juliuzseizure
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When you trade, you implicitly assert that you are willing to take on risk. This risk is something which cannot be eliminated, and in a day trading scenario is a bit harder to manage.
The most basic rules would be to put stop loss orders for an acceptable level of loss you are willing to take on the downside, and not let emotion or sentiment about the stock affect that.
On the upside, it is always good to know what is an acceptable level or return, and set triggers to sell atleast part of the holdings that point. There are a variety of methods and strategies you could employ to manage risk. You can look at hedging your positions with options, and a good reading would be the book 'Options Futures and Other Derivatives' by John Hull. |
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Mike S
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One thing research has taught us... you just can't reliably time the market on a regular basis. Sooner or later, surprises emerge and you get burned. So my advice is to stop the day trading and be a long-term investor. Take it from Warren Buffet who buys and holds... and you'll soon see his wisdom when it comes to making money. |
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muncie birder
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The best way not to loose money day trading is not to day trade. Only about 5% of day traders actually continually make money at it. The rest go broke. |
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Anonymous...
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you can trade agressively but use a more realistic holding period....day trading by its very nature depends on assets that are high in volatility (vol). this inherently requires day traders to search for high vol. stocks. well guess what: high vol stocks are usually questionable business models or are having problems or are penny stocks.... |
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dufus61603
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You'd be better off if you bought and held over the nasdaq or the nyse. Currently, about all that you're doing is making your broker and the notorius irs happy. |
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cordefr
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People loose money because they do not have a strategy and money management rules in place. And more people loose money because they don't have the discipline to stick to their own rules.
What might help, is making notes, immediately after a trade is closed out. Why did you take it, why did you get out? Take a snapshot of the chart just after get in and out.
And in the evening compare what you thought and did with your rules. |
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Ryan W
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Anyone claiming to want to trade, must be a technical analysis guru. (How to read a stock chart to determine next move). Also, from my experience, trading is done better if you choose a set of stocks to trade in and out rather than always starting fresh. That way you get familiar with the stock's 'groove'. Investors on the otherhand area always looking and searching new things, new value, etc to invest to long term. At least smart ones do. I do both investing (IRA) and trading (taxable, risk money). And, I find that I always outperform in trading. However, I have spent years getting to the skill level I have. |
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dinu_pawar
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use medved quotetraker.com for real time chart signal
& follow it with stoploss |
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Frank Castle
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I suggest you to hire a Daytrader.
Top 5 Answerer. |
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