company accounting records, read the news, listen to experts in the financial market, and do anything else to size up what is happening in the pharmaceutical market. Technical analysis involves reading stock performance charts to watch stock movement; this movement is used to identify patterns that can help you predict where a stock will move to next.

What does a trader do? The trader is the one who is actually responsible for purchasing and selling stocks. While this may sound simple, it is actually quite complex. A good day trader knows when to purchase, for how much, and when to cash out. The day trading market moves at lightning speed, so traders must be able to think and act very quickly. They cannot afford to get caught up in emotion, and must stick to a carefully thought-out trading strategy.

Because it is unlikely that you will be strong in both analysis and trading, you need a viable solution that enables you the advantages of both. One of the best ways you can overcome this challenge is to find a trading partner that balances you out. If you are good at market analysis, then you need to find someone who is get at trading, and vice versa. By approaching trading realistically like this, you stand to make a considerable profit in the fast-moving world of day trading. Make sure you are studying day trading with Tim Sykes and other successful investors so that you can get a better understanding of the market, what works, and your unique position within it.