A day trader must be realistic about the amount of work, discipline, tolerance to risk and luck that is needed to be successful. Top daytraders have a proven day trading system. Studies have shown that Day traders should never risk more than 2% of their float on any trade.
There is no fool-proof daytrading system. The press is full of stories about how dangerous day trading is. The benefit of day-trading can be summed up with one word: control.
A day trader may sell a stock if it goes down only two or three cents. Relying on out of date information to base your day trading decisions will result in poor trades. In order to day trade successfully, you must develop a trading plan and consistently stick to it.
An investor need to reflect on his profile and choose a trading approach which fits his personality. Weigh the risks and rewards against your current financial situation and future financial goals, and decide if day trading is for you. Day trading can be learnt and practised with absolutely no financial risk at all.
Day Trading can be very risky, so you should only trade money which you can afford to lose totally. Daytraders will tell you that raw cunning and nerves of steel are the key ingredients of their success. Don’t begin your day trading with money that you can not afford to lose. Trading successfully requires time, market knowledge and market understanding.