Money Management is the key to successful stock day trading.
If you don't know this .. don't trade.
You need to understand Risk in terms of "R" multiples.. and risk a certain percentage e.g 1% of your total funds to trade. As you make money, you risk more.
I'm researching into increasing the risk fixed percentage model into a dynamic one - that is, when you're making money, risk even more. So effectively, your money will grow even faster.
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ReplyDeleteDay trading for beginners is like lion taming, except more expensive. It's a risky and challenging pursuit: buying stocks and
ReplyDeleteselling them again in
the same day, making money off tiny fluctuations in the price of a stock over a twelve hour period. For many
years the tools of day trading were not
available to the average investor: real time stock results, analysis tools and access to
instant trades.
http://www.livetraders.net/