A day trading guide can help you navigate the minefields of day trading.
Unlike long term investors or swing traders, day traders close out open positions by close of the market. Because overseas markets can move dramatically overnight, anyone carrying an open position overnight is at the risk of large open gaps and potentially large losses.
Stop losses are not a viable tool when holding a position overnight. There is very little liquidity in overnight sessions, and price spikes can trigger stops.
Day trading minimizes overnight holding risk while still giving the day trader ample opportunity to catch intra-day moves.
Day traders lose the opportunity to profit from overnight moves in their favor, so most day traders utilize high leverage to magnify intra-day returns.
A day trading guide can help you determine optimum leverage and position sizing.
A good day trader can make substantially more money with smaller amounts of capital than a buy-and-hold investor. However, because a day trader relies on playing the probabilities, there are inevitable losing streaks.
However, a good day trader keeps losses very small and lets profits run for 2-3x or more of the amount risked.
A good day trading guide can help you identify high probability set-ups, coach you to set aside fear and pull the trigger with confidence. A day trading guide can also help you identify high return targets and exits and provide direction on when to close positions for profit.
On the surface, day trading looks easy. However, most traders discover that without a good day trading guide, they break even at best and most lose money.
But, like in any niche, a day trader can benefit from a mentor.
Discover why the best traders don't go it alone and how a day trading guide can shave years from your learning curve and save potentially tens, even hundreds of thousands of dollars in losses.
Sunday, October 25, 2009
Day Trading Guide
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