In most businesses, many hours are spent defining their Unique Selling Propositions. This is the "edge" which make these businesses unique. In day trading, you will need an "edge" to help you define what it is that makes you money on a CONSISTENT basis. If you think long enough, chances are that you will have at least one good "differentiator" which you can use to define your trading edge! You may not know your edge, however, so spend some time with this day trading stock tip lesson and ponder these areas when determining what sets you apart from all of the other traders in the marketplace:
Start with your personality traits and what makes you better than someone else:
- Are you faster on the keyboard than most other people?
- Do you have a background in one of the riskier professions (pilot, firefighter, etc.) so that you are comfortable with risk?
- Do you have more tenacity than other people you know?
- Are you able to blend humility along with decisiveness better than most people you know?
- Can you accept losses emotionally and still perform with precision?
- Are you extremely analytical?
For the more "functional" ways to determine your edge, ask yourself:
- Do you have new ways to use a specific technical indicator?
- Do you have better technology (faster, more robust, etc.)?
- Do you have specific trading education which most people do not have?
- Do you have any background with previous traders such as having been on the trading floor or trading pits?
- Do you have programming language experience to help you write programs to trade the markets?
- Do you trade around and/or associate with consistently profitable traders?
Again, these are just some ideas to get you started. Once you have defined your edge, develop day trading strategies around those traits so that you play to your strengths. While the market offers no guarantees of success, a trading style based on your strengths will increase your reassurance and confidence when trading in the markets.