So now you under stand what day trading is.
we are now ready to move on and start talking about the risk in day trading.
When trading shares or property, assuming you are not leveraged, you can only lose your initial investment if you make a poor trading decision and price moves against you.
Trading futures, on the other hand, carries with it the risk of losing more than your original investment because you are leveraged 100%
of the time.
However, the risk is easily eliminated by setting, and sticking with, a suitable stop loss strategy. This strategy is implemented at the time of entry. It is also essential to stay in contact with your trade. As intraday traders, that should be no problem.
Using these two simple rules, a sound stop loss strategy and monitoring your position, a trader is able to participate in highly liquid and volatile markets with minimal outlay and at no greater risk than trading stocks or property.
Sometimes day trading is the hardest way to go because it can be the highest risk. If you don’t want to site in front of the computer all day or night ling and still get a good return, then you can. I talked all about that in my latest webinar and you can watch it just but going to the Trading and investing home page, put your email in and BAM your there and you can site back and enjoy the video.
Happy Trading.
See you next time.
John Howell
Tags: Day Trading, Risk in day trading, Trading and investing
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Trading and Investing 4U, in preparing this post, did not take into account the investment objectives, financial situation and particular needs of the investor. Before making any decision about the information provided, you must consider the appropriateness of the information having regard to your objectives, financial situation, and needs, and always consult your advisor. Securities and Derivatives have inherent risks and any comments appearing here are general advice only and can involve high risk investment. Trading and Investing 4U has made every effort to ensure the information is accurate, however its accuracy, reliability or completeness is not guaranteed.
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