There have been a lot of successful day traders who made it big on Wall Street. Their actions have been innovative with their teachings being intellectual.
A lot of these traders have entirely changed the way how traders operate these days. Some might be hard to understand, but they most certainly were game-changers.
Now is the time to deal with the question of what is a day trader. A day trader is an individual who buys and sells financial instruments within the same trading day, where all positions are closed at the end of the trading hours.
These successful day traders have proved to the world that nothing can stop you if you are determined enough to get what you truly desire. Overcoming all deterrents, and outshining every other obstacle in their path made them who they are now.
Luckily for us, these successful day traders have shared their success stories with us. By learning from them, you can escalate your trading strategies, steer clear of losses, and be more consistent with successful day trades.
Here are some of the best day traders of all time and their success stories –
Ross Cameron is a renowned day trader who gained success in 2016 by making $222,244.91 in a short span of time.
Cameron is the founder of Warrior Trading, which is a chat room designed precisely for day traders to interact with each other and grasp better ideas. It has been operational since 2012. Warrior Trading today has over 500,000 active followers and 450k plus subscribers on YouTube.
Points to learn from Ross Cameron
Cameron emphasizes on four things to learn from him –
Day traders must know their limitations and recognize their falling energy levels and move away from trading to avoid having any adverse effects.
Day traders also need to know their time of peak productivity. Cameron claimed that he was most productive between 9:30 and 11:30 am, so he stuck with those trading hours.
Every day trader needs to understand the critical factor of risk management. They need to set a bar for their maximum loss, i.e., the highest number they are willing to lose.
Cameron claims to get into trades that he is 99% sure of and then adjusts a fixed point to stop.
Day traders must know what they wish to trade in when it comes to trading securities. Always be on the lookout for stocks that move up to 20 to 30% in a day. You must identify these stocks before their activity rate increases to this level.
Cameron says that he looks at other stocks that have had similar behavior in the past and compare them to the available stocks.
An efficient day trader must keep his trading strategy simple. Day trading strategies require to be easy to be done repeatedly throughout the day.
Brett N. Steenbarger
Brett N. Steenbarger has authored many books, a lot of which emphasize the concept of trading psychology.
Not just an active trader, Steenbarger is also an associate professor of psychiatry and behavioral sciences at the SUNY Upstate Medical University.
And not just trading and writing, Steenbarger also coaches traders who work for hedge funds as-well-as investment banks.
Points to learn from Brett N. Steenbarger
All traders must learn the trading psychology rules from Steenbarger. Steenbarger teaches ways to break bad trading habits.
One of the most famous books by Steenbarger, ‘The Daily Trading Coach: 101 Lessons For Becoming Your Own Trading Psychologist’, is something every day trader must perhaps read.
The book deals with challenges that traders face each day and talks about practical ways to work around them. It also teaches traders how they can become their own psychologist and coach.
And while you’re on your way to create a name for yourself in this domain, Alpaca can help you get started with free stocks while trading as a newbie.
Andy Krieger is regarded as a legend who made $300 million for Bankers Trust when he shorted the New Zealand Dollar in the aftermath of the ‘black monday’ back in 1987.
Black monday was a dreadful event, where the Dow Jones Industrial Average lost 22% value in one day.
However, traders like Krieger saw significant opportunities while everyone else panicked. His aggressive yet strategic trading led him to make this breakthrough in trading.
Krieger quickly spotted that as the value of American stocks hit all-time lows, most of the traders had started moving money into foreign currencies.
Kreiger considered the New Zealand Dollar to be quite vulnerable.
He then made $300 million on one single trade. This strategy was soon undertaken by other as-well.
Points to learn from Krieger
The biggest lesson to learn from Krieger is how fundamental analysis can sometimes be invaluable.
Krieger followed the money and ended up discovering an excellent opportunity to exploit. His devised strategy was simple-yet-efficient.
We can also learn the significance of looking for price action. Funds were being lost in one expertise and redistributed to others.
He also found this opportunity to look for overvalued and undervalued prices. When something becomes overvalued, the price gradually descends towards a decline.
Timothy Sykes became a renowned day trader when he converted $12,415 into a profit of $1.65 million by day trading. Being a penny stock trader, he proved that you could truly work your way up from almost nothing.
Since his grand success, he has launched his website, helping others to learn how to trade like him.
Sykes is very active online, and thus, you can gain a lot by going through his websites and his social media platforms. These platforms include his investimonials.
Investimonials focuses on reviewing companies that cater to financial services. You can check the reviews of some brokers online through their website.
Points to learn from Timothy Sykes
Sykes claims that day traders should emphasize on small gains over time, not on massive profits, and never to transform a trade into an investment.
He also says that the higher you study, the better the odds of making money.
Sykes also believes that it’s okay to suffer some losses, but eventually, learn from them.
The domain of trading is vast, and after entering the realm of ambiguity, its common to get confused and lose more money than gain.
Thus it becomes imperative that you focus on some tips mentioned by the successful day traders of all time and abide by them.