Limiting Risk - Profitable Day Trading Procedures

Tips and techniques from expert traders designed to make traders more successful and help them to eliminate/limit the risk involved in trading.

Introduction
The biggest concern about day trading is the high level of risk that is involved. Yet there are a lot of individuals who day trade. One of the reasons why this could be so is the potential of making a lot of money in a short time. A day trader must learn as much as possible about trading and practice as much as possible as they develop and implement winning day trading strategies. As a result, there is no shortage of websites offering some form of day trading service for a fee. If you intend to day trade you must be aware of the following caution.

Proven Strategies
However, here are some proven strategies a trader can use to limit his/her risk in day trading. These are summarized as per the video above:

Use or develop a proven systematic approach to minimize or eliminate the risk in day trading. This can be done with discipline and patience. This system does not have to be perfect. All you need is a 60% winning percentage with smaller loses than your gains. Always utilize stop loss. Do not hold any position over night.

Take the advantage by using a speedy/quick trading system. This helps in getting filled at the best price when you place market orders.

Trading Procedures

1. Find stocks that are actively trading...
2. Monitor the stocks that are beginning a trend...
3. Look for the set ups that you know that works best for you...
4. Be super-selective... then trade...
5. Trade as much shares as possible...
6. Exit a wining trade before it turns negative...
7. Aim to make 5 cents or more per share per trade...
8. If a trade turns against you, exit with a zero or a 2 cents loss per trade...
9. Do it again (1- 8).

Caution
According to the Federal Trade Commission, 'How-To' Products Promise Extravagant Profits, Few Risks, While North American Securities Administrators Association Says 70% of Day Traders Lose Money. Please visit the FTC at the link above. The information provided on this site is for educational purposes only and does not give trading, investment, tax, or legal advice.

The information presented here is not specific to any individual's personal circumstances. Because of the nature of financial leverage and the rapid returns that are possible, day trading can be either extremely profitable or extremely unprofitable, and high-risk profile traders can generate either huge percentage returns or huge percentage losses. Anyone who chooses to use the information here in real trading does so at their own risk and will be responsible for their gains as well as their losses.

Related Information: Learn to make new money and manage it at LaBorde Financial.com.