Discover An Effective DayTrading System. Even if you`re starting out with a small day trading float, you should practice good money management. Day traders should only risk money they can afford to lose.
You need to position yourself so that you can endure long strings of losses, and maintain your day trading system. If you have a nose for business, guts and a sharp instinct for how the market shifts, then possibly day trading may be suitable for you. In order to day trade successfully, you must develop a trading plan and consistently stick to it.
The most important question of a Trading System is how much to invest and how many positions to trade at the same time. Day trading comes with a strong wealth-warning. Those who do day trading usually stay glued in front of the computer and monitoring which stocks have a fast turnover.
Day trading is really about having fair and equal access to the markets through technology and being tuned into the market every day.
A study in 1999 found that 70% of day traders lost money. Keep in mind, that it takes approximately $100,000 to day trade successfully and see profits.
By definition, day-trading means you exit at the end of the day, so your profits must at least cover your commissions and slippage. Day trading can be learnt and practised with absolutely no financial risk at all. No system wins all the time. So bear this in mind when you choose your day trading system. For the sophisticated investor day trading may be safe since such investors know what they are doing and are willing to absorb the risk of losing money.