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crave winning and abhor losing. They love the "action" DAET provides. The intensity of the game and the possibility of high financial rewards make DAET exhilarating for the people who can handle intensity and exhilaration. DAET is not a game; it is serious work with large sums of money routinely changing hands. To participate effectively you must be ambitious to the point where you are driven, whether you openly show it or are more controlled in appearance. |
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DAET traders are in head-to-head competition with market makers, institutions, and the general public as well as with other DAET traders. DAET is perhaps the most competitive arena outside of professional sports. And just as you do in professional sports, you know the results at the end of the game (trading day). All the traits described previously are needed in order to put you in a position to compete. However, having those other traits does not necessarily mean you have a competitive nature. The desire to win and succeed must be present if you wish to enter the DAET arena successfully. |
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DAET traders normally go home flat or close to it at the end of every trading day. On balance, Direct Access Electronic Traders do not hold a position overnight unless they have a very good reason to do so. It is normal for DAET traders to close out all positions prior to the close of business every day because they do not want to (1) tie up capital overnight and (2) subject inventory to overnight price fluctuations. At tomorrow's opening, the preopening situation and market-maker markups will tell you whether a stock is a buy or sell. |
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If you hold stocks for a longer term than intraday (especially overnight), then you have become an investor rather than a day trader. Investments involve a longer-term mentality and outlook than day trading, which by nomenclature is very short term. I tell people that if you want to be an investor, try real estate, mutual funds, and bonds. Or at the very least, |
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